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The founding shareholders of the RSGT reduce their combined stake to 60 percent
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The investment in RSGT is in line with PIF’s 2021-2025 strategy that focuses on 13 key priority sectors, including Transport and Logistics
The Public Investment Fund (PIF) and COSCO SHIPPING Ports Limited (CSPL) have bought 20 percent stake each into Red Sea Gateway Terminal Limited (RSGT) at $280 million.
The founding shareholders of the RSGT have reduced their combined stake to 60 percent.
The investment in RSGT is in line with PIF’s 2021-2025 strategy that focuses on 13 key priority sectors, including Transport and Logistics.
The investment will help to transform RSGT into both a regional and global logistics hub in line with PIF’s mission of unlocking new economic opportunities locally and globally.
PIF is the economic engine of Vision 2030, driving the diversification of Saudi Arabia’s economy.
CSPL, a leading global ports operator, is expected to enhance RSGT’s value proposition and bring new momentum to the growth of its business volume.
Both new shareholders will help drive future growth in seaside and landside logistics.
“Working closely with PIF and CSPL, we will accelerate our shared vision, further strengthen our customer offering, and elevate our mandate to meet the increasing demand for terminal and logistics services,” Chief Executive Officer of RSGT Jens O. Floe said.
“RSGT will continue to focus on developing a niche emerging market operator with a keen focus on ports in the Red Sea and East Africa,” he added.
RSGT is located at the world-class Jeddah Islamic Port, a crucial logistics hub serving as a global trade nexus linking Asia, Europe, and Africa, as well as an increasingly important regional business center.