Sustained Infrastructure Holding Company (SISCO Holding) (formerly known as Saudi Industrial Services Company) announces the signing of a contract for one of its portfolio companies with Chittagong Port Authority
Sustained Infrastructure Holding Company (SISCO Holding) (formerly known as Saudi Industrial Services Company) announces that its portfolio company Red Sea Gateway Terminal International Limited (in which SISCO owns 36.36% through its investment vehicle Red Sea Ports Development International Limited) has signed 22 year concession with the Chittagong Port Authority for Patenga Container Terminal (PCT) in Chittagong, Bangladesh's primary port, to develop a comprehensive long-term plan for a container terminal.
Date of Announcement of the Award
2023-12-06 Corresponding to 1445-05-22
Contract Subject Matter
Red Sea Gateway Terminal International (RSGTI) and the Chittagong Port Authority have entered into a 22-year concession agreement, set to commence in 2024. Under the new concession, RSGTI will develop and operate a 500,000- TEU facility at Patenga Container Terminal (PCT) in Chittagong, Bangladesh’s primary port.
Date of Signing the Contract
2023-12-06 Corresponding to 1445-05-22
Contract Value
It is expected that the value of the contract will reach $170 million (equivalent to SAR 637.5 million), during the contract period of 22 years.
Contract Details
Terms of the concession require RSGTI to commit $170 million (equivalent to SAR 637.5 million) to consolidate and develop the already existing infrastructure as a first phase to increase the total capacity to 500,000 TEUs.
Contract Duration
22 years
Financial Impact and the Relevant Period
The financial impact of the new concession on SISCO Holding’s consolidated financial statements is expected to be reflected in 2024.
Related Parties
None
Additional Information
This concession marks a pivotal change in RSGT's overarching strategy to expand its presence in the global ports sector, elevating it to a multi-port operator. The company is currently engaged in advanced negotiations with several selected international ports and has built an extensive project pipeline.
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