By: AGBI

Saudi Arabia is planning to build a new container terminal at Jeddah Islamic Port on the central Red Sea coast.

This will help to reduce reliance on the Strait of Hormuz and expand cargo-handling capacity at the second-busiest port in the Arab world.

The fourth terminal at the port will be jointly developed and operated by Red Sea Gateway Terminal (RSGT) and French shipping group CMA CGM, the Saudi Ports Authority (Mawani) said in a social media post.

The new facility will have an annual capacity of approximately 2.6 million 20-foot equivalent units (TEUs), attracting more global shipping lines and services, increasing cargo flows and expanding connectivity with international markets, the announcement said.

The development will include new deep-water berths designed to accommodate the world’s largest container vessels and 10 new ship-to-shore cranes, enhancing productivity, efficiency and service reliability, RSGT said in a statement.

The project is expected to cost SAR1.6 billion ($426 million).

Headquartered in Jeddah, RSGT’s portfolio spans 18 kilometres of quay, with a combined handling capacity exceeding 9.5 million TEUs and 30 million tonnes of general cargo.

Last month, Mawani said it will invest SAR641 million to expand cargo-handling operations at Jeddah Islamic Port in partnership with Dubai-based DP World and Red Sea Gateway Terminal.

The US-Israeli war with Iran has virtually closed the Strait of Hormuz and disrupted the global energy and commodities supply chain.

In March, Riyadh launched the Logistics Corridors Initiative to facilitate cargo transfers between GCC ports and strengthen supply chain resilience.

The new operational corridors aim to redirect cargo from eastern Saudi Arabia and GCC ports to Jeddah Islamic Port and other Red Sea ports to maintain trade flows.

US treasury secretary Scott Bessent announced Operation Economic Outcast at a press conference on Monday, saying the administration is preparing to act against every “node, facilitator and network” that has helped Iran to smuggle oil and evade sanctions.