Gulftainer will invest $500m in two-year expansion plan in Russia and Saudi Arabia

Gulftainer will invest $500m in two-year expansion plan in Russia and Saudi Arabia
Published: 26 May 2013 - 6 a.m.

Gulftainer plans to invest $500m over two years as it expands in Russia and Saudi Arabia, the world’s two biggest oil producers.

The company, which operates the Russian port of Ust-Luga south of St Petersburg, aims to announce further expansion in the country before the end of the third quarter, vice-chairman Badr Jafar said in an interview at the World Economic Forum in Jordan on Saturday.

“We’re hugely excited about the potential Russia holds,” said Jafar, who is also chief executive officer of Gulftainer parent Crescent Enterprises.

“We’re in talks with a number of parties in Russia, with the government, with private companies. Expansion is not necessarily new ports, but related logistics including in-land container depots, potentially rail.”

Gulftainer operates ports in countries including Brazil, Kuwait, Iraq and Turkey. The company seeks to enter Saudi Arabia, the world’s biggest Arab economy, to capitalise on opportunities created by increased public spending, Jafar said.

“Saudi Arabia plans on spending hundreds of billions of dollars on infrastructure,” he said.

“A lot of it will be to try and make sure there’s maximum connectivity between the different regions and that ultimately need transportation and need logistics.”

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