The launch comes at a time when shifting global trade routes and disruptions affecting transit through the Strait of Hormuz are creating challenges for shipping operations. These developments have increased the importance of alternative maritime gateways and inland transport connections across Saudi Arabia.
New terminal to offer an initial capacity of 700,000 TEUs
According to information shared by NEOM with its business partners, Terminal 1 (T1) will commence operations with an initial handling capacity of 700,000 TEUs (twenty-foot equivalent units). Based on government data, this represents approximately 8% of the total container volume handled by Saudi ports last year.
The terminal will also be equipped to accommodate large container vessels, enabling higher-volume cargo operations. Its strategic Red Sea location is expected to strengthen NEOM’s potential as a regional logistics and maritime trade hub.
Shipping lines explore alternative cargo routes
Ongoing disruptions to key maritime corridors have encouraged shipping companies to explore alternative transportation options. Cargo movements through Saudi Arabia increasingly rely on road connectivity, including shipments routed from Jeddah Islamic Port and neighbouring countries such as Oman and Jordan.
Against this backdrop, the new container terminal could provide an additional gateway for imports and regional distribution. However, its ability to attract substantial cargo volumes will depend on shipping line commitments, operational efficiency and market demand.
Until now, the port has primarily handled roll-on/roll-off (Ro-Ro) cargo operations, allowing vehicles and trucks to enter and exit vessels directly. The introduction of dedicated container services will mark a significant expansion of its operational capabilities.
NEOM introduces incentives to attract shipping operators
To encourage shipping lines and logistics companies to use the new facility, NEOM is offering a range of commercial incentives, including dedicated berthing facilities, complimentary storage and competitive cargo handling rates for a limited period.
The port also aims to leverage its northern Saudi Arabian location to provide shorter inland transportation routes to major domestic cities and key markets across the Gulf Cooperation Council (GCC) region.
These initiatives are intended to attract shipping companies, freight forwarders and transport operators while strengthening connections between maritime gateways, distribution centres and regional trade markets.
Terminal opening follows changes to the original timeline
The terminal was initially expected to become operational in 2026. However, uncertainty emerged after NEOM updated its website in August, indicating a possible operational launch in 2027. The announcement of November 10 as the opening date now provides a clearer timeline for the commencement of container operations.
Basil Bassam, CEO of Bassam Shipping, which operates Ro-Ro cargo services at the port, has highlighted that the existing infrastructure is struggling to accommodate demand from shipping companies.
With Terminal 1 becoming operational, NEOM will have an opportunity to broaden its service portfolio, attract new shipping partners and increase cargo throughput. Its long-term success will ultimately depend on converting its infrastructure investment and geographical advantages into consistent commercial activity across Red Sea trade routes.
