As global trade dynamics increasingly shift toward emerging markets, the Red Sea’s strategic significance continues to grow. Recognizing this trend, COSCO Shipping Ports Limited (CSP) announced on January 27 its acquisition of a 20% stake in Red Sea Gateway Terminal Company Limited (RSGT), marking a significant deepening of its regional presence.
The RSGT facility, located at Jeddah Islamic Port—Saudi Arabia’s largest harbor—serves as the port’s primary container terminal with an annual capacity of 5.2 million TEUs. Jeddah’s proximity to major shipping lanes positions it as a critical hub for servicing Middle Eastern and East African container markets. This investment strengthens CSP’s strategic positioning within global shipping networks.
Modernization Plans Underway
Following a 30-year concession agreement signed with Saudi Ports Authority in December 2019, RSGT assumed operations of Jeddah’s North Terminal in April 2020. The company has outlined comprehensive upgrades including equipment modernization, berth capacity expansion, and terminal yard improvements—all designed to enhance operational efficiency amid rising regional trade demands.
Strategic Partnership Forged
The share purchase agreement was signed by CSP Chairman Feng Boming and RSGT Vice Chairman Aamer Alireza. This collaboration will provide RSGT with capital and technical resources to reinforce its role as Saudi Arabia’s key logistics gateway while creating new revenue streams for CSP—a mutually beneficial arrangement.
This strategic move represents CSP’s latest effort to expand its Middle Eastern and African influence while boosting global competitiveness. Through the RSGT partnership, the Chinese port operator aims to capitalize on the Red Sea’s growing trade opportunities while delivering enhanced port services to international clients.