Muscat – The Ministry of Transport, Communications and Information Technology (MTCIT) has joined hands with the Oman International Container Terminal Company (Hutchison Ports Sohar) to develop, manage and operate Khasab Port in Musandam governorate from October 1.

The agreement was signed by H E Saeed bin Hamoud al Ma’awali, Minister of Transport, Communications and Information Technology, and Andy Tsui, Managing Director, Middle East and Africa, Hutchison Ports.

According to H E Ma’awali, the port has a competitive advantage due to its proximity to the Strait of Hormuz. “The port will be one of the most important economic drivers in the Musandam governorate as it will stimulate economic movement and facilitate services for ships transiting the Strait of Hormuz.”

He pointed out that the next two years will see the formulation of a vision for the development and expansion of the port.

As per the agreement, during the first two years, the company will conduct a detailed feasibility study on all terms agreed with the ministry based on the results of a commercial study.

The commercial study cites requirements for the port’s infrastructure and expansion plan, as well as development, operation and management mechanisms.

The study sets preliminary outlines for the final negotiations – scheduled to start in the third year – in preparation for a long-term agreement for the development, management and operation of the port over a period of 30 years.

H E Sayyid Ibrahim Said al Busaidi, Governor of Musandam, said, “The framework agreement sets the stage for fast-paced commercial activity in the port – known as the beating heart of Khasab.”