DP World said on Wednesday that it had reached an agreement to develop two new deepwater terminals, creating a direct route to global trade without vessels having to pass through the Strait of Hormuz.
The Dubai-based ports operator signed a deal in principle with the Fujairah Ports Authority under a 50-year concession to develop two sites on the UAE’s east coast – Al Rugaylat container and multi-purpose terminal and the Dibba General Cargo terminal.
The terminals are to be connected to Jebel Ali and linked with Jafza through an inland logistics network, DP World said in a statement. The project is to be developed in phases and could take up to 30 months, it added.
“Fujairah strengthens what Jebel Ali already delivers – a single, global integrated platform for moving goods across global supply chains and within the UAE and beyond. With Jebel Ali operating at high utilisation, this development provides the additional capacity to support long-term growth,” said Yuvraj Narayan, group chief executive at DP World. “For cargo owners, it means greater flexibility, more choice and stronger supply chain resilience.”
The move, which is aimed at expanding DP World’s UAE capacity and gateway network, comes as shipping is restricted in the strait owing to the Iran war. Container traffic has been constrained through DP World’s flagship Jebel Ali port.
Logistics providers in the UAE and the wider Gulf region have turned to alternative routes including road and rail networks since Iran blocked the waterway after the start of the war on February 28.
DP World bought 700 lorries this month to expand its road freight network across the Gulf. The fleet will add up to 35,000 trips a month and support domestic and cross-border deliveries for DP World’s customer base in the Gulf, the ports operator said at the time. Its current network fleet capacity is about 3,000 lorry movements a day across the region.
Heavy goods vehicles are now used far more extensively in the UAE to collect items including supermarket staples and industrial goods from Oman and Saudi Arabia, as well as to move manufactured items.
The Dubai government also set up a "green corridor" with Oman, which redirects global shipments arriving through the sultanate, moving them overland to Dubai through the Hatta Border Crossing, using accelerated customs procedures.
Sharjah and Oman also launched a logistics corridor in May to move goods by sea and land more easily, primarily through the Khatmat Malaha Border Crossing in Kalba and Al Madam border point.
DP World has established a bonded corridor from Sohar in Oman and made use of Red Sea routing options through the South Container Terminal of Jeddah Islamic Port, routing more than 350,000 TEUs overland amid the maritime disruption, it said this month. Bonded corridors are customs-controlled routes that enable freight to move freely and quickly between ports and free zones.
Once operational, the latest terminals will increase DP World’s total container handling capacity in the UAE from 19.4 million twenty-foot equivalent units (TEUs) to almost 22 million TEUs, while significantly expanding general cargo and Ro-Ro capability, DP World said on Wednesday.
“This investment reflects our confidence in its future as one of the world's leading trade and logistics hubs,” said Essa Kazim, chairman of DP World. "Building on the strength of Jebel Ali, this development deepens our commitment to the UAE and reinforces the country's strategic role in global trade."
Meanwhile, Fujairah is set to strengthen its position as a major maritime services hub, with the development of ports and logistics zone expected to attract investment and create jobs, the statement said.
Sheikh Saleh bin Mohammed Al Sharqi, chairman of Fujairah Ports Authority, said the partnership with DP World would strengthen Fujairah’s position as a key regional maritime gateway, while bringing greater capacity, world-class port operations and new investment to the emirate. Sheikh Saleh added that the project would benefit customers, local communities and the wider UAE economy.
