Logo of Red Sea Gateway Terminal
Red Sea Gateway Terminal Limited (RSGT), an affiliate of Saudi Industrial Services Co. (SISCO), is looking to invest in at least three ports in Africa and the Middle East over the next five years, following backing from the Public Investment Fund (PIF).
Each investment will total as much as $500 million, Bloomberg reported citing the terminal’s CEO, Jens Floe.
The RSGT will potentially invest in other Saudi ports.
“Adding COSCO and PIF as shareholders will really accelerate our domestic and our international growth plans,” Floe said. Investments may come in rail and dry ports, and emerging market terminals in “less mature and less organized ports,” he added.
“There’s no doubt that partnering with PIF will position us better in areas like North Africa,” Floe noted.
Last January, SISCO signed separate sale and purchase agreements with PIF and COSCO SHIPPING Ports Ltd. (CSPL) – through its wholly-owned subsidiary Sound Joyce Enterprises Ltd. – to sell SISCO’s 21.2% direct equity stake in its subsidiary RSGT for a total of SAR 556.5 million, according to Argaam's data.
In December 2019, RSGT signed a 30-year concession contract valued at SAR 6.6 billion with Saudi Port Authority (Mawani), under the build, operate, and transfer (BOT) system, to develop and operate Jeddah Islamic Port (JIP), starting from 2020. Under the deal, RSGT redeveloped the northern part of the JIP, which includes the adjacent container terminal and RSGT’s existing terminal to become the largest container terminal in Saudi Arabia and on the Red Sea.
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