Cargo Village to come up at Muscat airport; to increase volume of goods, revenues
Oman’s push to expand its logistics sector has moved one step towards fruition with work underway to prepare feasibility studies for a Cargo Village at the Muscat International Airport. The project will particularly enhance air cargo so as to increase the volume of goods and revenues by approximately RO30mn by 2020.
Cargo Village is one of over 120 projects proposed for development in Muscat as part of the Tanfeedh Programme. According to the Implementation Support & Follow-up Unit (ISFU) of Tanfeedh, work has started to prepare the business model and feasibility studies for one of its kind project that aims to improve air cargo operations for both export goods and goods in transit.
Air transport is a promising sub-sector of the logistics sector and focusing efforts on this area would make it possible to expand the sultanate’s international destination network and to improve air cargo operations for both export goods and goods in transit, Tanfeedh outlined in its handbook on promising sectors.
“The movement of goods in Oman is impacted by a shortage of warehouse, which reduces the overall operational efficiency of existing warehouses. Therefore, this initiative aims to facilitate the movement of goods at Omani airports and identify freight forwarders for specific geographic locations in order to increase operational efficiency,” stated Tanfeedh.
The Cargo Village project consists of establishing an air cargo terminal for import, export, re-export, postal shipping and transit centres. The village will be equipped with all public facilities to carry out storage and shipping operations made by owners or tenants of already established buildings and facilities (warehouses, storage centres and units, parking lots, etc). The Cargo Village would be the first destination for companies specialising in air logistics activities. The project also aims to provide cold storage, general warehouses (bonded customs warehouses), and multifunctional rooms, as well as choosing the logistics packages.
“All these measures will ease congestion and possibly enable expansion to improve cargo operations at the airport, enhance cargo handling, and generate additional revenue by providing additional services such as packaging,” it added.
Tanfeedh observers noted that in order to promote multimodal transportation in cargo handling, the village project requires the creation of multiple modes of transportation that operate round-the-clock to support shipping and packaging on delivery times.
“Therefore, developing the infrastructure will require a linkage with communication and transport equipment, which will help provide telecom services, energy, and assistance tools. It will also help ease congestion by using the Inter-Model Connections System.”
Tanfeedh programme has also outlined to increase the number of air cargo carriers. “This initiative aims to increase air cargo capacity by approximately 180 tonnes for exported and imported goods. It will also establish a cargo hub between the Sultanate of Oman, Europe, the United States, and East Asia.”