Maersk unit to acquire 37.5% stake in Jeddah port’s South Container Terminal

APM Terminals has agreed to purchase a 37.5% stake in the South Container Terminal at Jeddah Islamic Port, in a move aimed at strengthening the port’s integration into global shipping networks.

Under the deal, DP World will retain a 62.5% majority stake and continue to operate the facility.

APM Terminals is a wholly owned subsidiary of A.P. Moller–Maersk. The acquisition forms part of Saudi Arabia’s broader strategy to expand its logistics capacity and reinforce its position as a global trade hub, according to Saudi Ports Authority (Mawani).

Mawani said the investment supports the goals of the National Transport and Logistics Strategy, which seeks to improve port efficiency, encourage greater private-sector participation and increase non-oil exports as the Kingdom diversifies its economy.

The transaction also aligns with Saudi Vision 2030, which prioritizes economic diversification and aims to position Saudi Arabia as a key logistics bridge connecting Asia, Europe and Africa.

Keith Svendsen, chief executive of APM Terminals, described Jeddah Islamic Port as a critical gateway for the Kingdom and an important link in global supply chains. He said the investment would secure long-term access to high-quality infrastructure and enhance the company’s ability to provide reliable and scalable services to customers operating in Saudi Arabia.

Mawani said closer integration with Maersk’s global network could increase container volumes and vessel calls at the port, while improving maritime connectivity with regional and international destinations. The authority added that the partnership is expected to boost trade flows by offering faster and more flexible logistics solutions.

Yuvraj Narayan, group chief executive of DP World, said Saudi Arabia remains a strategic market for the company and that Jeddah Islamic Port has been central to its operations in the Kingdom for more than 20 years. He noted that since securing the concession in 2019, DP World has modernized and expanded the South Container Terminal into a high-capacity gateway supporting regional trade.

Economic analyst Khaled Ramadan said the acquisition is likely to enhance Saudi Arabia’s maritime competitiveness by raising operational efficiency and potentially lowering logistics costs for importers and exporters. He added that strengthening links with global shipping networks would help attract foreign investment and support growth in non-oil trade.

The South Container Terminal includes five advanced berths with a handling capacity of 4.1 million twenty-foot equivalent units (TEUs). Jeddah Islamic Port, the largest port on the Red Sea coast, operates 62 multipurpose berths and serves as a vital hub for the Kingdom’s regional and international trade.