DP World plans new port to bypass Strait of Hormuz

DP World is planning to expand its operations on the east coast of the United Arab Emirates to reduce Dubai's reliance on its flagship Jebel Ali port and the Strait of Hormuz, according to the Financial Times.

The Dubai-based ports and logistics company is in talks to develop a new multipurpose port in Fujairah and build a new container terminal at the emirate's existing harbour.

The move is in line with the UAE's broader strategy to reduce its dependence on the Strait of Hormuz and strengthen the country's resilience against future regional disruptions. A new port on the Gulf of Oman would allow cargo to move in and out of the UAE without passing through the narrow waterway between Oman and Iran. Shipments could then be transported by road to Dubai, Abu Dhabi and neighbouring Gulf countries.

DP World is discussing a term sheet with Emirati officials, although the structure and financing of the project has not yet been finalised, according to people familiar with the matter.

The company has not confirmed details of the project but said that "there are plans in the works around diversification to get through this disruption."

A senior company official said the new port could be completed within a year and a half.

The plans come after disruption to shipping through the Strait of Hormuz. Since Iran closed the waterway at the end of February in response to US-Israeli strikes, activity at Jebel Ali, the region's largest container port, has reportedly fallen by between 90 and 95 per cent.

The report said the UAE has also been a frequent target during the conflict, with nearly 3,000 drones or missiles launched towards the country. Jebel Ali was also affected early in the conflict after a fire broke out at the port, which authorities said was caused by falling debris following a missile interception.

The proposed east coast facilities are not expected to replace Jebel Ali.

"Jebel Ali will continue to be Jebel Ali. It will never be downsized," a senior official at the company told the FT.

The official added that DP World would initially develop the new facilities, with further expansion depending on future capacity requirements.

"We do have our own plan, and we've been very active in terms of looking at the eastern coast as far as DP World is concerned. It's defensive in case things go wrong," the official said.

DP World has built a global ports and logistics network over the past two decades, with Jebel Ali remaining its largest and most important hub.