RSGT borrows $453mn for Saudi port deal

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Saudi-based Red Sea Gateway Terminal Company (RSGT) has secured an Islamic loan with Al-Rajhi Bank for the development of a new container terminal project at Jeddah Islamic Port (JIP).

RSGT said the 1.7-billion Saudi riyal ($453 million) Ijara Islamic financing facility to develop the port’s third container terminal, designed to increase JIP’s overall capacity by 45% to 1.5 million containers annually, local media reported on Thursday.

The terminal project will cost 1.9 billion riyals and is being financed 69% with debt and 31% with equity.

The project’s shareholders, including SISCO, Xenel Industries, Tusdeer and City Island Holdings, a subsidiary of the Malaysian company MMC International, will provide the equity.

China Harbour Engineering Company (CHEC) has been contracted to build the ‘Red Sea Gate’ terminal over 22 months, beginning in January.

RSGT awarded Shanghai Zhenhua Port Machinery Company (ZPMC) of China the contract to supply cranes and other equipment.

The terminal will have a 740-metre long main berth and a 390-metre long feeder berth.

It will also have its own dedicated 16.5-metre deep channel linking to JIP’s main channel.

The two berths should be ready for operations in the fourth quarter of 2009.

More than 70% of Saudi Arabia’s imports pass through JIP, including 65% of the kingdom’s imported foodstuff.

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