Oman’s Port Services Corporation said the government has ceased negotiations with it on the proposed deal regarding management and operation of the dry port at the upcoming South Batinah logistics hub in Barka, Oman, according to a report.

The PSC had accepted the offer of the sultanate’s Ministry of Transport and Communications (MoTC) to manage and operate the dry port in July, said the Muscat Daily report.

"We would like to disclose that the board of directors in its urgent meeting held on Sunday took note of the letter received recently from MoTC, by which we have been informed that the government has decided to cease negotiations with PSC on the proposed MoU and will proceed with the request for qualifications (RFQ) from a selection of potential bidders, including PSC , following which closed invitation to tender will be issued," the PSC was quoted as saying in a filing to the Muscat Securities Market (MSM).

Mohammed Jawad Hassan bin Suleman, chairman of PSC, said that the company is looking at a number of options, including negotiations over the logistics hub in Barka.

"We are in negotiations with the government to operate the logistics hub in Barka. We are reviewing the draft contract between the government and PSC for the logistics area," the report quoted him as saying.

Phase one of the logistics hub project will include a dry port, container terminal, truck depot, offices, living quarters, and warehouses, which will look to address increases in warehousing requirements and to facilitate warehouse relocation from other areas and support the transformation of PSQ into a tourism port, he added.