Latest news with #SustainableInfrastructure
Arab News
25-06-2025
- Business
- Arab News
RSGT to invest SR1.6bn to develop four Red Sea ports
Red Sea Gateway Terminal, Saudi Arabia's leading container terminal operator and a subsidiary of the Sustainable Infrastructure Holding Company, has announced a strategic expansion into multi-purpose terminal operations, through newly awarded concessions at four existing strategic port facilities along the Red Sea. This significant milestone, in line with Saudi Arabia's Vision 2030, enhances the Kingdom's position as a global logistics hub and improves connectivity across international trade routes. Under the newly signed 20-year concession agreements with the Saudi Ports Authority, known as Mawani, RSGT will assume operational responsibility for the following terminals: Together, these ports contribute an additional 13 km of quay length and 3.3 million square meters of terminal space to RSGT's portfolio. Operations will be under the purview of RSGT's new multi-purpose terminals business unit, which will manage all non-containerized cargo segments, including ro-ro, general cargo, project cargo, dry and liquid bulk, and livestock. This strategic move has been made possible through the continued collaboration between RSGT and Mawani, whose commitment to public-private partnerships continues to play a pivotal role in transforming the Kingdom's port sector and enabling world-class logistics services. RSGT expects to invest a minimum of SR1.6 billion ($418 million) over the 20-year concession period, with SR700 million allocated for expenditure within the first five years of the concession period. These investments will focus on upgrading infrastructure, deploying advanced equipment, and introducing smart technologies to elevate all four terminals to world-class standards. The projected average annual throughput includes: 3 million tons of general cargo, 13 million tons of bulk cargo, 13.5 million tons of liquid bulk, 710,000 ro-ro units (vehicles), and 8 million head of livestock. RSGT will also pursue container terminal development in Yanbu, further positioning it as a strategic regional logistics hub. 'Our expansion into multi-purpose terminals marks a milestone in the evolution of our strategic vision,' said RSGT CEO Jens Floe. 'The additions to our portfolio and operations reflect our ongoing commitment to facilitating global trade, advancing economic diversification, and reinforcing Saudi Arabia's increasingly important role in global supply chains. This investment also lays the foundation for the next phase of our growth strategy, as we expand our international footprint across all cargo segments.' This expansion into non-containerized cargo handling at four new locations marks a significant step in RSGT's continued growth and diversification. By broadening its service portfolio beyond container operations, RSGT is strengthening its position as a leading logistics player in the region and expanding its role across global logistics chain. RSGT, the largest container terminal in Saudi Arabia and the Red Sea region, handled 3.1 million 20-foot equivalent units in 2024, a year negatively impacted by the ongoing Red Sea crises, with an annual capacity of 6.2 million TEUs at its flagship facility located at Jeddah Islamic Port. In early 2024, RSGT's associate company, Red Sea Gateway International, became Saudi Arabia's first international terminal operator by launching operations at Chittagong Port in Bangladesh. The addition of four new multi-purpose terminals to RSGT's portfolio further solidifies the Jeddah- based company's position as a diversified and globally active leader in logistics.
Yahoo
08-05-2025
- Business
- Yahoo
HA Sustainable Infrastructure Capital Inc (HASI) Q1 2025 Earnings Call Highlights: Record ...
Release Date: May 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points HA Sustainable Infrastructure Capital Inc (NYSE:HASI) closed over $700 million of new investments in Q1 2025, marking the most active first quarter in its history. The company reported an average yield on new investments greater than 10.5%, showcasing strong financial performance. HASI has substantial liquidity with over $1.3 billion available, enhancing its ability to capitalize on market opportunities. The company reaffirmed its guidance of 8 to 10% compound annual growth in adjusted EPS through 2027, indicating confidence in its business model. HASI's business model is resilient and noncyclical, with growth and profitability not directly tied to macroeconomic cycles, providing stability in uncertain times. Negative Points There is heightened policy and economic uncertainty, which could potentially impact future business operations. The potential impact of tariffs on future projects remains a concern, although current projects are largely unaffected. A recession in 2025 could marginally impact investments in clean energy generation, though the company expects limited financial impact. The company's gain on sale and other income were lower this quarter at $24 million compared to $30 million last year. There is ongoing uncertainty regarding the IRA and potential changes, which could affect future investment strategies. Q & A Highlights Q: Could you discuss the leverage profile and interest rate strategy for debt at the CCH1 level? A: Jeff Lipson, President and CEO: The leverage at CCH1 would be relatively low, with more equity than debt. The interest rate is expected to be similar to an investment-grade cost of funds, likely in the same vicinity as HASI's interest rate. Q: How do equity financing needs affect your investment pace, especially with the current stock price? A: Jeff Lipson, President and CEO: We've reduced the number of shares needed to grow our business through strategies like CCH1 and payout ratio adjustments. This direction allows us to issue fewer shares per dollar invested, which is positive over time. Q: Does the extension of the CCH1 term indicate a delay in reaching the $2 billion funding target by the end of 2025? A: Jeff Lipson, President and CEO: The extension reflects an increase in CCH1's capacity, not a delay. It was a mutual decision with KKR to extend the investment period as the vehicle will be larger than initially planned.
