Oman has decided not to renew the operating concessions held by Salalah Port Services Company for the Port of Salalah beyond November 1, 2028, paving the way for a new operator to take over the port’s container and general cargo terminals. The government has described the decision as final and unconditional.
Salalah Port Services said it received formal notification from Oman’s Ministry of Transport, Communications and Information Technology on October 18. The company’s board will assess the implications of the decision and engage with relevant stakeholders as necessary.
The existing operator will continue managing port operations and development activities under the current agreements until the concessions expire. Oman has confirmed that a successor will be announced in due course, although the selection process and transition arrangements have not yet been disclosed.
APM Terminals, part of Danish shipping and logistics group A.P. Moller–Maersk, holds a 30% stake in Salalah Port Services and provides operational and technical management services . State-owned Asyad Group owns a 20% interest in the company.
The decision follows more than two years of discussions about extending the concessions, which cover the container terminal and general cargo terminal. The agreements date back to 1998.
The announcement comes after a major investment programme at Salalah Port. A terminal expansion completed in 2025 involved approximately US$300 million in upgrades, including improvements to six berths, additional ship-to-shore cranes and expanded container yard facilities. Annual container handling capacity increased from 4.5 million TEUs to approximately 6.5 million TEUs.
The port handled around 4.3 million TEUs in 2025, a 31% increase year on year, while general cargo volumes rose 17% to 26.4 million tonnes. Located on Oman’s Arabian Sea coast, Salalah is an important transshipment hub connecting shipping routes between Asia, Europe, the Middle East and East Africa.
The impending change in operator raises questions about the future management of terminal assets, equipment leases and long-term commercial agreements. Salalah Port Services has not yet disclosed the potential financial impact of the non-renewal.
For shipping lines and freight forwarders, continuity of operations will remain a key consideration as Oman prepares for the transition. The government has reiterated its commitment to port expansion and uninterrupted operations throughout the remaining concession period.
The appointment of a new operator will determine the port’s management structure beyond November 2028, while its strategic role in regional and international container trade is expected to remain significant.