In line with the Sultanate of Oman Logistics Strategy (SOLS) 2040 objectives to develop the country’s logistics sector and transform into a global logistics and supply chain hub, the sultanate is continuously developing its capabilities to keep pace with rapid changes across the Middle East market while focusing on streamlining processes to improve its competitiveness, increase the sector’s GDP contribution, generate job opportunities for the Omani workforce, and implement the latest technologies.
As part of its contribution to realising the country’s aspiring vision, Al Madina Logistics Services Company (AMLS) – a pivotal player in the Omani logistics landscape – is driving the sector’s evolution by facilitating trade, streamlining transit times, and ensuring the integrity of import and export products handled during inspections.
The company’s state-of-the-art dry ports and vast expertise in cold chain operations have been instrumental in boosting the overall competitiveness and growth of Oman’s logistics sector by raising safety and quality standards for food shipments.
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Al Madina Logistics: Spearheading Oman’s 3PL and dry ports sectors
AMLS’ $9.10 mn Sohar Hub to boost Oman’s food import and export capabilities
In this exclusive interview, AMLS’ group CEO Mahmood Sakhi Al Balushi and group COO Nader Hakim explain how the company has emerged over the last decade as Oman’s leading third-party logistics (3PL) provider specialising in cold chain and food logistics, as well as how it combined its 3PL expertise with dry port operations to gain a distinctive advantage in the rapidly developing market.
The company’s flagship dry port, Muscat Container Depot was established in 2010 as the country’s first inland port with Container Freight Station services.
According to Hakim, the dry port has been instrumental in facilitating trade and reducing transit times for cargo moving in and out of Oman.
In 2020, AMLS further expanded its dry port capabilities with the launch of the Mazunah Dry Port, located at the Mazunah Freezone, which serves as a cross-border gateway between Oman and Yemen.
In 2022, Al Madina Logistics developed and launched operations at its unique dry port, Sohar Logistics Hub, which facilitates the flow of goods between Oman and other countries, mainly through land borders and Sohar Port.
According to Hakim, dry ports are logistics hubs established in strategic inland areas as extended gateways to the country’s land borders, seaports, and airports, allowing for faster and more efficient cargo handling and reducing the time and costs associated with traditional clearance processes.
“Being cold-chain compliant and designed from the ground up to ensure that the products being inspected are kept fresh and safe for consumption, AMLS facilities are particularly suited for import and export inspections, especially of food products,” he says.
Supporting Oman’s vision
On his part, Al Balushi stresses that AMLS is committed to driving innovation and improving efficiencies in the logistics industry by implementing cutting-edge ideas and technologies.
“Our dry ports and bonded services are unique in their approach and capability, especially in food imports/exports inspections and quality assurance activities, owing to our expertise in cold chain operations,” he explains, adding that “introducing on-site food laboratories as an integrated part of the Sohar Logistics Hub is one example of a differentiator driving workflow efficiency.”
Al Balushi further emphasises that AMLS’ strategic vision is aligned with SOLS 2040’s ambitious goals to transform Oman into a global logistics centre and to increase the sector’s contribution to the country’s GDP to 14%, as well as expand the employment opportunities in the logistics sector to 300,000 by 2040.
“With our passion for logistics, we are a dedicated team working to build better logistics facilities and services in line with Oman’s national logistics objectives,” he adds.
Tailored solutions
Nations that trade with one another often use a system of mutual audits to assess each other’s quality of inspection process, giving them a grade to represent their inspection performance. Higher grading helps to facilitate larger trade volumes and ensure smoother import procedures.
According to Al Balushi, one of the key evaluation points is the capability of the inspection hubs, and to this end, AMLS has welcomed many country delegations to its facilities, who have commended their features and functionality as well as the advanced controls and systems in place.
This, in turn, has positively impacted the country’s economy by helping improve the flow of goods and services and increase Oman’s exports and competitiveness in the global market.
“This innovative approach to logistics offered AMLS’ 3PL customers a complete solution from freight forwarding and primary transportation of consignments to inspection and customs clearance at dry ports which are integrated with multi-temperature storage chambers (bonded and general cargo) for storage, to the last-mile distribution of goods to their end destination,” Al Balushi notes, highlighting that the company’s one-stop-shop approach has offered its clients enhanced cost-effective efficiency.
“With our passion for logistics, we are a dedicated team working to build better logistics facilities and services in line with Oman’s national logistics objectives.”
Mahmood Sakhi Al Balushi, Group CEO, Al Madina Logistics
Proprietary technology
According to Hakim, AMLS has streamlined the processes at its dry ports in several ways, including custom-built applications, by integrating the inspection/clearance workflow with 3PL warehouse management systems (WMS) and billing systems to ensure seamless and fully digitalised processes from arrival to payment and clearance.
Elaborating further on the value that AMLS’ solutions bring to the market, he points out that the company’s proprietary software and automation of the workflow not only improve efficiency but also ensure accurate and consistent inspection of goods.
“This is essential for maintaining food safety and further enhancing Oman’s reputation as a producer of high-quality food exports,” he reveals, noting that the government has been working closely with AMLS to develop and implement new regulations and policies that will help to improve the country’s logistics sector. “This helped to create a more conducive environment for businesses to operate in and will contribute to attracting more investments into the country,” he adds.
The company’s steadfast commitment to innovation and efficiency was applauded by the government of Oman. According to Al Balushi, AMLS’ Muscat Container Depot received the Al Roya Economic Award for Best Private Sector Project in Oman in 2015. Moreover, the company’s Mazunah Dry Port went on to win the Al Roya Economic Award for Best Investment Project in 2022, after just two years in operation.
Future vision
Tapping into the company’s future growth plans, Hakim confirms that Al Madina Logistics will focus on further streamlining the systems within its existing dry ports, as well as developing new logistics hubs, revealing that the firm has inaugurated a new technology division to further consolidate its offering of integrated logistics solutions.
The new division will focus on internal research and development (R&D), information systems enhancement, and experimenting with new technologies that can benefit the logistics industry. “This concept has grown into a technology arm, a fully owned subsidiary that continues its R&D mission while also providing Software-as-a-Service (SaaS) ERP and WMS that provide flexible, affordable and powerful functionalities to SMEs, saving on the need to invest in fully-owned on-premise applications, databases, and hardware,” he explains.
Hakim further underlines that while the price point was initially the main point of attraction in the fast-growing multi-billion-dollar SaaS industry, many businesses have now realised the cybersecurity benefits that come with outsourcing ERP systems such as WMS, adding that with more cyberattacks taking place, it is becoming ever more cumbersome for companies to upgrade their IT security infrastructure.
“For many, it makes more sense to have a cloud-based system such as SaaS, wherein the applications and data are far more secure, with backups and redundancy in place, at a more affordable cost than going alone,” he says.
As we bring our interview to a close, Hakim emphasises that AMLS’ years of expertise as a logistics company have largely helped to create unique applications, based on its day-to-day operations and practices.
“In essence, we are the anchor customer for these products and have tested them throughout the past decade with complex 3PL and 4PL requirements,” he notes, concluding that this has given the company confidence in their capability and effectiveness in addressing the customers’ distinct business needs.
