Saudi Arabia’s Red Sea Gateway Terminal (RSGT) is looking to invest in ports in Africa and the Middle East, following backing from the kingdom’s sovereign wealth fund. The RSGT plans to invest in at least three international ports in the next five years, with each investment totalling as much as $500m, port chief Jens Floe said. It’s also aiming to spend up to $1.7bn developing its main port in Jeddah on the Red Sea, as well as potentially investing in other Saudi ports. Saudi Arabia’s Public Investment Fund and Cosco Shipping Ports bought a stake in RSGT in January, valuing the port operator at about $880m. The wealth fund is leading a strategy to turn the kingdom into a transport and logistics hub and support local companies looking to export products. The pandemic has also led to a renewed focus on food security in the region, where the desert environment means many countries rely on agricultural imports.
Part of RSGT’s strategy will be geared toward supporting the kingdom’s food security plan. The PIF transferred $2.7bn of food and agriculture assets into Saudi Agricultural & Livestock Investment Co. earlier this year as part of efforts to streamline food security efforts. The RSGT handles 5.2 million 20-foot (6 meters) equivalent units a year, with a plan to grow that to 9 million by 2050. Expanding internationally would increase competition with Dubai-based port operator DP World, which already owns assets in the Middle East and Africa, including a neighbouring terminal in Jeddah.