CMA CGM is “reinforcing its presence in the Red Sea region” as it signs a memorandum of understanding (MoU) in Saudi Arabia for port and logistics development projects.
During French president Emmanuel Macron’s state visit to the kingdom, chairman and CEO of CMA CGM Group Rodolphe Saadé signed the MoU, but gave little detail of the projects, but said today the “ambitious agreement” was focused on developing port infrastructure in the Red Sea region and logistics and multimodal services “to enhance Saudi Arabia’s inland logistics capabilities”.
CMA CGM added that its presence in the kingdom would span “maritime, air and inland transportation”, and added that, with this move, it had “positioned itself as a major player in Saudi Arabia’s supply chain development”.
“The shared ambition is to position CMA CGM as a key player in Saudi Arabia’s port and logistics strategy, contributing to the goals of Vision 2030 and the country’s economic diversification programme.”
Saudi Vision 2030 aims to achieve increased diversification economically, socially and culturally by 2030. The “vision” is designed to unfold in stages, each lasting five years and building on the last.
The first phase “set the foundation” with “structural and comprehensive reforms in the public sector, the economy, and society”. The second, and current, phase aims to bring an enhanced focus on strategies, “as well as further investments in key sectors and ambitious projects”. Finally, the third phase will focus on “sustaining the transformation’s impact, and new growth opportunities”.
CMA CGM added: “This partnership marks a significant milestone in strengthening CMA CGM’s strategic footprint in Saudi Arabia, solidifying its role as an essential partner in the regional supply chain.”
The company has had a presence in Saudi Arabia since 1984 and currently has 11 weekly services that connect major Saudi ports, Jeddah, Dammam and Jubail, to global markets.
Further, Ceva Logistics, acquired by CMA CGM in 2019, established a joint-venture with integrated supply chain provider in the Middle East Al-Majdouie in October.
