Dubai to extend its reach in global logistics business

DUBAI -- Dubai will strengthen its position as the region's logistic hub with the completion of $1.5 billion Terminal 2 expansion project at Jebel Ali Port by early next year. The project, due to be completed in February, will boost DP World 's flagship port capacity up to 15 million TEUs to supplement the strong growth in the GCC region.

"Infrastructure work at Jebel Ali Port will be completed by June this year after which installation of state-of-the-art equipment will be initiated to bring around three million TEUs online by early 2009," said Mohammed Al Muallem, Senior Vice-President and Managing Director, DP World -UAE.

Al Muallem, who began his career with DP World at Port Rashid more than 20 years ago, is confident about the lead role of Jebel Ali Port in the region's growth in coming years.

"Dubai is situated at the gateway between the East and the West, strategically positioned to be a natural hub for the global shipping industry and providing access to a market of 1.5 billion people," he said.

"A significant benefit for our customers is our location within Jebel Ali Free Zone, which has over 6,000 companies covering manufacturing, trade, logistics and a range of industrial and service-oriented units," Al Muallem said.

"After expansion, Jebel Ali Port is set to play a key role in the development of Dubai in particular and the GCC in general amid considering huge projects under progress in the region."

"Completion of Terminal 2 expansion project will further strengthen our position in the region as 50 per cent of operations at Jebel Ali Port are for Dubai while the rest is destined for Kuwait, Qatar, Saudi Arabia and other regional states," he said.

"We have extensive plans in place that would expand capacity at Jebel Ali to around 80 million TEUs by 2030 in over 14 stages, as market demand dictates," Al Muallem said.

Khalifa Port opening

"Operations at Khalifa Port in Abu Dhabi will start in early 2011," Al Muallem said. Phase A1 of the port will be completed by 2010 and will have a capacity of two million TEUs.

He also revealed that final discussions are underway with Fujeira government to develop the port.

"We are also reviewing plans for Hamriya port," he said without elaborating.

"We recorded 19 per cent growth in throughput with the handling of 11 million twenty-foot equivalent units (TEUs) at marine terminals in the UAE during 2007," he said adding that Jebel Ali Port remained on top with 9.9 million TEUs," he said.

In reply to a question, Al Muallem said DP World is in talks with Roads and Transportation Authority to have a road plan for swift cargo movement in the emirate.