DP World to build two deepwater terminals bypassing Strait of Hormuz
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DP World has announced a 50-year agreement with the Ports of Fujairah to build two deepwater terminals on the UAE's east coast. The project aims to diversify maritime routes and reduce dependence on the Strait of Hormuz, through which a significant portion of global oil shipments pass.
Terminal Capacity
The new terminals will be able to handle up to 2.5 million containers, 190,000 vehicles, and 5.3 million tons of general cargo annually. Located on the Gulf of Oman coast, outside the Strait of Hormuz, they will accept vessels that do not transit the strategic waterway. The infrastructure will later be integrated with DP World's largest port, Jebel Ali.
Construction Timeline
Construction will proceed in several phases and is expected to take up to 30 months. DP World expects the project to strengthen the UAE's position as a leading global trade and logistics hub. The project comes amid ongoing tensions around the Strait of Hormuz.
Regional Tensions
Earlier, Iran's Islamic Revolutionary Guard Corps (IRGC) reported an explosion on a tanker near the strait, renewing market concerns about shipping safety. The strait handles a significant share of global oil shipments, making any disruption critical.
What's Next
Construction is set to begin in the coming months, with completion expected within 30 months. It remains unclear how Iran will respond to the UAE's move to bypass the strait.
2 sources
DP World to build two deepwater terminals bypassing Strait of Hormuz
