The Saudi Ports Authority (Mawani) has announced the signing of a SAR1.6 billion agreement between Red Sea Gateway Terminal (RSGT) and French shipping group CMA CGM to develop and operate the fourth container terminal at Jeddah Islamic Port. The deal was signed on the sidelines of the Saudi-French Investment Roundtable Meeting in Paris, in the presence of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, and French President Emmanuel Macron, according to the Saudi Press Agency (SPA).
Context and Background
This agreement represents a strategic expansion of the longstanding partnership between Mawani, RSGT, and CMA CGM. It underscores Saudi Arabia’s commitment to enhancing its maritime infrastructure and positioning the Kingdom as a global logistics hub. Jeddah Islamic Port, located on the Red Sea, is a vital gateway for trade routes linking Asia, Europe, and Africa. The development comes as the Kingdom accelerates its Vision 2030 agenda, which prioritizes the growth of the maritime and logistics sectors to diversify the economy away from hydrocarbons.
Key Details of the Agreement
Under the agreement, RSGT will develop and operate the fourth container terminal with an annual capacity of approximately 2.6 million twenty-foot equivalent units (TEUs). This capacity increase will significantly bolster the port’s ability to handle growing trade volumes. The project will also enhance Jeddah Islamic Port’s capability to attract global shipping lines and services, improve cargo flows, and expand connectivity with international markets. The investment demonstrates the confidence of international maritime players in Saudi Arabia’s economic trajectory and the conducive business environment fostered under Vision 2030.
Implications for Global Trade
The development is expected to strengthen the Kingdom’s position in global supply chains by providing a modern, high-capacity terminal that meets international standards. The strategic location on the Red Sea makes the port a natural hub for transshipment and a critical node in the Belt and Road Initiative. The partnership with CMA CGM, one of the world’s leading shipping companies, ensures that the terminal will operate at the highest global efficiency standards. This will likely lead to increased cargo flows, faster transit times, and enhanced reliability for exporters and importers in the region and beyond.
Vision 2030 Alignment
This project directly supports Saudi Arabia’s National Transport and Logistics Strategy (NTLS) and the objectives of Vision 2030 to establish the Kingdom as a leading global logistics center. By expanding port capacity and forging international partnerships, Saudi Arabia is strengthening its ability to connect to global trade networks, attract foreign investment, and create job opportunities. The agreement underscores the Crown Prince’s leadership in fostering deep economic and diplomatic ties with key allies like France, while simultaneously advancing the Kingdom’s long-term economic transformation.
20 Questions
Q1. What is the value of the agreement between RSGT and CMA CGM?
A1. The agreement is valued at approximately SAR1.6 billion (Saudi Riyals). This investment is designated for the development and operation of the fourth container terminal at Jeddah Islamic Port.
Q2. Who signed the agreement on behalf of the parties?
A2. The agreement was signed on the sidelines of the Saudi-French Investment Roundtable Meeting. The specific signatories are not named in the SPA release, but the agreement is between Red Sea Gateway Terminal (RSGT) and CMA CGM, with the Saudi Ports Authority (Mawani) overseeing the announcement.
Q3. When and where was the agreement signed?
A3. The agreement was signed on August 25, 2026, during the Saudi-French Investment Roundtable Meeting in Paris, France. The event was attended by the Saudi Crown Prince and the French President.
Q4. What is the annual capacity of the fourth container terminal?
A4. The fourth container terminal at Jeddah Islamic Port will have an annual capacity of approximately 2.6 million twenty-foot equivalent units (TEUs). This capacity is a significant addition to the port’s overall handling ability.
Q5. What is the strategic importance of Jeddah Islamic Port?
A5. Jeddah Islamic Port is strategically located on the Red Sea, serving as a vital gateway for maritime trade routes that link Asia, Europe, and Africa. Its location makes it a crucial hub for transshipment and connecting global supply chains.
Q6. How does this agreement contribute to Saudi Arabia’s Vision 2030?
A6. The agreement supports Vision 2030 by expanding the Kingdom’s logistics infrastructure, enhancing trade connectivity, and attracting foreign investment. It directly aligns with the National Transport and Logistics Strategy to make Saudi Arabia a top global logistics hub.
Q7. What role did the Saudi Ports Authority play in this deal?
A7. The Saudi Ports Authority (Mawani) announced the agreement and oversees the strategic development of Saudi ports. It has fostered the partnership between RSGT and CMA CGM, ensuring alignment with national maritime objectives.
Q8. What is the significance of the Saudi-French Investment Roundtable Meeting?
A8. The meeting provided the backdrop for signing the agreement, symbolizing the strengthening of economic and diplomatic ties between Saudi Arabia and France. It also highlights the collaboration in major infrastructure projects.
Q9. Who attended the signing ceremony?
A9. The signing ceremony was attended by His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister of Saudi Arabia, and the President of the French Republic, Emmanuel Macron. Their presence underscores the political support for the deal.
Q10. What is the role of CMA CGM in the agreement?
A10. CMA CGM, a French shipping group, will jointly develop and operate the terminal with RSGT. Its involvement ensures the terminal benefits from global shipping expertise and market access.
Q11. How many TEUs will the new terminal add to Jeddah Islamic Port’s capacity?
A11. The new terminal will add approximately 2.6 million TEUs annually, significantly boosting the port’s overall throughput capacity. This expansion is designed to accommodate growing trade volumes.
Q12. What is the timeline for the development of the terminal?
A12. The specific timeline for the development of the terminal was not detailed in the official statement. The agreement aims to build on existing concession agreements and will be subject to normal project scheduling.
Q13. How will this project improve the efficiency of supply chains?
A13. By expanding capacity and attracting more shipping lines, the project will streamline the flow of exports and imports through Jeddah. It will reduce congestion, shorten turnaround times, and enhance overall supply chain resilience.
Q14. What does the agreement say about international confidence in Saudi Arabia?
A14. The investment by CMA CGM and RSGT reflects strong international confidence in Saudi Arabia’s economic growth and stable business environment. It signals the success of Vision 2030 in opening the Kingdom to global partnerships.
Q15. How does this project relate to the Red Sea trade routes?
A15. Jeddah Islamic Port is a natural hub for Red Sea trade routes connecting Asia, Europe, and Africa. The new terminal will increase the port’s capacity to capture more transshipment and transshipment cargo, strengthening its regional hub role.
Q16. What is the financial commitment from RSGT and CMA CGM?
A16. The combined investment is approximately SAR1.6 billion. This fund will be used for the development, construction, and operation of the fourth container terminal, covering infrastructure and equipment.
Q17. How many terminals are currently at Jeddah Islamic Port?
A17. The fourth container terminal is being developed; Jeddah Islamic Port already has several other container terminals and berths. The addition of the fourth will further increase its total container handling capacity.
Q18. What is the role of the Saudi-French Investment Roundtable?
A18. The roundtable serves as a platform to foster bilateral trade and investment opportunities between Saudi Arabia and France. This agreement was signed on its sidelines, indicating the positive outcomes of such diplomatic forums.
Q19. How will the terminal enhance connectivity with international markets?
A19. By offering more capacity and attracting global shipping lines, the terminal will expand direct shipping links between Jeddah and major global ports. This will facilitate more efficient and seamless trade flows.
Q20. When is the terminal expected to be fully operational?
A20. The exact operational date is not provided in the official announcement. However, the project is part of ongoing development plans under Mawani, and it will be completed and operated within the timeframe of RSGT’s existing concession.
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