JEDDAH: Jeddah Islamic Port is set to strengthen its role as a trade gateway after APM Terminals agreed to acquire a 37.5 percent stake in the South Container Terminal, enhancing links with Maersk’s global network.
Under the agreement, DP World will retain a 62.5 percent majority shareholding and continue to lead the operations at the facility.
APM Terminals, a wholly owned subsidiary of A.P. Moller–Maersk, is taking the stake as part of the Kingdom’s broader push to expand logistics capacity and position itself as a trade hub, according to the Saudi Ports Authority, also known as Mawani.
The authority said the investment supports the objectives of the National Transport and Logistics Strategy, which aims to enhance port efficiency, increase private-sector participation and boost non-oil exports as Saudi Arabia diversifies its economy.
The acquisition aligns closely with Saudi Arabia’s Vision 2030, which prioritizes economic diversification and the transformation of the Kingdom into a global logistics hub linking Asia, Europe, and Africa.
In a statement, Keith Svendsen, CEO of APM Terminals, stated: “Jeddah Islamic Port is a vital gateway to the Kingdom of Saudi Arabia and a key hub in our customers’ supply chains. We are pleased to invest in the Southern Container Terminal and to deepen our presence in Saudi Arabia through this strategic step.”
He added: “Jeddah is one of the region’s most important trade corridors. This investment secures long-term access to quality infrastructure and strengthens our ability to support customers with reliable, scalable capacity in the Kingdom.”
Mawani said the partnership is expected to integrate the port more closely into Maersk’s shipping network, potentially increasing container volumes, vessel calls and maritime connectivity with regional and international ports while enabling faster and more flexible trade flows.
The authority added that the deal is expected to strengthen Maersk’s strategic footprint at Jeddah Islamic Port by driving higher vessel calls and container volumes while attracting additional services from Maersk and its partners, further reinforcing the port’s role as a leading trade hub on the Red Sea.
Yuvraj Narayan, group CEO of DP World, said Saudi Arabia is a strategic market for DP World, and Jeddah Islamic Port has been central to the company’s growth in the Kingdom for more than two decades.
He added: “Since securing the concession in 2019, we have transformed the Southern Container Terminal into a modern, high-capacity gateway, further strengthening Jeddah’s position as a leading Red Sea hub in support of Saudi Arabia’s Vision 2030. This partnership reflects the confidence global industry leaders place in DP World’s capabilities and the world-class terminal we have developed in Jeddah Islamic Port.”
Khaled Ramadan, chairman of the International Center for Strategic Studies in Cairo and an economic expert, told Arab News that the acquisition will positively impact Saudi Arabia’s maritime trade by boosting container volumes, enhancing operational efficiency, and lowering logistics costs for importers and exporters.
“It strengthens port competitiveness, positioning Jeddah as a preferred hub competing effectively with regional ports like Jebel Ali through integrated global shipping services,” he said.
Ramadan added that it deepens the Kingdom’s integration into global supply chains, supporting Vision 2030 goals by attracting foreign direct investment, improving supply chain resilience, and facilitating non-oil trade growth in an increasingly interconnected world economy.
The South Container Terminal comprises five advanced container berths with a handling capacity of 4.1 million twenty-foot equivalent units.
Jeddah Islamic Port is the largest on the Red Sea coast and plays a central role in advancing the Kingdom’s maritime leadership, leveraging its strategic location and 62 multipurpose berths to maintain a pivotal position in regional and global trade.
