October 12, 2008

Dubai to expand reach in global logistics business

It is reported that Dubai will strengthen its position as the region’s logistic hub with the completion of USD 1.5 billion terminal 2 expansion projects at Jebel Ali Port by early 2009. The project, due to be completed in February 2009, will boost DP World’s flagship port capacity up to 15 million TEUs to supplement the strong growth in the GCC region.

Mr Mohammed Al Muallem senior VP & MD of DP World UAE said that "Infrastructure work at Jebel Ali Port will be completed by June 2008 after which installation of state of the art equipment will be initiated to bring around 3 million TEUs online by early 2009."

Mr Al Muallem said that "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 added that “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. 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% of operations at Jebel Ali Port are for Dubai while the rest is destined for Kuwait, Qatar, Saudi Arabia and other regional states."

He added that "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. Operations at Khalifa Port in Abu Dhabi will start in early 2011."