Dubai firm cuts deal for new port to bypass Strait of Hormuz
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Dubai firm cuts deal for new port to bypass Strait of Hormuz

The Seattle Times world

Key Points:

  • Dubai-based logistics company DP World announced plans to develop two new shipping terminals on the UAE’s east coast, bypassing the Strait of Hormuz to increase container capacity by about 13%.
  • The new ports in Fujairah on the Gulf of Oman aim to reduce reliance on the Jebel Ali port, which has seen a decline in activity due to the ongoing war and tensions around the Strait of Hormuz.
  • The project responds to regional instability and attacks on vessels, as Iran and the U.S. contest control of the strait, causing significant disruptions to global oil and gas shipments.
  • Construction of the Al Rugaylat container terminal and the Dibba General Cargo terminal is expected to take 24 to 30 months, though DP World has not disclosed the project's cost.
  • The initiative follows leadership changes at DP World and reflects the UAE's strategic efforts to safeguard its trade routes amid escalating geopolitical tensions in the Middle East.

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