CMA CGM and Saudi Arabia to Invest $434M to Expand Jeddah Islamic Port
An agreement was signed in Paris during a French-Saudi Investment Roundtable that calls for CMA CGM and Red Sea Gateway Terminal (RSGT), Saudi Arabia's terminal operator, to expand the Red Sea Jeddah Islamic Port. Working in collaboration with the Saudi Ports Authority (Mawani), the companies will be marking one of the largest foreign direct investments in Saudi Arabia's maritime sector.
The project will bring approximately $434 million in investment into Jeddah Islamic Port and create a new state-of-the-art container terminal as part of RSGT’s existing concession. It will add up to approximately 2.6 million TEUs of annual handling capacity at the port, which currently has a capacity of 6.2 million TEUs. It will include new deep-water berths designed to accommodate the world's largest container vessels supported by advanced terminal technologies and 10 new ship-to-shore cranes.
RSGT calls the Jeddah operation its flagship terminal, noting that it is the largest and most advanced container terminal on the Red Sea. It accounts for nearly 40 percent of Saudi Arabia’s container throughput.
The companies highlighted that the development project will enhance productivity, efficiency, and service reliability for customers across the Kingdom and the wider region. They said the enhanced marine infrastructure will strengthen Jeddah Islamic Port's ability to efficiently serve larger vessels and major international shipping services, supporting greater trade volumes, stronger global connectivity, and more efficient access to international markets for Saudi imports and exports. The development also further reinforces the successful partnership between the Kingdom, represented by the Saudi Ports Authority (Mawani), RSGT, and CMA CGM Group.
The project will provide critical future capacity to accommodate the Kingdom's growing trade requirements while strengthening the port's position on major global shipping routes. The addition of deep-water berths will enable the terminal to efficiently accommodate larger, next-generation container vessels, helping attract and retain major shipping services, increase cargo flows and enhance the connectivity of Saudi businesses to global markets.
Red Sea Gateway Terminal (RSGT) is Saudi Arabia’s first privately funded terminal operator. To serve a broader range of customers and cargo types, RSGT also offers Multi-Purpose Terminals (MPT) services through a dedicated business unit that manages non-containerized cargo across four strategic locations on Saudi Arabia’s Red Sea coast. It handles containers, Ro/Ro, general cargo, dry and liquid bulk, as well as livestock.
The Red Sea ports have become critical to Saudi Arabia due to the disruptions in the Strait of Hormuz. However, it is now having to address the declared “blockade” by the Houthis to the south in Yemen, which is disrupting some operations. However, the Kingdom looks to expand its capabilities as part of its goal to expand its role as a trade hub for the region.
No comments:
Post a Comment