The Red Sea Gateway Terminal (RSGT) has announced its founding shareholders have completed a 40% equity sale to Public Investment Fund (PIF) and COSCO Shipping Ports (CSP), with each party taking 20%.
The transaction was for approximately $280 million, according to a statement, and will contribute towards Saudi Arabia’s 2030 Vision, a goal to diversify the economy and make the country a hub of global trade.
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 RSGT said the investment will help to transform it into both a regional and global logistics hub in line with PIF’s mission of unlocking new economic opportunities locally and globally.
Jens O. Floe, CEO of RSGT, said, “This is a significant milestone for RSGT’s, demonstrating both our strength a business 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.”
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 Floe.