Oman-based Asyad Groups subsidiary Marafi has signed a memorandum of understanding (MoU) with Khazaen Economic City (KEC) to develop and operate the sultanates first dry-port facilities in Khazaen.
KEC, envisioned as an international logistics hub, is spread over a total area of 51 million sqm in South Al Batinah Governorate and will have a dry port along with logistics, industrial, commercial, and residential zones, added the Times of Oman report.
The proposed city will be developed in several phases to eventually become an integrated city. Marafi is a member of the Asyad group of companies, which was established to manage and operate maritime services and the handling of vessels at ports and terminals in Oman and abroad.
Under the MoU, both parties agree to use their best efforts to obtain the necessary approvals and permits and to complete the due diligence required to sign the definitive agreement/s before the end of 2018.
Marafi will set up a special purpose vehicle (SPV) with key local logistics partners from the private sector to develop and operate Omans first dry-port, in line with the MoUs objectives.
The dry port facilities will be a key demand driver and enabler for Khazaens development.
The fully-integrated Khazaen Economic City will be the first of its kind to be set up near Muscat.
The Khazaen dry port is central to the north Omani coast, the most densely populated part of Oman, and has the best road connectivity to Sohar port, airports, and logistics providers. Collaboration with Suwaiq port is also expected as it gradually develops in the future.
Asyad Group chief executive officer Abdulrahman Salim Al Hatmi said that dry ports efficiently promote economic and social development in the surrounding areas by generating employment and income.
He added that the dry port at Khazaen will speed up the flow of cargo between ships and major land transportation networks and improve the movement of imports and exports by moving the time-consuming sorting and processing of containers away from congested seaports.