**Limassol-Linked DP World Plans New Port to Bypass Strait of Hormuz**
DP World, a prominent global ports operator with operations at Limassol port in Cyprus, is exploring the development of a new gateway on the UAE's east coast. This initiative aims to provide an alternative route for cargo to bypass the increasingly volatile Strait of Hormuz, a critical chokepoint for maritime trade in the region. The plans come in light of escalating tensions and conflict with Iran, prompting Gulf states to reassess their trade routes.
According to a report by the Financial Times, DP World is in discussions to establish a multipurpose port on the Fujairah coast, which would include a new container terminal at the existing port. The urgency of this development is underscored by recent geopolitical events, including renewed hostilities between the US and Iran, which have raised safety concerns for vessels transiting the strait.
The proposed facilities in Fujairah would enhance DP World’s presence on the Gulf of Oman, allowing containers to be offloaded there before being transported overland to major markets in Dubai, Abu Dhabi, and other Gulf states. This diversion would help avoid the risks associated with navigating the Strait of Hormuz, where shipping traffic has recently declined significantly. Reports indicated that only six vessels crossed the strait on a recent Sunday, marking the lowest traffic in five weeks, while oil and gas tanker movements also reached their lowest levels since late May.
A senior official from DP World indicated to the Financial Times that the new port could be operational within 18 months, reflecting the rapid pace at which Gulf governments and businesses are seeking alternatives to the strait. Although DP World has not confirmed specific details about the projects, the company acknowledged that plans are underway to mitigate disruptions in the region.
Despite this new direction, DP World has emphasized that the development in Fujairah will not replace Jebel Ali, the cornerstone of Dubai's logistics and re-export capabilities. Jebel Ali port handled 15.6 million twenty-foot equivalent units in 2025, contributing significantly to DP World’s global container operations. The company reassured stakeholders that Jebel Ali would remain a vital hub, stating that it would "never shrink." Instead, the Fujairah project is viewed as a complementary corridor to enhance trade resilience.
The shift in strategy signifies a critical adaptation to the changing geopolitical landscape. The infrastructure at Jebel Ali was built under the assumption of uninterrupted maritime access through Hormuz. However, the ongoing conflict, which escalated on February 28, has highlighted the vulnerabilities of concentrating trade infrastructure in the Gulf region.
Recent incidents, including attacks on commercial vessels and strikes on Emirati tankers, have further intensified safety concerns. On Tuesday, UAE authorities reported that Iranian cruise missiles targeted two tankers, resulting in one fatality and several injuries. Such events reinforce the necessity for DP World’s proposed expansion to not only increase capacity but also to safeguard the UAE’s trade network from disruptions at a critical maritime chokepoint.
As the situation evolves, the implications of DP World’s plans for the broader logistics landscape in the Gulf and beyond remain to be seen. The company’s strategic pivot towards Fujairah may not only reshape trade routes but also influence the dynamics of regional maritime security and economic stability.