Saudi Arabia’s RSGT Considers 25-Year Cape Town Port Concession as Gulf Investment in Africa Grows
Saudi Arabian port operator Red Sea Gateway Terminal (RSGT) is considering a bid for a 25-year concession to refurbish and operate a terminal at the Port of Cape Town, highlighting growing Gulf interest in Africa’s logistics and transport infrastructure.
South Africa’s Transnet National Ports Authority (TNPA) is seeking a private operator for the Duncan Dock Precinct, one of the port’s two multipurpose terminals.
The facility handles containerised, dry-bulk and break-bulk cargo, while its existing lease is due to expire in 2027.
Under the proposed concession, the successful operator would be expected to finance, operate, maintain and refurbish the terminal, as well as develop additional infrastructure where required.
Cape Town seeks private investment
The concession forms part of Transnet’s wider strategy to attract private capital and expertise into South Africa’s ports.
The country has faced persistent challenges with port congestion, equipment failures and operational delays, which have affected the movement of imports and exports and increased pressure on the broader logistics network.
Private-sector participation is therefore being positioned as a way to improve efficiency, expand cargo-handling capacity and modernise ageing infrastructure.
RSGT attended a meeting for prospective bidders in Cape Town earlier this month to assess whether it would participate in the tender process. The company has not yet confirmed that it will submit a formal bid.
Saudi operator expands its African footprint
RSGT, which operates Saudi Arabia’s largest container terminal, is partly owned by the country’s Public Investment Fund.
Its interest in Cape Town comes as Gulf-based companies expand their presence in African logistics, ports and infrastructure.
RSGT has already established an international presence and has also considered opportunities at South Africa’s Port of Durban. Other Gulf-backed operators are similarly pursuing infrastructure projects across the continent.
For Saudi Arabia, gaining a foothold in Cape Town would provide an opportunity to expand its international port portfolio while strengthening its position in one of Africa’s key maritime markets.
For South Africa, attracting an experienced international terminal operator could help improve port performance and strengthen the country’s position as a regional trade and logistics hub.
The Duncan Dock concession is therefore significant beyond the terminal itself. Improved efficiency at Cape Town could benefit exporters, importers, shipping companies and businesses that depend on reliable freight infrastructure.
The bidding process is expected to continue, with proposals due in November 2026.
If RSGT ultimately submits a bid and wins the concession, the deal would mark another major step in the expansion of Gulf investment into Africa’s strategic transport infrastructure.
