Dubai’s DP World Kicks Off $1.6 Billion Jebel Ali Port Expansion

By Tom Arnold

DUBAI, July 28 (Reuters) – DP World, one of many world’s largest port operators, has began constructing a brand new $1.6 billion container terminal in Dubai in response to demand for extra capability and bigger vessels, it stated on Tuesday.

Jebel Ali port, owned by DP World, has established itself as one of many largest container ports within the Middle East, boosted by Dubai’s standing as a rising centre for commerce. The emirate’s internet hosting of the World Expo in 2020 is anticipated to supply an additional elevate to commerce.

DP World stated section 1 of container Terminal 4 on the port will create new capability of three.1 million twenty-foot equal items (TEU) by 2018, taking whole capability at DP World’s flagship port to 22.1 million TEU.

“The new capacity is a response to feedback from customers expressing the need for more capacity at Jebel Ali due to an expected increase in trade in the run-up to Expo 2020. Shipping lines will be able to bring more of the world’s largest vessels to our terminals,” stated Chairman Sultan Ahmed Bin Sulayem.

The complicated will likely be geared up with round 110 cranes, with a complete quay size of about 11,000 metres, it added.

DP World made the announcement on the identical day because it reported first-half 2015 gross container volumes throughout its international ports had been up 4.1 % on a like-for-like foundation from a yr earlier and up 4.2 % on a reported foundation.

The Dubai-based firm dealt with 30.6 million TEU with development largely pushed by its terminals in Europe and the United Arab Emirates, it stated in a separate assertion.

Business within the UAE grew by 6 %, with Europe displaying regular development regardless of a troublesome geopolitical surroundings, it stated, with out elaborating.

“Full-year market volume growth is now forecast to be at approximately 3 percent and DP World is expected to perform ahead of the market,” Chief Executive Mohammed Sharaf stated.

Consolidated volumes, at terminals over which DP World has management, rose 3.5 % to 14.4 million TEU.

DP World stated its port in Yarimca, Turkey, was on monitor to launch within the fourth quarter, whereas its proposed acquisition of Fairview Terminal in Canada was anticipated to shut within the second half of 2015.

It stated it additionally expects so as to add 2 million TEU of capability at Terminal 3 of its house port of Jebel Ali within the second half. (Editing by Susan Fenton)