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Red Sea Gateway and CMA CGM partner on Jeddah Terminal 4
Red Sea Gateway Terminal (RSGT), one of Saudi Arabia’s leading terminal operators, and the French CMA CGM Group, have signed agreements to jointly develop and operate Terminal 4 at Jeddah Islamic Port, in collaboration with the Saudi Ports Authority (Mawani). The project will be one of the largest foreign direct investments in Saudi Arabia’s maritime sector bringing approximately US$ 434 million (SAR 1.6 billion) in investment into the Red Sea port.
The partnership aims to create a new container terminal alongside RSGT’s existing concession in Jeddah port, adding up to 2.6 million TEU of annual container handling capacity. The development will include new deepwater berths designed to accommodate the world’s largest container vessels supported by advanced terminal technologies and 10 new ship-to-shore cranes.
Aamer Abdullah Alireza, Executive Chairman of the Board of Directors of RSGT, commented:” This partnership represents a defining milestone for both RSGT and Saudi Arabia’s maritime sector. It reflects the Kingdom’s ability to attract world-class international investors and demonstrates growing confidence in Saudi Arabia’s economic future, logistics ambitions and strategic position at the heart of global trade. 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.”
Terminal 4 will be developed adjacent to the existing RSGT terminal complex at Jeddah Islamic Port and will operate as a dedicated container terminal under the RSGT-CMA CGM partnership.
RSGT is Saudi Arabia’s leading port terminal operator, managing six terminals across the Kingdom, and now also operating internationally, following the recent inauguration of a new terminal in Chittagong, Bangladesh. Its flagship terminal in Jeddah accounts for nearly 40% of Saudi Arabia’s container throughput.
J.P. Morgan acted as the sole financial advisor while King & Spalding in association with Reed Smith acted as legal advisors to RSGT in this project.
