CMA CGM and RSGT Launch US$450 Million Terminal 4 Project at Jeddah Islamic Port

Global shipping group CMA CGM, via its subsidiary CMA Terminals, has entered a strategic partnership with Saudi Arabia’s Red Sea Gateway Terminal (RSGT) to develop and operate “Terminal 4” at the Jeddah Islamic Port. The companies signed a term sheet at the Future Investment Initiative (FII9) in Riyadh to kick off the project.

Under the planned arrangement, the new terminal will be built adjacent to RSGT’s existing operations, with a handling capacity of 2.6 million TEUs. The investment is pegged at roughly US$450 million and will feature cutting-edge equipment, digital systems and sustainability measures aimed at handling large “mega” container vessels.

Jens O. Floe, Group CEO of RSGT said: “This Term Sheet reflects a shared intent to bring additional capacity, reliability, and technology to Jeddah Islamic Port.

"By structuring a sub-concession under our existing framework with Mawani, and bringing CMA CGM to consolidate their volumes on T4, we can accelerate upgrades and service enhancements while maintaining continuity and high standards across the terminal.”

Global Shipping Sees Diverging Fortunes Across Trade Lanes

Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, stated: “I am pleased to announce this partnership with RSGT, which represents a new step in the development of Jeddah Islamic Port and supports Saudi Arabia’s Vision 2030.

"By combining CMA CGM’s global expertise with RSGT’s local strength, we will contribute to making Jeddah a key logistics gateway on the Red Sea. This investment reflects our confidence in the Kingdom’s long-term ambitions and our commitment to supporting its economic transformation.”

The broader significance of the project extends beyond the immediate terminal. With the new facility, RSGT’s total annual handling capacity is expected to reach about 8.8 million TEUs - bolstering Jeddah’s competitiveness as a transshipment hub linking Europe, Asia and Africa.

From a technical and commercial point of view, CMA CGM highlighted that Terminal 4 will be capable of berthing and efficiently servicing ultra-large container ships, thanks to advanced infrastructure and digitalised operational systems.

The project underscores major global shipping players’ interest in the Red Sea region - a corridor of growing strategic importance for global trade flows.

What remains open are the detailed timelines, financing structure, and the precise roles of each partner in the build-out, operations and revenue sharing. The signed term sheet sets the strategic framework; the definitive agreements and construction clauses are yet to be finalised.

For the shipping and logistics industry, this move signals that CMA CGM is deepening its footing in the Middle East infrastructure space, while Saudi Arabia is continuing to court global logistics players to realize its Vision 2030 goals.

Bottom Line: A US$450 million investment by CMA CGM and RSGT to build a 2.6 million TEU Terminal 4 at Jeddah Islamic Port marks a significant upgrade for the Red Sea gateway and a clear alignment with Saudi’s port-modernisation strategy. This will reshape capacity, capability and connectivity in the region.

Read More: Container Shipping: Schedule Instability Surges Despite Looming Overcapacity