UAE eyes new port to reduce reliance on Strait of Hormuz

DP World is planning to build a new port and container terminal on the UAE's east coast to reduce Dubai's reliance on Jebel Ali port and bypass the Strait of Hormuz, Report informs, citing the Financial Times.

The Dubai-based port operator is in talks to develop a new multipurpose port in Fujairah and a terminal at the emirate's existing harbor, people familiar with the matter said.

The project is part of a broader UAE effort to protect its economy from possible future tensions with Iran by reducing dependence on the Strait of Hormuz, where shipping has been disrupted by Iranian drones and missile strikes since the US-Israeli attack.

The new facilities would allow containers to enter and leave the UAE through the Gulf of Oman without passing through the strait. Cargo could then be moved by truck to Dubai, Abu Dhabi and neighboring Gulf countries.

Activity at Jebel Ali, the region's largest container port, reportedly fell by 90-95% after Iran closed the strait in response to US-Israeli attacks, prompting DP World to seek alternatives.

The project's structure and financing have not yet been finalized, but the new port could be completed within about 18 months, a senior company official said. DP World declined to confirm details, but said plans were being prepared to diversify operations amid the disruption.

Company officials stressed that Jebel Ali would not be replaced or downsized. The port, which handled 15.6 million 20-foot containers last year, remains central to Dubai's role as a global logistics and re-export hub.

DP World is expected to initially invest hundreds of millions of dollars in the new facilities, with spending potentially increasing depending on capacity needs.

Since the start of the conflict, the company has already diverted some cargo from Jebel Ali to Fujairah and nearby Khor Fakkan ports, which have become congested. Sharjah-based Gulftainer is also expanding Khor Fakkan with a $2 billion investment plan.

Fujairah already plays a strategic role in the UAE's energy infrastructure, allowing Abu Dhabi to export some crude outside the Strait of Hormuz.