RIYADH: The Red Sea Gateway Terminal has signed an agreement with French-based CMA CGM Group to develop and operate a fourth container terminal at Jeddah Islamic Port, the Saudi Ports Authority announced.
The agreement worth SR1.7 billion ($433 million) was signed during the ninth annual edition of the Future Investment Initiative in Riyadh, the Saudi Press Agency reported.
The agreement aligns with Saudi Arabia’s National Industrial Development and Logistics Program aims to increase the contribution of the logistics sector to the Kingdom’s gross domestic product to 10 percent by 2030, up from 6 percent now.
The SPA report added that the fourth container terminal at the Jeddah Islamic Port is expected to have a handling capacity of 2.6 million twenty-foot equivalent units, further strengthening the facility’s position as a major logistics and trade hub on the Red Sea.
SPA, quoting Suliman Al-Mazroua, president of the Saudi Ports Authority, also known as Mawani, said that the “strategic partnership reflects the Kingdom’s commitment to realizing the objectives of Saudi Vision 2030, particularly in transforming Saudi ports into world-class logistics hubs.”
