DP World has signed an agreement with the Fujairah Port Authority to construct two new terminals on the eastern coast of the UAE, outside the Strait of Hormuz. The project will be implemented under a 50-year concession.

New Terminals and Their Capabilities

The plan includes the construction of the Al-Rugaylat container and multipurpose terminal, as well as a general cargo terminal in Dibba. As a result, DP World's total container handling capacity in the UAE will increase from 19.4 million TEU to nearly 22 million TEU. The capabilities for handling general and ro-ro cargo will also be significantly expanded.

The Al-Rugaylat container terminal will be designed to handle up to 2.5 million TEU per year, 1.7 million tons of general cargo, and 190,000 car equivalent units (CEU). The Dibba terminal will add up to 3.6 million tons of annual general cargo handling capacity.

The Strategic Importance of Fujairah

Located outside the Persian Gulf, Fujairah provides direct access to the Indian Ocean, making it a key strategic point for liner shipping. The new project will create deep-water trade gateways capable of accommodating modern ultra-large container vessels.

Impact on Logistics and the Market

The project, expected to take two to two and a half years to complete, will coincide with the expansion of Gulftainer's Khor Fakkan container terminal. Since the first closure of the Strait of Hormuz by Iran, the region has planned to create around 7.5 million TEU of new terminal capacity outside Hormuz.

The new terminals are expected to enhance flexibility, choice, and resilience in supply chains for cargo owners, while also broadening the range and quality of services available to logistics clients.

Market Situation

According to industry analysis, DP World and AD Ports terminals have experienced a sharp decline in traffic following the onset of the conflict involving the US, Israel, and Iran. The UAE's main hubs in the Persian Gulf—Jebel Ali in Dubai and Khalifa Port in Abu Dhabi—have seen significant reductions in activity due to the escalation of the Iran conflict and repeated closures of the Strait of Hormuz.

Additional Measures

DP World recently acquired 700 new trucks for container transport via the land bridge, which is expected to become the backbone of the new terminal's cargo operations.

Development Prospects

The project aims to create modern and efficient terminals that support regional trade flows and comply with international standards. The development of Fujairah's port infrastructure is expected to attract new investment and benefit the UAE economy.