Oman firms ink joint venture deal with Singapore cargo operator

(MENAFN- Arab News) The government of Oman is making significant investment in new cargo facilities at various airports in Oman to enhance and develop cargo movement through the sultanate. In view of this initiative, Oman Air, the concessionaire for cargo handling operations at the airports in Oman and Oman Airport Management Company (OAMC), the company responsible for airport management and operations, are entering into a joint venture (JV) with Singapore Airport Terminal Services Ltd. (SATS), a cargo operator, to develop and operate state-of-the-art cargo facilities in present locations as well as new airports. Oman Air, OAMC and SATS signed a memorandum of understanding (MoU) on Sept. 12 at Oman Air Head Office in Muscat. Senior management and board members of Oman Air, OAMC and SATS were present at the signing ceremony. Darwish Ismail Al-Balushi, chairman of Oman Air, Juma Ali Juma, chairman of OAMC and Tan Chuan Lye, president and CEO of SATS, signed the MoU. As a next step, all parties will carry out due diligence and develop a business plan for the JV. On approval of the business plan by respective boards of directors, the JV company will be formed. Omani companies will hold majority stake in the JV. SATS, a provider of airport handling services in Asia, has more than 60 years of experience in these services. Besides strong presence in Singapore, they also have partnered in 20 JVs at 36 airports. Of these, 6 JVs are in cargo operations. In most of these ventures, SATS have developed facilities from zero base. Oman Air and OAMC are confident that, with long experience and proven expertise, SATS will bring in the required management and technical know-how to the JV, which in turn will lead to development and operation of advanced cargo facilities around the sultanate.