jebel ali free zone
Jebel Ali Free Zone is going in for a timely addition of its logistics base. The JAFZA Logistics Park will dedicate 87 per cent of capacity to warehousing needs. Image Credit: File photo

Dubai: Jebel Ali Free Zone has started construction on a new logistics hub, with the aim to complete the project next year. JAFZA Logistics Park will have a leasable area of 46,000 square meters, of which 87 per cent will be for warehousing and the rest for office facilities.

“As the UAE continues to grow into a global processing and re-distribution gateway, we have experienced a significant spike in demand for the logistics and warehousing space,” said Abdulla Bin Damithan, CEO and Managing Director, DP World UAE and JAFZA. “We are building the Jafza Logistics Park in response to this increase in demand and to further boost the development of the UAE’s logistics sector."

Currently, the logistics cluster at the free zone hosts more than 460 companies, nearly all of whom are international logistics providers which already operate from the free zone. JAFZA Logistics Park, apart from supporting these entities, will ‘attract new players seeking to establish themselves in the market’. The smallest unit at the new hub will be under 2,900 square meters, including 360 square meters of mezzanine office space. Customers will also be allowed to consolidate multiple units to meet requirements.

A Phase 2

The launch comes as the base represents an ‘ideal location between Jebel Ali Port, Al Maktoum International Airport, and Etihad Rail’s Jebel Ali station’, which will help with a seamless flow of goods. "We are in discussions with a number of large customers that need 60-80 per cent of the space and (we) may need to commission Phase 2 ahead of schedule," said Bin Damithan. 

Logistics companies in ecommerce and similar growing segments can benefit from the Park’s offerings, including digital trade enablement, competitive costs, and customisable units

- Abdulla Bin Damithan of DP World UAE and JAFZA