A consortium comprising Oman's Port Services Corporation (PSC) and Germany's IQ Martrade has received an initial government approval to manage Oman's Khasab port, a report said.

The port is in the Musandam Governorate.

A memorandum of understanding (MoU) will be signed soon, Rajesh Khanna, business development and marketing manager of PSC, was quoted as saying by the Oman Daily Observer.

"Our plan is to form a joint venture with the German firm to manage the port," he said.

The concession agreement is expected to be for a long-term one. The responsibility of developing the infrastructure facility at the port is with the government.

There is also a proposal to develop a free trade zone in Khasab to make it a trans-shipment hub, the report said.