The project will add new container and general cargo capacity in Fujairah. Image Credit: DP World

DP World has reached an agreement in principle with the Fujairah Ports Authority to develop two new port terminals under a proposed 50-year concession.

The project includes the Al Rugaylat container and multi-purpose terminal and the Dibba general cargo terminal, expanding port capacity on the UAE's east coast, DP World said in a press release yesterday.

Al Rugaylat will be able to handle up to 2.5 million TEU of containers a year, alongside 1.7 million mt of general cargo and 190,000 car equivalent units (CEUs).

Dibba will add capacity for up to 3.6 million mt of general cargo annually.

Once operational, the project will increase DP World's total container handling capacity in the UAE from 19.4 million TEU to almost 22 million TEU.

The new terminals will also be linked to Jebel Ali and Jafza through DP World's logistics network, allowing cargo to move more efficiently across the UAE.

Construction will be carried out in phases and is expected to take around 24 to 30 months from the start of work, although the companies did not say when construction will begin.

“The partnership with DP World marks an important milestone in Fujairah's continued development as one of the region's most important maritime gateways,” H.H. Sheikh Saleh Bin Mohamed Al Sharqi, Chairman of Fujairah Ports Authority, said.

The expansion also comes as Fujairah's bunker market has been hit by lower vessel traffic since the Iran conflict began.

The project also comes as state-owned oil company ADNOC accelerates construction of its new West-East Pipeline to the Port of Fujairah, adding to the UAE's efforts to expand energy and trade infrastructure outside the Strait of Hormuz.