SISCO wins nod for SAR 510 mln Red Sea Gateway expansion

Saudi Industrial Services Co. (SISCO) has won the approval of the Saudi Ports Authority (SPA) to expand its 60.6 percent-owned subsidiary, Red Sea Gateway Terminal (RSGT) in Jeddah Islamic Port, at an estimated cost of SAR 510 million.

Expansions at the container terminal are expected to begin in Q1-2016, the company said in a statement to Tadawul on Wednesday.

The project, which will likely take two years, is to be financed from retained earnings and Islamic loan facilities, SISCO said, adding that is in advanced talks with lenders.

The new construction and rehabilitation works are projected to increase the terminal capacity by 40 percent to exceed 2.2 million TEUs (twenty-foot equivalent units).

The company however sees no financial impact from the project on its FY16 figures.