Red Sea Gateway Terminal to sell 40pc stake to Cosco and PIF
CHINA's Cosco Shipping Ports Limited (CSPL) and Saudi Arabia's Public Investment Fund (PIF) have entered into separate agreements to each purchase a 20 per cent equity interest in Red Sea Gateway Terminal (RSGT) for a total of US$28 million
09 February 2021 - 19:00
After completion of the transactions, CSPL and PIF will become shareholders of RSGT while RSGT founding shareholders will retain the remaining 60 per cent ownership.
'Adding PIF and CSPL as shareholders will accelerate RSGT's domestic and international growth plans,' said Jens O Floe, CEO of RSGT.
CSPL, the potential new stakeholder of RSGT, operates and manages 360 berths at 36 ports worldwide with a combined annual handling capacity of 115 million TEU as of September 30, 2020.
RSGT will remain an independent terminal operator. The company had signed a new 30-year build, operate and transfer (BOT) agreement with Saudi Arabian Ports Authority (Mawani) in December 2019, which envisages the investment of $1.7 billion in automation, infrastructure, and equipment through 2050, in order to reach an annual throughput capacity of approximately 9 million TEU.
Under the new BOT Agreement, in April 2020 RSGT 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 2.5 million TEU in 2019 to 5.2million TEU.
'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 programme for infrastructure and port development,' Mr Floe said.
The purchase transactions are subject to the approval of the Mawani, as well as other customary approvals, reports Seatrade Maritime News, Colchester, UK.
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