Amid rapid shifts in regional maritime routes and the growing diversion of shipping away from the Arabian Gulf, Red Sea ports, particularly Jeddah Islamic Port, are emerging as key hubs for handling container traffic and supporting regional supply chain stability.

In this context, Poul Hestbaek, CEO of Folk Maritime, a subsidiary of the Public Investment Fund, said the company has limited cross-border exposure to the Strait of Hormuz. However, its operations along the Arabian Gulf coast have been directly affected by recent developments.

He noted that the company operates within Saudi Arabia’s logistics network, which is playing a central role in redirecting container flows from the Arabian Gulf to the Red Sea via Jeddah, helping maintain shipping stability in neighboring markets.

The Ministry of Transport and Logistics Services has launched the “Logistics Routes” initiative to strengthen supply chain resilience following the Israeli-American war against Iran.

The initiative establishes operational corridors to transport containers and goods between the Kingdom’s ports, particularly linking terminals in the Eastern Province and Gulf countries with Red Sea ports led by Jeddah Islamic Port.

It aims to accelerate cargo movement and improve transport efficiency between ports and regional markets, supporting the rerouting of shipments amid geopolitical pressures and reinforcing Saudi Arabia’s position as a regional logistics hub.

Hestbaek added that Folk Maritime has proactively adjusted its network by rerouting shipping lines and expanding its presence along the Red Sea in response to evolving maritime patterns, to enhance efficiency and ensure continuity of supply chains.