Saudi Industrial Services Co. (Sisco) announces signing a Memorandum of Understanding with Saudi Ports Authority (Mawani) for one of its subsidiaries
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Introduction | Saudi Industrial Services Co. (SISCO) announces on, 22/05/1440 H, corresponding to 28/01/2019 AD, signing of a Memorandum of Understanding (MoU) between its subsidiary Red Sea Gateway Terminal Co. (RSGT, of which SISCO owns 60.6%) and Saudi Ports Authority (Mawani), to further develop northern part of Jeddah Islamic Port (JIP) on long-term basis in addition to RSGT’s existing terminal. Jeddah Islamic Port is Kingdom’s largest seaport, handling approximately 50% of the all containerized volume of the country. As per the MOU, RSGT will consolidate the container facilities in northern part of Jeddah port and execute a comprehensive development plan upgrading and adding berth capacity, while modernizing yard and all support facilities, including RSGT’s existing terminal. This will create a world-class facility capable of serving the important local market, while also catering for the growing regional transshipment trade in line with key Vision 2030 objective of making the Kingdom a key logistics player in the region. RSGT is the first container terminal in the Kingdom built by the private sector under a build, operate, and transfer (BOT) agreement at a cost of more than SAR 2 billion and has a capacity of 2.5 million TEUs. It is the only terminal at Jeddah Islamic Port capable of fully accommodating Ultra-Large Container Ships (ULCS) of 14,000+ TEU capacity and is consistently rated as one of the best performing terminals globally. In 2018, RSGT volumes grew by more than 16% as compared to 2017. |
Signing date of the memorandum | 2019-01-28 Corresponding to 1440-05-22 |
Signed party | Saudi Ports Authority (Mawani) |
Memorandum Subject | future expansion program in Jeddah Islamic Port (JIP). |
Memorandum Duration | There is no specific period |
Related Parties | There are no related parties |
Financial Impact | This development will not have any material impact on current year financial results of the company |
Additional Information | SISCO will announce additional details once parties have agreed the binding terms. |
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