DP World, the government-controlled ports and logistics giant, confirmed it is pushing forward with a plan to build a new port for Dubai that will bypass the Strait of Hormuz and increase the UAE’s role in shipping across the region. The new terminals will be placed at Fujairah located on the Gulf of Oman with construction requiring just two years for the first phase of the operation.
Rumors had been circulating that plans were being accelerated for a new container and general cargo operation that would be outside the Gulf and could bypass the volatile Strait of Hormuz. Similar efforts have already been announced to expand oil pipelines to reach the Gulf of Oman coast.
DP World and Fujairah Ports Authority reached agreement in principle under a new 50-year concession to develop the new terminals on the UAE’s east coast. The Al Rugaylat terminal will handle containers and in addition there will be a new multi-purpose cargo terminal, the Dubba General Cargo terminal.
“The partnership with DP World marks an important milestone in Fujairah’s continued development as one of the region’s most important maritime gateways,” said Sheikh Saleh Bin Mohamed Al Sharqi, Chairman, Fujairah Ports Authority. They declined to reveal the financial investment to create the new port, but reports have said a high priority has been placed on the develop which expands on Fujairah and will provide a critical alternate route.
DP World says the project will establish a new deep-water trade gateway on the UAE’s east coast, capable of handling the latest generation of Ultra Large Container Vessels. Al Rugaylat is designed to handle up to 2.5 million TEUs annually, alongside 1.7 million tonnes of general cargo and 190,000 Car Equivalent Units (CEUs), while Dibba will add up to 3.6 million tonnes of annual general cargo capacity.
Once operational, the development will increase DP World’s total container handling capacity in the UAE from 19.4 million TEUs to almost 22 million TEUs, while significantly expanding general cargo and Ro-Ro capability.
DP World said it will position Fujairah to become “a leading center for maritime services.” They highlight it will be connected to the UAE’s primary port, Jebel Ali, through DP World’s inland logistics network. They said it will enable them to move cargo more efficiently between ports, logistics hubs and end markets.
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Construction will be in phases and is expected to take approximately 24 to 30 months once it starts.
Jebel Ali has long been considered the flagship of the operations and the region. It is built on the world’s largest man-made harbor with 67 berths and a capacity to handle over 22 million TEU annually. Fujairah, by comparison, is mostly an oil terminal and general port with reports it currently handles just over 720,000 TEU annually.