Print
PDF
Problems are mounting for the Omani Port of Salalah, which has seen its container business come under pressure as a result of competition from other ports and shifting global shipping alliances. In a recent statement to the Muscat Securities Market, Salalah Port Services revealed that the company’s discussions with one of its key customers, as part of 2015 contract negotiations, has indicated that the volume of transshipment business this carrier is expected to route through Salalah is likely to drop ‘significantly’ due to network efficiencies. SPS’ management is exploring other options to mitigate the impact of this decision, and greater clarity is expected in due course.
This latest setback follows a difficult trading year for SPS, whose after tax profits declined by 5% to OMR5.38 million for 2014, from OMR5.66 million in the previous year. Total revenue was over 9% down, at OMR58.50 million, during the period under review.
During 2014 Salalah achieved a total container throughput of 3.03 million teu compared with 3.34 million teu the previous year, a drop of around 3%. However, the port handled 10.31 million tonnes of general cargo against 7.94 million tonnes in the previous year, which represents a rise of 30%, helping to offset the continued decline in container operations.
