اعلان الشركة السعودية للخدمات الصناعية "سيسكو" عن توقيع عقد لاحدى شركاتها التابعة مع الهيئة العامة للموانئ
| Element List | Explanation |
|---|---|
| Introduction | Referring to the announcement of the Saudi Industrial Services Company (SISCO) on 18/04/1441H corresponding to 15/12/2019, the Red Sea Gateway Terminal Company (a subsidiary of SISCO in which it owns 60.6% of the share capital) and Saudi Port Authority “Mawani” to develop a comprehensive long-term plan for the development of northern part of Jeddah Islamic Port “JIP”. |
| Date of Announcement of the Award | 2019-12-15 Corresponding to 1441-04-18 |
| Contract Subject Matter | Red Sea Gateway Terminal Co. (RSGT) and the Saudi Ports Authority (Mawani) have signed a new 30-year concession starting in 2020 (replacing the current concession) on BOT basis. Under the new concession, RSGT will consolidate and redevelop the northern part of the JIP which will include the adjacent Container Terminal and RSGT’s existing terminal (which is under the scope of the current concession), to become the largest container terminal in Saudi Arabia and on the Red Sea. |
| Date of Signing the Contract | 2019-12-23 Corresponding to 1441-04-26 |
| Contract Value | Expected: SR 6.6 billion over 30 years |
| Contract Details | Terms of the concession require RSGT to commit SR 1 billion to consolidate and develop the infrastructure of the new terminal over the next three-year period as a first phase to increase the total capacity to 5.2 million TEUs. Further investment of SR 5.6 billion will be made during the remainder of contract period to increase the consolidated terminal’s capacity to 8 million TEUs. The consolidation of RSGT and the adjacent container terminal and the planned investment and expansion will be funded by Shari’ah Compliant debt financing and revenue generated by RSGT. |
| Contract Duration | 30 years |
| Financial Impact and the Relevant Period | The financial impact of the new concession on SISCO’s consolidated financial statements is expected to be reflected positively during the second quarter of 2020. |
| Related Parties | none |
| Additional Information | The expanded facility will be the largest logistics gateway, and the busiest container terminal in Saudi Arabia and on the Red Sea. The new investment is part of a comprehensive plan for upgrading and adding berth capacity and in the process will modernize the terminal yard and support facilities. RSGT has already invested SR 2.5 billion under the current concession and the new investment in the development of the northern part of JIP will bring the total investment in JIP to SR 9.1 billion since the inception of the current terminal in 2009. This investment supports RSGT’s strategy to become the leading port operator in Saudi Arabia and affirms RSGT’s commitment to Mawani over the years. The signing of the new concession represents a major milestone for RSGT towards its strategic growth plans and supports SISCO’s strategy to create value for its shareholders. |
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