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DP World announced on Wednesday that it is set to build two container terminals in Fujairah on the UAE's east coast, as the country works to reduce its reliance on the Strait of Hormuz amid the war with Iran.

The company said in a statement: 'This project will provide additional capacity to support long-term growth and enhance supply chain resilience across DP World's network in the UAE, which will mean for trade sectors greater flexibility, wider options, and a stronger network for transporting goods locally and to different regions of the world.'

It added: 'Once the two terminals are operational, the total container handling capacity of DP World in the UAE will increase from 19.4 million TEUs to approximately 22 million TEUs, with a significant expansion in the handling of general cargo and roll-on/roll-off vessels,' according to Reuters.

DP World and the Fujairah Port Authority signed an agreement to build two multipurpose container terminals under a 50-year concession: the Rughaylat Container Terminal and the Dibba Fujairah Port.

The statement said: 'The project will establish a new commercial gateway in the deep waters of the Emirate of Fujairah capable of accommodating the latest generation of giant container ships,' as ports have become the commercial lifeline of the UAE since the de facto closure of the Strait of Hormuz.

It added: 'The Rughaylat Terminal is designed to handle up to 2.5 million TEUs annually, along with 1.7 million tons of general cargo and 190,000 car equivalent units, while the Dibba Terminal will add up to 3.6 million tons of annual general cargo capacity.'

DP World, one of the world's largest port and logistics operators, did not disclose financial details of the investment but indicated that the project will be implemented in phases and that 'construction work is expected to take between 24 and 30 months from the start date.'

The statement also said: 'The two new terminals will be connected to Jebel Ali via DP World's internal logistics network and will be integrated with the Jebel Ali Free Zone (JAFZA), expanding the scope of DP World's integrated supply chain in the UAE and allowing customers to transport goods more efficiently between ports, logistics centers, and end markets.'

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