DP World Plans East Coast Port to Reduce Strait Risk
New Fujairah facilities aim to diversify UAE trade routes and ease reliance on Jebel Ali.
DP World, the Dubai-based logistics company, is planning a new port and container terminal on the UAE east coast. The move is meant to reduce Dubai’s reliance on Jebel Ali and help avoid the Strait of Hormuz, according to the Financial Times.
People familiar with the matter said the company is in talks to develop a new multi-purpose port in Fujairah and a new terminal at the emirate’s existing port.
Over the past 20 years, DP World has become one of the UAE’s biggest global logistics players. It has built a large network of ports and logistics operations around the world, but Jebel Ali is still the main asset for both the company and Dubai. Moving some capacity outside Dubai is a major shift for an emirate that built much of its trade and finance success around Jebel Ali’s growth.
The plan also fits into a wider UAE strategy to protect the economy from any future tension with Iran. The goal is to reduce dependence on the Strait of Hormuz, where shipping has been disrupted several times by attacks and rising regional tensions. The new project would strengthen DP World’s presence on the Gulf of Oman, allowing containers to move without passing through the strait and then travel overland to Dubai, Abu Dhabi and other Gulf states.
Since the war began in late February, Iran has fired nearly 3,000 drones and missiles at the UAE, more than at any other country, according to the report. Early in the conflict, a fire broke out at Jebel Ali after falling debris from a missile interception, authorities said. The incident came during a difficult period for DP World, which had recently removed its longtime chairman and CEO, Sultan Ahmed bin Sulayem, over his links to convicted sex offender Jeffrey Epstein.
Activity at Jebel Ali, the region’s largest container port, dropped by 90% to 95% after Iran closed the strait, pushing DP World to look for other routes. The company is now in talks with government officials about the final scope and funding of the project, which could be completed in about a year and a half.
DP World has not confirmed the east coast plans, but a spokesperson said the company still has diversification plans in place to deal with current disruptions. Gulf government officials also said the eastward shift does not mean replacing Jebel Ali, which still has its free trade zone, warehouses and industrial facilities.
A senior company executive said Jebel Ali will remain fully active, with no reduction in its role. He added that DP World plans to invest hundreds of millions of dollars at first in the new facilities, with room to increase spending if needed, describing the move as a defensive step in case conditions worsen.
The plans show how the war with Iran has forced regional governments and businesses to rethink major trade routes and infrastructure that once depended on free movement through the Strait of Hormuz. Before the conflict, about 135 ships crossed the waterway each day. That number has fallen to fewer than 40 since the temporary US-Iran ceasefire. The situation has become more unstable in recent days after new Iranian attacks on vessels, which further reduced shipping traffic.
Jebel Ali handled 15.6 million containers last year and has long been the base of Dubai’s growth as a global logistics and re-export hub, especially between China and Africa. But its dependence on the strait means the impact of the crisis could be serious and long lasting, according to Lars Jensen, CEO of Vespucci Maritime.
Moody’s expects DP World’s total revenue to fall from $6.6 billion in 2025 to about $5.9 billion this year because of the conflict. Since the war began, the company has already moved cargo from Jebel Ali to Fujairah and Khor Fakkan, where ports are now facing congestion because of the added traffic.
The new plans also come as Sharjah-based Gulftainer expands at Khor Fakkan, with a new $2 billion investment to raise capacity. Fujairah, one of the UAE’s seven emirates, already plays an important role in the country’s energy infrastructure. It serves as a route for part of Abu Dhabi’s oil exports, and there are plans to increase volumes there to help bypass the Strait of Hormuz.
AI contributed to the creation of this article.