Business

Saudi wealth fund PIF and Cosco Shipping Ports pick up 40% in terminal operator

Saudi wealth fund PIF and Cosco Shipping Ports pick up 40% in terminal operator

Dubai: The Saudi wealth fund PIF and Cosco Shipping Ports have bought 40 per cent in Red Sea Gateway Terminal Ltd. (RSGT), while the founding shareholders of the terminal operator will hold the rest.

The investment will help to transform RSGT into both a regional - and global - logistics hub in line with PIF’s task of “unlocking new economic opportunities”.

For the Public Investment Fund, the deal is part of its commitment to channel funds into businesses and economic sectors at home, with the Saudi economy poised to make a strong comeback after the pandemic hit. The firming up in oil prices too would be another major boost for the economy, and which PIF will try to capitalise on.

“Working closely with PIF and CSPL, we will accelerate our shared vision, further strengthen our customer offering, and elevate our mandate to meet the increasing demand for terminal and logistics services,” said Jens O. Floe, CEO of RSGT. “RSGT will continue to focus on developing a niche emerging market operator with a keen focus on ports in the Red Sea and East Africa.”