$434 Million Deal Signed Between France & Saudi Arabia For New Terminal At Jeddah Islamic Port

Container terminal operator Red Sea Gateway Terminal (RSGT) from Saudi Arabia and French shipping giant CMA CGM signed a contract for building and operating Terminal 4 at the Jeddah Islamic Port.

Once completed and operational, the new facility, which has received an investment of Saudi Royal 1.6 billion, or $434 million, will add an extra 2.6 million TEU of capacity to the port annually.

Reports suggest that the terminal, being built in collaboration with Mawani ( Saudi Ports Authority), will accommodate the biggest container ships, with deep-water berths, advanced terminal operating systems and feature 10 new gantry cranes.

More equipment would be bought to improve the overall performance and productivity of the facility to ensure it would remain competitive for reputed shipping companies which regularly transport cargoes to and from Asian, African and European markets to West Asia.

The deal signing event in Paris was a high-profile one, attended by the Crown Prince of Saudi Arabia, P.M Mohammed bin Salman and French President Emmanuel Macron.

The decision to expand the capacity of the Jeddah Port comes at a time when shipping companies are struggling because of the disruptions caused by the US.-Iran war in the strategic Strait of Hormuz, which handles a fifth of the world’s oil and gas supplies, and also the threat of Houthis in the Red Sea, who also declared a blockade on Saudi Arabia.

The investment in the new terminal is also in line with the Vision 2030 of the Saudi government, which plans to decrease its dependence on revenues from oil exports and achieve considerable growth in other sectors as well, such as tourism, trade and logistics.

The agreement was built upon an earlier deal reached between RSGT and CMA CGM last year, regarding the new terminal.

Rodolphe Saadé, CEO of CMA CGM Group, said that since maritime trade is continuously evolving, the infrastructure supporting it should also be upgraded and modernised so ports can become truly strategic assets.