Salalah port revises tariff structure

04 February 2009
Omani transport authorities are preparing to change their concession structure for companies operating from the Port of Salalah to build on the expansion of the business.

The ports directorate of the Transport Ministry is in discussions with the Dutch group APM Terminals with which it jointly runs the port.

The two will introduce revenue-based concessions for their customers, moving away from the current fixed-rate rental structure.

The new structure is expected to be in place by the end of the year.

The move is common at international ports that have matured into stronger businesses. By taking a share of customers’ revenues rather than charging a flat fee, operators also share their risk and are subject to the same fluctuations in trade.

Officials now believe Salalah is a strong enough business to justify the transition. In December last year, the Dutch group Royal Haskoning was appointed to act as consultant on the design and construction of berths seven, eight and nine at the site (MEED 5:12:08).

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications