Further to the announcement published on Tadawuls website on 24-02-2016 related to approval from the Saudi Ports Authority for berth expansion program of Red Sea Gateway Terminal Co. (of which SISCO effectively owns the 60.6% of the share capital)and further to the announcement published on Tadawuls website on 01-09-2016 about signing of the loan of SAR 260 million for that expansion; Saudi Industrial Services Co. (SISCO) would like to announce that the expansion works have been completed as scheduled and within the approved budget. The total berth length of the terminal after expansion is 1,355 meters equipped with 14 ship-to-shore quay cranes. The terminal can now handle three (3) mega vessels at the same time. The project also involved purchase of eight (8) new rubber-tire gantry (RTGs) cranes and twelve (12) new trucks/trailers to improve yard handling capability to facilitate faster customs clearance process.
Due to expansion related capital expenditure, the amortization/depreciation expense for 2017 is expected to increase by approximately SAR 12 million. Financial impact in 2018 will be subject to local economic conditions.