A.P. Moller-Maersk’s independent subsidiary, APM Terminals, is acquiring a large stake in the Southern Container Terminal (SCT) in Jeddah Islamic Port: a facility previously owned outright by UAE ports operator, DP World.
APM Terminals and DP World are two of the world’s biggest port operators. APM Terminals is the subsidiary of Danish shipping giant: Maersk. APM Terminals will acquire a 37.5% minority stake in the terminal while DP World will retain a majority stake (62.5%), continuing to lead operations at the facility.
DP World secured a 100% ownership 30-year Build-Operate-Transfer concession (2019).
Since then, the UAE firm has upgraded the terminal, increasing capacity, improving productive efficiency, whilst raising sustainability standards in line with the Kingdom’s Vision 2030.
The enhanced joint-venture will integrate on-site logistics capacity within Jeddah Port and the land routes between KSA, Jordan, Yemen, and the surrounding GCC economies whilst increasing the loading capacity of vessels and transhipment containers. SCT includes five advanced container berths with a total handling capacity of 4.1M TEUs.
Yuvraj Narayan, the new Group CEO of DP World, said: “Saudi Arabia is a strategic market for DP World and Jeddah Islamic Port has been central to our growth in the Kingdom for more than two decades. 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.”
The announcement arrives as DP World reallocates its capital investments following a leadership change and doubles-down on its portfolio along the Red Sea coastal region.
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