Shippingtelegraph: APM Terminals buys stake in Saudi Arabia’s Jeddah Islamic Port facility

The global container terminal operator APM Terminals, a subsidiary of Danish shipping giant A.P. Moller – Maersk (Maersk), and DP World have agreed a strategic partnership in the Southern Container Terminal at Jeddah Islamic Port.

Under the agreement, APM Terminals will acquire a 37.5% minority stake in the terminal, while DP World will retain a 62.5% majority shareholding and continue to lead the operations at the facility.

Saudi Arabia is a strategic market for DP World, and Jeddah Islamic Port has been central to the company’s growth in the Kingdom for more than two decades, group chief executive of DP World Yuvraj Narayan said.

The deal formalises APM Terminals’ entry into the terminal’s ownership structure while leaving the operations under DP World.

DP World has secured the 30-year build-operate-transfer concession in 2019 and has since upgraded and expanded the Southern Container Terminal by significantly increasing capacity.

“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,” Yuvraj Narayan added.

Separately, both DP World and Maersk have made investments in integrated logistics capacity within Jeddah Islamic Port, linking the quay to warehousing, distribution and inland transport.

The investment is expected to enhance Jeddah Islamic Port’s role as a key gateway to Saudi Arabia and a key Red Sea hub connecting trade flows between Asia, Europe and Africa.

APM Terminals chief executive Keith Svendsen noted: “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.”