Dubai & DP World Confirm Plan to Expand Fujairah Port to Bypass Hormuz

DP World announced an agreement to develop two deepwater terminals, which will establish a direct trade route bypassing the Strait of Hormuz.

The deal, signed with the Fujairah Ports Authority, involves a 50-year concession for two locations on the UAE's east coast: the Al Rugaylat container and multi-purpose terminal and the Dibba General Cargo terminal.

Reportedly, plans are being expedited for a new container and general cargo operation beyond the Gulf, aiming to circumvent the unstable Strait of Hormuz. Concurrently, efforts are underway to enhance oil pipelines to the Gulf of Oman coast.

DP World Expands UAE Logistics Network

According to a statement from DP World, an inland logistics network will connect the terminals to Jebel Ali and Jafza. It further stated that the project will be built in stages and may take up to 30 months.

Moreover, according to the group chief executive at DP World, Yuvraj Narayan, Fujairah enhances Jebel Ali's existing capabilities, creating an integrated platform for goods transport across global supply chains and within the UAE. This development offers additional capacity to support long-term growth and provides cargo owners with increased flexibility, choice, and resilience in their supply chains.

The action, which aims to increase DP World's UAE capacity and gateway network, coincides with the strait's shipping restrictions due to the Iran war. DP World's flagship port in Jebel Ali has experienced restrictions on container movement.

Since Iran shut the waterway following the commencement of the conflict on February 28, logistics providers in the United Arab Emirates and the larger Gulf area have resorted to alternate channels, such as road and rail networks.

DP World Adds 700 Lorries to Gulf Fleet

This month, DP World acquired 700 lorries to enhance its road freight network in the Gulf, expected to generate 35,000 additional trips monthly and facilitate domestic and cross-border deliveries for its customers. The current fleet capacity stands at approximately 3,000 lorry movements daily.

Besides, heavy goods vehicles are increasingly utilised in the UAE for collecting various items, including supermarket staples and industrial goods from Oman and Saudi Arabia, as well as for transporting manufactured products.

Notably, the Dubai government established a "green corridor" with Oman to redirect global shipments arriving via Oman overland to Dubai through the Hatta Border Crossing, utilising expedited customs procedures.

Sharjah and Oman initiated a logistics corridor in May to facilitate the movement of goods via sea and land, focusing on the Khatmat Malaha Border Crossing in Kalba and the Al Madam border point.

DP World Strengthens UAE Trade Hub

DP World has created a bonded corridor connecting Sohar in Oman and utilising Red Sea routes through Jeddah Islamic Port, facilitating the overland transport of over 350,000 TEUs during maritime disruptions. Bonded corridors are customs-controlled paths that allow for swift and unrestricted movement of freight between ports and free zones.

Once operational, the new terminals will raise DP World’s container handling capacity in the UAE from 19.4 million to nearly 22 million TEUs, enhancing general cargo and Ro-Ro capabilities. Essa Kazim, chairman of DP World, emphasised the investment's reflection of confidence in the UAE's position as a major trade and logistics hub, strengthening the commitment to the region and its strategic role in global trade.

Fujairah aims to enhance its status as a maritime services hub through the development of ports and a logistics zone, attracting investments and generating jobs.

Sheikh Saleh bin Mohammed Al Sharqi, chairman of Fujairah Ports Authority, stressed that collaborating with DP World will bolster Fujairah’s role as a regional maritime gateway, delivering improved capacity and world-class port operations, which will benefit customers, local communities, and the wider UAE economy.

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