By: OrePulse

The Port of Salalah in Oman handled 3.8 million TEUs of containers in the first nine months of 2026, an 18 percent increase from 3.2 million TEUs over the same period last year, Salalah Port Services Company (SPSC) said in a financial report submitted to the Muscat Stock Exchange on November 11.

SPSC attributed the growth to expanded terminal capacity and higher cargo volumes from the upper Gulf and the United Arab Emirates, following the completion of a capacity upgrade at the port’s Container Terminal and an increase in transhipment activity. The company said it expects demand for container-handling capacity to remain strong through the fourth quarter.

Cargo diverted from Jebel Ali

SPSC reported that container freight station cargo has been shifting from Dubai’s Jebel Ali to Salalah, with the Omani port increasingly serving markets in Yemen and East Africa. The company said it expects this change in regional cargo flows to support further volume growth, though it will also add pressure on available capacity.

General cargo volumes also rose over the nine-month period, with the General Cargo Terminal handling 21 million tonnes, up 6 percent from 19.8 million tonnes a year earlier. SPSC said higher dry bulk throughput contributed to the increase, and it expects continued strong demand for limestone and gypsum. Break bulk volumes are expected to benefit from higher export demand from Salalah Mills Company and Raysut Cement Company, while increased bunkering activity is expected to support growth in liquid cargo.

Revenue up 20%, costs also rise

SPSC’s consolidated revenue from operations rose 20 percent year on year in the first nine months of 2026, which the company attributed to higher container-handling capacity, increased cargo from the upper Gulf and UAE, and growth in dry bulk activity. Operating expenses rose 21 percent, which SPSC said was mainly due to costs associated with damage to port equipment and facilities. Consolidated net profit rose about 6 percent to 5 million Omani rial, compared with 4.7 million rial a year earlier, while EBITDA declined to 19.2 million rial from 20.3 million rial in the same period of 2025.

Concession set to expire in 2028

Oman’s Ministry of Transport, Communications and Information Technology has informed SPSC that its port concessions will not be extended beyond their contractual expiry date of November 1, 2028, the company disclosed to the Muscat Stock Exchange on October 18. SPSC said it has not yet been told who the incoming concessionaire or concessionaires will be, and that it will begin preparing for the transfer of operations and coordinate with the ministry and other relevant authorities to support the transition.

The company’s board and management said they remain committed to maintaining operational performance until the concession expires. The pending handover adds a measure of uncertainty to Salalah’s position as a growing transhipment and cargo-diversion hub for Gulf, Yemeni and East African routes.