CMA CGM and the Saudi Ports Authority (Mawani) have signed an agreement to build an integrated logistics platform at Jeddah Islamic Port (JIP)— Saudi's biggest port.
The new facility will include a 130,000 sq. meters specialised container depot and warehousing facility with the aim of developing an efficient sector-wide logistics mechanism and boosting Saudi's standing as a global logistics hub connecting three continents.
In a joint statement, CMA CGM said it is investing US$130 million over 20 years period to strengthen its presence in Saudi Arabia and the Middle East region with CMA CGM Inland Services (CCIS), the Group's inland transportation solutions development arm, and logistics subsidiary, CEVA, assisting with the project.
The deal was signed by HE Omar Talal Hariri, president of Mawani, and Xavier Eiglier, CMA CGM Group's regional director for the Middle East Gulf, Indian Subcontinent, Indian Ocean Islands, and Southern and Eastern Africa, in the presence of senior officials from both sides and a host of leading industry executives.
"This project marks the Group's first integrated logistics platform in the Middle East and will help in expanding our service offering to our Saudi and global customers to use Jeddah as a transit hub for trading across the wider region," said Xavier Eiglier, regional director, Middle East Gulf, ISC, Indian Ocean Islands, Southern, and Eastern Africa, of the CMA CGM Group.
"It will also enable our Group to expand its regional shipping and logistics network, where we see a lot of growth potential."
Meanwhile, Mawani's President said the project supports Saudi's pursuit of positioning the Kingdom as a global logistics hub.
Jeddah Islamic Port is Saudi Arabia's top import and export destination, receiving 75% of the nation's total inbound maritime trade and transhipments.
US$130M investment
"CCIS, the Group’s entity dedicated to inland transportation solutions development, and its logistics subsidiary CEVA collaborated closely on this project which includes a US$130 million investment over the span of 20 years to strengthen the CMA CGM Group's presence in the Kingdom of Saudi Arabia and the whole region," CMA CGM said.
The project, it added, aims to offer a unified logistics ecosystem leveraging CMA CGM's ocean network with CCIS inland solutions and CEVA's logistics services, to offer end-to-end logistics solutions.
"With this major investment, the new project will strengthen Jeddah Port's position as the hub of choice for both gateway and cross border trade in the Red Sea ... The CMA CGM Group continues moving forward with its regional expansion strategy as a global leader in shipping and logistics," it added.
