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DP World keeps the reins as APM takes 37.5% at Jeddah terminal: UAE ports giant DP World will retain a 62.5% majority stake in the South Container Terminal (SCT) at Jeddah Islamic Port, after Danish shipping heavyweight Maersk — through its terminal arm APM Terminals — agreed to acquire a 37.5% minority stake.
Why this matters
Trading control for security: By owning a piece of the terminal, Maersk can offer more reliable turnaround times for its own vessels — a critical advantage as Jeddah competes with other regional hubs for transshipment volumes. For DP World, the move cements SCT against regional competition. By bringing Maersk –– one of the world’s most aggressive end-to-end logistics players –– into the tent, they lock in Maersk’s massive volumes for the long term, preventing them from defecting to competitor terminals like the Red Sea Gateway Terminal.
Watch out for
The multimodal links: We could expect increased synergy between this terminal stake and Maersk’s recently opened 225k sqm logistics park in Jeddah. The goal is a closed-loop logistics system in which Maersk controls the ship, the berth, the warehouse, and the truck.
The case for Jeddah: Major logistics leaders are making a play for Jeddah –– with Medlog, the cargo subsidiary of Mediterranean Shipping Company, inking a SAR 137 mn investment agreement to build an integrated logistics zone within Jeddah’s Third Industrial City earlier this week.
Background
DP World’s footprint is already at STC: DP World secured a 30-year build-operate-transfer(BOT) concession for the terminal from Mawani back in 2019. Under the initial agreement, the logistics heavyweight earmarked a USD 500 mn investment figure, to go toward the improvement and revamp of the port, including expanding its infrastructure to better handle ultra-large container carriers.
Maersk is doubling down on the Kingdom: Maersk Saudi Arabia and Saudi Post signed an MoU last year to create a combined end-to-end logistics solution for e-commerce businesses operating in the Kingdom and potentially the wider GCC region. Mawani also added five shipping services from Hapag-Lloyd and Maersk to the Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port in 2025.
