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DP World considers Fujairah gateway to bypass Strait of Hormuz

Limassol port (file photo)

Fujairah, United Arab Emirates. DP World is reportedly planning a new east coast gateway in the UAE that could allow cargo to bypass the Strait of Hormuz as conflict with Iran disrupts trade routes through the waterway.

According to the Financial Times, the Dubai-based ports operator is in talks to develop a multipurpose port on the Fujairah coast and a container terminal at the emirate’s existing port. Reuters said it had not independently verified the plans.


Potential alternative corridor

The proposed facilities would expand DP World’s presence on the Gulf of Oman and provide an entry point outside the Strait of Hormuz. Containers could be unloaded in Fujairah and transported by road to Dubai, Abu Dhabi and neighbouring Gulf markets.

A senior company official told the Financial Times that a new port could be completed within 18 months. DP World declined to confirm individual projects but said that “plans are in the works” to address disruption.

Jebel Ali remains central

The proposed development would not replace Jebel Ali, Dubai’s principal logistics and re-export hub. The port handled 15.6 million twenty-foot equivalent units in 2025, accounting for a significant share of DP World’s global container operations.

A senior official told the Financial Times that Jebel Ali would “never shrink”, indicating that Fujairah would operate as an alternative corridor rather than a competing hub.

Jebel Ali’s warehouses, free zone and industrial operations were built on the expectation of uninterrupted shipping through the Strait of Hormuz. The conflict that began on February 28, following US and Israeli strikes on Iran, has highlighted the risks of concentrating regional trade infrastructure inside the Gulf.

Impact on shipping traffic

Latest traffic data showed that six vessels crossed the strait on Sunday, the lowest number in five weeks, as renewed US-Iranian strikes and attacks on commercial ships increased safety concerns. Oil and gas tanker traffic also fell to its lowest level since May 25.

The WTO tracker found limited and uneven signs of recovery in shipping after the June 17 agreement, with crude oil, liquefied natural gas and fertiliser flows remaining well below normal levels.

On Tuesday, UAE authorities said Iranian cruise missiles struck two Emirati tankers, killing one sailor and injuring eight others.

Cyprus operations

The reported plans are relevant to Cyprus because DP World operates the multipurpose and cruise terminal at Limassol port. DP World Cyprus holds a 25-year concession covering general cargo, break-bulk, Ro-Ro and passenger operations.

P&O Maritime, another group company, holds a separate 15-year concession for marine services, including towage and pilotage.

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