DP World Plans New UAE East Coast Port And Container Terminal To Bypass Strait Of Hormuz

DP World is planning to build a new port and container terminal on the United Arab Emirates’ east coast to reduce Dubai’s reliance on Jebel Ali Port and create an alternative route that avoids the Strait of Hormuz, the Financial Times reported on Monday.

The Dubai-based ports operator is in talks to develop a new multipurpose port in Fujairah and a new container terminal at the emirate’s existing harbour, the newspaper reported, citing people familiar with the matter.

The proposed facilities would be located in Fujairah, which lies on the Gulf of Oman outside the Strait of Hormuz. Unlike Jebel Ali, ships can reach Fujairah without passing through the strategic waterway.

Under the plan, cargo vessels would unload containers at Fujairah, and the cargo would then be transported by truck to Dubai, Abu Dhabi and other Gulf countries.

Jebel Ali, the UAE’s largest and busiest port, would remain the country’s main trade hub. According to the report, DP World sees the new facilities as a backup to help keep trade moving during future disruptions rather than as a replacement for Jebel Ali.

The report said cargo traffic at Jebel Ali dropped by 90-95% after shipping through the Strait of Hormuz was disrupted before the United States and Iran signed a memorandum of understanding to end the war.

DP World is also planning to expand facilities in Fujairah and improve infrastructure at other east coast ports, including Dibba and Khor Fakkan, according to the newspaper.

If approved, the new port could be completed in about 18 months with an initial investment of hundreds of millions of dollars.

Tensions between the United States and Iran have affected shipping in the region.

According to Al Jazeera, the U.S. Central Command (CENTCOM) said it carried out strikes on military targets in Iran, including Bushehr, Chah Bahar, Jask, Konarak, Abu Musa and Bandar Abbas.

Iran later said it targeted U.S. bases and military facilities in Kuwait, including Patriot missile systems, fuel tanks, a watchtower, an ammunition depot and communication systems.

The Islamic Revolutionary Guard Corps (IRGC) also said it attacked “several weapons storage depots, a satellite communications centre, and a building housing U.S. forces” at Al-Juffair Base in Bahrain.

References: Reuters, cnbctv18