APM Terminals Acquires Stake in Jeddah Islamic Port to Strengthen Trade Links

Jeddah Islamic Port is set to enhance its role as a key trade gateway after APM Terminals agreed to acquire a 37.5 percent stake in the South Container Terminal. The move aims to strengthen the port’s integration with Maersk’s global shipping network. Under the agreement, DP World will retain a 62.5 percent majority share and continue to manage operations at the facility.

APM Terminals, a wholly owned subsidiary of A.P. Moller–Maersk, is investing as part of Saudi Arabia’s broader strategy to expand logistics capacity and position the Kingdom as a major trade hub, the Saudi Ports Authority (Mawani) said. The investment supports the National Transport and Logistics Strategy, which seeks to improve port efficiency, increase private-sector participation, and boost non-oil exports amid ongoing economic diversification efforts.

The acquisition also aligns with Vision 2030, Saudi Arabia’s blueprint for transforming the Kingdom into a global logistics center connecting Asia, Europe, and Africa. Keith Svendsen, CEO of APM Terminals, described Jeddah Islamic Port as “a vital gateway to the Kingdom and a key hub in our customers’ supply chains.” He added that the investment secures long-term access to quality infrastructure and enhances Maersk’s ability to provide reliable, scalable capacity in the Kingdom.

Mawani noted that the partnership is expected to increase container volumes, vessel calls, and maritime connectivity with regional and international ports, enabling faster and more flexible trade flows. The authority said it will strengthen Maersk’s presence at Jeddah Islamic Port, attract additional services, and reinforce the port’s position as a leading Red Sea hub.

Yuvraj Narayan, group CEO of DP World, highlighted the port’s strategic importance. “Since securing the concession in 2019, we have transformed the South Container Terminal into a modern, high-capacity gateway, further solidifying Jeddah’s status as a Red Sea trade hub in support of Vision 2030,” he said. Narayan added that the partnership reflects global confidence in DP World’s management and the world-class terminal it has developed.

Economic experts see the deal as a boost for Saudi maritime trade. Khaled Ramadan, chairman of the International Center for Strategic Studies in Cairo, told Arab News that the acquisition will increase container throughput, enhance operational efficiency, and reduce logistics costs for importers and exporters. “It strengthens port competitiveness, positioning Jeddah as a preferred hub competing effectively with regional ports like Jebel Ali through integrated global shipping services,” he said.

The South Container Terminal includes five advanced berths with a handling capacity of 4.1 million twenty-foot equivalent units. Jeddah Islamic Port, the largest on the Red Sea coast, operates 62 multipurpose berths and remains a pivotal player in regional and international trade, supporting Saudi Arabia’s ambitions to expand non-oil commerce and integrate further into global supply chains.