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Iran’s Dream of the Port of Lattakia Postponed 30 (More) Years

The 30-year extension of CMA CGM’s contract signals a weakening of Iran's ability to exert pressure on the Syrian regime, Enab Baladi writes.
Iran’s Dream of the Port of Lattakia Postponed 30 (More) Years

Iran’s ambitions to gain access to a Mediterranean seaport have encountered significant resistance from the French shipping giant CMA CGM, which, with its vast network, can be likened to an octopus in the global maritime transport industry. The company’s reach extends into the political sphere, facilitated and supported by the French government. CMA CGM’s ties to the Syrian and Lebanese ports of Lattakia, Tripoli, and Beirut are particularly significant, as these relationships have been nurtured through its founders’ dual Lebanese-French nationality and close connections with several French presidents.

In 2009, CMA CGM secured a contract for managing the container terminal at the Syrian port of Lattakia, initially for ten years, with a five-year renewal option. During this period, Iran applied pressure on the Syrian regime, urging it to settle some of its debts as part of its broader economic, military, and ideological expansion in Syria. Despite these efforts, Iran’s long-standing dream of gaining control over the port has been delayed multiple times.

In a surprising turn, the contract was renewed for 30 years instead of the expected five-year extension, marking a setback for Iran’s ambitions in the region. Karam Shaar, director of the Syrian program at the Political and Economic Networks Observatory, confirmed that the contract renewal was for a period of 30 years, according to the company’s official response to inquiries about the deal. However, CMA CGM did not disclose the other details of the contract.

Iran’s Setback and the Significance of the Extension

Journalist Iyad al-Jaafari, an expert in economic affairs, described the renewal of the contract as a setback for Iran’s ambitions of securing a foothold in Syria, which it viewed as a key component of its wider vision for the “Silk Road” and the Chinese Belt and Road Initiative. In his article on the Al-Modon website, Jaafari noted that there has been an Israeli veto on Iranian influence at the port since 2019, further complicating Iran’s efforts to gain control. The port has been subjected to Israeli airstrikes multiple times, a situation that has only increased the tension around Iranian aspirations.

Iran’s attempts to secure the port were also frustrated during former President Ebrahim Raisi’s visit to Syria in 2023, when the Iranian delegation failed to gain the port despite exerting considerable pressure on the Syrian government. According to leaked official documents from the Iranian opposition group, the regime agreed to allocate part of the port’s revenues to pay off Iran’s debts, but this did little to further Tehran’s influence over the site.

The Decline of Iran’s Leverage

Jaafari explained that the 30-year extension of CMA CGM’s contract signals a weakening of Iran’s ability to exert pressure on the Syrian regime. This development suggests that the Syrian government has gained more maneuvering space, particularly due to the ongoing Israeli military escalation in the region. The Israeli threats provide a pretext for Syria to resist handing over the port to Iran, out of fear that the port could be targeted and rendered non-operational.

As for Iran’s reaction to the contract extension, Jaafari believes that Tehran is currently in a position of relative weakness. The Iranian regime faces significant pressure both internally and across the region, especially from Israel and other adversaries. Furthermore, just as it did five years ago with Russian support, the Syrian regime has managed to sidestep Iranian pressure by leveraging the pretext of Israeli airstrikes, which now serves as a stronger justification than ever before.

CMA CGM’s Expansion in Syria and Lebanon

CMA CGM, originally known as Compagnie Maritime d’Affrètement (CMA), was founded in 1978 with a modest fleet and limited routes connecting Beirut, Lattakia, Livorno, and Marseille. The company has since grown into one of the largest shipping conglomerates in the world, acquiring multiple shipping companies across various continents. The company’s founder, Jacques Saadeh, was of Lebanese-Syrian descent, with his father hailing from Lattakia. He moved to Lebanon in the 1970s due to Syria’s nationalization policies and later relocated to France during the Lebanese civil war.

Under the leadership of Jacques’ son, Rodolphe Saadeh, who became CEO in 2017, CMA CGM has deepened its ties to the political and business elites in both France and the Middle East. Jacques Saadeh began his investment in the port of Lattakia after accompanying French President Nicolas Sarkozy on a visit to Syria in 2008. Later, Rodolphe Saadeh further expanded the company’s influence in Lebanon’s ports, particularly in Tripoli and Beirut, after joining French President Emmanuel Macron on a visit to Lebanon in August 2020, following the Beirut port explosion.

In Syria, CMA CGM’s activities have been primarily limited to the Lattakia port, but in Lebanon, the company has developed a significant economic presence, particularly in the port cities of Beirut and Tripoli.

The Lattakia Port Agreement and its Implications

In February 2009, CMA CGM, Terminal Link (a subsidiary specializing in port development and terminal management), and Syria Holding signed an agreement to manage the container terminal at the port of Lattakia for an initial period of ten years, with the option for a five-year extension subject to mutual agreement. Terminal Link is a joint venture, with CMA CGM holding a 51% stake and China Merchants Port holding the remaining 49%.

The Lattakia International Container Terminal Company (LICT) was established as a Syrian limited liability company to manage the terminal, which spans 33.38 hectares and includes four berths, twelve refrigerated container outlets, and a full range of loading and unloading equipment. The terminal has played a critical role in Syria’s port infrastructure, although it has been increasingly drawn into the geopolitics of the region, particularly in relation to Iran’s expanding influence in Syria and the ongoing Israeli military activities in the area.

 

This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.

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