French shipping and logistics group CMA CGM is further expanding its port infrastructure presence in the Red Sea and the Middle East. On August 25, CMA CGM and Saudi terminal operator Red Sea Gateway Terminal (RSGT) signed a definitive agreement to jointly develop and operate Terminal 4 at Jeddah Islamic Port. The project will involve an initial investment of approximately $434 million (SAR 1.6 billion) and is expected to add up to 2.6 million TEUs of annual container-handling capacity. It will also include 10 ship-to-shore cranes and new deepwater berths capable of accommodating large container vessels.

Key Highlights 

• Definitive agreement: CMA CGM and RSGT have signed the final agreement for Terminal 4 at Jeddah Islamic Port. 

• Investment and capacity: The project involves an initial investment of approximately $434 million and will add up to 2.6 million TEUs of annual capacity. 

• Terminal equipment: Terminal 4 will be equipped with 10 ship-to-shore cranes and will be able to accommodate large container vessels. 

• Regional expansion: CMA CGM is further expanding its port and logistics presence across the Red Sea and the Middle East.

$434 Million Investment Moves Terminal 4 Forward

Under the definitive agreement, CMA CGM and RSGT will jointly develop and operate Terminal 4 in cooperation with the Saudi Ports Authority (Mawani). The project will involve the construction of a new container terminal with deepwater berths, advanced cargo-handling equipment, digital infrastructure, and 10 ship-to-shore (STS) cranes. It will add up to 2.6 million TEUs of annual handling capacity. The facility will operate as a standalone container terminal capable of serving large container vessels.

The definitive agreement is not the first step taken by the two companies on the project. CMA CGM and RSGT signed a term sheet in October 2025 to develop Terminal 4 through a joint venture, with the proposed investment then estimated at approximately $450 million. The signing of the definitive agreement moves the project beyond preliminary planning and into its next stage.

Additional Capacity Strengthens Jeddah’s Role as a Logistics Hub

Located on Saudi Arabia’s Red Sea coast, Jeddah Islamic Port is a major maritime gateway for the country and an important logistics hub connecting Red Sea shipping routes with the Middle East hinterland. The addition of deepwater berths and large-scale handling equipment at Terminal 4 will increase the port’s ability to accommodate large container vessels, handle international cargo, and support regional transshipment. CMA CGM said the project would strengthen Jeddah’s global shipping connectivity and cargo-handling capacity.

Terminal 4 will also expand RSGT’s operations at Jeddah Islamic Port. The two companies previously stated that once Terminal 4 begins operations, RSGT’s total annual handling capacity at the port is expected to reach approximately 8.8 million TEUs. This would give Jeddah additional container-handling capacity and further strengthen its role as a regional logistics and transshipment hub in the Red Sea.

CMA CGM Expands from Shipping into Terminal Operations

Major shipping groups have increasingly expanded into terminals, warehousing, inland transportation, and integrated logistics. CMA CGM has made terminal operations an important part of its global business and participates in port and terminal operations at major trade hubs worldwide. The joint development of Terminal 4 with RSGT is another step in linking the group’s shipping network with port infrastructure. CMA CGM currently holds interests in 64 port terminals worldwide.

Ports are not only locations for vessel calls and cargo handling, but also key links between ocean shipping, transshipment, and inland logistics. The investment in Jeddah will strengthen CMA CGM’s port network in the Red Sea and the Middle East and support coordination between the group’s global shipping services and logistics resources. For Jeddah Islamic Port, the involvement of a major global shipping group could also strengthen its connections with international services and global trade networks.

Changing Red Sea Conditions Increase the Importance of Port Hubs

Shipping conditions in the Red Sea and the Middle East have continued to change in recent years, increasing carriers’ focus on route security, port efficiency, and regional logistics hubs. The recent conflict between the United States and Iran has added uncertainty to trade and shipping access in the Middle East. In these circumstances, strategically located Red Sea ports with stable operating conditions are becoming more important to carriers. Saudi Arabia is also continuing to implement its National Transport and Logistics Strategy and Vision 2030 as it develops the country into a global logistics hub.

Jeddah Islamic Port connects Red Sea routes with the Middle East hinterland. With new deepwater berths, 10 STS cranes, and up to 2.6 million TEUs of additional annual capacity, Terminal 4 will increase the port’s ability to serve large container vessels and handle regional transshipment cargo. For CMA CGM, the investment will both expand terminal capacity and strengthen its Red Sea–Middle East–global shipping network.

The $434 million investment, 2.6 million TEUs of additional capacity, and cooperation with RSGT and Mawani reflect the continued expansion of major shipping groups from fleet operations into port and integrated logistics infrastructure. As global trade conditions and shipping networks continue to change, fleets, ports, logistics networks, and the ability to secure cargo volumes are becoming increasingly important to the competitiveness of shipping companies.

Sources and Disclaimer 

Sources include CMA CGM, RSGT, the Saudi Ports Authority (Mawani), Reuters, and other publicly available industry information. This article is provided solely for reference by the international shipping, port, and logistics industry. Project progress and figures remain subject to the latest announcements from the companies and authorities involved.