34.2 C
Dubai
Friday, March 29, 2024
spot_img
spot_img

Latest Posts

RSGT announces USD 280 million equity sale to PIF & COSCO

Upon completing all necessary conditions and obtaining all regulatory approvals, the founding shareholders of Red Sea Gateway Terminal Limited (RSGT) have officially completed their 40% RSGT equity sale to the Public Investment Fund (PIF) and COSCO SHIPPING Ports Limited (CSPL) (20% each). The transactions imply an enterprise value for RSGT of USD 880 million and a total gross inflow of equity value for the founding shareholders USD 280 million. The founding shareholders will reduce their combined shareholding to 60%.

PIF is the economic engine of Vision 2030, driving the diversification of Saudi Arabia’s economy. The investment in RSGT is in line with PIF’s 2021-2025 strategy that focuses on 13 key priority sectors, including Transport and Logistics. The location is on the main East-West trade routes, with close proximity to the main cargo end destinations on the West Coast of Saudi Arabia and captures significant intra-Red Sea trans-shipment cargo volumes. The investment will help to transform RSGT into both a regional and global logistics hub in line with PIF’s mission of unlocking new economic opportunities locally and globally.

RSGT will benefit and enhance its value proposition with the support of a leading global ports operator like CSPL, which will bring new momentum to the growth of RSGT’s business volume. Both new shareholders will help drive future growth on seaside and landside logistics.

Jens O. Floe, CEO of RSGT, said, “This is a significant milestone for RSGT, demonstrating both our strength and the confidence which the industry and investment community have in our strategic planning and implementation. Working closely with PIF and CSPL, we will accelerate our shared vision, further strengthen our customer offering, and elevate our mandate to meet the increasing demand for terminal and logistics services. RSGT will continue to focus on developing a niche emerging market operator with a keen focus on ports in the Red Sea and East Africa.”

Having commenced operation in 2009, RSGT is located at the world-class Jeddah Islamic Port, a crucial logistics hub serving as a global trade nexus linking Asia, Europe, and Africa, as well as an increasingly important regional business center.

Moreover, RSGT continues to bring excellence to the trade with the 30-year concession (“BOT agreement”) with Saudi Arabian Ports Authority (“Mawani”) – announced in late 2019 and commenced in April 2020. RSGT assumed the operations of the North Container Terminal in Jeddah Islamic Port and has significantly expanded its handling capacity from 2.5 million TEU to 5.2 million TEU, becoming the largest container terminal in KSA. Throughout the concession period, RSGT’s annual throughput capacity is envisaged to grow to about 9 million TEU following an investment plan of USD 1.7 billion in infrastructure, equipment, and technology.

RSGT will remain an independent terminal operator, servicing its customers across the global logistics chain. It will also continue to focus on the development, construction, operation, and maintenance of port terminals and on logistics services.

“Moving forward, a key element of RSGT’s ongoing development plan, beyond domestic and targeted international expansion, is to further develop our modern port and supply chain facilities enabling us to better meet the needs of our global and local customers”, added Jens O. Floe.

Digital Issues

Latest Posts

spot_imgspot_img

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.