Arabian Post Staff -Dubai
The agreement in principle with Fujairah Ports Authority covers the Al Rugaylat container and multi-purpose terminal and the Dibba General Cargo terminal. The projects will be developed in phases, with construction expected to take between 24 and 30 months after work begins.
Al Rugaylat will be designed to handle as many as 2.5 million twenty-foot equivalent units, or TEUs, a year. It will also have annual capacity for 1.7 million tonnes of general cargo and 190,000 car equivalent units, strengthening facilities for roll-on, roll-off vehicle shipments.
The Dibba terminal will add up to 3.6 million tonnes of general cargo capacity annually. Together, the facilities will broaden Fujairah’s ability to serve container ships, vehicle carriers, bulk cargo customers and companies moving industrial and project-related goods.
The terminals will be capable of accommodating the latest generation of ultra-large container vessels. Their location on the UAE’s eastern coastline will give shipping lines access to a major logistics hub without requiring vessels to enter the Arabian Gulf through the Strait of Hormuz.
DP World said the development would increase its container-handling capacity in the UAE from 19.4 million TEUs to almost 22 million TEUs. It will also substantially expand the company’s general cargo and vehicle-handling operations.
Financial details of the planned investment were not disclosed. The preliminary agreement will require the parties to complete commercial, technical and regulatory arrangements before full construction and operating commitments take effect.
The signing was attended by Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi, Crown Prince of Fujairah. Essa Kazim, chairman of DP World’s board of directors, signed the agreement with Mousa Murad, director of Fujairah Port.
Sultan Ahmed bin Sulayem, group chairman and chief executive of DP World, said the development would build on the strength of Jebel Ali and deepen the company’s commitment to the UAE. He said the terminals would reinforce the country’s strategic role in global trade.
Murad said Fujairah’s location and DP World’s operating expertise would be combined to create efficient terminals capable of supporting regional cargo flows and meeting international operating standards.
The new facilities will be connected to Jebel Ali Port and the Jebel Ali Free Zone through DP World’s inland logistics network. The arrangement is intended to allow cargo owners to use Fujairah as an eastern maritime gateway while retaining access to the warehousing, manufacturing, customs and distribution infrastructure centred on Dubai.
Jebel Ali handled 15.6 million TEUs last year, representing a large share of DP World’s consolidated global throughput of 56.1 million TEUs. The port remains the company’s flagship hub, but its position inside the Arabian Gulf requires vessels arriving from Asia, Africa and Europe to pass through the Strait of Hormuz.
Fujairah offers a geographically distinct alternative. Its coastline faces the Gulf of Oman and the Arabian Sea, placing its ports close to shipping routes linking South Asia, East Africa, the Red Sea and European markets.
The emirate is already a major centre for marine fuel supply, oil storage and ship services. Expanding container and general cargo facilities could attract a wider range of manufacturers, commodity traders, vehicle distributors and logistics companies.
The project also reflects a broader shift among port operators towards networks of interconnected gateways rather than dependence on a single large hub. Shipping disruptions, regional security risks and congestion at maritime chokepoints have encouraged cargo owners to seek alternative routes, additional storage and more flexible distribution arrangements.
DP World has increasingly combined ports with freight forwarding, warehousing, free-zone services and inland transport. Connecting Al Rugaylat and Dibba to the Jebel Ali ecosystem will allow the company to offer customers an integrated route from ship discharge on the east coast to industrial and consumer markets across the UAE.
The planned vehicle capacity at Al Rugaylat is particularly significant for automotive supply chains. Roll-on, roll-off terminals require specialised berths, storage yards and inspection facilities, while reliable inland connections are essential for distributing imported vehicles to dealerships and export markets.
Also published on Medium.
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