transport

Maersk unit signs deal with DP World to buy 37.5% stake in Saudi terminal

UAE ports operator to retain 62.5% stake, continue to lead operations.

Global shipping giant Maersk’s subsidiary, APM Terminals, is acquiring a significant stake in the South Container Terminal (SCT) in Saudi Arabia, a facility fully controlled by UAE ports operator DP World.

The two entities confirmed on Wednesday that they have signed a deal in which APM will buy a 37.5% stake in the terminal at Jeddah Islamic Port, while DP World will retain a 62.5% majority shareholding and continue to lead the operations.

Neither party disclosed the value of the transaction. DP World, which had secured a 30-year 100% operational concession for SCT in 2019, recently completed a SAR 3 billion ($800 million) upgrade of the facility to more than double its capacity

With Maersk’s massive shipping network and DP World’s operational expertise, the new deal effectively combines the strengths of two of the world’s biggest port operators to boost connectivity and position Saudi Arabia as a primary hub for Asia-Europe-Africa trade.

“The investment strengthens the long-term collaboration between the two organisations and brings together complementary capabilities to enhance Jeddah Islamic Port’s role as a vital gateway,” the two entities said.

© ZAWYA

GLOBAL BUSINESS AND FINANCE MAGAZINE

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