Thursday 26 / December / 2024
Muscat: A thriving black market in door-to-door delivery needs to be throttled so that Omani firms can survive, according to transport bosses.
Black market drivers are coining it in delivering goods from across the GCC to Oman residents but registered firms are losing out as they can’t match their prices.
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Industry executives called for the criminalising of the “hidden” trade at a meeting with Oman’s Chamber of Commerce and Industry (OCCI) yesterday.
Residents living in Oman who want to have goods delivered from stores across the GCC often choose the cheapest option – and that usually means an unregistered delivery company.
Registered Omani companies are now calling on the country’s chamber of commerce to ban the black market trade, Omanise the sector and have government agencies monitor drivers and their cargo.
Said bin Saleh Al Kiyumi, the Chairman of OCCI, and road transport bosses met yesterday to address issues facing official hauliers in the Sultanate.
Citing the chamber’s own statistics, Al Kiyumi said they had records of more than 11,000 road transport firms in the country, while the Manpower Ministry listed just 62 officially registered companies in the same sector.
The need for a clampdown was echoed by a spokesman at the Indian Social Club in Oman, who says enforcement is required if Omanisation is to succeed.
“There’s a lot of undercutting going on, there’s a grey market with regards to transportation here, and it is quite prevalent,” the manager said.
“I think they rarely, if ever, register with the concerned entities. I think the government has to stamp them out, because if they don’t do that, the grey market will definitely be privileged.
“Once this hidden trade is limited, then the transport sector will eventually be on track in terms of legal practices.
“In the long term, Omanisation is a reality, since it will help the people of this country move forward, so transport must be regulated, and authorities must put their foot down,” he added.
Transport bosses argued that the sector should be fully Omanised to cut down on rogue hauliers and to ensure Omani firms get all business from the country’s ports.
They also suggested to the chamber of commerce chairman that expats should be prevented from investing in trucks, equipment, and contracting in the road transport sector, calling for the trade to be fully Omanised.
Abdullah Khalid Qalhati from the Golden Company for Trading, Contracting and Land Transport in Sur, called for direct involvement from government agencies beyond just the Chamber.
“We should use the opportunity of such a meeting to invite the Ministry of Trade and Industry, the ROPolice, the Ministry of Finance, the Ministry of Manpower, and ground transport authorities. We need a complete audience for our issues to be heard,” he said.
“I support the sector as a whole, but cannot support demands that would benefit one faction of the sector, and hurt others. These demands need revision and need to be reasonable,” Al Kiyumi told a delegation of hauliers.
The “hidden trade” within the sector and resulting competition from expatriate workers – able to undercut registered firms – is damaging the industry, bosses said.
“We must combat hidden trade with all legal means, because it affects the Omanisation of the transport sector,” one company boss said.
“After hearing the claims, most of them are concentrated in financial challenges and poor regulation of the transport sector. The chamber’s statistics indicate that there are 11,147 companies operating in ground transport, with Muscat Governorate as the leading area for land transport companies, with about 3,906 transport companies. This is followed by North Batinah with 2,105.
“The Ministry of Manpower database, on the other hand, indicated that there are 62 land transport companies with 928 Omani employees and 137 expats,” the Chairman said.
“This shows that it is not necessary to have a (registered) land transport company to carry out land transport activities, which reflects the existence of imbalance and discrepancy in numbers between related agencies,” the Chairman added.
Transport company executives also suggested that government agencies should be at the entrance of each sea port, in order to distribute work and prevent trucks from neighbouring countries from entering.
Chairman Al Kiyumi agreed that Omanis should have priority for transport work in the ports and industrial areas of Oman, but said the entire sector should be reorganised properly.
“We don’t disagree with the importance of criminalising ‘hidden trade’, but there must be regulatory rules put in place in order to limit hidden trade. Hidden trade should not be blamed on expats, rather on Omanis who make it easier for hidden trade operations to spread. We need to organise the sector for future work, by collecting accurate data and creating a regulatory mechanism,” he said.
Mohammed Al Rahbi, of the Mohammed Al Rahbi Company, recalled His Majesty the Sultan’s speech at a forum in 2013, where he addressed the issue of hidden trade hurting the Sultanate’s economy.
“Ever since that speech in 2013 until today, little has changed. It has been four years, and we, the business owners, are still blamed for the issue of hidden trade. We are not the problem — the law has not been enforced. If there is a criminalisation to this issue, like in Saudi Arabia, then we will see actual results. People are afraid of punishment and crime, and nothing else will deter them.”
The Chairman and transport bosses agreed to form a joint committee to study the issue.
“The reality of the situation indicates two main issues - the cash flow of transport companies, and finding job opportunities within the sector. The issue of the transport sector is vast, and these problems are not caused by any delay in government plans. However, the transport sector is a vast sector with many opportunities, that can be taken advantage of if organised and regulated in an official way,” Al Kiyumi added.
Enam Chowdhary, a Bangladeshi private transporter said, “It is not illegal trade but rather a convenience for people who need it desperately. I don’t mind if we have to register with the government for this. I will be happy to do that.”
