RSGT receives largest environment-friendly container vessel

iStock-621123420.jpg

The Saudi Industrial Services Co. (SISCO) announces today 15/05/ 1437 H, 24/02/2016, the approval of Saudi Ports Authority of the expansion works for its subsidiary Red Sea Gateway Terminal Company (of which SISCO owns the 60.6% of the share capital) in Jeddah Islamic Port (JIP).The cost of development of this project is estimated to be SAR 510 million Saudi Riyals to be spent over next two years; and it will be financed through cash flow generated from operations of Red Sea Gateway Terminal Co and Islamic loan facilities. It is expected to increase the capacity of the terminal by 40% to more than 2.2 million TEUs. Company is at advance stages of negotiations with lenders and details of loan arrangement will be announced once the agreements are signed. The project includes the extension and rehabilitation of the main berth and conversion of the feeder berth to a main one enabling berthing of three mega vessels simultaneously, with the deepening of the approach channel and a larger turning basin to safely accommodate larger ships. The plan also includes ordering of mega Quay Cranes, Yard Cranes in addition to terminal trucks. The project is in accordance to the company's strategy (Red Sea Gateway Terminal) catering for the expected growth in the maritime industry and to promotion of Jeddah Islamic Port as a major hub for mega vessels capable of handling vessels up to 20,000 TEUs. This development will not have any significant impact on current year financial results of the company.