DP World has announced that it has joined forces with Saudi Ports Authority (Mawani) for the launch of the new South Container Terminal at Jeddah Islamic Port, thus marking a major milestone in its SAR3 billion ($800 million) expansion and development programme to upgrade the terminal.

The three-year project has transformed South Container Terminal into one of the region’s most advanced and sustainable container terminals, while more than doubling the capacity from 1.8 million twenty-foot equivalent units (TEUs) to 4 million TEUs, said DP World.

The expansion paves the way for a future capacity of 5 million TEUs, with additional ship-to-shore equipment to be deployed as demand grows, it stated.

Adjacent to the terminal, DP World will be investing in the 415,000-sq-m Jeddah Logistics Park, the largest integrated facility of its kind in the kingdom, which will offer warehousing, distribution and freight forwarding services, further strengthening the Saudi port city’s position as a key hub connecting trade routes across Asia, Africa and Europe.

Integrated with the terminal, Jeddah Logistics Park will streamline cargo transfers and enhance efficiency, with completion scheduled for Q2 2026, it stated.

An official ceremony was held to mark the opening, which was attended by Saudi Minister of  Transport and Logistic Services Engineer Saleh bin Nasser Al Jasser as well as senior DP World Group officials including the Chairman and CEO Sultan Ahmed bin Sulayem; CEO and Managing Director (GCC) Abdulla Bin Damithan.

Since becoming DP World’s first concession outside the UAE in 1999, the Jeddah terminal has played a crucial role in regional trade, stated the Dubai group.

This latest expansion, under a 30-year build-operate-transfer (BOT) agreement, cements Jeddah’s status as a critical trade gateway and supports Saudi Arabia’s Vision 2030 goals of boosting trade connectivity and economic diversification, it added.

DP World said the terminal’s modernisation integrates advanced automation and digitalisation to improve operational efficiency. Smart systems will slash gate transaction times – from two minutes to just 10 seconds – supported by IoT-enabled cargo tracking and AI-powered cargo tallying for precise record keeping, it stated.

Automated and electrified yard cranes have also been introduced, along with an expanded fleet of quay cranes that will grow from 14 to 17 by the end of 2025, reaching 22 as the terminal scales up to 5 million TEUs.

Due to the surging demand for perishable cargo such as food and pharmaceuticals, the terminal’s capacity for refrigerated containers (reefers) has been expanded from 1,200 to 2,340, ensuring optimal conditions for temperature-sensitive shipments.

DP World is also developing a state-of-the-art facility for inspecting up to 75 reefers at one time —the biggest such port-centric facility in the kingdom.

The terminal spans a total quay length of 2,150 m, including a deep-water quay with an 18-m depth, capable of accommodating up to five ultra-large container vessels simultaneously.