Saudi Industrial Services Co. (SISCO) announced the signing of a Memorandum of Understanding (MoU) between its subsidiary Red Sea Gateway Terminal Co. (RSGT) and Saudi Ports Authority (Mawani), to develop the northern part of Jeddah Islamic Port (JIP).
Jeddah Islamic Port is Saudi Arabia’s largest seaport, handling approximately 50% of the total containerized volume of the country. Based on the MoU, RSGT will consolidate the container facilities in northern part of Jeddah port and execute a development plan upgrading and adding berth capacity.
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It will also modernize the yard and all support facilities, including RSGT’s existing terminal. This will create a new facility capable of serving the local market, while also catering for the increasing regional transshipment trade in line with key Vision 2030 objective. The latter aims to make Saudi Arabia a key logistics player in the region.
RSGT is the first container terminal in Saudi Arabia built by the private sector under a build, operate, and transfer (BOT) agreement at a cost of more than SAR 2 billion and has a capacity of 2.5 million TEUs.
Currently, it is the only terminal at Jeddah Islamic Port capable of fully accommodating Ultra-Large Container Ships (ULCS) of over 14,000 TEU capacity and is rated as one of the best performing terminals globally. In 2018, RSGT volumes increased by more than 16% in comparison to 2017.
