Oman wins bid to host global road transport congress in 2018

Deal bodes well for Sultanate’s ambitions to evolve into a global logistics hub

IN yet another triumph for the government’s efforts to position Oman as a world-class logistics hub, the Sultanate has secured the privilege of hosting the 2018 World Congress of the International Road Transport Union (IRU), the preeminent global industry association for road transport.

Oman’s success in clinching the bid is seen as a huge shot-in-the-arm for its long-term vision to create a logisticscentric economy in the Sultanate, as well as garner a place for itself among the world’s Top 5 logistics hubs by the year 2040. Spearheading the realisation of this vision is Oman Global Logistics Group (ASYAD), the holding company of the government’s interests in various seaport, logistics hubs, free zones, container terminals, public transport, national ferry, and postal and logistics entities.

Announcing the award of the hosting rights to the Sultanate, Dr Ahmed bin Mohammed al Futaisi, Minister of Transport and Communications, tweeted: ‘Oman’s selection from a field of more than 100 nations, as the host of the 2018 World Congress of the International Road Transport Union, is a reflection of the IRU’s growing confidence in the logistics potential of the Sultanate.” A formal agreement to this effect is due to be signed at the Oman Convention & Exhibition Centre — Muscat’s showpiece hub for international conferences — on Tuesday, September 26.

Importantly, this week’s announcement is set to further cement ties between Oman and the IRU, a global grouping of national overland transport associations and industry bodies encompassing more than 100 countries.

IRU members are primarily national associations for passenger or goods transport, but also include associations of truck, bus, coach and taxi operators, associations for a specific category of road transport, chambers of commerce and automobile clubs.

The announcement comes just four months after Oman, represented by ASYAD Group, inked a landmark deal with the IRU committing the Sultanate to taking the necessary steps towards implementing the ‘TIR’ (Transports Internationaux Routiers or International Road Transport). Also as part of the deal, the IRU pledged support for the Sultanate in the development of training and professional certification for commercial road transport and the digitalisation of logistics systems.

In effect, the pact envisions a major role for the IRU in improving the Sultanate’s regulatory environment, adopting professional qualifications for drivers and logistics managers and embracing international customs transit standards.

‘TIR’ is an international transit system based on a UN Convention implemented at the global level as a PublicPrivate Partnership. The TIR System has been facilitating and securing trade and international road transport for over 60 years, by allowing customs-sealed vehicles and freight containers to transit countries without border checks.

As part of its UN-granted mandate, the IRU distributes so-called ‘TIR Carnets’, which are customs transit documents used to prove the existence of the international guarantee for duties and taxes for the goods transported under the TIR system, within the limit of the amounts specified by the contracting parties and under conditions enshrined in the TIR Convention.

Member states and organisations that are part of the TIR System also enjoy the following benefits: streamlined border crossing procedures; customs formalities done at origin and destination rather than at each frontier; guaranteed payment of customs duties and taxes; expedited international trade at reduced costs; and use of free, web-based, pre-declaration and risk management tools.