Red Sea Gateway Terminal and CMA CGM Group have made an agreement to invest $434 million to create a new container terminal at Jeddah Islamic Port in Saudi Arabia. This project is expected to add 2.6 million TEUs (Twenty-foot Equivalent Units) to the port's annual capacity.
The companies have signed formal agreements to work together in developing and operating Terminal 4, in collaboration with the Saudi Ports Authority, known as Mawani. This new terminal will be part of the existing concession that RSGT holds at the Red Sea port.
The investment, which is about SAR 1.6 billion, will be used to build new deep-water berths suitable for handling the world's largest container ships, along with upgrading terminal equipment and adding 10 new ship-to-shore cranes.
This added capacity aims to support the increasing trade volumes in Saudi Arabia and enhance Jeddah’s role in essential East-West shipping routes through the Red Sea.
“Today’s signing is a major step forward for RSGT and Jeddah Islamic Port,” stated Lars Vang Christensen, the Group CEO of RSGT. “With our new partnership with CMA CGM and the ongoing support from the Ministry of Transport and Logistics Services and Mawani, we are working on a project that will significantly boost our container capacity.”
This deal also allows CMA CGM to strengthen its presence at one of the key container hubs in the Red Sea as the French shipping and logistics group expands its terminal business. Currently, CMA CGM has interests in 64 port terminals around the world.
The company sees terminals as critical assets that can enhance control over its shipping operations and improve reliability along important trade routes.
“As the global trade landscape changes and infrastructure needs to modernize, terminals are becoming vital assets necessary for securing our operations, supporting main trade routes, and providing our customers with greater reliability,” said Rodolphe Saadé, Chairman and CEO of CMA CGM.
The development of Terminal 4 will enable Jeddah Islamic Port to accommodate larger, next-generation container ships, attract more international shipping services, and enhance connections for Saudi importers and exporters to global markets.
Aamer Abdullah Alireza, Executive Chairman of RSGT, called the project a "defining milestone" for both the company and Saudi Arabia's maritime industry.
“Together with CMA CGM, we are investing in infrastructure that will create long-term benefits, enhance national competitiveness, and support the Kingdom's goal of becoming a leading global logistics hub,” he stated.
The agreement was signed in Paris during a French-Saudi investment roundtable attended by Saudi Crown Prince Mohammed bin Salman and French President Emmanuel Macron.
This project is part of Saudi Arabia's broader efforts to expand its ports and logistics infrastructure under Vision 2030, aligning with the country’s National Transport and Logistics Strategy. Jeddah Islamic Port is situated on the primary Asia-Europe trade route and is a key focus in the Kingdom's plan to capture a bigger share of regional transshipment and logistics activities.