Post by : Bianca Haleem
DP World has announced plans to develop two new container terminals in Fujairah on the United Arab Emirates' eastern coast. The project comes as the UAE continues efforts to strengthen its trade infrastructure and reduce its dependence on the Strait of Hormuz during the ongoing Iran war.
In a statement issued on Wednesday, the Dubai-based global ports operator said the expansion will increase capacity across its UAE network and provide customers with greater flexibility, improved connectivity, and more trade route options.
The company stated, "The development will expand DP World's UAE capacity and gateway network, giving customers greater choice, flexibility, and connectivity across regional and global trade routes."
Once completed, the project will increase DP World's total container handling capacity in the UAE from the current 19.4 million twenty-foot equivalent units (TEUs) to almost 22 million TEUs.
The expansion will also significantly increase the country's ability to handle general cargo and Roll-on/Roll-off (Ro-Ro) shipments, strengthening the UAE's logistics and transport capabilities.
DP World has reached an agreement in principle with the Fujairah Ports Authority under a 50-year concession to develop the two new terminals.
The company said the agreement will establish a new deep-water trade gateway on the UAE's east coast. Fujairah's ports have become increasingly important for the country's trade operations following the effective closure of the Strait of Hormuz.
One of the planned facilities, the Al Rugaylat Container and Multi-Purpose Terminal, is designed to handle up to 2.5 million TEUs annually.
The terminal will also have the capacity to process:
This new facility is expected to strengthen container, vehicle, and cargo handling operations on the UAE's east coast.
The second project, the Dibba General Cargo Terminal, will add up to 3.6 million tonnes of annual general cargo capacity.
Together, both terminals are expected to enhance the UAE's overall logistics infrastructure and support growing trade demand.
DP World did not disclose the financial value of the investment.
The company said construction will be carried out in phases, with the development expected to take between 24 and 30 months from the start of construction work.
The new gateway will be capable of handling the latest generation of ultra-large container vessels.
The Fujairah gateway will be linked to DP World's flagship Jebel Ali Port through the company's inland logistics network.
Jebel Ali, located inside the Strait of Hormuz, handled 15.6 million TEUs last year, out of DP World's total consolidated volume of 56.1 million TEUs.
The new connection is expected to improve cargo movement across the UAE and provide additional trade routing options.
The announcement comes during the ongoing U.S.-Iran conflict, which began on February 28 and has resulted in thousands of deaths.
Iran's restrictions on energy shipments from Gulf states have contributed to rising inflation worldwide. Shipping data also showed that vessel crossings through the Strait of Hormuz declined further on Tuesday as Tehran's near-total blockade of the strategic waterway continued, while security concerns remained due to ongoing attacks involving the United States and Iran.
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