JAKARTA - Dubai-based multinational logistics company DubaiPort World will build a new port and container terminal on the east coast of the United Arab Emirates (UAE) to avoid the Strait of Hormuz amid the escalating conflict in the Middle East.
Reported by the Financial Times, the multipurpose port is in the discussion stage to be built on the Fujairah coast.
The plan to build a new port was carried out after activities at Jebel Ali, the largest container port in the region, declined by 90-95 percent amid the escalation of the conflict in the Middle East. Thus, this condition encourages companies to look for alternative transit routes.
DP World is currently discussing initial terms with local government officials, although the structure and financing of the new project have yet to be agreed.
"We do have our own plans and we have been very active in reviewing the eastern coastal area related to DP World. This is a proactive step if there is a problem," a senior official said, quoted by ANTARA from Sputnik, Tuesday, July 14.
DP World declined to confirm any details of any projects on the east coast, saying plans were being drawn up to diversify operations to cope with such disruptions.
Previously, on Monday (13/7), US President Donald Trump stated that the US would be the "guardian" of the Strait of Hormuz and would receive a 20 percent reimbursement of the value of cargo passing through the waterway.
Trump also said his party would reimpose a blockade on Iranian ports.
Meanwhile, DP World is a company engaged in port operations. DP World's headquarters are in Dubai, UAE. The company has employed more than 126,000 people.
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