The Saudi Ports Authority (Mawani) announced a major strategic move: the acquisition by Maersk Group, the global shipping and logistics giant, through its subsidiary APM Terminals, of a 37.5% stake in the South Container Terminal at Jeddah Islamic Port. This partnership reinforces Jeddah's position as a key gateway within Maersk's global shipping network, enhancing direct connectivity between Saudi markets and international supply chains.
A strategic context aligned with Vision 2030
This deal cannot be viewed in isolation from the broader context within which Saudi Arabia operates. This acquisition represents a practical application of the objectives of the National Transport and Logistics Strategy, a cornerstone of Saudi Vision 2030. The Vision aims to transform the Kingdom into a global logistics hub connecting Asia, Europe, and Africa, leveraging its unique geographic location. Attracting foreign direct investment from international players of Maersk's caliber will accelerate this transformation, transfer global expertise, and enhance the efficiency of the Saudi logistics sector.
The historical and geographical importance of Jeddah Islamic Port
Jeddah Islamic Port is the largest Saudi port on the Red Sea coast and the Kingdom's main trade artery. Historically, Jeddah has been the gateway to the Two Holy Mosques and a vital commercial center for centuries. Today, approximately 13% of global maritime trade passes through the Red Sea, giving Jeddah Port paramount strategic importance. With its advanced infrastructure, including 62 multi-purpose berths, the port plays a key role in supporting regional and international trade.
Expected impacts at the local, regional, and international levels
This partnership is expected to have multiple positive impacts. Locally , it will increase operational efficiency at the South Container Terminal and reduce vessel handling times, benefiting Saudi importers and exporters. It will also contribute to creating quality job opportunities and developing national talent. Regionally , this move enhances the competitiveness of Jeddah Port as a major transshipment hub in the region, attracting more shipping lines and making it a key hub serving neighboring countries. Internationally , this investment sends a strong message of confidence in the Saudi business environment and its attractiveness to global investments. It also contributes to strengthening the stability and resilience of global supply chains by providing a modern and reliable logistics gateway on one of the world's most important trade routes.
Integrating the South Container Terminal into Maersk’s global operational system will lead to an increase in the number of ships and transshipment containers, and attract more shipping services from the company and its partners, which directly contributes to strengthening the Kingdom’s leadership in the global maritime sector.
