Saudi Arabia and CMA CGM Launch $434 Million Expansion of Jeddah Port

Saudi Arabia’s Red Sea Gateway Terminal and French shipping group CMA CGM have signed an agreement to develop and operate Terminal 4 at Jeddah Islamic Port, advancing the kingdom’s plans to become a major international logistics hub.

The project represents an investment of approximately 1.6 billion Saudi riyals, equivalent to about $434 million. It will be undertaken in partnership with the Saudi Ports Authority, known as Mawani, which manages the country’s commercial port network.

Under the agreement, Red Sea Gateway Terminal and CMA CGM will jointly develop and operate the terminal, combining local port-management experience with the French group’s global shipping and logistics network. The development is expected to improve container-handling capacity, operational efficiency and shipping connectivity at one of the Red Sea’s most strategically located ports.

Jeddah Islamic Port serves as a key maritime gateway for Saudi Arabia and lies along an important trade route connecting Asia, the Middle East, Africa and Europe. Expanding its terminal infrastructure could help the port capture a greater share of cargo moving through the Red Sea and support the growth of logistics, warehousing and distribution activities within the kingdom.

The investment also supports Saudi Arabia’s Vision 2030 economic-diversification programme, which identifies transport and logistics as priority sectors. The government aims to use new infrastructure, private-sector participation and international partnerships to reduce the economy’s reliance on oil revenue.

For CMA CGM, the agreement provides a larger operational presence in a market positioned between major east–west shipping corridors. The partnership could also give the company greater control over cargo handling and terminal services for vessels operating through Jeddah.

The Terminal 4 agreement stands out as a confirmed and project-specific logistics investment, rather than a preliminary expression of interest. Its economic effect will ultimately depend on the development schedule, additional capacity created and the volume of shipping services directed through the expanded terminal.

Once operational, the project is expected to strengthen Jeddah Islamic Port’s regional competitiveness and reinforce Saudi Arabia’s growing role in international maritime trade.