Strait of Hormuz

Dubai-based port operator DP World is planning a new port and container terminal on the United Arab Emirates’ east coast as it seeks to reduce reliance on its flagship Jebel Ali hub and allow cargo to bypass the Strait of Hormuz.

The company is in talks to develop a new multipurpose port in the emirate of Fujairah, as well as a container terminal at the region’s existing port, according to people familiar with the matter.

The plans are part of broader UAE efforts to make the country’s economy less vulnerable to future hostilities involving Iran and disruptions to traffic through the Strait of Hormuz.

The project would expand DP World’s presence on the Gulf of Oman, allowing containers to enter and leave the UAE without passing through the strait. Cargo could then be transported overland to Dubai, Abu Dhabi and neighboring Gulf countries.

Since the regional conflict began in late February, Iran has launched nearly 3,000 drones and missiles at the UAE. Early in the conflict, falling missile debris was blamed for a fire at Jebel Ali.

Activity at Jebel Ali, the region’s largest container port, fell by between 90% and 95% after Iran effectively closed the Strait of Hormuz, prompting DP World to seek alternatives to the disrupted maritime route.

The company is discussing a memorandum of understanding with government authorities, although the project’s ownership structure and financing have yet to be determined. According to a senior executive, the new port could be completed in approximately 18 months.

DP World has not confirmed details of the east coast projects but said diversification plans were being considered to overcome the disruptions. Gulf officials have emphasized that the expansion is not intended to replace Jebel Ali, which will remain a major port, industrial and logistics hub.

Fujairah already plays a strategic role in the UAE’s infrastructure. Abu Dhabi exports part of its crude oil through the emirate and plans to increase those volumes to reduce its dependence on the Strait of Hormuz.

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Source: Valor Econômico

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