Saudi Port Authority (Mawani) reported on Tuesday that the Red Sea Gateway Terminal (RSGT), which is the largest national container terminal operator in the Kingdom, has signed a joint agreement with the French CMA CGM Group to design and operate the fourth container terminal at Jeddah Islamic Port.
The SAR1.7 billion ($453.32 million) agreement was declared at the ninth year Future Investment Initiative (FII9) in Riyadh.
The new terminal will have a capacity of 2.6 million twenty-foot equivalent units (TEUs) capacity which will further enable Jeddah Islamic Port to establish itself as a key logistics and trade center on the Red Sea.
RSGT integrates Jeddah Islamic Port development
Chairman and CEO of CMA CGM Rodolphe Saadé and Chairman of the Board of Directors of RSGT Aamer Abdullah Alireza, in the presence of Minister of Transport and Logistic Services Saleh Al-Jasser and President of the Saudi Ports Authority (Mawani) Eng. Suliman bin Khalid Al-Mazroua.
Al-Mazroua emphasized that the strategic alliance demonstrates how the Kingdom is keen on meeting the goals of Saudi Vision 2030, especially in the aim of making the Saudi ports global logistics centers.
He said that Mawani is proud to engage in initiatives to strengthen the capacity, connectivity, and innovations within its port network to strengthen the position of the Kingdom as a global entry point to trade and a catalyst in sustainable economic development.
The new terminal is part of the wider expansion program at Jeddah Islamic Port, which is part of the long-term agreement with Mawani that RSGT previously implemented in 2020.
The SAR1.7 billion investment is aimed at developing the modern infrastructure, implementing the modern cargo-handling equipment, and introducing the next-generation digital and sustainability technologies to increase the operational efficiency and reliability.
Plan to increase the handling capacity of RSGT to 8.8 million TEUs
After completion, the project will enhance the overall handling capacity of RSGT to approximately 8.8 million TEUs per annum.
It will also enhance competitive advantage at Jeddah Islamic Port by enhancing the quality of service and connectivity by the CMA CGM international network and operational skills of RSGT to serve the national policy to increase handling volumes, transshipment operations, and the Red Sea position in the Europe-Asia-Africa maritime route.
The largest port in the Red Sea and with 62 multipurpose berths, Jeddah Islamic Port has a central regional and global role that has established the leadership, yet again, the Kingdom has regarding the global marine and logistic industries.
