The Red Sea Gate Terminal signs a long-term, 30-year concession to redevelop the Northern sector of the Port
The Red Sea Gate Terminal (RSGT) has signed a 30-year concession to consolidate and redevelop the Jeddah Islamic Port’s North Container Terminal (NCT), including the proposed take-over of the adjoining Container Terminal, to become the largest container terminal in Saudi Arabia and on the Red Sea.
Incorporation of the adjacent Container Terminal, part of this new long-term agreement, will increase RSGT’s 2020 throughput to 3 million TEU and short-term capacity to 5 million TEU.
Red Sea Gateway Terminal (RSGT) signed a new concession agreement with the Saudi Arabian Ports Authority (‘Mawani’), the Kingdom’s Port Regulator, covering the period from 2020 to 2049, which includes merging operations with the adjacent Container Terminal at Jeddah Islamic Port.
Whilst the pact will become formally effective from 1 April 2020, maritime operations at NCT have already commenced and ongoing.
Massive infrastructure investment
The contract calls for RSGT to invest up to US$ 1.7 billion throughout the new thirty-year concession period in infrastructure and equipment. The expanded facility will be the largest logistics gateway, and the busiest container terminal in Saudi Arabia, and on the Red Sea, with a total annual container capacity to reach 8 million TEU.
The new infrastructure investment is part of a comprehensive plan for upgrading and adding berth capacity while modernizing the terminal yard and support facilities. The concession is a further step in the development of Jeddah Islamic Port as the strategic gateway to Saudi Arabia and the preferred hub for the Red Sea and East Africa.
This expenditure will continue the ongoing expansion of the existing RSGT world-class container facility, the largest gateway terminal on the Red Sea.
A new first in the Kingdom
RSGT is the first container terminal in the Kingdom of Saudi Arabia to have been built by the private sector under a build, operate, and transfer (BOT) agreement, representing an investment of US$ 675 million.
RSGT is the only terminal at the Port of Jeddah capable of accommodating Ultra-Large Container Ships (ULCS) of 20,000+ TEU-capacity. RSGT commenced operations in 2009, covers 700,000 square meters, 1355 meters of berth (four berths), equipped with 14 STS cranes.
“We are very pleased to announce this exciting new phase of RSGT’s strategic growth plan; this is a great success story for Mawani (Port Authority–Arabic for ports) and RGST,” stated RSGT CEO Jens O. Floe. “This large investment reflects the trust of Mawani and the ongoing commitment of RSGT to the region, and the international shipping industry, to provide world-class facilities and operations, and expand RSGT’s and Jeddah’s role in the global logistics chain,” he added.
Phase I expansion
Phase I of the new consolidated facility will provide a combined 2600 meters of berth, with a total area of 1.5 million square meters. The merging of terminal operations and the planned future expansion will allow RSGT to accommodate the largest vessels entering into global and regional trade, increasing container volumes, which in turn will drive revenue growth.
The consolidation of RSGT and the adjacent terminal, and the planned investment and expansion will be funded by revenue generated by RSGT’s ongoing operations, and through secured local financing.
In 2019, RSGT’s container volume increased by more than 31% over the preceding year, making it the largest logistics gateway in Saudi Arabia’s western region.
The adjacent Terminal, for which the concession is expiring, opened in 2000 and currently encompasses seven berths, with 11 STS cranes.
RSGT—committed to growth
RSGT is committed to regional and global infrastructure and facility investments to better serve the growing requirements of global shipping lines and domestic cargo, and container services, as well as expanding our presence internationally in the global logistics chain through organic growth and by obtaining new concessions or acquisitions.
RSGT is located at Jeddah Islamic Port, astride a critical global trade lane through which 13% of the world’s container trade traffic passes. This strategic location along with our advanced facilities and operational excellence, allows RSGT Jeddah to offer global shipping lines a unique HUB access to neighboring countries, combined with a tailored and robust gateway product, making RSGT Jeddah the largest gateway on the western coast of Saudi Arabia.
