APM Terminals, a subsidiary of global shipping giant Maersk, will acquire a significant stake in Saudi Arabia’s South Container Terminal (SCT), which is fully controlled by UAE port operator DP World.
The two companies confirmed on Wednesday that they have signed an agreement in which APM will acquire a 37.5% stake in the Jeddah Islamic Port Terminal, while DP World will retain a majority stake of 62.5% and continue to lead its operations.
Neither party disclosed the amount of the deal. DP World, which secured 100% operating rights to SCT for 30 years in 2019, recently completed construction to more than double the facility’s capacity at a cost of R3 billion ($800 million).
With Maersk’s extensive shipping network and DP World’s operational expertise, this new agreement will effectively combine the strengths of two of the world’s largest port operators to increase connectivity and position Saudi Arabia as a leading hub for Asia-Europe-Africa trade.
“This investment strengthens the long-term cooperation between both organizations and brings together complementary capabilities to strengthen the role of Jeddah Islamic Port as a key gateway,” the companies said.
(Written by Cleofe Maceda; Edited by Seban Scaria) seban.scaria@lseg.com
