DP World to Build Two Container Terminals On UAE’s East Coast

DP World will develop two new container terminals in Fujairah on the United Arab Emirates’ eastern coast, the global ports operator said on Wednesday as the Gulf state works to reduce its dependence on the Strait of Hormuz amid the Iran war.

“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,” the Dubai-based firm said in a statement.

Once operational, the development will boost DP World’s total container handling capacity in the UAE to almost 22 million twenty-foot equivalent units (TEUs) from the current 19.4 million TEUs, while significantly expanding general cargo and Ro-Ro (Roll-on-Roll-off) capability.

The U.S.-Iran conflict, which started on February 28, has killed thousands of people and Iran’s restrictions on energy shipments from Gulf states have contributed to inflation worldwide.

Vessel crossings via the Strait of Hormuz dropped further on Tuesday, shipping data showed, as Tehran’s near-total blockade of the key waterway continued and security concerns lingered amid ongoing attacks by the United States and Iran.

FUJAIRAH EXPANSION

DP World reached an agreement in principle with the Fujairah Ports Authority under a 50-year concession to develop two new terminals, establishing “a new deep-water trade gateway on the UAE’s east coast”, whose ports have become the UAE’s trade lifeline since the effective closure of the strait.

The planned Al Rugaylat container and multi-purpose terminal is designed to handle up to 2.5 million TEUs per year as well as 1.7 million tonnes of general cargo and 190,000 car equivalent units (CEUs), while the Dibba General Cargo terminal will add up to 3.6 million tonnes of annual general cargo capacity.

DP World, one of the world’s largest port and logistics operators, did not provide financial details on the investment, but said the development will be delivered in phases, with construction expected to take between 24 and 30 months from the start of works.

The gateway, which will be able to handle “the latest generation” of ultra large container vessels, will be connected to its flagship Jebel Ali port, which sits inside the Strait of Hormuz, through DP World’s inland logistics network.

Jebel Ali handled 15.6 million TEUs last year out of the group’s 56.1 million consolidated TEUs.

(Reuters)