Saudi Arabia aims to ease the Strait of Hormuz crisis with the Red Sea port cluster, teaming up with shipping giants to add new international shipping routes

Amid the ongoing tense geopolitical situation in the Middle East, Iran’s blockade of the Strait of Hormuz is prompting Saudi Arabia to significantly upgrade its Gulf coast ports and shipping routes, aiming to make it a new hub for global trade.

Major Players Expand: Jeddah Port Adds Two New International Routes

Saudi Ports Authority (Mawani) recently announced partnerships with shipping giants Maersk and Hapag-Lloyd to add two new shipping routes at Jeddah Port, one of the key ports along the Red Sea coast.

The new routes include Maersk’s AE19 and Hapag-Lloyd’s SE4, each with a capacity of about 17,000 TEUs, expected to greatly improve Jeddah Port’s operational efficiency and strengthen Saudi Arabia’s maritime connectivity with global markets.

Through these routes, Jeddah Islamic Port will connect to nine major international and regional ports, including Tianjin, Qingdao, Ningbo, and Shanghai in China; Busan in South Korea; Tanjung Pelapas in Malaysia; and Singapore.

Strategic Shift: Saudi Aramco Opens Red Sea Export Corridor

Saudi energy giant Saudi Aramco recently revealed a major change in its export strategy, confirming that some of its crude oil exports are now rerouted through Yanbu Port on the Red Sea coast.

This strategic adjustment relies on the integrated port network operated by the Saudi Ports Authority, which is a vital lifeline for the stable transportation of oil and essential supplies. Located at a strategic position connecting Asia, Europe, and Africa, this port network further enhances its role in global trade.

Additionally, the maritime network extends to strategic hubs in the western and eastern Mediterranean and covers routes passing through the Cape of Good Hope to South Africa, increasing intercontinental cargo flexibility.

Key Ports: Jeddah and Yanbu Lead the Western Maritime Network

Jeddah Port is one of Saudi Arabia’s main maritime gateways and the largest hub on the Red Sea coast. Situated along one of the world’s most important shipping corridors, it serves as a critical link connecting trade between Asia, Europe, and Africa.

Covering approximately 12.5 square kilometers, Jeddah Port has 62 berths and two dedicated container terminals, capable of handling ships with a capacity of up to 19,800 TEUs. Its annual cargo throughput exceeds 130 million tons, accounting for about 75% of Saudi maritime trade.

Yanbu Port is one of the oldest ports on Saudi Arabia’s west coast and the second-largest maritime gateway after Jeddah. It is connected to Medina and Mecca via modern road networks, highlighting its strategic importance within the Red Sea port system.

The Saudi Ports Authority has invested over 27 billion SAR (about $7.2 billion) to upgrade infrastructure at major ports nationwide and establish 20 integrated global logistics zones. These ports are continuously expanding and adopting smart systems and automation to improve cargo handling, warehousing, customs clearance, and vessel services.

Logistics expert Hassan Al-Halil notes that Saudi ports benefit from a unique geographic advantage due to their proximity to major international shipping routes. This location allows shorter voyages connecting Asia, Europe, and Africa, creating opportunities for Saudi Arabia to become a global logistics hub.

Al-Halil emphasizes that Jeddah Port has long been Saudi Arabia’s primary commercial gateway, with extensive experience in container operations.

However, he also points out that geographic location alone is not enough to become a global trade hub. Efficient customs procedures, clearance processes, the ability to service large vessels, and the integration of logistics industrial zones with ports are equally important. Seamless connectivity between ports, road networks, and rail infrastructure must also be prioritized.

Saudi Arabia has long invested in infrastructure to reduce reliance on the Strait of Hormuz, including a key east-west oil pipeline transporting oil from eastern fields to the Red Sea coast.

This pipeline has a daily capacity of about 5 million barrels, which can be increased to approximately 7 million barrels in emergencies.

Al-Halil stresses that Yanbu Port plays a strategic role in Saudi energy exports. The port can export 4 to 5 million barrels of oil daily via the Red Sea, ensuring critical energy supplies remain available even if shipping routes through the Strait of Hormuz are disrupted.

Looking Ahead: Opportunities in Non-Oil Trade and Regional Transit

Furthermore, increasing attention to Red Sea ports could benefit Saudi Arabia’s non-oil trade. If global shipping increasingly views the Red Sea as a safer and more stable corridor, container and cargo throughput at ports like Jeddah and Yanbu could rise significantly.

If Saudi ports become distribution centers for Asian goods entering the Middle East and Africa, this shift could greatly boost re-export activities. It would also stimulate logistics services such as warehousing, handling, and distribution, increasing demand for land transportation within Saudi Arabia.

As port infrastructure continues to improve and road and rail networks expand, Saudi Arabia is expected to gradually transform from a destination market into a regional logistics hub.

Therefore, the broader shift of global trade toward the Red Sea could accelerate Saudi Arabia’s non-oil trade expansion and help realize its vision of becoming a global logistics nexus connecting three continents.

Although short-term logistics costs may rise slightly due to rerouted shipping routes, it is undeniable that Saudi’s western ports are helping ensure safer maritime transportation amid regional geopolitical instability, safeguarding global energy transport and supply chains.

(Source: Cailian Press)