DP World and APM Terminals, an independent subsidiary of A.P. Moller–Maersk, have announced a landmark strategic partnership at the Southern Container Terminal (SCT) within Jeddah Islamic Port. Under the new agreement, APM Terminals will acquire a 37.5% minority stake in the terminal, while DP World retains a 62.5% majority shareholding and continues to lead the facility’s operations.
The collaboration brings together two of the world’s largest terminal operators to enhance Jeddah’s standing as the primary Red Sea gateway connecting trade flows between Asia, Europe, and Africa.
Transforming the Southern Container Terminal
Since securing a 30-year Build-Operate-Transfer (BOT) concession in 2019, DP World has spearheaded a massive modernisation programme at the SCT. The partnership with APM Terminals follows several years of significant capital investment aimed at aligning the port with the ambitious goals of Saudi Arabia’s Vision 2030.
Key Enhancements at SCT:
- Capacity Expansion: Significant increases in TEU (Twenty-foot Equivalent Unit) handling capabilities to accommodate the latest generation of ultra-large container vessels.
- Operational Efficiency: Integration of automated technologies and streamlined quay-to-gate processes to reduce vessel turnaround times.
- Sustainability Standards: Implementation of green terminal initiatives, including electrified equipment and energy-efficient infrastructure.
Integrating Logistics Beyond the Quay
The partnership is complemented by separate, massive investments from both DP World and Maersk into the broader Saudi logistics ecosystem. By linking the terminal directly to inland transport, warehousing, and distribution hubs within the port’s integrated logistics zone, the partners are creating a seamless “end-to-end” supply chain for Saudi importers and exporters.
Yuvraj Narayan, Group CEO of DP World, noted that the transformation of the SCT has been central to the company’s growth in the Kingdom for over two decades. “This partnership reflects the confidence global industry leaders place in DP World’s capabilities and the world-class terminal we have developed,” he stated.
Strategic Importance for the Red Sea Corridor
For APM Terminals, the investment secures long-term access to critical infrastructure in one of the region’s most important trade corridors. Keith Svendsen, CEO of APM Terminals, highlighted that the move strengthens their ability to provide “reliable, scalable capacity” in the Kingdom.
Jeddah Islamic Port’s Strategic Advantages:
- Global Connectivity: Situated on the main east-west shipping route, providing a vital link for transshipment cargo.
- National Gateway: Serving as the primary entry point for goods destined for the holy cities and the Saudi heartland.
- Economic Diversification: Acting as a catalyst for the Kingdom’s non-oil GDP growth through enhanced trade facilitation.
As the Red Sea remains a focal point for global maritime stability, this joint venture ensures that Jeddah Islamic Port remains a resilient and high-performing hub for international shipping lines.
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