The road to growth

With lucrative opportunities to develop its operations in Oman, Al Madina Logistics Services (AMLS) has prepared a long-term expansion strategy, with exciting warehouse, fleet and technology developments in store for 2009.

At a time when the global recession has raised alarm bells for the logistics industry in developed markets such as Europe and the United States, it seems the Middle East is still considered a viable region for market growth in the coming years. The likes of Saudi Arabia, Kuwait and the United Arab Emirates have undoubtedly received the lion's share of attention, although it's important to remember that solid growth prospects can be discovered in neighbouring countries too.

In particular, the Sultanate of Oman has been identified as a hidden gem for the regional freight sector, with a recent report by Business Monitor International (BMI) forecasting an average increase of 4.5% per annum between 2006 and 2010.

Although the long-term benefits of such growth are obvious for the country as a whole, there is also a domino affect for logistics firms with operations in Oman.

Perhaps taking the lead of Agility in Kuwait and Aramex in the UAE, which have capit-alised on the evolution of their domestic markets to become global heavyweights, a number of local firms in Oman are preparing themselves for similar patterns of development. Leading the way is Al Madina Logistics Services (AMLS), a relative newcomer to the field that was recently established in partnership with players from the private and public sector.

"For a long time now, companies around the world have been moving towards an outsourced model for their supply chain operations and that trend has now arrived in Oman," explains Mahmood Sakhi Al Balushi, chief executive officer of AMLS.

"We have been established to capture this exciting opportunity by partners such as Al Hosn Investment Company, Gulf Warehousing Company, Trans Gulf Holding and other prominent investors."

With an impressive pedigree of ownership, the company has grand ambitions to establish a warehousing network throughout the Sultanate, which will measure 275,000m² in total and host a complete range of supply chain solutions, including storage, transportation and consultancy services.

"We've reached a fundamental stage in our development strategy. In addition to evolving the AMLS service portfolio to meet customer needs, we're laying the foundation for short-term and long-term growth," adds Al Balushi.

Although the warehouse developments have been identified as the centre pieces of the company's development strategy, they will be complemented by a major fleet expansion, technology overhaul and entry into other Middle Eastern markets within the space of a year.

"There are different aspects to our planned development, but everything is connected and will be conducted in a seamless manner," states Sanjeeve Thavarajah, senior manager of AMLS's supply chain division. "For example, we cover the whole of Oman at the moment and recently announced a 30,000m² warehouse in the city of Barka, west of Muscat, which will be iconic following its completion.

Our coverage will be extended to the entire GCC region by the fourth quarter of 2009, with our fleet being increased to over 300 vehicles, ranging from prime movers and trailers to rigid vehicles and container stackers.

A major investment in technology has also been confirmed to bring these operations together."

The importance of cutting-edge technology was actually highlighted by the AMLS management team from the very beginning of the company's establishment, with a specific budget for the implementation of software solutions. This was cleared in 2008, leading to a full analysis of available options in the Middle East. "Having the right technology in place was non-negotiable," saysThavarajah.

"Unfortunately, we noticed that a limited number of solutions were available and although some of the leading brands are represented in this region, some of them lacked the experience of how things work in the Middle East."

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