DP World is planning to develop a new port and container terminal on the UAE's east coast in a move designed to reduce reliance on the Strait of Hormuz.
The Dubai-based ports operator is in talks to build new facilities in Fujairah, allowing containers to enter and leave the UAE without transiting the Strait before being transported overland to Dubai, Abu Dhabi and neighbouring Gulf states.
A senior DP World official told the Financial Times: “We do have our own plan, and we’ve been very active in terms of looking at the eastern coast as far as DP World is concerned. It’s defensive in case things go wrong.”
The FT also reports that activity at Jebel Ali, the region's largest container port, fell by between 90% and 95% after Iran closed the Strait of Hormuz during recent conflict, highlighting the vulnerability of one of the world's busiest trade routes.
Meanwhile, President Trump said last night that the US will act as “guardian” of the Strait of Hormuz, keeping it open in return for a levy worth “20 per cent of all cargo” and renewing the blockade on Iranian traffic.
Trump’s announcement on social media countered Tehran’s claim that it had closed the waterway and appears to revert to the situation before the two sides agreed a memorandum of understanding on June 17. They agreed to begin talks and to end the US blockade of the strait by July 17.
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