Dubai is working to establish a new logistics hub that bypasses the Hormuz Strait. Following a blockade that has impacted Jebel Ali Port, the largest logistics hub in the Middle East, the United Arab Emirates (UAE) aims to create a second logistics gateway on its eastern coast.
The Financial Times reported on July 13 that DP World, the port operator owned by the Dubai government, is in discussions with UAE authorities to construct a multipurpose new port in Fujairah. There are also plans to add a container terminal to the existing Fujairah Port.
Fujairah is located on the Gulf of Oman, outside the Hormuz Strait. With the new port, vessels would be able to access the eastern coast of the UAE directly, avoiding the strait. Cargo could then be transported overland to Dubai and Abu Dhabi.
Sources from the Financial Times indicated that the volume of traffic at Jebel Ali Port has decreased by 90 to 95 percent since Iran closed the Hormuz Strait. However, this figure has not been officially confirmed by DP World.
DP World is currently discussing the business structure and financing options with UAE authorities. The scale of construction and investment amounts have yet to be finalized. A senior company official stated that the new port could be operational within 18 months.
The Fujairah new port is expected to serve as a supplementary facility rather than a replacement for Jebel Ali Port in case of emergencies. UAE Minister of State for Foreign Trade Thani Al Zeyoudi has previously stated that the logistics network will be restructured to reduce dependence on the strait to zero, regardless of whether it is reopened.
* This article has been translated by AI.
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