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APM Terminals to lose control of Salalah transhipment hub in 2028

APM Terminals is facing the prospect of losing control of the Omani deepsea transhipment hub of Salalah. Salalah Port Service Company announced it had "received formal notification from the Ministry of Transport, Communications and Information Technology, confirming that the existing concession agreements will not be extended beyond their contractual expiry date of 1 November 2028," it said in a filing to the Muscat Stock Exchange. It added: "The notification further states that the decision not to extend the concession agreement is final and unconditional. The board of directors will consider the notification and assess its potential impact on the company. "The company will also engage with the relevant stakeholders as appropriate and will keep the market updated on any material developments." According to local reports, the ministry separately confirmed the decision, and added that the existing operator was expected to maintain operations at the port until the concession ends. The port is managed by Maersk's port operating subsidiary, APM Terminals, which holds a 30% stake in Salalah Port Service Co and signed a 30-year operating concession in 1996 on a build-operate-transfer basis. Oman's state-owned shipping and logistics firm, Asyad, holds a 20% stake, and the government's Social Cohesion Fund holds 10%. The remaining 40% ownership is split between local and institutional investors, on a free float basis. According to the CapitalIQ platform, the largest institutional investor is the Soros fund management LLP, which has just under 20%. The half-year financial results recorded revenues growing around 20%, to hit OR50.7m ($132m) with container traffic for the six months up 15%, due to a higher number of vessel calls, prompted by the outbreak of the US/Israel-Iran conflict and subsequent closure of the Hormuz straits. However, profitability declined dramatically, due to the one-off cost of repairing a crane hit by an Iranian drone attack, as well as a 72% increase in fuel costs over the first half of 2025, and a requirement to increase terminal staff to handle the higher number of vessel calls, said CFO Farooq Zuberi. He added that volumes for July and August were also "very strong". This followed a 31% increase in throughput last year, when Salalah was established as one of the key hubs for the new Gemini network. Container throughput reached 4.3m teu in 2025, up from 3.3m teu the previous year, aided by an expansion project which took annual handling capacity up to 6m teu. Meanwhile, Salalah has become a key regional node for Maersk and Gemini partner Hapag-Lloyd, which have continually stressed the importance of "controlling" the main transhipment hubs in their joint network, and yesterday The Loadstar reported the port had won new calls on one of Gemini's Asia-Mediterranean services that recently resumed Suez transits. According to Xeneta's eeSea liner database, Salalah hosts 18 container liner services, with only two - feeder services to the Horn of Africa operated separately by MSC and Greta Shipping - not featuring the involvement of Maersk or Hapag-Lloyd. The two carriers together represent the vast majority of the port's container cargo. This week's decision gives them a two-year window to structure their network accordingly. The Omani government has yet to announce whether it will hold a formal tender process to decide on a new concessionaire for the facility after November 2028.

Transport businesses call for help as diesel price hits record high

Nearly six out of 10 UK transport and storage businesses are now "very concerned" as record diesel prices intensify the pressure on them, prompting calls for government support. Diesel prices hit a record average of £2.01 per litre on 2 October, up 40.5% from the 142.38p at the end of February, according to the RAC. The UK Road Haulage Association (RHA) estimates operators are paying around £350 more on fuel for each truck every week, compared with pre-Middle East confict. For a 50-vehicle fleet, that equates to almost a £1m a year extra, if the increase persists, leaving businesses with little room to absorb further costs. New Office for National Statistics (ONS) data analysed by Parcelhero reveals that 59.8% of transport and storage businesses were "very concerned" about fuel prices, revealed in a survey conducted between 21 September and 4 October. This compares with 43% in August and 38.2% across all UK businesses. And shippers are also feeling the pressure, the proportion of businesses also 'very concerned' more than doubling, from 23% in August to 48.4%, in the latest survey. David Jinks, head of consumer research at Parcelhero, warned that the effects of rising fuel costs could ripple throughout the supply chain, from factories and warehouses to consumers. "Retailers are less exposed on paper, but they are the businesses that ultimately feel hauliers' and couriers' fuel costs through delivery rates and surcharges," he said. The RHA is urging the government to introduce an 'Essential User Rebate' of at least 15p per litre for haulage, coach, and van operators for six months. MD Richard Smith explained: "It would help protect margins, ease cash flow, and reduce pressure to pass further costs to customers. Ultimately, it would support the deliveries and passenger services our economy and communities rely on." Meanwhile, a survey on business confidence found that 82% of respondents identified a fuel duty cut as a measure that would give businesses greater confidence to invest and grow. A further 61% supported an Essential User Rebate for commercial operators. Mr Smith also called for maintaining the existing fuel duty freeze and 5p cut, cancelling planned increases, and removing the automatic Retail Price Index link. For operators, the immediate challenge is managing costs without compromising the services that keep goods moving. SNAP, which connects fleets with truck parking and other transport services, warned that rising diesel prices were compounding existing pressures from maintenance, insurance, and administrative costs. Nick Long, SNAP's head of commercial for the UK and Ireland, said: "When diesel reaches £2 per litre and businesses are potentially spending hundreds of pounds more per vehicle every week, the impact on a fleet can be enormous." He added that improving route planning, reducing unnecessary administration, and gaining greater visibility over spending could help operators navigate the pressure. With haulage profit margins typically around just 2%, according to the RHA, sustained increases could force businesses to reconsider investment and pricing, with consequences extending across the wider economy.

E-commerce shipments drive further growth at East Midlands Airport

The UK's East Midlands Airport handled 6.3% more cargo last month than it did in the same month last year. And, over the year to date January to September period, at 210,807 tonnes cargo volumes were up by 10,000 tonnes or 5% year on year. East Midlands Airport positions itself as the UK's foremost express air cargo hub and the gateway's busiest period of the year is yet to come - the run-up to Black Friday and Christmas as goods are ordered from all over the globe to create significant spikes in ecommerce traffic. This year's strong cargo volumes build on last year's performance, when the airport handled over 400,000 tonnes for the first time since the pandemic. East Midlands Airport's commercial director, Adam Andrews, remarked: "Achieving year-on-year growth on top of a record-breaking year for our cargo operation demonstrates how well placed we are to serve the UK's air cargo needs. "The way our twin operations for passengers and freight operate in parallel, not in conflict with each other, puts us in a unique position to continue to grow our cargo capabilities. "It's great to see these figures growing ahead of what is traditionally our busiest period." The airport's e-commerce operations are built primarily around logistics giants DHL, UPS and FedEx, whose freighters connect to a network of 185 major cities around the world. "This offers unrivalled next-day delivery when coupled with the airport's strategic central location in the UK," East Midlands noted. Attracting strong e-commerce volumes perhaps bucks a more Europe-wide trend. Thus, for example, air cargo e-commerce shipment volume growth flatlined in July as the European Union's (EU) new small package import charge took effect.