MUSCAT - Salalah Port Services Company SAOG said it is currently in discussions with the Omani government on extending its concession to operate and manage the Port of Salalah, which expires on November 1, 2028.

Company executives disclosed the update during a recent discussion session on the port’s 2025 financial statements.

Publicly-listed Salalah Port Services is a partnership led by A P Moller–Maersk (around 30%), part of a global integrated shipping and logistics group operating across container shipping, terminals, and end-to-end supply chain services. The Omani government, through ASYAD Group, holds about 20%, while the Social Protection Fund (around 10%) and Dhofar International Development & Investment Holding Company (6%) are among other key shareholders.

Under agreements with the government, Salalah Port Services was granted concessions to operate the Container Terminal from November 1, 1998, and the General Cargo Terminal from October 1, 1998. Separate management agreements with APM Terminals were also signed to provide technical and operational support services for the duration of the concessions.

Executives noted that concession terms are typically aligned with equipment lifecycles of around 25 years, meaning extensions often span 20–30 years to support major capital investment decisions.

Around four years ago, in connection with a terminal upgrade programme, the port opted to lease rather than purchase approximately $200 million worth of equipment due to the looming expiry of the current concession in 2028. Management said that greater clarity on a potential extension—currently under discussion with the government—would allow the company to either acquire the equipment outright or extend leases, while also enabling further investment in capacity expansion.

The company is also engaging with key customers that underpin Salalah’s role as a major transshipment hub linking Asia, Europe, the Middle East, and East Africa, with volumes and commercial terms typically structured through long-term service agreements.

Among them are A P Moller–Maersk, one of the world’s largest container shipping and logistics operators and a long-standing anchor customer at Salalah, and Hapag-Lloyd, a leading global carrier headquartered in Germany. Both are now part of the Gemini Cooperation, a next-generation liner network designed to optimise schedules and improve reliability across major East–West trade lanes, with Salalah positioned as a key transshipment hub.

Meanwhile, in a customer advisory, Maersk said it is working with Omani authorities to restore operations at Salalah Port in a phased and gradual manner following the recent security incident in which a ship-to-shore crane was damaged.

“The affected area is limited, and as operations resume, the port will undergo steps to restore full capacity. However, some operational constraints may persist for some time,” Maersk said.

2026 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).