Port of Salalah concession ends 1 November 2028 as Oman prepares new operator
Oman's Ministry of Transport, Communications and Information Technology has told Salalah Port Services Company SAOG that its Port of Salalah concession will end at its contractual expiry on 1 November 2028 and will not be extended. The company disclosed the notice on 18 October 2026, and the ministry said a successor operator will be announced later.
The decision puts a new concession for a hub that handled 4.3 million TEU last year on the table. In DTF's view, that is the moment to write shore power, electric equipment and grid capacity into the terms.
At a glance
| Topic | |
|---|---|
| Concession end | 1 November 2028, no extension |
| Notice disclosed | 18 October 2026 |
| Next operator | To be announced by the ministry |
| 2025 containers | 4.3 million TEU, up 31% |
| Terminal capacity | 6.5 million TEU after US$300 million expansion |
| Operator stake | APM Terminals 30% of Salalah Port Services |
What the ministry decided
The company said in its disclosure to the Muscat Stock Exchange that the ministry described the decision as final. Its board will review the notice, assess the implications and update the market on material developments.
The ministry said it remains committed to expanding and developing the Port of Salalah, and that port operations and development will continue through to expiry. Earlier in 2026, the company had said talks with the government on extending the concession were under way.
A hub at record volumes
The port handled 4.3 million TEU in 2025, up 31% from 3.3 million TEU, and 26.4 million tonnes of general cargo, up 17%. Salalah Port Services reported 2025 consolidated revenue of RO89.4 million and net profit of RO7.3 million.
The container terminal is operated by APM Terminals, which holds 30% of Salalah Port Services. The government holds 20% and government pension funds 23%. In February 2025 APM Terminals completed a US$300 million expansion that lifted capacity from 4.5 million to 6.5 million TEU, preparing Salalah as a primary hub in the Gemini network of Maersk and Hapag-Lloyd.
That project added 10 ship to shore cranes, 12 hybrid rubber tyred gantry cranes, 2,000 reefer plugs, a new electrical substation and an upgraded power network.
Oman's electrification steps so far
- Duqm: In September 2026 Asyad Group signed an agreement with Moon Rock Research and Development to study onshore power supply for vessels, starting at Asyad Drydock in Duqm. The first stage reviews berths, grid connections, technical requirements and commercial viability. It was signed at the Gulf Green Mobility Forum in Salalah.
- Sohar cranes: In June 2026 Hutchison Ports Sohar signed with ZPMC for 12 automated electric rubber tyred gantry cranes, powered from the grid through a high voltage conductor bar system, for delivery in the second quarter of 2027.
- Sohar shore power: SOHAR Port and Freezone has partnered with MoonRock and Danish firm PowerCon to bring shore power to its container terminal.
DTF view: write power into the concession
This section is DTF's analysis. A concession sets what an operator must build and run for the life of the contract. Requirements left out at tender stage are hard to add later, and expensive to negotiate.
For Salalah, three terms stand out:
- Shore power at container berths, specified to IEC/IEEE 80005-1, with a date for first connections.
- Electric yard equipment, with a timetable that builds on the hybrid cranes and new substation already in place.
- Grid capacity agreed with the utility before handover, so supply is ready when ships and cranes need it.
The fixed handover date gives Oman two years to set those terms. The Duqm study and Sohar's electric cranes show the work is already under way in the country.
Why it matters for ports
Many ships calling at Salalah also call at European ports, where AFIR requires shore power for large container and passenger ships at major berths from 2030. A Salalah concession that includes shore power would let those ships plug in at both ends of the route.
For operators bidding, the terms will also signal how far Gulf and Arabian Sea port owners now expect electrification to be part of the service, not an option.
Read more: MoonRock's Duqm study extends Oman's shore power pipeline beyond Sohar and The utility trap: who carries the risk when Europe's ports plug in. Port grid planning is a core theme at DTF PortFocus Barcelona 2027.
Salalah gets a new operator in 2028. The terms written now will decide whether it plugs in.
