RSGT and CMA CGM intend to jointly develop and operate Terminal 4 at the Jeddah Islamic Port. An initial investment of around $434 million is earmarked for the project.
The terminal operator Red Sea Gateway Terminal (RSGT) and the French shipping and logistics group CMA CGM have signed agreements to jointly develop and operate Terminal 4 at Jeddah Islamic Port. The project is being implemented in collaboration with the Saudi Ports Authority (Mawani).
According to the companies, an initial investment of around $434 million (1.6 billion SAR) is to be made in the expansion. Terminal 4 forms part of RSGT’s existing concession. The development is expected to increase the port’s annual handling capacity by up to 2.6 million TEU.
Plans include new deep-water berths and ten additional ship-to-shore container cranes. The infrastructure is to be designed to handle even very large container ships. New terminal technologies are also to be deployed. The additional berths are intended to enable the Jeddah Islamic Port to accommodate larger vessels and international liner services. RSGT and CMA CGM aim to create additional capacity for Saudi Arabian imports and exports.
Crown Prince and President at the signing
The agreement was signed in Paris as part of a Franco-Saudi investment meeting. Among those attending the meeting were the Saudi Crown Prince and Prime Minister Mohammed bin Salman, and French President Emmanuel Macron.
With this investment, CMA CGM is also expanding its involvement in the terminal business. According to the company, the group holds stakes in 64 port terminals worldwide.
“Terminals are increasingly becoming strategic assets. They are crucial for securing our operations, strengthening key trade corridors and offering our customers greater reliability,” emphasised Rodolphe Saadé, Chairman and CEO of the CMA CGM Group.
RSGT CEO Lars Vang Christensen explained that the project would significantly increase the terminal’s container capacity. He added that the agreement forms part of the long-term collaboration with CMA CGM and the Saudi port authority, Mawani.
