Abu Dhabi takes over operating Port of Fujairah after Dubai deal ends

Shutterstock photo

CORRECTED-Abu Dhabi takes over operating Port of Fujairah after Dubai deal ends

(Corrects to say statement came from 'Abu Dhabi Ports' in last
    DUBAI/ABU DHABI, June 20 (Reuters) - Abu Dhabi Ports has
signed a 35-year concession to develop and manage the Port of
Fujairah, the state-owned company said on Tuesday, two months
after Dubai-owned DP World's <DPW.DI> contract ended there.
    Fujairah, located on the United Arab Emirates' east coast,
is the country's only multi-purpose port outside the Strait of
Hormuz, giving it direct access to the Gulf of Oman and the
Indian Ocean.
    Abu Dhabi Ports' plans include deepening berths to 16.5
metres and building a 1 kilometre quay and a 300,000 square
metre storage yard, it said in a statement, which did not
disclose financial details.
    DP World said on April 16 it had ended its agreement to
expand and develop Fujairah, without giving a
    Fujairah is strategically important to the UAE as one of its
two sea links outside the Strait of Hormuz. It is part of a
cross-country gas pipeline from Qatar, and the UAE is also
planning to build an oil refinery there with a capacity of up to
400,000 barrels per day. [nD5N1FJ003]
    The UAE, along with Saudi Arabia, Egypt and Bahrain, cut
diplomatic and economic ties with Qatar two weeks ago, accusing
it of supporting terrorism, meddling in their affairs and
cosying up to Iran, all of which Doha denies.
    Officials do not believe the gas pipeline will be closed
despite the rift, which has seen Qatari flagged vessels and any
destined for or arriving from Qatari ports barred from UAE
ports. [nL8N1JF06F] [nL8N1J33XB] [nL8N1J22XN]
    The Port of Fujairah's capacity is expected to reach 1
million twenty-foot-equivalent units (TEUs) and 700,000 tonnes
of general cargo by 2030, the Abu Dhabi Ports statement said.

 (Reporting by Alexander Cornwell and Stanley Carvalho, editing
by Louise Heavens)


This article appears in: World Markets , Stocks
Referenced Symbols: DPW

More from Reuters


See headlines for DPW

Follow on:

Research Brokers before you trade

Want to trade FX?