Saudi Arabia eyes 25-year Cape Town port concession as Gulf investment in Africa's logistics sector gathers pace

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, according to Bloomberg's report.

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.