CMA CGM plans new $450m terminal at Saudi Arabia’s Jeddah Islamic Port in joint venture investment deal

The joint venture between RSGT and CMA CGM Group’s fully owned subsidiary CMA Terminals would build and operate a 2.6 million TEU container terminal, separate from the existing RSGT terminals adjacent to it.

CMA CGM said that the $450m sum would be invested in advanced handling equipment and next-generation digital and sustainability capabilities at the port. This, it said, “demonstrates both partners’ shared commitment to operational excellence, modernisation, and customer-centric service at one of the Red Sea’s most strategic ports.”

“This term sheet reflects a shared intent to bring additional capacity, reliability, and technology to Jeddah Islamic Port,” said Jens O. Floe, group CEO of RSGT. “By structuring a sub-concession under our existing framework with the Saudi Ports Authority (Mawani), and bringing CMA CGM to consolidate their volumes on Terminal 4, we can accelerate upgrades and service enhancements while maintaining continuity and high standards across the terminal.”

The planned fourth terminal would be capable of berthing and operating mega containerships “with maximum efficiency”, according to CMA CGM. It said that this supports Saudia Arabia’s broader logistics strategy to “increase gateway throughput, expand transshipment, and reinforce the Red Sea’s pivotal role along the Europe–Asia–Africa corridor” in line with Saudi Vision 2030 – the country’s blueprint for economic, social and environmental transformation.

Read more: DP World expands vehicle capacity at Dubai's Jebel Ali Port with addition of new yard and quay

DP World is adding a 2.6m sq ft storage yard and 800m ro-ro quay at Jebel Ali’s Terminal 4, boosting capacity by 21% as vehicle flows through the port surge 28% in 2025.

“I am pleased to announce this partnership with RSGT, which represents a new step in the development of Jeddah Islamic Port and supports Saudi Arabia’s Vision 2030,” said Rodolphe Saadé, chairman and CEO of the CMA CGM Group. “By combining CMA CGM’s global expertise with RSGT’s local strength, we will contribute to making Jeddah a key logistics gateway on the Red Sea.”

According to data from Saudi Arabia’s General Authority for Statistics (GASTAT), the total quantity of outbound and inbound cargo through the country’s ports in 2024 exceeded 331 million tons. In total 8,693 ships arrived at ports in Saudi Arabia in 2024, with 3,805 of these received at Jeddah Islamic Port – the highest number of any port in the country.

Jeddah Islamic Port accounted for 14.1% of loaded and unloaded cargo in Saudi Arabia in 2024, which totalled more than 334.5 million tons.

GSTAT also reported that in 2023, “vehicles, aircrafts, vessels and associated transport equipment” comprised 15.3% of total imports into Saudi Arabia. Furthermore, it reported that more than 1 million new and used vehicle were imported into Saudi Arabia from 51 countries over a 15-month period covering 2023 and the first quarter of 2024.

"This partnership exemplifies the Kingdom’s commitment to achieving Vision 2030 by transforming Saudi ports into world-class logistics hub,” added H.E. Eng. Suliman Almazroua, president of Mawani. “Mawani is honoured to facilitate strategic collaborations that enhance capacity, connectivity and innovation within our network. We remain committed to strengthening the Kingdom’s role as a global gateway for trade, fostering economic growth and contributing to a more competitive and sustainable future.”