French shipping and logistics group CMA CGM has taken another step to expand its terminal footprint in the Middle East, signing a term sheet with Saudi Arabia’s Red Sea Gateway Terminal (RSGT) for a potential joint venture to build and operate Terminal 4 at Jeddah Islamic Port.
The agreement, signed by CMA Terminals during the Future Investment Initiative (FII9) in Riyadh, lays the groundwork for a $450m, 2.6m teu facility that would operate as a separate terminal adjacent to RSGT’s existing operations.
The project would be developed under a sub-concession within RSGT’s long-term deal with the Saudi Ports Authority (Mawani). It forms part of an expansion clause in RSGT’s 2020 concession, which allows for additional capacity at the Kingdom’s busiest Red Sea gateway.
RSGT group CEO Jens Floe said the plan reflects a shared intent to boost capacity, reliability, and technology at Jeddah. “By bringing CMA CGM to consolidate their volumes on Terminal 4, we can accelerate upgrades and service enhancements while maintaining high standards across the terminal,” he said.
CMA CGM chairman and CEO Rodolphe Saadé described the move as a “new step in the development of Jeddah Islamic Port” that aligns with Saudi Arabia’s Vision 2030. He said combining CMA CGM’s global network with RSGT’s local expertise would help make Jeddah a “key logistics gateway on the Red Sea”.
The duo said the new terminal will be designed to handle the world’s largest containerships, featuring next-generation equipment and digital systems aimed at improving efficiency and sustainability. If completed, the facility would further bolster Jeddah’s role as a regional transhipment hub linking Europe, Asia, and Africa, while deepening CMA CGM’s long-term presence in the Red Sea region.
