News / APMT buys minority stake in DP World's Jeddah facility

Photo: DP World

APM Terminals today marked its entrance to the Saudi Arabia port market, agreeing to acquire a 37.5% minority stake in DP World’s Southern Container Terminal in the Red Sea port of Jeddah for an undisclosed price.

DP World said it would retain the remaining 62.5% and “continue to lead the operations at the facility”, which it originally entered in 2001, and subsequently signed a 30-year build-operate-transfer (BOT) concession extension in 2019.

“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,” Yuvraj Narayan, DP World CEO, said.

“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,” he added.

The deal is unlikely to lead to much reshuffling in the way of shipping services, as Maersk’s three current services into the port – Gemini’s Med-Jeddah loops 1, 2 and 3, according to the eeSea liner database – already call at the South Container Terminal.

However, the carrier’s appetite to resume Suez Canal transits will likely see further calls added when the Gemini Asia-Europe and Asia-east coast North America services resume the Red Sea route, with several calls at the port on the trans-Suez pro forma schedule versions published by Gemini, although it is not on the rotation of Gemini’s India-Med Loop which recently resumed Suez transits.

“This investment secures long-term access to quality infrastructure and strengthens our ability to support customers with reliable, scalable capacity in the Kingdom,” Keith Svendsen, CEO of APM Terminals, said.

“Jeddah Islamic Port is a vital gateway to the Kingdom of Saudi Arabia and a key hub in our customers’ supply chains.

“We are pleased to invest in the Southern Container Terminal and to deepen our presence in Saudi Arabia through this strategic step. Jeddah is one of the region’s most important trade corridors,” he added.

The deal means that through Maersk’s ownership of APM Terminals, there are now three carrier shareholders in Jeddah’s facilities, with Cosco already holding minority stakes in the North Container Terminal and the Red Sea Gateway Terminal 1.

And last October, CMA CGM signed a joint-venture deal with Saudi Ports Authority to develop the $450m Red Sea Gateway Terminal 2.