DP World is planning to develop a new multipurpose port and container terminal in Fujairah on the UAE’s east coast, reducing reliance on Jebel Ali and providing an alternative trade route that bypasses the Strait of Hormuz, the Financial Times reported.
According to the report, the Dubai-based port operator is in discussions with UAE authorities on the project, which would allow cargo to enter and leave the country via the Gulf of Oman before being transported overland to Dubai, Abu Dhabi and neighboring Gulf states. The project could be completed within 18 months, although its structure and financing are still under discussion.
The move follows severe disruption to shipping through the Strait of Hormuz during the recent Iran conflict, when activity at Jebel Ali reportedly fell by 90-95pct after the waterway was temporarily closed. Since then, cargo has increasingly been diverted to Fujairah and Khor Fakkan, both of which have experienced congestion.
For the steel industry, the new port would strengthen supply chain resilience by providing an alternative gateway for imports of raw materials and steel products into the UAE and the wider Gulf region, reducing dependence on a single maritime corridor during periods of geopolitical disruption.