Topic of the week: DP World Plans New UAE Port to Reduce Reliance on Strait of Hormuz
DP World is reportedly planning a major new port on the UAE's east coast in a move that could strengthen regional supply chains and reduce reliance on the Strait of Hormuz. According to the Financial Times, the Dubai-based logistics company is in discussions to develop a new deep-water port alongside an additional terminal at the existing Port of Fujairah. The development would provide an alternative route for cargo, allowing vessels to bypass one of the world's most strategically important maritime chokepoints.
The plans follow recent disruption caused by geopolitical tensions in the Middle East. During the conflict, activity at Jebel Ali, one of the world's busiest container ports, reportedly fell by 90 to 95% after the Strait of Hormuz was temporarily closed. The disruption highlighted how heavily regional and international trade depends on the waterway, with delays and operational challenges affecting supply chains across multiple industries.
If the project moves forward, the expanded facilities at Fujairah would increase the UAE's capacity to handle cargo outside the Strait of Hormuz while giving shipping lines greater operational flexibility. An additional gateway on the Gulf of Oman could help maintain the flow of goods during periods of instability and provide greater confidence for businesses moving freight through the region.
The UAE has also announced plans to accelerate construction of a new oil pipeline that would double export capacity from Fujairah. Together, these investments form part of a wider strategy to diversify the country's transport and energy infrastructure, reducing reliance on a single trade route while strengthening long-term resilience.
For the freight and logistics sector, the announcement reflects an increasing focus on supply chain resilience rather than simply expanding capacity. As geopolitical uncertainty continues to influence global trade, investment in alternative ports, transport links and export infrastructure is becoming a key priority. Developing additional gateways such as Fujairah could help reduce future disruption, improve network reliability and support more stable freight movements across the region.
