DP World to Build Two Container Terminals Outside the Strait of Hormuz

DP World has reached a deal to develop two new deepwater container terminals in the United Arab Emirates, positioned outside the Strait of Hormuz. Bloomberg reported the agreement on July 22, 2026, with SupplyChainBrain confirming the details the same day.
DP World, the Dubai-based port and logistics company, will oversee the development. The terminals are designed as deepwater facilities, meaning they can accommodate the largest container ships in operation today. These vessels require deep water and heavy-duty berthing infrastructure to dock safely. Locating the terminals outside the Strait of Hormuz places them on the UAE's coastline facing the Indian Ocean, away from the narrow Gulf passage through which roughly a fifth of global oil consumption routinely travels.
The Strait of Hormuz has long been a focal point for maritime trade risk. Any disruption to traffic through the strait affects not only energy markets but the broader cargo flows that move between the Gulf, the Indian Ocean, and onward to Asia and Europe. Building terminal capacity on the UAE coastline but outside that narrow passage creates an alternative stop for vessels that might otherwise be exposed to delays or closures at the strait itself.
The deal adds new deepwater capacity to a UAE port portfolio that already includes Jebel Ali, DP World's flagship facility and one of the largest container ports in the world. Jebel Ali sits inside the Gulf, meaning ships calling there must pass through Hormuz. The new terminals, by contrast, would allow shippers to load or unload cargo on the Indian Ocean side without entering the strait at all.
No further specifics on the terminals' locations, capacity, construction timelines, or investment figures were disclosed in the reporting.
The broader context here involves a sustained reorientation of Gulf logistics infrastructure toward geographic diversification. Gulf states have invested heavily in ports, free zones (special economic areas with reduced taxes and customs barriers), and rail connections over the past two decades, but the vast majority of that capacity lies within the Gulf, behind the Hormuz chokepoint. A terminal complex positioned outside that geography changes the risk calculus for shipping lines, insurers, and cargo owners who factor passage risk into routing decisions and freight rates.
For DP World specifically, the deal deepens the company's already extensive port holdings along the Indian Ocean rim and East African corridor. The firm operates dozens of terminals across six continents. Adding UAE-based capacity outside Hormuz gives it a domestic asset that can serve as a transshipment hub (a midpoint where cargo is transferred between vessels) for Indian Ocean traffic without requiring ships to enter the Gulf at all.
The strategic question for market participants is whether shippers will actually reroute traffic to the new terminals or whether the facilities will primarily serve as backup capacity, activated only when Hormuz passage becomes unreliable. That decision will depend on factors not yet disclosed in the reporting: the terminals' berthing depth, quay length (the dock space where ships park), crane specifications, overland and rail connections to inland Gulf markets, and the pricing structure DP World sets relative to its existing Jebel Ali operations.
There is also a geopolitical dimension worth weighing. The UAE has pursued a foreign policy of de-escalation and diplomatic hedging in recent years, and infrastructure investment that reduces dependence on a single maritime chokepoint aligns with that posture. If the terminals function as intended, they give the UAE a logistics fallback that does not depend on conditions in the strait remaining stable.
The deal is an agreement to develop, not a completed project. Construction timelines, operational dates, and the full scope of the terminals' capabilities await subsequent announcements.


