CMA CGM Joins $434 Million Expansion of Saudi Arabia’s Jeddah Port

Red Sea Gateway Terminal and CMA CGM Group have agreed to invest an initial $434 million to develop a new container terminal at Saudi Arabia’s Jeddah Islamic Port, adding up to 2.6 million TEUs of annual capacity.

The companies signed definitive agreements to jointly develop and operate Terminal 4 in partnership with the Saudi Ports Authority, known as Mawani. The project will form part of RSGT’s existing concession at the Red Sea port.

The investment, equivalent to about SAR 1.6 billion, will fund new deep-water berths capable of handling the world’s largest containerships, along with advanced terminal equipment and 10 new ship-to-shore cranes.

The additional capacity is aimed at accommodating growing Saudi trade volumes while strengthening Jeddah’s position on major East-West shipping routes through the Red Sea.

“Today’s signing marks a significant milestone in the development of RSGT and Jeddah Islamic Port,” said Lars Vang Christensen, Group CEO 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.”

The deal also gives CMA CGM a larger foothold at one of the Red Sea’s key container gateways as the French shipping and logistics group continues to expand its terminal business. CMA CGM currently has interests in 64 port terminals worldwide.

The company has increasingly viewed terminals as strategic assets that can provide greater control over its shipping network and improve reliability along major trade corridors.

“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,” CMA CGM Chairman and CEO Rodolphe Saadé said.

The companies said the Terminal 4 development will allow Jeddah Islamic Port to handle larger, next-generation container vessels while attracting additional international shipping services and improving connections between Saudi importers and exporters and overseas markets.

Aamer Abdullah Alireza, Executive Chairman of RSGT, described the project as a “defining milestone” for the company and Saudi Arabia’s maritime sector.

“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,” he said.

The agreement was signed in Paris alongside a French-Saudi investment roundtable attended by Saudi Crown Prince Mohammed bin Salman and French President Emmanuel Macron.

The project forms part of Saudi Arabia’s broader push to expand its ports and logistics infrastructure under Vision 2030 and the country’s National Transport and Logistics Strategy. Jeddah Islamic Port sits on the main Asia-Europe trade corridor and has become a major focus of Saudi efforts to capture a larger share of regional transshipment and logistics activity.

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