International law firm Reed Smith has advised Red Sea Gateway Terminal (RSGT) on a landmark US$434 million (SAR1.6 billion) strategic partnership with the CMA CGM Group to develop and operate Terminal 4 at Jeddah Islamic Port. The transaction represents one of the largest foreign direct investments in Saudi Arabia’s maritime sector and highlights the Kingdom’s continued investment in world-class transport infrastructure. The agreements were announced during the French-Saudi Investment Roundtable in Paris, underscoring the growing commercial relationship between Saudi Arabia and France.

The project will be delivered in collaboration with the Saudi Ports Authority (Mawani) and forms part of RSGT’s long-term concession at Jeddah Islamic Port. It is expected to play a significant role in strengthening Saudi Arabia’s position as a global trade and logistics hub while supporting the economic diversification objectives set out in Saudi Vision 2030.

Terminal 4 to Deliver Significant Capacity Growth

The development will create a state-of-the-art container terminal capable of handling the world’s largest container vessels. Upon completion, Terminal 4 is expected to increase annual container handling capacity by up to 2.6 million twenty-foot equivalent units (TEUs), providing critical infrastructure to accommodate rising trade volumes and future economic growth.

Plans include the construction of deep-water berths, installation of ten new ship-to-shore cranes and the deployment of advanced terminal technologies designed to improve operational efficiency, productivity and service reliability. The enhanced facilities will strengthen cargo handling capabilities while improving supply chain resilience for importers, exporters and international shipping operators using Jeddah Islamic Port.

As one of the Kingdom’s principal maritime gateways, Jeddah Islamic Port serves a strategic position on global shipping routes connecting Europe, Asia and Africa. The expansion is expected to enhance Saudi Arabia’s international connectivity and reinforce the port’s competitiveness within regional and global logistics networks.

Supporting Saudi Vision 2030

The investment aligns closely with Saudi Vision 2030 and the National Transport and Logistics Strategy, both of which seek to position the Kingdom as a leading international logistics centre through sustained investment in transport infrastructure and supply chain capability.

The partnership combines RSGT’s established expertise in terminal operations with CMA CGM’s extensive global shipping, logistics and port management experience. Together, the organisations aim to develop a modern container terminal capable of meeting increasing demand while supporting long-term economic development and international trade.

The project also demonstrates Saudi Arabia’s continued success in attracting international investment into strategically important infrastructure, reflecting growing confidence in the Kingdom’s expanding logistics sector and favourable investment environment.

Reed Smith’s Role in the Transaction

Reed Smith advised RSGT on the concession arrangements underpinning the project, with the legal team led by Samantha Roberts and supported by Emad Alshaikhi and Foram Majmudar from the firm’s Riyadh office. King & Spalding advised RSGT on the joint venture documentation, working alongside Reed Smith to complete the transaction, while J.P. Morgan acted as sole financial adviser.

The transaction highlights the increasingly sophisticated legal and commercial framework supporting major infrastructure developments across the Gulf region, where cross-border investments require careful coordination between concession agreements, joint venture structures and regulatory approvals.

Looking Ahead

The development of Terminal 4 represents another significant milestone in the evolution of Saudi Arabia’s maritime infrastructure. Beyond increasing port capacity, the project is expected to improve operational efficiency, strengthen international trade links and support the Kingdom’s ambition to become one of the world’s leading logistics and shipping hubs.

For Reed Smith, the mandate further demonstrates the firm’s experience advising on complex infrastructure, transport and cross-border investment transactions across the Middle East, while reinforcing the importance of specialist legal advice in delivering large-scale strategic projects.