E-Paper
Sign In
DP World boosts Jeddah capacity as Red Sea route gains strategic edge amid Hormuz risks
Expansion reinforces supply-chain resilience across the wider Middle East by strengthening west-coast Saudi connectivity to Europe, Africa and the Mediterranean
- PUBLISHED: Wed 25 Mar 2026, 5:27 PM
DP World has expanded capacity at its South Container Terminal in Jeddah Islamic Port with the addition of three semi-automated quay cranes, strengthening Saudi Arabia’s position as a key Red Sea logistics gateway at a time when global shipping routes are being reshaped by disruptions around the Strait of Hormuz.
The Dubai-based global ports operator said the new cranes — each with a lifting capacity of 65 tonnes — will significantly enhance berth productivity and allow the terminal to handle multiple ultra-large container vessels simultaneously. The move comes as shipping lines increasingly look to diversify trade corridors amid heightened security concerns in Gulf waters and periodic constraints on traffic through Hormuz, the world’s most critical oil and container transit chokepoint.
Recommended For You
Industry analysts estimate that roughly one-fifth of global petroleum flows and a substantial share of Asia-Europe container trade typically pass through the Strait of Hormuz and adjacent Gulf routes. Any sustained disruption has historically triggered freight rate volatility and rerouting decisions, elevating the strategic importance of Red Sea ports such as Jeddah as alternative logistics anchors.
Against this backdrop, DP World’s expansion reinforces supply-chain resilience across the wider Middle East by strengthening west-coast Saudi connectivity to Europe, Africa and the Mediterranean — corridors that are gaining prominence as shipping operators rebalance risk exposure.
“By expanding capacity and enhancing operational agility, we are helping our customers move goods more efficiently and strengthening the terminal’s ability to accommodate larger vessels and growing container volumes,” said Mohammad Alshaikh, CEO of DP World Saudi Arabia. “While recent regional developments have brought new challenges, we are working closely with port authorities, security partners and shipping customers to ensure safe, reliable operations to keep trade moving across the Red Sea and beyond.”
The new cranes increase the terminal’s ship-to-shore fleet from 14 to 17 units, with plans to expand to 22 as part of a broader upgrade programme. The facility already features a 2,150-metre quay and an 18-metre-deep berth capable of accommodating up to five ultra-large container vessels at once — a configuration designed to support next-generation shipping alliances and high-volume trade flows.
The expansion forms part of DP World’s $800 million modernisation programme that has lifted terminal capacity from 1.8 million to 4 million TEUs annually, with a roadmap to reach 5 million TEUs as demand accelerates under Saudi Arabia’s Vision 2030 logistics strategy.
Cargo momentum is already building. DP World’s Jeddah terminal handled more than 1.3 million TEUs in 2025 — more than double the previous year — as major shipping lines resumed Red Sea services and weekly calls increased to 38. The rebound reflects a gradual restoration of confidence in the corridor despite lingering maritime security risks.
Logistics specialists say such investments are critical as regional supply chains adapt to geopolitical uncertainty. Analysts at S&P Global Market Intelligence have noted that port operators across the Middle East are accelerating automation and capacity upgrades to strengthen network flexibility and reduce exposure to route-specific disruptions, particularly during periods of heightened tension around strategic waterways.
For DP World, the Jeddah expansion also complements its wider regional strategy of building integrated end-to-end logistics platforms linking ports, inland transport and freight forwarding across the Gulf and Red Sea markets. The company has been expanding inland connectivity within Saudi Arabia to support industrial zones and trade corridors aligned with the Kingdom’s diversification agenda.
As uncertainty around Hormuz continues to influence shipping decisions, infrastructure upgrades along the Red Sea coast are increasingly seen as a strategic hedge — positioning Jeddah as a critical gateway for resilient east-west trade flows in a rapidly evolving maritime landscape.
