DP World to build two new terminals at Fujairah

The UAE is moving fast to bulk out its east coast Strait-of-Hormuz bypassing options, with DP World inking an in-principle agreement with the Fujairah Ports Authority to develop two new deepwater terminals in Fujairah under a 50-year concession, it said in a statement. Construction will be carried out in phases and is expected to take 24-30 months from the start of works.

What it adds: Al Rugaylat, a container and multi-purpose terminal, will handle up to 2.5 mn TEUs, 1.7 mn tons of general cargo, and 190k car-equivalent units a year; Dibba, a general cargo terminal, adds 3.6 mn tons a year. Together they lift DP World's UAE container handling capacity from 19.4 mn TEUs to nearly 22 mn TEUs — a roughly 13% jump. Both sites sit on the Gulf of Oman, outside the strait entirely, and connect into Jebel Ali and Jafza through DP World's inland network.

The link-up: Located on the Gulf of Oman, the terminals will be connected to Jebel Ali through DP World’s inland logistics network. The sites will also integrate with Jafza, extending the company’s logistics network across the UAE.

In context

The move gives DP World another gateway outside Jebel Ali as export windows through the western ports continue to be squeezed by ongoing disruption in the Strait of Hormuz. The UAE has been doubling down on its east-facing facilities for months, working toward zero reliance on the Strait of Hormuz. Foreign Trade Minister Thani Al Zeyoudi said last month the UAE was building a new harbor to complement its existing eastern ports, alongside new pipelines and expanded rail and road links, to cut the strait out of the equation altogether.

In the hedging pipeline so far: Adnoc is fast-tracking a second pipeline to double crude exports via Fujairah, while Borouge and AD Ports are exploring an alternative export hub for petrochemical shipments on the east coast.