Dubai Firm Cuts Deal for New Port to Bypass Strait of Hormuz
A Dubai-based logistics giant announced a deal with the United Arab Emirates on Wednesday to develop a new port system that would bypass the Strait of Hormuz, a vital waterway for global oil and gas shipments where the war in Iran has shrunk traffic.
According to DP World, the development will create two new shipping terminals for container and cargo ships on the country’s east coast and increase the company’s container capacity by approximately 13 percent. This will expand shipping infrastructure in Fujairah, a port city on the Indian Ocean that serves as a way to bypass the strait.
DP World handles approximately 10 percent of annual global container traffic through its extensive network of ports and terminals worldwide. The new terminals will reduce the firm’s reliance on Jebel Ali, the flagship of Emirati infrastructure, the Middle East’s busiest port on the Persian Gulf, where activity fell during the war.
Sheikh Saleh Bin Mohammed Al Sharki, Chairman of Fujairah Ports Authority, described the project as “an important milestone” in the development of Fujairah, describing it as “one of the most important sea gateways of the region”.
The Emirate’s push to diversify its supply chains reflects a market shaken by renewed attacks on ships in the region, where Iran and the United States are battling rival blockades for control of the waters.
While more than 100 ships a day routinely passed through the strait before the war, the number of daily passages has fallen to double digits or lower in recent days amid the conflict.
The disruptions caused by attacks during the conflict, and even the risk of attacks, led countries to seek alternative ways to transport millions of barrels of oil. But even these options This situation is further tightened after the Iran-backed Houthi militia, which controls a significant part of Yemen, declared a naval blockade of Saudi Arabia in the Red Sea.
