RSGT, CMA CGM sign $434mn deal to develop Jeddah Port Terminal

Red Sea Gateway Terminal (RSGT), a leading Saudi terminal operator, and global shipping and logistics company CMA CGM Group have signed definitive agreements to jointly develop and operate Terminal 4 at Jeddah Islamic Port in partnership with the Saudi Ports Authority (Mawani).

The project represents an investment of approximately $434 million and is among the major foreign direct investments in Saudi Arabia’s maritime sector. The agreement was signed in Paris during the French-Saudi Investment Roundtable Meeting, attended by Saudi Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud and French President Emmanuel Macron.

The new terminal will be developed as part of RSGT’s existing concession at Jeddah Islamic Port and is expected to add up to 2.6 million TEUs of annual container-handling capacity.

The development will feature new deep-water berths capable of accommodating some of the world’s largest container vessels, along with advanced terminal technologies and 10 new ship-to-shore cranes. The infrastructure is expected to improve operational efficiency, productivity and service reliability for shipping customers in Saudi Arabia and the wider region.

The expanded marine infrastructure will also strengthen Jeddah Islamic Port’s ability to handle larger vessels and major international shipping services. This is expected to support higher trade volumes, improve global connectivity and provide more efficient access to international markets for Saudi imports and exports.

The agreement further strengthens the partnership between Mawani, RSGT and CMA CGM and reflects Saudi Arabia’s efforts to attract international investment into its logistics and maritime sectors as part of its Vision 2030 and National Transport and Logistics Strategy.

The additional capacity is expected to help meet the Kingdom’s growing trade requirements while reinforcing Jeddah Islamic Port’s position along major global shipping routes. The deep-water berths will enable the port to accommodate next-generation container vessels, potentially helping attract major shipping services and increase cargo flows.

The project is ultimately aimed at enhancing the competitiveness, resilience and efficiency of Saudi Arabia’s import and export supply chains while strengthening the Kingdom’s role as a key hub in global trade.

The partnership brings together RSGT’s operational expertise and strong local presence with CMA CGM Group’s global shipping network, logistics capabilities and extensive experience in terminal operations.

The two companies will work together to develop a world-class container facility designed to handle some of the world’s largest vessels while improving connectivity, operational efficiency and service quality for customers. The project also reflects the partners’ long-term commitment to supporting Saudi Arabia’s economic growth, strengthening trade competitiveness and advancing the Kingdom’s logistics transformation.

Port terminals play a vital role in global supply chains by linking maritime transport with inland logistics networks and facilitating the movement of goods between production centers and consumer markets. For CMA CGM, terminal operations form an important part of its global strategy, with the company investing in and operating facilities at key ports along major international trade routes.

The CMA CGM Group currently has interests in 64 port terminals worldwide. Through its expanding terminal network, the company aims to improve operational efficiency, enhance supply-chain resilience and provide customers with stronger connectivity across its global shipping and logistics network.

Commenting on the agreement, Suliman bin Khalid Al-Mazrou, President of the Saudi Ports Authority (Mawani), said the deal marks a significant milestone for the Kingdom’s maritime sector. He noted that the investment reflects Saudi Arabia’s growing appeal as a destination for maritime investment and highlights increasing confidence among international investors in the country’s ports ecosystem.

Al-Mazrou added that the project builds on Mawani’s continued efforts to expand and modernise port infrastructure, strengthen the competitiveness of Saudi ports and support the goals of the National Transport and Logistics Strategy and Saudi Vision 2030.

Lars Vang. Christensen, Group Chief Executive Officer of RSGT, said, “Today's signing marks a significant milestone in the development of RSGT and Jeddah Islamic Port. The agreement also reflects our long-term commitment to supporting Saudi Arabia's logistics ambitions as well as our service to valuable customers. 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”.

Rodolphe Saade, Chairman and Chief Executive Officer of CMA CGM Group, said, “As global trade landscape continues to evolve and infrastructures need to expand and modernize, terminals are becoming increasingly strategic assets, essential to securing our operations, strengthening major trade corridors and providing our customers with greater reliability. 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.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."