Cosco Shipping Ports (CSP) is to acquire a 20% shareholding in Red Sea Gateway Terminal.
Red Sea Gateway Terminal is the largest operator of container handling facilities in the port of Jeddah (Saudi Arabia). The move reinforces Cosco Shipping Ports (CSP) operating presence in key box ports along the east-west corridor between Europe and Asia. It already has investments in Zeebrugge, Valencia, Naples Piraeus, Port Said East, Khalifa and Colombo to name a few.
The founding shareholders of RSGT, which include Saudi Industrial Services Company (SISCO), Xenel Industries, and City Island Holding Limited, a wholly-owned subsidiary of Malaysia’s MMC Corporation Berhad, have also agreed to sell a 20% stake in the port group to Saudi Arabia’s Public Investment Fund (PIF). An estimated US$280M is being raised from the transactions with the move seen as bolstering RSGT’s massive modernisation and expansion programme.
As part of a new BOT deal agreed with Mawani (Saudi Ports Authority) in April 2020, RSGT took control of the former North Container Terminal and committed to investing US$1.7B over the next 30 years. This will result in the terminal’s throughput capacity increasing to 9M TEU a year. Currently, the facility can handle just over 5M TEU a year.
"Adding PIF and CSPL as shareholders will accelerate RSGT’s domestic and international growth plans,” explained Jens Floe, CEO of RSGT. “These transactions highlight the strong commercial proposition and service excellence of RSGT, whereas the new shareholders are expected to further strengthen our customer value proposition.”
He added: “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 programme for infrastructure and port development.”