Two 20% shares of Red Sea Gateway Terminal Limited (RSGT) have been sold to accelerate its domestic and international growth plans.
Saudi Arabia’s Public Investment Fund (PIF) and China's COSCO SHIPPING Ports Limited (CSPL) have each signed Share Purchase Agreements for 20% equity interest in RSGT, with a total consideration of US$280m. The founding shareholders will retain the remaining 60% shareholding in RSGT.
"Adding PIF and CSPL as shareholders will accelerate RSGT’s domestic and international growth plans,” said RSGT’s CEO Jens O. Floe. “As the largest terminal operator on the Red Sea and in Saudi Arabia, we are committed to serving the growing requirements of international cargo and container services throughout the global logistics chain and to fulfilling our customers' needs and the goals of Saudi Arabia's Vision 2030 program for infrastructure and port development.”
RSGT to retain independence
RSGT will remain an independent terminal operator, focused on servicing its existing and future customers in the global logistics chain. The company signed a new 30-year build, operate and transfer (BOT) agreement with Mawani (Saudi Ports Authority) in December 2019, which envisages the investment of US$1.7bn in automation, infrastructure, and equipment through 2050, to reach an annual throughput capacity of approximately 9m TEU.
Under the BOT Agreement, in April 2020 RSGT significantly expanded its handling capacity having assumed the operations of the northern section of Jeddah Islamic Port (previously known as the North Container Terminal ). As a result, RSGT’s annual throughput capacity increased from 2.5m TEU in 2019 to 5.2m TEU.
Having commenced operation in 2009, RSGT was founded by leading Saudi and international investors (Founding Shareholders), including Saudi Industrial Services Company (SISCO), Xenel Industries, and City Island Holding Limited, a wholly-owned subsidiary of MMC Corporation Berhad (Malaysian conglomerate with extensive port operations).