DP World says planned Fujairah terminals could cut Indian Ocean sailing times by up to five days

Dubai: Fujairah’s location on the UAE’s east coast could give cargo owners an alternative gateway to global markets and cut sailing times on some Indian Ocean services by up to five days, according to DP World.

The Dubai-based ports and logistics operator says its planned Fujairah terminals are being designed to give businesses more options as global supply chains face greater pressure to find alternative routes.

The proposal comes as companies increasingly look beyond the traditional reliance on individual ports and shipping corridors.

DP World cited its latest Global Trade Observatory survey, which found that 86 per cent of chief supply chain officers see access to alternative and multimodal trade routes as a competitive advantage.

For UAE businesses, the significance of Fujairah is its position outside the Strait of Hormuz, on the Gulf of Oman and directly facing the Indian Ocean.

DP World said a vessel call at its planned Fujairah terminals could save three to five days of sailing time on Indian Ocean services, while improving schedule reliability and cost efficiency.

DP World also said the location could allow ships serving Indian Ocean trade routes to call at the UAE’s east coast without making the same routing choices as vessels using ports on the Arabian Gulf.

“Through our planned Fujairah terminals, a call on the UAE’s east coast could reduce sailing times on Indian Ocean services by up to five days,” DP World said in its latest social media update.

The company said this could improve schedule reliability and cost efficiency, while giving cargo owners greater flexibility over how goods enter and leave the UAE.

That flexibility has become more important as companies deal with disruption to established shipping routes.

DP World’s latest survey of 103 chief supply chain officers across 14 markets and nine industries found that 84 per cent said resilience and optionality had overtaken cost reduction as primary drivers of supply-chain strategy.

The survey also found that 71 per cent planned to diversify their supplier base over the following 12 months.

Fujairah already plays an important role in global maritime services, with its location on the Gulf of Oman making it a major bunkering and shipping-services hub.

The proposed DP World terminals would add another layer to that role by creating a container and general-cargo gateway on the UAE’s east coast.

DP World reached an agreement in principle with the Fujairah Ports Authority in July for a 50-year concession to develop two terminals: the Al Rugaylat container and multi-purpose terminal and the Dibba General Cargo terminal.

Al Rugaylat is planned to handle up to 2.5 million TEUs of containers a year, as well as 1.7 million tonnes of general cargo and 190,000 car-equivalent units.

Dibba would add up to 3.6 million tonnes of annual general-cargo capacity.

The project is intended to be developed in phases, with construction expected to take about 24 to 30 months from commencement, according to DP World.

DP World says the Fujairah gateway would provide access to additional routes across Asia, the Middle East and Africa, while connecting cargo into its wider UAE logistics network.

That is significant for businesses because the proposed terminals are not being planned as standalone port facilities.

DP World says they will be linked through its inland logistics network to Jebel Ali and Jafza, allowing cargo to move between ports, logistics hubs and end markets across the UAE.

The company has described the project as an extension of the Jebel Ali ecosystem rather than a replacement for Dubai’s flagship port.

“Fujairah strengthens what Jebel Ali already delivers,” DP World Group CEO Yuvraj Narayan said when the project was announced in July.

“With Jebel Ali operating at high utilisation, this development provides the additional capacity to support long-term growth,” he said, adding that cargo owners would have “greater flexibility, more choice and stronger supply chain resilience”.

The planned Fujairah terminals are therefore part of a wider UAE port and logistics network.

DP World said the development would increase its total container-handling capacity in the UAE from 19.4 million TEUs to almost 22 million TEUs once operational.

The company has also been expanding its inland alternatives.

In August, DP World said its GCC road and rail network had moved 500,000 TEUs since March, with the network supporting around 3,000 truck movements a day after the addition of 700 trucks.

That expansion is aimed at giving shipping lines and cargo owners alternatives when established sea routes become less reliable.

DP World has also been promoting alternative corridors into the GCC, including routes through Oman and Saudi Arabia, using combinations of sea, road, rail and air freight.

The push for alternative gateways comes against a backdrop of disruption to established regional shipping routes amid the US-Iran war. Construction is yet to begin on DP World's new east coast project in Fujairah, which was announced as an agreement in principle in July 202