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DP World Plans New Fujairah Port and Terminal Expansion

DP World plans a new port and container terminal expansion in Fujairah as the UAE seeks more freight-handling capacity outside the Strait of Hormuz.
DP World’s Jebel Ali container terminal (Photo: DP World)

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The UAE is planning to expand port and freight-handling capacity on its east coast, with DP World preparing to build a new port in Fujairah and increase capacity at the existing container terminal.

The proposed facilities would provide access to the Gulf of Oman without requiring vessels to pass through the Strait of Hormuz, where shipping has faced interruptions and restrictions.

The coordination arrangements between DP World and the operator of the existing terminal have not been disclosed. AD Ports Group operates the facility under the Fujairah Terminals brand after signing a 35-year concession agreement with Fujairah Ports in 2017. Fujairah Ports is controlled by the Fujairah Al Sharqi Royal Family.

DP World, which is owned by the Government of Dubai, handled 88 million TEU in 2024, representing 10% of global container traffic. The company operates about 80 terminals in 40 countries. AD Ports Group is largely owned by the Government of Abu Dhabi.

Fujairah’s role has increased as the UAE seeks to reduce its dependence on the Strait of Hormuz. Plans are also under way to accelerate completion of a second crude oil pipeline alongside the Habshan–Abu Dhabi Crude Oil Pipeline. The additional line would raise pipeline capacity from 1.5 million to 3 million barrels per day.

Fujairah Ports also operates a bulk products terminal at Dibba, near the border with Oman’s Musandam Peninsula. The Dibba facility has been identified for development and upgrading.

Regular passenger services on the new high-speed railway connecting Fujairah with Dubai and Abu Dhabi are scheduled to begin this summer. Integrated container delivery systems are also being deployed.

DP World is seeking to replicate the success of Jebel Ali through an expanded Fujairah operation. The plan, however, faces obstacles arising from the distance between existing infrastructure and the proposed terminals.

The Fujairah development is also unlikely to receive the same level of support from Iran-related import and re-export trade that contributed to Jebel Ali’s growth. DP World is expected to focus instead on links with economic activity farther east in Asia-Pacific.

The wider rail programme includes the Hafeet Rail connection to Sohar in Oman. The link was reported to be 70% complete and could be ready by the end of this year.

Container throughput at Sohar, Duqm and Salalah has increased in recent years. However, there appeared to have been no serious consideration of integrating these Omani ports into a broader GCC logistics network.

Editorial Note:
This article was prepared with the assistance of AI tools to enhance clarity and efficiency.
All information has been reviewed and verified by the HMT News editor.
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