The Dubai-based ports group is in talks over a new multipurpose port in the coastal area of Fujairah, as well as a container terminal at the emirate’s existing harbour, according to the Financial Times.
Located on the Gulf of Oman, Fujairah sits outside the Strait of Hormuz. Ships arriving from Asia, Europe or Africa could therefore unload there without entering the Persian Gulf, with containers subsequently transported overland to Dubai, Abu Dhabi and other destinations.
The plans would reduce Dubai’s dependence on Jebel Ali, DP World’s flagship port and one of the world’s largest container hubs. Almost all vessels calling at Jebel Ali must pass through the Strait of Hormuz, leaving the port exposed to disruption caused by conflict or restrictions in the waterway.
Iran conflict exposes Jebel Ali’s reliance on Hormuz
The vulnerability has become more apparent during the conflict with Iran. Shipping through the strait has been severely disrupted, while ports outside the Gulf, including Fujairah and Khor Fakkan, have taken on additional traffic.
DP World does not intend to reduce capacity at Jebel Ali, according to the FT. The proposed facilities would instead provide an alternative gateway and additional resilience if access through Hormuz were disrupted again.
However, the project has not yet been formally announced. Reuters said it could not independently verify the report, while no investment figure, construction timetable or planned capacity has been disclosed.
The development could also create a major new inland container corridor across the UAE. Cargo discharged on the east coast would need to be transferred west by road or rail, increasing demand for container haulage, inland terminals and logistics infrastructure between Fujairah and the country’s principal commercial centres.