DP World is set to develop two terminals in Fujairah, UAE, to enhance logistics and reduce reliance on the Strait of Hormuz.
DP World is establishing two new terminals outside the Strait of Hormuz.
DP World has reached a principal agreement for a 50-year concession to develop two new terminals in the Fujairah region on the coast of the United Arab Emirates in the Gulf of Oman. The Al Rugaylat and Dibba projects aim to create an alternative logistics gateway that will reduce the country's dependence on the Strait of Hormuz.
DP World and the Fujairah Ports Authority have reached a principal agreement for the development of two new port terminals on the eastern coast of the United Arab Emirates.
The facilities planned under the 50-year concession include Al Rugaylat, designed as a container and multipurpose terminal, while Dibba will operate as a general cargo terminal.
Al Rugaylat is expected to reach an annual handling capacity of 2.5 million TEUs of containers, 1.7 million tons of general cargo, and 190,000 vehicle equivalent Ro-Ro cargo. The Dibba terminal is targeted to provide an annual capacity of 3.6 million tons of general cargo.
Deep-water gateway in the Gulf of Oman.
Fujairah's location on the Gulf of Oman, outside the Strait of Hormuz, gives the project special strategic value. While it is necessary to pass through Hormuz to reach the ports within the Gulf, Fujairah can be accessed directly from the Indian Ocean.
DP World plans to integrate the new terminals with the Jebel Ali Port and Jebel Ali Free Zone through a land logistics network. Once the terminals are operational, the company’s total container handling capacity in the United Arab Emirates is expected to increase from 19.4 million TEUs to approximately 22 million TEUs.
Construction is anticipated to take 24 to 30 months in phases from the start date. The project is planned to have deep-water infrastructure capable of accommodating the next generation of ultra-large container ships.
However, the announced document is of a principal agreement nature. The terminals have not yet been constructed, commissioned, or taken over the traffic from Hormuz. Final contracts, financing, construction permits, and the completion of the implementation schedule are required.
The project will not create a new strait to replace Hormuz. Instead, transporting cargo by sea to Fujairah and then overland to the interior of the country and the Jebel Ali network will open a second gateway to the supply chain.
Source: SeaNews Türkiye
