Muscat - With the shifting of commercial operations of Port Sultan Qaboos (PSQ) to Sohar, Port Services Corporation (PSC), which manages and operates PSQ, is in the process of moving 40 per cent of its workforce to 'other related activities and businesses' in the transport and logistics sector, according to the chairman of PSC.
Speaking to reporters on the sidelines of a seminar on Wednesday, Mohammed Jawad Hassan bin Suleman said, "We are shrinking in terms of company business. We have reviewed the status of our employees. We have thought up various scenarios and held meetings with the government. I believe that the process has been initiated."
He said, "Port of Sohar, Oman Air and other logistics-based operations have similar activities. We have been analysing the staff, taking into consideration age, years of employment and social security plans etc."
He added that PSC has 670 employees, of which approximately 40 per cent are being moved to related activities and businesses. "This is purely an official matter and is under review. There is a committee consisting of the ports authority, officials from the Ministry of Transport and Communications (MoTC) and Ministry of Finance reviewing the proposals."
On diversifying PSC's business activities, Suleman said the company is looking at a number of options. "We have signed an agreement to manage and operate Khasab port. We are also in negotiations with the government to operate the logistics hub in Barka. We are reviewing the draft contract between the government and PSC for logistics areas."
In a recent report, PSC said it has accepted an offer of the MoTC to manage and operate the dry port that the government is planning to develop in Barka. Accordingly, PSC is undertaking a preliminary study to facilitate an immediate operation of the project as demanded by the concerned authorities.
Suleman added that the company is also negotiating with the government in the tourism sector. "We are in touch with several countries for coordination on managing tourism ports as the business is totally different from handling containers," he said.
Earlier, government officials had confirmed that PSC's objectives should be extended to include the management of integrated logistics solutions, in addition to its present activities in management and operation of ports.
"Our activities and revenue have been shrinking. There are certain steps that the government has taken on an urgent basis. We are reviewing the logistics area operation plans. With increased activity in the logistics sector, I expect PSC revenues to return to previous levels," Suleman added.
© Muscat Daily 2014
