Oman Logistic and Transhipment: Duqm, Salalah as GCC Hubs

Oman is emerging as a strategic GCC transshipment hub, with Salalah and Duqm offering secure, high-capacity alternatives outside the Strait of Hormuz, backed by rapid infrastructure expansion, SEZ incentives, and tailored carrier partnerships.

In recent years, Oman has been steadily reshaping its logistics landscape, positioning the ports of Duqm and Salalah as strategic transshipment hubs within the Gulf Cooperation Council (GCC) region.

With significant investments in port capacity expansion, state-of-the-art infrastructure, and special economic zones, Oman aims to offer shippers and carriers a viable alternative to the traditional giants of the region such as Dubai’s Jebel Ali. Situated outside the geopolitically sensitive Strait of Hormuz, these ports not only provide a secure and efficient gateway for maritime trade but also align with global carrier strategies emphasizing larger vessels and diversified routing.

As regional trade dynamics evolve, understanding Oman’s logistics pivot is essential for investors, logistics providers, and businesses seeking to capitalize on emerging opportunities across the Middle East and beyond.

Oman strategic location and investment for transhipment

Oman is strategically recalibrating its position within regional maritime trade by elevating the ports of Duqm and Salalah as key transshipment and logistics hubs for the GCC. These two gateways present viable alternatives to dominant UAE ports like Jebel Ali, offering competitive advantages in terms of location, capacity expansion, and industrial integration.

Salalah, already a well-established deep-water port on Oman’s southern coast,has completed a US$300 million terminal expansion, raising annual container handling capacity to 6–6.5 million TEUs and reinforcing its status as a regional spine for East–West maritime routes. It handled approximately 3.3 million TEUs in 2024, with general cargo volumes rising over 10 percent to around 22.6 million tonnes.

Meanwhile, Duqm Port, set within the developing Duqm Special Economic Zone (SEZAD), is emerging as an industrial-logistics gateway. Its integrated container terminal infrastructure currently supports around 1 million TEU capacity, alongside multi-use and dry bulk berths that accommodate up to 5 million tonnes annually . Its scale and industrial connectivity make Duqm particularly viable for project cargo, refinery and petrochemical outputs, and future hydrogen export logistics.

These developments are not happening in isolation. They are embedded in Oman’s broader economic diversification strategy (Vision 2040) which seeks to elevate the logistics and transport sector’s share of GDP from roughly 7 percent today to over 10 percent by 2040, supported by OMR 2.5 billion (US$6.5 billion) in infrastructure and reform investments between 2021 and 2025.

Duqm Port: Industrial hub with growing container capacity

The Port of Duqm is rapidly transitioning from a greenfield development into Oman’s integrated industrial-logistics gateway, an exemplar of its Vision 2040 diversification ambitions. Anchored in the 2,000 km² Duqm Special Economic Zone (SEZAD), the port now combines deepwater berths, container capacity, industrial synergies, and investor incentives to become a multi-sector hub for exports and manufacturing.

Unlike other GCC ports hemmed in by geopolitical chokepoints, Duqm benefits from an 18-metre draft and a 2,200-metre continuous commercial quay, enabling it to handle the latest generation of mega-container vessels.

As of 2025, annual container throughput capacity is rising swiftly, from an earlier baseline of approximately 200,000 TEUs to an expected 1.7 million TEUs in the near term.

In 2025, the port comprises:

• Two container terminals, capable of handling up to about 3.5 million standard containers annually; and
• A dry bulk terminal with 5 million tonnes capacity, plus a multi-purpose and Ro-Ro terminal, and a liquid bulk terminal servicing the adjacent 230,000 barrels-per-day Duqm Refinery.

Operational performance metrics underscore momentum: vessel calls surged from 105 in 2015 to approximately 935 by 2023, alongside freight volumes climbing to 8.4 million tonnes.

Duqm’s anchorage in SEZAD offers investors a compelling value proposition:

• 100 percent foreign ownership;
• No customs duties;
• Up to 30 years of tax exemptions (renewable);
• Full repatriation of capital and profits; and
• No currency restrictions  (facilitated via a “one-stop shop” approach for licensing and approvals).

Moreover, the 2025 Royal Decree 38 has further expanded these incentives to green and clean-tech investments, enhancing Duqm’s appeal for solar, hydrogen, and circular-economy projects.

Strategic partnerships are accelerating Duqm’s maturation:

• A 50:50 joint venture between Asyad Group and Consortium Antwerp Port has anchored the container terminal’s development and management;
• The port also benefits from synergies with the forthcoming Duqm Refinery (operational since late 2023; capacity: 230,000 bpd), positioning it as an export terminal for petrochemicals and downstream products; and
• Industrial anchors such as the Sino-Omani Industrial Park within SEZAD, backed by projected investment of around US$10 billion, are slated to diversify cargo flows into manufacturing, energy, agrifood, and logistics exports.

In sum, Duqm Port is more than a cargo node: it’s the backbone of a strategic industrial ecosystem, offering scale, connectivity, and investor-friendly policy.

Salalah Port: An established transshipment gateway

Salalah Port stands as Oman’s flagship gateway for transshipment, anchoring the southern coast with both geographic advantage and robust operational performance. In early 2025, Salalah Port completed a US$300 million container terminal upgrade, raising its annual handling capacity from 4.5 million TEUs to 6.5 million TEUs. It upgraded to new infrastructure with extended yard space, an upgraded berth, substation enhancements, and 2,000 additional reefer plugs to support cold-chain cargo growth.

In 2024, the port handled approximately 3.3 million TEUs, albeit down from 3.8 million in 2023 due to expansion disruptions. On other hand, general cargo volumes (mostly limestone and gypsum) rose 10 percent to around 22.6 million tonnes.

Efficiency and global rankings
Salalah retained its status as the second-most efficient container port globally in the 2023 Container Port Performance Index (CPPI), trailing only China’s Yangshan terminal. Its superior port turnaround metrics, benchmark vessel calls and rapid dwell times, make it it a world-class vessel harbor.

The port routinely supports strategic shipping alliances, including the Gemini cooperation between Maersk and Hapag-Lloyd, which was launched in early 2025.

Transshipment reach and regional integration
Situated strategically along the Maritime Silk Road, Salalah serves as a transshipment hub linking markets in East Africa, the Indian Subcontinent, and beyond. Its deep-water berths and free zone integration enable streamlined cargo flows and industrial logistics services, solidifying its role in regional supply chains

Investment and value-added ecosystem
Operated by APM Terminals under the Asyad Ports umbrella, Salalah benefits from integration with the adjacent Salalah Free Zone, attracting industrial investment and value-added activities such as warehousing and light manufacturing. In 2025 alone, three new plants within the Free Zone added OMR 23.4 million (US$60.86 million) in investment inflows.

Market dynamics and competitive landscape

Comparative positioning: Jebel Ali, Khalifa, King Abdullah vs. Oman’s duo
Dubai’s Jebel Ali remains the regional benchmark for scale and connectivity, handling 15.5 million TEUs in 2024 (up 7.4 percent yerar-on-year), roughly 18 percent of DP World’s global throughput, and reinforcing its pull for mainline East–West services.

Abu Dhabi’s Khalifa Port is the GCC’s fast climber: three container terminals (MSC/ADT, COSCO/CSP, and the new CMA CGM facility) pushed Q1 2025 throughput to around 1.7 million TEUs (up 26 percent year-on-year), with capacity at about 9.6–11.8 million TEUs across the group and about 61 percent utilization at Khalifa’s terminals, evidence of a maturing multi-tenant hub model.

Saudi Arabia’s picture is mixed. System-wide volumes and rankings improved in 2024, but King Abdullah Port (KAP), a major Red Sea transshipment hub, faced outsized disruption from Red Sea rerouting, with throughput reportedly slumping to just over 0.5 million TEUs in 2024 from just under 3 million in 2023, underscoring the vulnerability of Red Sea-centric hubs to security detours.

Against these incumbents, Salalah (capacity around 6–6.5 million TEUs post-upgrade) and Duqm (scaling toward low-million TEU capacity with strong project/bulk capability) offer an alternative footprint along the Arabian Sea, useful for carriers seeking resilience outside the Strait of Hormuz and for shippers exploringIndia–East Africa and Subcontinent flows.

Carrier routing and the GCC’s shift to multi-hub networks
Carriers are de-risking with multi-hub strategies: using Jebel Ali (scale and hinterland) and Khalifa (multi-tenant optionality) for Gulf gateway needs, while leveraging Salalah for high-productivity transshipment and shuttles into the Upper Gulf and Pakistan.

The Gemini Cooperation (Maersk + Hapag-Lloyd, launched Feb 2025) formalizes this logic, leaner loops, fewer port calls per service, and dedicated shuttles via Salalah and Jebel Ali to feed the wider network. Target schedule reliability is around 90 percent, with flexibility to adjust vessel count amid Red Sea detours.Saudi ports are rebuilding momentum on the Gulf and Red Sea coasts, with Mawani reporting double-digit yearly gains in monthly container volumes through H1 2025, evidence that regional networks are re-balancing after 2024’s disruptions.

Vessel size economics and port choice
Ultra Large Container Vessel (ULCV) capability still matters, therefore hubs like Jebel Ali, Khalifa, Salalah win on crane density, berth depth, and yard productivity that keep big-ship port time low. But 2025 fleet dynamics show a pivot toward mid-sized 12,000–17,000 TEU vessels, improving network flexibility and frequency on volatile trades. This supportsmulti-hub routing and strengthens the case for Salalah (fast turns, strong shuttle model) and, over time, Duqm (industrial gateway and project cargo) as complementary nodes rather than outright substitutes.

Bottom line for operators and shippers

A few considerations to keep in mind for operators and shippers:

• If your priority is maximum mainline connectivity, Jebel Ali remains unrivalled; for diversified Gulf access with competitive berth windows, Khalifa offers a credible alternative.
• Salalah is the region’s standout transshipment workhorse for Subcontinent/East Africa flows, now with added headroom post-expansion.
• Duqm is emerging as the industrial-logistics complement, especially for project, bulk, and refinery-linked exports.

Moreover, Alliance restructuring (such as Gemini) and enduring Red Sea risk mean networks will keep favoring fewer mainline calls and more reliable shuttles. For Oman, that is a structural tailwind, particularly for Salalah’s shuttle role and Duqm’s gateway play into SEZAD.

Outlook and opportunities for foreign businesses and investors

With Salalah’s US$300 million expansion completed in February 2025, and Duqm scaling from a low base on the back of SEZ-led industrial cargo, Oman’s container system is positioned for steady growth this decade.

Using 2024 actuals as a baseline (around 3.3 million TEU at Salalah and about 4.2 million TEU across Salalah and Sohar), a conservative scenario, where Salalah’s utilization rises from 50–55 percent toward 70–75 percent as Gemini shuttles ramp up and East Africa/ISC feeders densify, would put national throughput comfortably above 5–6 million TEU by 2030, even before a step-change at Duqm.

Under an upside scenario, continued reliability premium for Hormuz-exposed trades, plus SEZAD cargo maturing, Oman could edge higher, with Salalah approaching around 4.5–5.0 million TEU annualized and Duqm adding a meaningful six-figure TEU contribution by late decade.

These ranges are anchored in the capacity now in place, the 2024–25 throughput base, and the policy target of a larger logistics share of GDP by 2040, not a green-field forecast.

Why Duqm and Salalah can be primary transshipment points for East Africa and South Asia
Two dynamics support a bigger Oman role on those corridors.

First, network design: the Maersk–Hapag-Lloyd Gemini Cooperation explicitly pivots to high-productivity hubs plus dedicated shuttles, Salalah fits that playbook and is already dimensioned for it post-upgrade, with reliability targets around 90 percent.

Second, geography and risk: along the Arabian Sea and outside the Strait of Hormuz, Oman offers time/insurance advantages when geopolitical risk rises, while maintaining short feeder legs to Karachi–Mundra–Nhava Sheva and to Mombasa–Dar es Salaam. As carriers maintain multi-hub strategies in the Gulf, Salalah becomes the natural transshipment workhorse for Indian Subcontinent (ISC)/East Africa flows, with Duqm evolving as the industrial-gateway complement (project cargo, liquids/bulk tied to the refinery and SEZ tenants) that gradually adds containerized exports.

Actionable opportunities for foreign firms

• Ocean carriers and terminal operators can improve schedule reliability for ISC and East Africa services by securing berth windows and reefer capacity at Salalah. They can also pursue joint ventures or concessions at Duqm for specialized terminals tied to SEZAD projects.
• Third part logistics providers, freight forwarders, and cold-chain specialists can build feeder-plus-cross-dock products using Salalah’s added yard space and reefer plugs and offer bonded warehousing and regional consolidation services to arbitrage Gulf hub congestion during peak seasons.
• Manufacturers and energy/chemicals exporters can use SEZAD incentives (100 percent foreign ownership, long tax holidays, customs easements) to set up light assembly and packaging near Duqm,linking exports to multi-cargo berths and tranship time sensitive shipments through Salalah.
• Infrastructure and finance investors can invest in  yard equipment, on-dock warehousing, green-fuel/bunkering, and intermodal links. Oman’s Vision-2040 logistics targets and the government’s willingness to partner with multilaterals create bankable frameworks for such projects.

Bottom line

By 2030, the combination of capacity headroom at Salalah, SEZ-driven cargo at Duqm, and reliability-first carrier networks should lift Oman’s throughput well beyond current levels and deepen its role on East Africa and South Asia corridors.

For foreign operators, the window now is to secure positions, berth windows, concession options, SEZ footprints, before utilization tightens and pricing power shifts toward the hubs.

Also read: Oman: Mandatory Certification for Engineers and Finance Professionals 

(OMR = US$2.6)

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