DP World confirms plans to develop two new terminals on UAE's east coast, bypassing Strait of Hormuz
DP World today announced that it has reached an agreement in principle with the Fujairah Ports Authority to develop two new terminals on the east coast of the United Arab Emirates (UAE) – building on the strength of its Jebel Ali logistics hub in Dubai while providing an alternative hub that would bypass the Strait of Hormuz.
DP World and the Fujairah Ports Authority have signed an an agreement in principle under a 50-year concession to develop two new terminals on the UAE's east coastDP World
Under the new agreement, two new terminals will be developed in Fujairah, which is located directly across from Dubai to the east, bordering the Gulf of Oman.
Fujairah is located on the east coast of the UAE, bordering the Gulf of OmanGISGeography
As well as the Dibba general cargo terminal, which is expected to add up to 3.6 million tonnes of annual general cargo capacity, DP World will also develop the Al Rugaylat container and multi-purpose terminal. This terminal is designed to handle up to 2.5 million TEU annually, alongside 1.7 million tonnes of general cargo and 190,000 CEUs – further expanding DP World's ro-ro capabilities in the UAE.
The project, DP World has said, will establish a new deep-water trade gateway on the UAE's east coast, capable of handling the latest generation of ultra large container vessels (ULCVs).
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DP World will adopt a phased approach to the development of these terminals, which are expected to take approximately 24 to 30 months to complete once construction has begun.
"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," commented Yuvraj Narayan, group CEO of DP World. "With Jebel Ali operating at high utilisation, this development provides the additional capacity to support long-term growth. For cargo owners, it means greater flexibility, more choice and stronger supply chain resilience.”
Limiting exposure to Hormuz disruption
While Jebel Ali Port lies inside the Persian Gulf, requiring vessels to transit the Strait of Hormuz, the new Fujairah terminals will provide direct access to the Gulf of Oman and the Arabian Sea, bypassing the strait altogether – the chokepoint that has been at the centre of disruption to global trade since the US and Israel's war with Iran began in late February.
Fujairah is connected to Jebel Ali through DP World's inland logistics network and the new terminals will be integrated with the Jebel Ali Free Zone (Jafza), which DP World has said will allow its customers to move cargo more efficiently between ports, logistics hubs and end markets.
According to DP World, Fujairah is poised to become a leading centre for maritime services, with the company claiming that the development of ports and logistics infrastructure will bring further investment, employment and long-term economic opportunities to the emirate.
"The partnership with DP World marks an important milestone in Fujairah's continued development as one of the region's most important maritime gateways," said Sheikh Saleh Bin Mohamed Al Sharqi, chairman of the Fujairah Ports Authority. "The Al Rugaylat and Dibba terminals will bring world-class operating capability, expanded capacity and new investment to the emirate."
Captain Mousa Murad, managing director at the Fujairah Ports Authority added that development will "add significant new capability to Fujairah’s port infrastructure and enhance the range and quality of services [it] can offer to cargo owners and logistics customers".
This move from DP World aligns with the broader resilience strategy of the UAE government, which has involved diversifying supply chains to remove single points of failure – something it was already pursuing before the outbreak of the war.
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“The conflict has not changed our plans – it's simply accelerated them,” commented Amer Bin Breik, future of foreign trade director at the UAE's Ministry of foreign trade, last month. “The era of one strait, one port, one route is over.”