Saudi Arabia’s RSGT Considers Bid for Port of Cape Town
In its ongoing international expansion, Saudi Arabia’s Red Sea Gateway Terminal (RSGT) is planning to enter the South African port market. The operator is reportedly evaluating a bid for the Duncan Dock Precinct, one of the two multi-purpose terminals at the Port of Cape Town. This facility is one of the port’s 11 privately operated terminals but its concession is due to expire next year.
Last month, Transnet National Ports Authority (TNPA) issued a request for proposals (RFP) to appoint a new operator for the terminal. The terminal covers about 30 acres, and the concession would last for 25 years.
TNPA held a briefing session last week, which attracted major global operators. RSGT is one of the firms that joined the meeting. The operator’s director of global investments Gagan Seksaria told Bloomberg that attendance in the meeting was to evaluate participation in the upcoming bid. In the past year, RSGT has been making inroads in the African port sector as countries in the continent lean towards private investors for maritime development.
In South Africa for instance, the government has accelerated port privatization to supercharge upgrades. Durban Pier 2, Transnet’s biggest container terminal, is now under the stewardship of International Container Terminal Services Inc. (ICTSI), which has pledged to invest over $680 million to boost capacity. There are already some notable improvements in Durban Pier 2, with recent Transnet data showing that quay crane moves per hour have climbed from 18 to 28.
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These positive changes saw Transnet Port Terminals move a record 100,158 TEU in a single week early in the year, the highest ever weekly container throughput in South Africa. However, this single week record does not diminish structural pressures still facing major container terminals in South Africa. Recent data from Southern African Association of Freight Forwarders (SAAFF) shows that vessels calling at Durban Gateway Terminal (DGT) experienced an average of 80 hours at anchorage in July as congestion intensified at the Port of Durban. By July 31, there were about 28 vessels at anchor awaiting berthing at the port.
Meanwhile, South Africa has doubled down on efforts to become a global destination for ship repair services. Last week, TNPA issued a request for proposals (RFP) for a private partner to build and operate a floating dry dock at the Port of Cape Town under a 25-year concession. TNPA said that the RFP is in response to a growing demand for ship-repair services, with Cape of Good Hope now an important route for merchant shipping. The request also comes days after Port of Durban’s Prince Edward Graving Dock received one of the largest vessels to use the facility in a decade.
