The UAE reduces its dependence on the Strait of Hormuz by constructing two new terminals in Fujairah.
DP World announced that two new container terminals will be built at the Port of Fujairah, located on the eastern coast of the United Arab Emirates, a move aimed at reducing the country’s reliance on the Strait of Hormuz and strengthening alternative maritime trade routes.
According to Reuters, with the operation of this project, DP World’s container handling capacity in the UAE will increase from 19.4 million to about 22 million TEU (twenty-foot equivalent units). Additionally, the capacity for handling general cargo and roll-on/roll-off ships will also be expanded.
The announcement of this project coincides with a renewed decrease in ship traffic through the Strait of Hormuz. Based on shipping data, restrictions imposed by Iran and security concerns arising from recent conflicts continue to affect navigation in this waterway.
Reuters writes that the war between Iran and the United States, which began on February 28, has not only resulted in thousands of casualties but has also exacerbated global inflation by restricting energy exports from the Gulf countries.