DP World's reported plan to develop a new port in Fujairah directly addresses a concentration risk that its global scale has long obscured: the outsized role of Jebel Ali port. In 2025, Jebel Ali handled 15.6 million TEUs, representing 27.8% of DP World's consolidated throughput of 56.1 million TEUs. However, this figure drops to 16.7% of the company's gross network volume of 93.4 million TEUs, underscoring the port's disproportionate weight in the consolidated measure.
This concentration has become a strategic vulnerability following U.S. President Donald Trump's proposal for a 20% charge on cargo transiting the Strait of Hormuz, part of a renewed blockade on Iranian shipping. Brent crude traded at $86.19 per barrel on Tuesday, making the proposed fee equivalent to roughly $17 per barrel before freight and insurance. Reuters estimated the charge could generate approximately $240 million daily if fully enforced. Soni Kumari of ANZ Group Holdings noted that the previous U.S.-Iran agreement "did not last for even a few weeks," predicting oil prices would remain between $85 and $90 if disruptions persist.
According to the Financial Times, DP World is in discussions to build a multipurpose port in coastal Fujairah and a container terminal at the emirate's existing harbor. The proposal has not been independently verified, and no capacity or funding details have been disclosed. Lars Jensen, CEO of Vespucci Maritime, told the FT that the impact on Jebel Ali would "likely be significant and permanent," but the missing capacity figures leave the project's scope uncertain.
The existing capacity gap is substantial. Jebel Ali's annual container capacity stands at 19.4 million TEUs, with 2025 throughput at 80% utilization. In contrast, Khorfakkan can handle 5 million TEUs, and Fujairah's current capacity is less than 1 million TEUs. Even combined, the two east-coast ports offer only 39% of Jebel Ali's latest annual volume, making them a relief valve rather than a replacement.
The project primarily hedges container and general cargo, not the full energy chokepoint. Saudi and Emirati pipelines provide an estimated 3.5 million to 5.5 million barrels per day of spare bypass capacity, compared with nearly 20 million barrels per day shipped through Hormuz in 2025. The International Energy Agency notes that LNG exports from Qatar and the UAE have no alternative route to global markets. A Fujairah terminal could allow some cargo to land outside the strait and move inland, but it would not add pipeline or gas-export capacity.
DP World has financial flexibility but a constrained budget. The company generated $6.3 billion in operating cash flow in 2025, with $3.1 billion spent on capital projects and a roughly $3 billion budget for 2026. Fujairah was not among the priority projects listed in March. For context, about 13 days of the proposed $240 million daily fee would equal that full annual investment budget, though the charge would be borne by cargo interests, not DP World.
Container carriers are already adjusting their networks. Hapag-Lloyd, the world's fifth-largest container carrier, called the proposed fee "fundamentally wrong" and has rerouted vessels to avoid Hormuz. Martin Kroeger, head of the German Shipowners' Association, warned: "Today it's the Strait of Hormuz, tomorrow the Strait of Malacca." The International Maritime Organization stated that passage through Hormuz should remain free under international law, while the U.S. Navy-led Joint Maritime Information Center said the renewed blockade would begin at 2000 GMT on Tuesday. No collection mechanism or liability framework has been detailed.
For investors, three disclosures are critical: first-phase capacity, whether funding fits within the existing $3 billion budget, and firm commitments from container carriers. Until those numbers arrive, Fujairah remains a strategic option on a visible 28% consolidated-volume concentration rather than a quantified return project. The rationale is clear; the returns still need evidence.
