APM Terminals Expands in Middle East with Jeddah Terminal Investment
Maersk’s terminal operator, APM Terminals, is positioning itself to benefit from the growing status of Jeddah Islamic Port as it announced the acquisition of a stake in a terminal operated by DP World. It represents APM’s first Red Sea presence and further expands its Middle East presence.
As part of measures to deepen its presence in Saudi Arabia, APM Terminals entered into an agreement with DP World to acquire a 37.5 percent stake in the Southern Container Terminal (SCT) at Jeddah Islamic Port. The two companies did not disclose the value of the investment.
APM Terminals is making the strategic investment owing to Jeddah’s role as a vital gateway not only to the local market but also to global networks. DP World, which secured a 30-year build-operate-transfer concession to operate the terminal in 2019, will retain a 62.5 percent majority shareholding and continue to lead the operations at the facility.
Critically, APM Terminals is acquiring a stake in the facility exactly a year after DP World completed a massive $800 million modernization and expansion of SCT. In March last year, DP World completed a three-year project that transformed the terminal into one of the region’s most advanced and sustainable container facilities, the hallmark of which was doubling its capacity from 1.8 million TEU to 4 million TEUs. The expansion also paved the way for a future capacity of 5 million TEU, with additional ship-to-shore equipment to be deployed as demand grows.
The project also involved expanding the terminal’s capacity for refrigerated containers (reefers) from 1,200 to 2,340, something that now ensures optimal conditions for temperature-sensitive shipments. Spanning a total quay length of 2,150 meters, including a deep-water quay with an 18-metre depth, SCT is today capable of accommodating up to five ultra-large container vessels simultaneously.
Mid-this year, DP World expects to complete the construction of the 415,000-square-meter Jeddah Logistics Park that is being touted as the largest integrated facility of its kind in the Kingdom and which is adjacent to SCT. Maersk is also pumping investments into the park that is expected to offer state-of-the-art warehousing, distribution and freight forwarding services, further strengthening Jeddah’s position as a key hub connecting trade routes across Asia, Africa, and Europe.
“Jeddah Islamic port 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,” said Keith Svendsen, APM Terminals CEO.
Jeddah Islamic port is located along busy global shipping lines connecting three continents making it the Red Sea's top port for transit trade and transshipment of container and cargo. With four terminals and 62 berths, the port has been witnessing growth in the number of ships calling at the port. Last year, about 4,000 vessels docked at the port.
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“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,” said Yuvraj Narayan, DP World Group CEO.
He added the partnership with APM Terminals reflects the confidence global industry leaders place in the port operator’s capabilities.
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