Saudi Arabia (KAAB TV) – The Djibouti Ports and Free Zones Authority has announced the signing of a 30-year concession agreement granting Saudi Arabia’s Red Sea Gateway Terminal the rights to operate, manage, and develop the Port of Tadjourah.
The framework agreement, signed on Friday in Jeddah, builds upon a Memorandum of Understanding (MoU) concluded between the two parties in March 2025, marking a new milestone in the growing maritime and logistics cooperation between Djibouti and Saudi Arabia.
The signing ceremony was attended by Aboubaker Omar Hadi, Chairman of DPFZA; Dya-Eddine Said Bamakhrama, Djibouti’s Ambassador to Saudi Arabia; and Jens O. Floe, CEO of RSGT International.
The agreement was formally signed by Kamil Mohamed Gorah, Chairman of the Port of Tadjourah, and Gagan Seksaria, Director of Investments at RSGT.
Officials hailed the deal as a major step toward diversifying and strengthening Djibouti’s port infrastructure.
Under the 30-year concession, RSGT will redevelop the Port of Tadjourah into a modern multi-purpose terminal with an initial handling capacity of five million tons per year.
The facility is expected to become a key gateway for Ethiopian imports and exports, including potash, fertilizers, grains, construction materials, and containerized cargo.
The development plan also envisions the establishment of a dedicated free zone designed to attract foreign investment and support integrated logistics, warehousing, and value-added services.
“The collaboration between RSGT and DPFZA in developing the Port of Tadjourah will further strengthen Djibouti’s strategic position as a leading logistics and maritime hub in the Horn of Africa and the Red Sea, serving as a vital link between Africa, the Middle East, and global markets,” the Djibouti Ports and Free Zones Authority said in a statement.
Originally inaugurated in 2017, the Port of Tadjourah was built primarily to handle Ethiopia’s potash exports from the Afar region.
Limited utilization and infrastructure constraints have slowed its growth — a challenge the new Saudi partnership aims to address.