APM Terminals Expands Middle East Footprint via Strategic Investment in Jeddah Port

APM Terminals, the port operating arm of the Maersk Group, is positioning itself to capitalize on the growing prominence of the Jeddah Islamic Port by acquiring a stake in a DP World-operated terminal. This move not only marks APM Terminals' maiden presence in the Red Sea but also continues to scale its operational footprint in the Middle East.

Deal Details Between APM Terminals and DP World

As part of its strategy to consolidate its presence in Saudi Arabia, APM Terminals has reached an agreement with DP World to acquire a 37.5% stake in the Southern Container Terminal (SCT) at the Jeddah Islamic Port. At present, neither company has disclosed the exact financial value of this investment.

APM Terminals views this as a strategic investment due to Jeddah's critical role - serving not only as an essential gateway to the domestic market but also as a vital link to global maritime networks. On DP World's side, having secured a 30-year Build-Operate-Transfer (BOT) concession in 2019, the company will retain a controlling 62.5% stake and maintain its leadership role in managing day-to-day operations at the facility.

Infrastructure Upgrades and Advanced Operational Capacity

Notably, APM Terminals joins the SCT venture exactly one year after DP World concluded a massive $800 million modernization and expansion program. Completed in March of last year following three years of construction, the project has transformed SCT into one of the most advanced and sustainable container terminals in the region.

Outstanding infrastructure enhancements include:

●    Doubled Capacity: Handling capability has been upgraded from 1.8 million TEUs to 4 million TEUs, laying the groundwork to reach 5 million TEUs in the future through the addition of supplementary ship-to-shore equipment as demand scales up.

●    Optimized Cold Chain: Reefer handling capacity has been expanded from 1,200 to 2,340 plugs, ensuring optimal storage conditions for temperature-sensitive shipments.

●    Berth Infrastructure: The total quay length now reaches 2,150 meters, including an 18-meter deep-water berth, enabling SCT to simultaneously accommodate up to five Ultra-Large Container Vessels (ULCVs).

Logistics Development Prospects and Jeddah Port's Stature

By mid-year, DP World is expected to complete the construction of the 415,000-square-meter Jeddah Logistics Park, located adjacent to SCT. This is regarded as the largest integrated logistics facility in the Kingdom of Saudi Arabia. The Maersk Group is also injecting capital into this complex to provide modern warehousing, distribution, and freight forwarding services, thereby firmly cementing Jeddah's position as a central hub connecting trade routes between Asia, Africa, and Europe.

Assessing the significance of the project, Mr. Keith Svendsen, CEO of APM Terminals, shared:

"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."

Situated along bustling global shipping lanes connecting three continents, the Jeddah Islamic Port is currently the leading port in the Red Sea for transit trade and container transshipment. With 4 terminals and 62 berths, vessel traffic here is recording impressive growth, reaching approximately 4,000 vessel calls last year.

Mr. Yuvraj Narayan, Group Executive of DP World, emphasized:

"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."

Mr. Narayan further affirmed that the partnership with APM Terminals reflects the trust that global industry leaders place in the port operator's capabilities.

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Source: Phaata.com (According to Maritime-Executive)

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