DP World discusses Fujairah port project to bypass Strait of Hormuz

Dubai-based port operator DP World is in talks to develop a new multipurpose port and container terminal in Fujairah on the United Arab Emirates' east coast, a strategic move to bypass the vulnerable Strait of Hormuz. The project, which could be completed within 18 months, represents a significant shift in the country's trade infrastructure following months of severe disruption to shipping through the strategic waterway.

The initiative is a direct response to the drastic collapse in activity at Jebel Ali, the Middle East's largest container port and DP World's flagship asset. After Iran closed the Strait of Hormuz in late February in response to military action, container traffic through Jebel Ali reportedly fell by 90 to 97 percent. The closure forced a rapid diversion of cargo to existing east coast ports like Fujairah and Khor Fakkan, leading to significant congestion and highlighting a critical lack of alternative capacity.

DP World's plans align with a broader national strategy to reduce the UAE's economic and energy dependence on the Strait of Hormuz, a narrow chokepoint between Iran and Oman through which about one-fifth of global oil trade passes. Since the conflict...