Addendum Announcement from Saudi Industrial Services Co. Regarding an Affiliate Company Development.
| Element List | Explanation |
|---|---|
| Introduction | Referring to the announcement of Saudi Industrial Services Company “SISCO” on 23/05/1440 H corresponding to 29/01/2019 to sign a Memorandum of Understanding between Red Sea Gateway Terminal Limited “RSGT” (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 Jeddah Islamic Port “JIP”. SISCO is pleased to announce that RSGT has received the approval from the Supervisory Committee of Privatization in Transportation Sector for the agreement of new concession which will be signed in December 2019 to develop and operate the whole northern section of Jeddah Islamic Port (JIP). The Build Operate and Transfer (BOT) agreement is planned for 30 years starting from 2020, replacing RSGT's existing agreement.
The new concession includes an agreement to upgrade the infrastructure and add new berths and equipment to enable JIP to become the pioneer in global container trade shipping between the East and West. This is in-line with the main objectives of the Kingdom of Saudi Arabia’s 2030 vision to make the Kingdom a global logistics hub and within the general privatization strategy of the government of Saudi Arabia to increase the participation of the private sector in enhancing capabilities of Saudi Ports by increasing capacity and improving global competitiveness. RSGT has already invested SR 2.5 billion in the current concession since the container terminal project was started in 2007. The new concession investment supports the development of Jeddah Islamic Port as the strategic gateway for the Kingdom of Saudi Arabia as the preferred hub for the Red Sea and East Africa and further strengthens the partnership and strategic relationship between RSGT and Mawani over the years. The planned signing of the concession marks a significant step-change for RSGT towards its strategic growth and it is part of the recent positive developments across the SISCO Group which demonstrates SISCO’s commitment to supporting the privatization initiatives under the Kingdom’s 2030 vision. |
| Date of Posting the Previous Announcement of Development on Tadawul's Website | 2019-01-29 Corresponding to 1440-05-23 |
| Change on the Development | Reaching an agreement to sign a 30-year concession. |
| Financial Impact on the change | Any developments regarding the new concession agreement and its corresponding financial impact on SISCO will be announced in due course. |
Comments