What happens to APM Terminals' operations at Salalah after November 2028?

APM Terminals must cease control and management of Salalah Port on November 1, 2028. The Omani government's notification specifies that the existing operator is expected to maintain operations until the concession expires, but the decision not to extend is final and unconditional. The company will then transfer the facility according to the original build-operate-transfer agreement terms.

How does this affect the Gemini Cooperation network?

Salalah is critical to the Gemini Cooperation's Asia-Mediterranean strategy, with Maersk and Hapag-Lloyd collectively operating nearly all 18 container services from the port. Loss of control forces both carriers to redesign network routing and potentially rely on third-party operated hubs, reducing their ability to optimize operations. This structural change requires major service redesign and contingency capacity planning over the next two years.

Will Oman hold a competitive tender for the next concessionaire?

The Omani government has not announced its process for selecting a new concessionaire. Supply chain professionals should monitor for official tender announcements, as the type of process and criteria used will significantly influence which operator takes control and what terms and tariffs apply post-November 2028.

What are the financial implications for Salalah stakeholders?

Salalah Port Service Company's half-year 2024 results showed 20% revenue growth to OR50.7 million despite profitability pressures from crane repair costs and fuel surcharges. Ownership is split across APM Terminals (30%), Asyad (20%), the Social Cohesion Fund (10%), and 40% free float, with Soros Fund Management holding nearly 20% of institutional shares. The concession termination creates valuation uncertainty for all shareholders.

Why did Oman make this decision final now?

The article does not specify Oman's rationale, but the timing follows record container growth (31% annually) and the port's emergence as critical infrastructure during the Hormuz Straits closure. Oman may be reassessing national control over strategic infrastructure or repositioning its role in regional transhipment strategy. The decision gives a two-year transition window rather than forcing immediate change.

Shipping & Freight

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APM Terminals loses Salalah concession in 2028: What's next?

Oct 20, 2026

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The signal

Oman's Ministry of Transport has formally notified Salalah Port Service Company that APM Terminals' 30-year operating concession will not be extended beyond November 1, 2028. This decision, described as final and unconditional, represents a structural shift in control of one of Asia's most critical transhipment hubs. APM Terminals currently holds a 30% stake and operates the facility on a build-operate-transfer basis dating to 1996.

The timing presents significant strategic challenges for Maersk and Hapag-Lloyd, whose Gemini Cooperation partnership has heavily consolidated operations around Salalah. The port handled 4.3 million teu in 2024, up 31% annually, and now hosts 18 container liner services with only two operated independently of these carriers. The two-year window to November 2028 forces the carriers to redesign their Asia-Mediterranean network architecture, particularly as Salalah has become essential to their regional transhipment strategy.

Uncertainty around the concession transition creates both immediate operational risks and long-term strategic vulnerabilities. Supply chain leaders must assess alternate hub configurations, potential tariff impacts under new management, and the possibility that competing carriers gain access to Salalah's capacity or that operations are disrupted during transition. Oman has not yet announced whether it will conduct a formal tender process for the next concessionaire.

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Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

this month

What if new Salalah concessionaire charges premium tariffs?

Model a tariff increase scenario where a new concessionaire raises port charges 12-18% post-November 2028 to recover concession costs or improve profitability. Calculate the impact on per-container transhipment economics for Maersk and Hapag-Lloyd, particularly for lower-margin regional feeders and Asia-Europe services. Assess whether carriers shift volume to competing hubs, increasing total landed costs for shippers using Salalah-routed services.

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strategic

What if Salalah transhipment capacity becomes unavailable during transition?

Simulate a scenario where APM Terminals' operational performance declines or services are disrupted during the 24-month transition period leading to November 2028. Model the impact on Asia-Mediterranean service reliability and container flow if 10-15% of current Salalah capacity must be redirected to alternative regional hubs such as Dubai (Jebel Ali) or Chabahar. Calculate additional transit time penalties, increased handling costs, and service level degradation for dependent shippers.

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Simulation Suggestion

strategic

What if Maersk and Hapag-Lloyd lose preferred access to Salalah capacity?

Simulate a competitive access scenario where the new concessionaire allocates Salalah's 6 million teu annual capacity on open-market principles rather than reserving it for Maersk and Hapag-Lloyd. Model demand from MSC, COSCO, CMA CGM, and other carriers seeking Salalah slots. Calculate the impact on Gemini Cooperation service frequency, schedule reliability, and the cost and lead time implications of having to use secondary hubs like Port Said or Port Klang for transhipment.

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