Red Sea Gateway Terminal and CMA CGM Group have signed definitive agreements to jointly develop and operate Terminal 4 at Jeddah Islamic Port.
The partners will initially invest approximately US$434 million, equivalent to SAR 1.6 billion, in the project.
The development will add up to 2.6 million TEUs of annual container-handling capacity at the Saudi port.
Terminal 4 will be developed next to RSGT’s existing terminal complex. It will operate as a dedicated container terminal under the RSGT-CMA CGM partnership.
The project forms part of RSGT’s existing concession and is being developed in collaboration with the Saudi Ports Authority, also known as Mawani.
The new terminal will feature deep-water berths capable of accommodating the world’s largest container ships. It will also use advanced terminal technologies and add 10 ship-to-shore cranes.
The partners expect the development to improve productivity, operational efficiency and service reliability.
The additional capacity will help Jeddah Islamic Port handle rising Saudi trade volumes and larger container vessels.
The development will also support international shipping services and improve access to global markets for Saudi importers and exporters.
RSGT and CMA CGM expect the terminal to strengthen Jeddah’s position on major international shipping routes. It will also support the resilience and competitiveness of Saudi Arabia’s supply chains.
The agreement was signed in Paris during the French-Saudi Investment Roundtable Meeting.
Saudi Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud and French President Emmanuel Macron attended the meeting.
The project supports Saudi Arabia’s National Transport and Logistics Strategy and its Vision 2030 objectives.
Suliman bin Khalid Al-Mazrou, President of the Saudi Ports Authority, described the agreement as a significant milestone for the country’s maritime sector.
He said the project reflected Saudi Arabia’s attractiveness to international investors and growing confidence in the country’s ports ecosystem.
“This partnership represents a defining milestone for both RSGT and Saudi Arabia’s maritime sector,” said Aamer Abdullah Alireza, Executive Chairman of the Board of Directors of RSGT.
“It reflects the Kingdom’s ability to attract world-class international investors and demonstrates growing confidence in Saudi Arabia’s economic future, logistics ambitions and strategic position at the heart of global trade,” he added.
“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,” Alireza continued.
“Today’s signing marks a significant milestone in the development of RSGT and Jeddah Islamic Port,” said Lars Vang Christensen, Group Chief Executive Officer 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, enhance RSGT’s competitiveness and create long-term value for the Kingdom,” he added.
CMA CGM holds interests in 64 port terminals worldwide. The group considers terminal operations a strategic part of its global shipping and logistics activities.
“As the global trade landscape continues to evolve and infrastructure needs to expand and modernise, terminals are becoming increasingly strategic assets,” said Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM Group.
“Today, alongside RSGT, we are taking a major new step forward in Jeddah with a state-of-the-art terminal designed to handle the world’s largest container vessels and equipped with the most advanced technologies,” he added.
“This investment reflects our long-term commitment to Saudi Arabia and our determination to continue supporting the Kingdom as it strengthens its position as a leading global trade and logistics hub,” Saadé concluded.
