DP World plans new UAE east coast port to bypass Strait of Hormuz, FT reports

DUBAI: DP World is planning to develop a new multipurpose port and container terminal on the UAE's east coast to reduce reliance on Jebel Ali Port and bypass the Strait of Hormuz, the Financial Times reported.

According to the report, the Dubai-based port operator is in talks with government officials to build a new port in Fujairah and a container terminal at the emirate's existing harbour. The project would allow cargo to enter the UAE through the Gulf of Oman, avoiding the Strait of Hormuz, before being transported by road to Dubai, Abu Dhabi and other Gulf countries.

The move follows months of disruption to shipping through the Strait of Hormuz after the regional conflict that began in late February. According to the report, activity at Jebel Ali, the region's largest container port, fell by 90-95% after Iran closed the waterway in response to US-Israeli attacks.

The Financial Times said Iran has launched nearly 3,000 drones and missiles at the UAE since the conflict began. Early in the conflict, a fire broke out at Jebel Ali after debris from a missile interception fell in the area.

Sources told the newspaper that DP World is discussing a term sheet with government officials, while the project's financing and ownership structure are yet to be finalised. A senior company official said the new port could be completed within 18 months.

DP World did not confirm details of the proposed project but told the Financial Times that it is pursuing diversification plans to address the ongoing disruption.

Officials also said the new facility is intended to complement, rather than replace, Jebel Ali, which handled 15.6 million twenty-foot equivalent units (TEUs) last year. The port will continue to serve as the UAE's primary logistics and re-export hub, while the Fujairah project is expected to strengthen the country's supply chain resilience.

Sources said DP World is expected to invest hundreds of millions of dollars in the initial phase of the project, with additional investment depending on future capacity requirements.