Saudi Ports Authority (SPA) has signed a long term memorandum-of-understanding (MoU) with Saudi Industrial Services Co. (SISCO) to expand the Red Sea Gateway Terminal (RSGT) at Jeddah Islamic Port (JIP), according to a statement.
The MoU will also see SISCO, which owns 60% of the RSGT, execute a comprehensive development plan for the rest of the port.
As part of that, SISCO will look to increase the JIP’s berth capacity and modernize its yard and overall operational technology.
SISCO says this will create a world-class facility for the domestic and regional economies, as well as turn the port into a global transshipment hub.
As well as that, it will also assist Saudi Arabia in achieving its objectives set out in Vision 2030, a nation-wide initiative that looks to diversify its economy and make it a global power in technological innovation.
The JIP is Saudi Arabia’s largest seaport and handles approximately 50% of the country’s containerized volume.
The RSGT is the first container terminal in Saudi Arabia built by the private sector. It has a TEU capacity of 2.5 million and is the only terminal at the JIP capable of handling Ultra-Large Container Ships (ULCS) of 14,000-plus TEU.
In August 2018, it was chosen by the Saudi business community as the country’s primary port gateway after it consistently handled the greatest TEU volume.
No further details have been released in regards to the development and expansion but PTI has contacted SISCO for comment.