Saudi Ports Authority introduces five new shipping services to enhance supply chains and port capacity amid rising geopolitical tensions.
The Saudi Ports Authority (Mawani) has introduced five new shipping services to strengthen supply chains and expand port capacity, as reported by the Saudi Ports Authority. This strategic move comes at a time when regional maritime corridors are facing disruptions due to heightened geopolitical tensions.
Mawani announced the launch of the Gulf Shuttle, Redex, Jade, AE19, and SE4 services in partnership with major carriers including MSC, CMA CGM, Maersk, and Hapag-Lloyd. These new routes are expected to add approximately 63,594 TEU to Saudi ports, significantly boosting connectivity across the Red Sea and Arabian Gulf.
This expansion follows a 15 percent drop in traffic through the Strait of Hormuz and a 45 percent decline in Red Sea vessel activity in 2024-2025, attributed to Houthi attacks that forced rerouting via the Cape of Good Hope. King Abdullah Port experienced a throughput decline of more than 80 percent last year.
The new services are part of Vision 2030, which aims to establish Saudi Arabia as a global logistics hub. Additionally, the Kingdom has increased crude exports through its 1,200-kilometer east-west pipeline to Yanbu, averaging 3.66 million barrels per day, and has opened a trade corridor with Sharjah.
The Saudi port logistics market was valued at US$1.71 billion in 2024 and is forecast to reach $2.61 billion by 2033. Maritime logistics alone is projected to grow to $2.7 billion by 2034, reflecting steady expansion despite regional risks.
While the pipeline offers a bypass to Hormuz, its capacity of 4.5 to 5 million barrels per day is significantly lower than the 20-21 million barrels typically handled at the strait. Furthermore, ships departing from Yanbu must transit the Bab el-Mandeb Strait, where security threats continue to pose a concern.
