The state-backed Saudi Ports Authority (Mawani) announced the signing of a term sheet for a potential joint venture between Red Sea Gateway Terminal (RSGT) and France’s CMA CGM Group to develop and operate the fourth container terminal at Jeddah Islamic Port.

The total estimated cost for the project is 1.7 billion Saudi riyal ($453.29 million), with a handling capacity of 2.6 million twenty-foot equivalent units (TEUs), Mawani said in a social media post.

The agreement was signed during the ninth Future Investment Initiative (FII) conference in Riyadh.

The new venture will increase RSGT’s annual operating capacity to 8.8 million TEUs, enhancing service quality and strengthening Jeddah Port’s connectivity using CMA CGM’s global network.

Jeddah Islamic Port is the largest port on the Red Sea coast, with 62 multi-purpose berths.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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