Skip to content Skip to Search
Skip navigation

Saudi port operator to develop Bangladesh terminal

Chittagong Port will be developed and operated by Saudi company RSGTI CC BY-SA 4.0/Moheen Reeyad
Chittagong Port will be developed and operated by Saudi company RSGTI
  • $170m deal for Chittagong Port
  • Concession for 22 years
  • RSGTI in talks with other ports

Saudi company Red Sea Gateway Terminal International Limited (RSGTI) has signed a 22-year concession to develop a container terminal at Bangladesh’s primary port in a deal worth $170 million.

RSGTI, a subsidiary of the Sustained Infrastructure Holding Company (Sisco), signed the deal with the Chittagong Port Authority to develop Patenga Container Terminal.

In a filing to the Saudi Stock Exchange, the company revealed it is in “advanced negotiations” with several other international ports to expand its project pipeline.

Under the Bangladesh concession agreement, RSGTI will develop and operate a 500,000-twenty-foot equivalent unit facility. 

The terminal, which currently features a 580-metre quay, will be equipped with new technologies to handle the fast-growing export market, the company said. 

The capital expenditure for the Bangladesh concession will be funded through debt and equity, it added.

The concession has been signed in partnership with the Public Investment Fund, a 40 percent shareholder in RSGTI, to accelerate its global expansion ambitions. 

The financial impact of the Bangladesh concession on Sisco’s financial statements is expected to be reflected from 2024.

The Port of Chittagong serves as the gateway for 90 percent of import and export activities in Bangladesh, which has a population of 160 million people. 

Sisco’s five-year strategy, announced in late 2021, aims to double revenue to SAR2 billion and increase assets under management to SAR6 billion by 2026. 

According to latest data from the Observatory of Economic Complexity, Saudi Arabia exported products worth $1.1 billion to Bangladesh in 2021, while goods worth $488 million went the other way.

Fertilisers and clothing were the most traded products.

In October, the International Monetary Fund revised down its growth forecast for Bangladesh’s economy to 6 percent for the fiscal year 2023-24 amid sustained high inflation and external payment challenges.

Latest articles

FILE PHOTO: United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi gestures during an interview with Reuters in Dubai, United Arab Emirates, June 30, 2022. REUTERS/Abdel Hadi Ramahi/File Photo

UAE and Kenya complete Cepa negotiations

The UAE and Kenya have completed negotiations on a comprehensive economic partnership agreement (Cepa) between the two countries. It is the 12th Cepa deal secured by the UAE and its third in Africa, after agreements were signed last year with Mauritius and the Republic of the Congo (Congo-Brazzaville). “The UAE-Kenya Cepa will not only boost […]

Adnoc has bid for German polymer manufacturer Covestro but its offers €55 and €57 per share were rejected

Adnoc faces hurdles in completing ambitious European deals

Abu Dhabi state oil company Adnoc is facing challenges to a duo of major European deals it is trying to get over the finish line, according to media reports. Talks with Austrian energy group OMV have been put on hold to allow parties to navigate a series of disagreements, the Financial Times reported on Friday. […]

The 450 companies operating at Dubai Science Park include AstraZeneca, and the free zone plans to add 200,000 sq ft of lab and office space

Dubai Science Park reveals expansion plans

Dubai’s biotechnology free zone is adding 60 percent more offices, laboratories and warehouses over the next few years to cater for an influx of new companies, its senior vice-president told AGBI.  Dubai Science Park, part of Dubai-listed Tecom Group, is planning an expansion of 200,000 sq ft of additional storage and logistics facilities at the […]

Visitors enjoy the Karnak Temples; the government hopes to entice 30 million tourists to Egypt a year by 2030 tourism egypt

Egypt tourism up 5% in early 2024 despite Gaza conflict

The number of tourists visiting Egypt increased by five percent year on year in the first 40 days of 2024, according to Egypt’s tourism minister, Ahmed Issa. The announcement came after reports in January that visitor numbers for the whole of 2023 reached a record high of 14.9 million, just shy of the 15 million […]