Oman will not renew Salalah Port Services concession after November 2028
The APM Terminals-led operator loses the container and general cargo terminals it has run since 1998; a new operator will be named later
Oman's Ministry of Transport, Communications and Information Technology has notified Salalah Port Services Company SAOG that its concessions at the Port of Salalah will not be renewed. In a disclosure to the Muscat Stock Exchange on 18 October, the company said the concessions "will not be extended beyond their contractual expiry date of November 1, 2028" and that the decision "is final and unconditional".
Salalah Port Services has held 30-year concessions for the Container Terminal and the General Cargo Terminal since 1998, with separate management agreements under which APM Terminals provides technical and operational support. APM Terminals, part of A.P. Moller-Maersk, holds 30% of the listed company, and the Omani government holds 20% through Asyad Group. The company had hoped for an extension on the strength of its record, and said in July that it was in talks about one.
The board "will consider the Notification and assess its implications and potential impact on the Company", it said, and will keep the market updated on any material developments. No estimate of the financial effect has been given.
What happens to the terminal and its new equipment?
The ministry said it remains "committed to the expansion and development of the Port of Salalah and the continuity of port operations", that operations and development work will continue throughout the remaining term, and that a new operator "will be announced in due course".
The decision lands shortly after a $300 million upgrade of the container terminal, completed in the first quarter of 2025, that covered all six berths, a new access road, more reefer plugs and an upgraded power substation, and raised capacity from 4.5 million to 6.5 million TEU. About $200 million of equipment, including 10 new ship-to-shore cranes, 12 hybrid RTGs, two reach stackers and 30 terminal trucks with trailers, was leased rather than bought because of the uncertainty over the concession. What happens to those leases after November 2028 has not been set out.
This story is part of the Maritime Briefing of 21 October 2026.
