Saudi Giants Eye South Africa’s Citrus Gold as Durban Port Development Gains Momentum

In a significant development for South Africa’s Durban port, Saudi Arabia’s Red Sea Gateway Terminal International (RSGTI), a major ports operator backed by the kingdom’s $925 billion sovereign wealth fund, is exploring a potential bid to develop and operate a new fresh produce terminal at the bustling port.

This move follows a request for proposals issued by South Africa’s state-owned Transnet, which seeks a long-term partner to handle operations at the Maydon Wharf for the next 25 years. The potential partnership with local companies is set to transform the port’s operations, increasing its ability to handle fresh produce exports — a critical industry for South Africa.

The Durban Port Opportunity: A Game Changer for Citrus Exports

South Africa is the world’s second-largest citrus exporter, only behind Spain, and the Durban port plays a pivotal role in exporting grapefruits, lemons, and oranges to lucrative markets in South Korea, the Middle East, and beyond. The proposed terminal, which covers 145 hectares and boasts 15 berths with a 7 million-ton annual cargo capacity, aims to cater to the country’s growing demand for citrus exports.

However, Transnet’s ongoing struggles with inefficiency, corruption, theft, and outdated equipment have hindered the growth potential of the port. In the face of these challenges, the South African government has been actively seeking private sector involvement to modernize its ports, hoping that private investment can address operational inefficiencies and unlock further growth in key export sectors like citrus production.

RSGTI’s Growing Interest in South African and African Ports

Red Sea Gateway Terminal International, led by Gagan Seksaria, director of Global Investments, has expressed its commitment to becoming a key player in South Africa’s ports and related sectors. RSGTI’s focus on Africa’s port development is timely, as the company explores opportunities in mining, food-related terminals, and multipurpose facilities.

In recent performance milestones, RSGTI has demonstrated its technical capabilities, including setting a new productivity record for terminal operations, achieving 53.56 Gross Moves per Hour while handling the SSF Dream, a massive container ship. This high-efficiency operation, powered by automated cranes, highlights the company’s ability to bring state-of-the-art technology to port operations.

RSGT established a new terminal operations productivity record of 53.56 Gross Moves per Hour, powered by automated cranes, while working the SSF Dream on March 20th. The 3,534 TEU capacity container ship operates as part of the CMA CGM FAS weekly Gulf Jeddah Feeder 1 Service. pic.twitter.com/CojIOD8auB

— Red Sea Gateway Terminal (@redseagateway) May 5, 2025

The Broader Impact: Private Sector Involvement and South Africa’s Economy

The potential development of a new terminal at Durban port represents not only an opportunity to streamline operations but also a way to revitalize South Africa’s citrus export sector. This project could act as a springboard for future investments aimed at tackling the logistical challenges that have long plagued the country’s ports.

Given RSGTI’s successful track record in global port operations and its focus on automation and productivity, it is expected that its involvement could help transcend the current inefficiencies at South Africa’s ports, boosting both local and international trade.

A Bright Future for Durban Port and South Africa’s Export Sector

As the Durban port development progresses, the potential bid by RSGTI signals an important turning point for South Africa’s port infrastructure. This move could pave the way for other international operators to consider investments in the country’s ports, potentially bringing in more foreign capital and strengthening South Africa’s standing as a critical player in the global export market.

What’s Next for Durban Port?

As the bidding process for the Durban fresh produce terminal continues, the focus remains on whether RSGTI’s bid, with local partners, will be successful. If it is, the move could mark a major shift in how South African ports are operated, offering new opportunities for economic growth and global trade.

{Source: African Insider}

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