DP World has reached an agreement in principle with the Fujairah Ports Authority to develop two new port terminals under a proposed 50-year concession, significantly expanding maritime infrastructure on the UAE's east coast.

The project encompasses the Al Rugaylat container and multi-purpose terminal and the Dibba general cargo terminal, DP World announced in a press release. Once completed, the terminals will substantially boost the emirate's capacity to handle containers, vehicles, and general cargo.

The Al Rugaylat terminal is designed to handle up to 2.5 million TEU of containers annually, along with 1.7 million metric tonnes of general cargo and 190,000 car equivalent units (CEUs). The Dibba terminal will add capacity for up to 3.6 million metric tonnes of general cargo per year.

When fully operational, the expansion will raise DP World's total container handling capacity in the UAE from 19.4 million TEU to nearly 22 million TEU. The new facilities will be integrated with Jebel Ali Port and the Jebel Ali Free Zone (Jafza) through DP World's logistics network, enabling more efficient cargo movement across the country.

Construction is planned in phases and is expected to take approximately 24 to 30 months from the commencement of work. The companies did not specify when construction would begin.

"The partnership with DP World marks an important milestone in Fujairah's continued development as one of the region's most important maritime gateways," said H.H. Sheikh Saleh Bin Mohamed Al Sharqi, Chairman of Fujairah Ports Authority.

Fujairah is the world's third-largest bunkering hub by volume, after Singapore and Rotterdam, and its location on the Indian Ocean coast of the UAE gives it strategic importance as a maritime gateway that bypasses the Strait of Hormuz. The terminal expansion aligns with long-standing UAE efforts to build out trade and energy infrastructure on the east coast, reducing dependence on Gulf-side ports that route through the strait.

The announcement comes at a time when Fujairah's bunker market has experienced reduced vessel traffic following the onset of the Iran conflict. Separately, state-owned oil company ADNOC is accelerating construction of its new West-East Pipeline to the Port of Fujairah, part of broader UAE efforts to expand energy and trade infrastructure outside the Strait of Hormuz.

Source: Ship & Bunker