The operator of Saudi Arabia’s Red Sea Gateway Terminal (RGST) is looking to invest in ports in Africa and the Middle East, following backing from the Kingdom’s sovereign wealth fund (PIF), Bloomberg reports.
According to Bloomberg, RSGT plans to invest in “at least three international ports in the next five years, with each investment totaling as much as $500 million…It’s also aiming to spend up to $1.7 billion developing its main port in Jeddah on the Red Sea, as well as potentially investing in other Saudi ports,” according to comments to the news site by CEO Jens Floe.
Saudi Arabia’s Public Investment Fund and Cosco Shipping Ports bought a stake in RSGT in January, valuing the port operator at about $880 million.
With PIF’s backing, the ports operator figures into a larger plan to turn the kingdom into a transport and logistics hub and support local companies looking to export products. According to the report, the pandemic has also led to a renewed focus on food security in the region, where the desert environment means many countries rely on agricultural imports.
“Adding Cosco and PIF as shareholders will really accelerate our domestic and our international growth plans,” Floe said in an interview. He said investments may come in rail and dry ports, and emerging market terminals in “less mature and less organized ports.”
