Riyadh -  Red Sea Gateway Terminal (RSGT), a subsidiary of Sustained Infrastructure Holding Company (SISCO Holding), signed a 20-year concession agreement for the operation of four existing multi-purpose port facilities on the Red Sea with the Saudi Ports Authority (Mawani).

The build, operate and transfer (BOT) concessions cover general cargo, dry and liquid bulk, crude oil, petrochemical, Ro/Ro, and livestock terminals, according to a press release.

The projects will be run by RSGT’s fully owned Multi-purpose Terminals (MPT) business unit, which will assume operations of all non-containerized port facilities within the expanding RSGT portfolio.

Meanwhile, the 20-year total capex investment stands at SAR 1.56 billion ($418 million) in upgrades for all four facilities.

Over the first five years of the four concessions, RSGT will invest SAR 672 million ($180 million) in infrastructure, equipment, and technology to bring the four facilities to global operational standards.

RSGT will consolidate the existing multi-purpose and Ro/Ro terminals at Jeddah Port, in addition to taking operational control of King Fahd Industrial Port Yanbu, Yanbu Commercial Port, and Jazan Port.

The new concessions will allow RSGT to positively contribute to the Kingdom’s goals of economic diversification and international competitiveness.

This step boosts RSGT’s service offerings, operational capacity, reinforcing its ability to support growing trade flows through the Red Sea. The project also anchors the company’s position as a leading multi-port operator both domestically and globally.

The concessions will be effective from 1 July 2025, while the financial impact will be reflected in SISCO Holding and RSGT’s financial statements from the third quarter (Q3) of 2025.

Jens Floe, CEO of RSGT, commented: “The signing of these concession agreements represents another major milestone in Red Sea Gateway Terminal’s strategic growth plan, as well as another major step in the fulfilment of the Vision 2030 goals for privatization, and the emergence of new global trade and logistics hubs here in Saudi Arabia, located at the crossroads of so many key international trade lanes.”

Khalid Suleimani, Group CEO of SISCO Holding, highlighted: "The addition of these four multi-purpose terminals to RSGT's portfolio is a transformative step in our expansion strategy, that is fully aligned with Saudi Arabia’s National Transport and Logistics Strategy (NTLS).”

“This strategic expansion also supports SISCO Holding’s five-year strategy (6x26) objectives, which aim to achieve SAR 6 billion in assets under management (AUM) and SAR 2 billion in revenues by 2026,” Suleimani added.

He concluded: “By continuing to invest and grow our portfolio, through our various companies and investment arms, in addition to investing through the holding company, we are creating sustainable, long-term value for shareholders while reinforcing RSGT’s position as a leading port operator in the region and the largest operator on the Red Sea."

In the first quarter (Q1) of 2025, SISCO Holding turned profitable at SAR 24.70 million, against net losses valued at SAR 21.10 million in Q1-24.

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