Salalah Port Services Company (SPS), which operates the port, expects to handle 1.8 million TEUs this year. The port has experienced a significant upturn in business since Swiss-based Mediterranean Shipping Companyrelocated its regional operations to Dubai last July. This has come mainly from an increase in transhipment traffic re-routed away from neighbouring Aden following terrorist attacks at that port last year (MEED 26:7:02).

According to SPS, the port is expected to handle 2 million TEUs in 2004. The port's existing traffic will soon be augmented by vessels calling from China Shipping, which is planning to relocate its Indian Ocean transhipment business to Salalah. The Chinese line will join Danish/US Maersk Sealandand SAF Marineof South Africa, which are already operating services out of the port.

In addition to expanding the port, the government is pushing ahead with the development of an associated industrial free zone in Salalah. Consultants are due to submit bids in late June for the detailed design package (see page 16).