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DEAL INKED WITH SAUDI MAWANI

Saudi RSGT unveils $1.7bn port expansion, renovation plans

JEDDAH, April 1, 2020

Saudi-based Red Sea Gate Terminal (RSGT) has announced plans to invest heavily on the expansion of Jeddah Islamic Port, mainly to help boost its operational capabilities and also for future renovation work.
 
Today marks the official commencement of RSGT’s take-over of operations in the northern section of Jeddah Islamic Port (previously known as North Container Terminal (NCT), said a statement from RSGT. 
 
A new 30-year concession agreement for the existing north port facility was signed by RSGT with the Saudi Arabian Ports Authority, (Mawani) in 2019-end with calls for $1.7 billion of investment in infrastructure, equipment and technology by 2050, as annual container throughput capacity surges to 8 million TEUs.
 
Announcing the feat, CEO Jens O. Floe said: "As RSGT begins operations at the northern part of Jeddah Islamic Port today, we are very proud to commemorate this tremendous milestone of the RSGT growth strategy, demonstrating our ongoing and long-standing commitment to expansion, modernization, and world-class terminal services."
 
By 2023, the expanded RSGT, covering an area of 1.5 million sq m, will have increased annual container throughput capacity to 5.2 million TEUs, stated Floe. 
 
RSGT, which currently has the capability to accommodate Ultra-Large Container Ships (ULCS) of 20,000 TEU class and above, will be equipped with 24 Super Post-Panamax quay cranes, 67 Rubber-Tyred Gantry Cranes (RTGs), and will offer 4,900 Reefer plugs at the end of the first three-year phase of investment.
 
"This carefully planned programme of growth and investment will firmly establish RSGT as the largest logistics gateway, and the busiest container terminal, in Saudi Arabia, and on the Red Sea," remarked Floe.
 
The flagship Saudi container docking terminal has already signed an Islamic financing agreement with Banque Saudi Fransi and Al Rajhi Bank for the project.
 
“We are looking forward to executing this outstanding project and thank the Saudi government, the Ministry of Transportation and Mawani for their foresight and trust in our ability to continue to bring excellence to the trade,” stated Floe.
 
RSGT is an international terminal operator joint venture between Saudi Industrial Services group Sisco and the Malaysian Mining Company (MMC). 
 
Their combined assets, handling capacity and experience place the terminal operations among the ten largest container terminal operators globally, with a combined annual handling capacity of 20 million TEU, and equity-weighted throughput of over 10 million TEU.-TradeArabia News Service



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