Sustained Infrastructure Holding Company (“SISCO Holding”), Saudi Arabia’s leading strategic investor in Ports & Logistics and Water Solutions announces that Red Sea Gateway Terminal (“RSGT”), Saudi Arabia’s largest container terminal operating company, has signed four 20-year Build, Operate and Transfer (BOT) concession agreements for the operation of four existing port facilities on the Red Sea with the Saudi Ports Authority (Mawani).
The newly acquired concessions that cover general cargo, dry and liquid bulk, crude oil, petrochemical, Ro/Ro, and livestock terminals will be run by RSGT’s 100% owned recently established Multi-purpose Terminals (MPT) business unit, which will assume operations of all non-containerized port facilities within the expanding RSGT portfolio.
Under the new concession agreements, RSGT will consolidate the existing multi-purpose and Ro/Ro terminals at Jeddah Port, while assuming operational control of King Fahd Industrial Port Yanbu, Yanbu Commercial Port, and Jazan Port. King Fahd Industrial Port, located 326 km north of Jeddah, serves as the largest Red Sea gateway for crude oil and petrochemicals. Yanbu Commercial Port, 40 km further north, is the primary port for Medina, the Kingdom’s fourth-largest city. Jazan Port, 725 km south of Jeddah, is a major industrial and agricultural hub in Saudi Arabia’s southwest.
Through these new concessions, RSGT will positively contribute to the Kingdom’s goals of economic diversification and international competitiveness. This strategic move strengthens RSGT’s service offerings, operational capacity, and its ability to support growing trade flows through the Red Sea, further positioning it as a leading multi-port operator both domestically and globally.
Over the first five years of the four concessions, RSGT will invest SAR 672 million (USD$180 million) in infrastructure, equipment and technology to bring the four facilities to world-class operational standards. Over the full 20-year term of the concession, RSGT will invest a total of SAR 1.569 billion (USD $418 million) in upgrades for the four facilities.
Combined average annual cargo throughput for these facilities is projected to be 3 million tons of General Cargo; 13 million tons of Bulk Cargo; 13.5 million tons of Liquid Bulk Cargo; 710,000 units of Ro/Ro (vehicular) Cargo; and 8 million head of livestock, RSGT will aggressively target container growth in Yanbu to develop the market in this region.
The concessions will be effective from 1 July 2025 and as such the financial impact will be reflected in SISCO Holding and RSGT’s financial statements from Q3 2025.
Mr. Jens Floe, CEO of Red Sea Gateway Terminal commented on the concession, saying: “The signing of these concession agreements represents another major milestone in Red Sea Gateway Terminal’s strategic growth plan, as well as another major step in the fulfilment of the Vision 2030 goals for privatization, and the emergence of new global trade and logistics hubs here in Saudi Arabia, located at the crossroads of so many key international trade lanes.”
Commenting on the concession, Eng. Khalid Suleimani, Group CEO, SISCO Holding said: “The addition of these four multi-purpose terminals to RSGT’s portfolio is a transformative step in our expansion strategy, that is fully aligned with Saudi Arabia’s National Transport and Logistics Strategy (NTLS). This strategic expansion also supports SISCO Holding’s five-year strategy (6×26) objectives, which aims to achieve SAR 6 billion in assets under management (AUM) and SAR 2 billion in revenues by 2026. By continuing to invest and grow our portfolio, through our various companies and investment arms, in addition to investing through the holding company, we are creating sustainable, long-term value for shareholders while reinforcing RSGT’s position as a leading port operator in the region and the largest operator on the Red Sea.”
