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DP World eyes Fujairah port expansion as Hormuz risk persists
A new multipurpose port and container terminal in Fujairah could cut shipping exposure to the Strait of Hormuz, with construction potentially taking as little as 18 months.
OilPrice reports Dubai is already planning additional shipping capacity ahead of any renewed disruption at the Strait of Hormuz, even though the waterway reopened less than a month ago.
According to OilPrice, DP World is reportedly in talks to build a new multipurpose port and container terminal in Fujairah on the UAE's east coast, aimed at creating an alternate route that avoids Hormuz. The outlet cites the Financial Times as saying construction could take as little as 18 months.
OilPrice also notes DP World has acknowledged it is pursuing diversification projects to handle future disruptions. It points to past re-routing during the Iran war, when activity at Dubai's flagship Jebel Ali port reportedly collapsed by as much as 95% after Tehran shut Hormuz, with cargo shifting east to Fujairah and Khor Fakkan.
The outlet adds that Dubai pumped a record 4.1 million barrels per day in June after leaving OPEC, increased crude exports through Fujairah, and accelerated plans for a second pipeline that will double export capacity from the emirate beginning next year. OilPrice further says the broader Gulf strategy includes Gulftainer's $2 billion expansion at Khor Fakkan.
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