Saudi Arabian ports operator Red Sea Gateway Terminal (RSGT) is considering bidding for a 25-year concession to refurbish and operate a terminal at South Africa’s Port of Cape Town, marking the latest sign of growing Gulf interest in Africa’s transport and logistics sector.
South Africa’s Transnet National Ports Authority is seeking a private operator for the Duncan Dock Precinct, one of two multipurpose terminals at the port.
The concession is part of a broader effort to expand cargo-handling capacity and modernise infrastructure to accommodate rising volumes of containerised, dry-bulk and break-bulk cargo. The current lease expires next year.
Cape Town port overhaul
The concession forms part of Transnet’s wider turnaround strategy after the Port of Cape Town was ranked the world’s worst-performing container port last year by the World Bank and S&P Global.
The state-owned logistics company has since introduced measures including a predictive wind model to reduce weather-related disruptions and a digital cargo-planning platform to improve efficiency and ease persistent bottlenecks.
Revamping South Africa’s freight and logistics network is seen as essential to reviving an economy that has grown by less than 1% annually over the past decade, with inefficient transport infrastructure repeatedly blamed for slowing investment and trade.
Saudi Arabia expands African footprint
RSGT, Saudi Arabia’s first privately funded terminal operator, attended a meeting with prospective bidders in Cape Town on Thursday to assess participation in the project, according to the company’s Director of Global Investments, Gagan Seksaria.
The operator, which manages Saudi Arabia’s largest container terminal, is partly owned by the kingdom’s Public Investment Fund, its sovereign wealth fund. It has also explored bidding for a fresh-produce terminal at the Port of Durban.
The potential bid reflects a broader trend of Gulf investment across Africa. Over the past decade, Gulf states have invested more than $100 billion across the continent in sectors including energy, agriculture and logistics.
Source: Africabusinessinsider