Dubai-based DP World is reportedly planning to build a new port and a container terminal on the United Arab Emirates’ east coast, marking a significant move to reduce Dubai’s dependence on its flagship Jebel Ali hub and bypass the Strait of Hormuz.
The port operator has purportedly begun talks on a multi-cargo terminal in the coastal area of Fujairah as well as a new terminal at the emirates’ existing harbour.
Meanwhile, consultations are underway to determine the project’s structure and financing with the port expected to be ready within two years, according to details uncovered by the Financial Times.
The proposed project would scale up DP World’s presence in the Gulf of Oman bypassing the Strait of Hormuz, to enable freight hauling across the UAE and neighbouring Gulf countries.
Initially, DP World declined to comment on the details of the new terminal but added that it is working on business expansion to navigate ongoing disruptions.
The report clarified that activity at Jebel Ali fell between 90 and 95 percent after Iran closed the strait after the US-Israeli attacks.
It is pertinent to mention here that the company has set its capex budget at $3 billion for next year, allocating funds to key projects including Jebel Ali, Tuna Tekra in India, London Gateway in the UK and Ndayane in Senegal.
Nonetheless, the UAE is already advancing plans to bypass the Strait of Hormuz as Gulf ports fear losing market dominance in India, Sri Lanka and beyond.
