MMC said in a statement late Monday it will pay a nominal sum of US$2 to acquire City Island Holdings, which has a 20 per cent stake in the project.

The Saudi partners are Saudi Industrial Services Company, Xenel Industries Limited and Saudi Trade and Export Development Company, who collectively hold the other 80 per cent interest.

The consortium will develop and operate the port's container third terminal which will have three berths with a total capacity of 1.5 million twenty foot equivalent units (TEUs).

It will also have a 30-year concession expiring in Feb 2039 to operate the terminal.

The deal 'will enable MMC to expand its footprint internationally in the ports business and complement its strategic focus in Saudi Arabia and other countries in Middle East and North Africa'.

'MMC can leverage on its success in developing ports in Malaysia with the transfer of such expertise to its related overseas investments,' it said.

The Jeddah port is a major gateway for Saudi Arabia and a local trading hub for many countries in the Red Sea region, MMC said. An estimated 76 per cent of containers going into Saudi Arabia go through Jeddah.

MMC, with interests in ports, utilities and onstruction, is also involved in the development of the US$30 billion Jizan Economic City, located 725 kilometres south of Jeddah. -- AFP