Friday 19 / April / 2024
Muscat: Without a doubt, trade and transportation of goods and services form the lifeblood of any economy, large or small. Until today, trade in and through the Middle East remains at the heart of the global economy.
For example, 30 per cent of the world’s trade is transported through the Red Sea; however, a lot of it does not stop there. Like a freight train on the move, it just keeps going. Even if shipments stop, border crossings are a major obstacle, holding shipments for customs clearing and taking up valuable time. As a result, 38 per cent of transport industry costs are spent on "unofficial levies" in a bid to speed up clearing processes.
Simultaneously, the region has seen large economic shifts in economy, technology and infrastructure. Consumers want to be able to order goods from global online retailers and get it delivered within the hour.
Companies want access to machinery, knowledge and technology available overseas. Gone are the days of products being made for a single local market. Phones, cars and manufacturing components, to name a few, are now made for the global market.
To meet the demands of modern lifestyles, there is pressure on the global logistics system to move goods and services faster than ever before. Increased regulations are an attempt to integrate and streamline cross-border trade to ensure safety and security across various levels.
Oman’s growing position
The GCC countries recognised the importance of joining the TIR system (a globally applicable international customs transit and guarantee system), with Kuwait, Qatar, Saudi Arabia and the UAE already signatories, and Oman set to join soon. Oman has been asserting its position as a key player in the trade region for some time now. Oman’s strategic location as a trade hub and its dynamic investment strategy to become a logistics leader over the coming years, both regionally and globally, make it an ideal venue for engaging transport and trade leaders from around the world at the International Road Transport Union (IRU) World Congress.
Trade brings stability
There’s also a more important reason why trade and infrastructure are so important. They are a key driver for peace and prosperity. More trade translates to more jobs across industries. In turn, higher local employment encourages the development of smaller and medium sized businesses, which are the backbone of every growing economy. Those businesses then need more access to trade infrastructure, to buy their supplies and sell their goods.
Strategic importance of collaboration
As a collaborative umbrella organisation, Asyad is the most comprehensive end-to-end logistics provider in the Middle East, covering ports, free zones and multimodal transportation. They are a prime example of how an open dialogue can help overcome some of the key trade obstacles in the region. They recently started working on a pre-clearance process that allows traders to clear their goods before arrival in Oman. In 2018, traders were able to pre-clear 14 per cent of the imported shipments and the industry is aiming to increase that rate. Asyad works with an open-door policy and regularly encourages the business community to discuss possible improvements, raise issues and propose solutions to improve the performance of the sector.
To continue the dialogue, from November 6- 8, 2018, Oman will be hosting the world’s heavyweights in transport at the IRU World Congress 2018 to debate and solve transport and trade challenges.
The World Congress is organised by the IRU, the world’s only transport trade association, and hosted by Asyad, Oman’s leading provider of integrated logistics services and the Omani Ministry of Transport and Communications.
