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