Saudi terminal operator Red Sea Gateway Terminal (RSGT) announced on Wednesday that the company has commenced the takeover of operations of Jeddah Islamic Port's northern section, previously known as North Container Terminal (NCT).
RSGT is joint venture between the Saudi Industrial Services (SISCO) and the Malaysian Mining Company (MMC).
The operator said in a press statement that it had signed a new 30-year concession agreement for the north port facility with the Saudi Arabian Ports Authority (Mawani) at the end of 2019.
Under the agreement, RSGT will invest $1.7 billion in terms of infrastructure, equipment and technology to increase the consolidated facility's annual container throughput capacity to 5.2 million TEUs by 2023 and 8 million TEUs by 2050, according to the statement.
It said the company has already signed an Islamic financing agreement with Banque Saudi Fransi and Al Rajhi Bank for the project.
The statement noted that the consolidation of operations will increase RSGT's area to 1.5 million sqm, adding that at the end of the first three-year phase of investment, the terminal would be equipped with 24 Super Post-Panamax quay cranes, 67 Rubber-Tyred Gantry Cranes (RTGs), and will offer 4,900 Reefer plugs.
RSGT is currently able to accommodate Ultra-Large Container Ships (ULCS) of 20,000 TEU class and above, according to the statement.
CEO Jens O Floe said the carefully planned programme of growth and investment "will firmly establish RSGT as the largest logistics gateway, and the busiest container terminal, in Saudi Arabia, and on the Red Sea."
(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)
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