Red Sea Gateway Terminal (RSGT) and CMA CGM Group are set to invest an initial $434 million to develop a new container terminal at Saudi Arabia’s Jeddah Islamic Port, adding up to 2.6 million TEUs of annual capacity. The companies have signed definitive agreements with the Saudi Ports Authority (Mawani) to jointly develop and operate Terminal 4, which will form part of RSGT’s existing concession at the Red Sea port.
The investment, worth around SAR1.6 billion, will fund new deep-water berths capable of handling the world’s largest containerships, as well as advanced terminal equipment and 10 new ship-to-shore cranes. The additional capacity is designed to accommodate rising Saudi trade volumes while strengthening Jeddah’s position on major east-west shipping routes through the Red Sea.
“Today’s signing marks a significant milestone in the development of RSGT and Jeddah Islamic Port,” said Lars Vang Christensen, Group CEO of RSGT. “Through our upcoming partnership with CMA CGM, and with the continued support of the Ministry of Transport and Logistics Services and Mawani, we are delivering a project that will increase our container capacity significantly.” The deal also gives CMA CGM a bigger foothold at one of the Red Sea’s key container gateways as the French shipping and logistics group continues to expand its terminal business.
The company currently holds interests in 64 port terminals worldwide. CMA CGM has increasingly positioned terminals as strategic assets, giving the group greater control over its shipping network and helping improve reliability along major trade corridors. “As the global trade landscape continues to evolve and infrastructure needs to expand and modernise, terminals are becoming increasingly strategic assets, essential to securing our operations, strengthening major trade corridors and providing our customers with greater reliability,” said CMA CGM Chairman and CEO Rodolphe Saadé.
The companies said the Terminal 4 development will enable Jeddah Islamic Port to handle larger, next-generation container vessels, attract additional international shipping services and improve connections between Saudi importers and exporters and overseas markets.
Aamer Abdullah Alireza, Executive Chairman of RSGT, described the project as a “defining milestone” for the company and Saudi Arabia’s maritime sector. “Together with CMA CGM, we are investing in infrastructure that will create long-term value, strengthen national competitiveness and support the Kingdom’s transformation into a leading global logistics hub,” he said.
The agreement was signed in Paris alongside a French-Saudi investment roundtable attended by Saudi Crown Prince Mohammed bin Salman and French President Emmanuel Macron.