DP World rerouted 1m teu overland as Hormuz closure choked Jebel Ali

DP World has moved more than 1m teu over road and rail since the first week of March, building a bonded land corridor that kept Gulf trade flowing while the Strait of Hormuz stayed closed to shipping. The operation, run from a standing start, now manages 3,000 trucks connecting UAE east coast ports with Jebel Ali.

"We had to activate this starting from a truck fleet of zero to today, 3,000 trucks that we manage and operate," Ahmad Yousef Al-Hassan, CEO of DP World GCC, told a media roundtable in Dubai. "Since the first week of March, we moved now about over 1 million teu between the east coast and the UAE, over road and over rail."

The figure marks a rapid scale-up. In August, DP World reported 500,000 teu moved across the GCC by rail and road since March. The land bridge required close co-operation with other port operators, government authorities and customs agencies, with DP World supplying equipment and personnel to east coast ports it does not operate.

How much did the disruption cost shippers?

Container freight rates from China to Dubai jumped from around $2,000 per box before the closure to $10,000–$12,000 — a five- to six-fold increase. Longer trucking distances, congestion and higher diesel prices added further cost. DP World absorbed some transport expenses and worked with carriers on cost-reduction solutions, including moving empty containers from alternative ports.

The company also developed corridors through Oman, working with authorities and operators at Sohar and Duqm to give customers additional routes into the UAE and wider Gulf markets. Al-Hassan said the crisis had proven the need to accelerate cross-border rail connectivity: "I think everyone's come to the realisation that we need to accelerate and fast-track rail connectivity. Even if the Strait opens up tomorrow, our contingency planning has to be all ready."

What happened to Jebel Ali volumes?

Jebel Ali stayed open throughout the conflict, closing for just six hours since the war began. But blocked maritime access hit throughput hard: DP World's second quarter 2026 results showed Jebel Ali volumes down 90.1% for the quarter. The port, with annual capacity above 20m teu, has spent nine months maintaining equipment and operational readiness ahead of a shipping return.

"We believe the recovery is going to be very strong," Al-Hassan said. "It could take one month to three months. This is from the feedback that we get from the lines, depending on how fast they can reposition their services and networks back there."

Meetings with nine shipping lines in Asia the previous week reinforced his confidence. "All of them, without a doubt, told us Jebel Ali will and will always be a port of call. They're already trying to understand: Are we operationally ready? And we tell them yes."

He pointed to the Jebel Ali Free Zone, home to more than 12,000 companies, as an advantage competing ports cannot easily replicate. Free zone occupancy stayed above 90% across asset classes during the disruption, supported by demand from major UAE infrastructure and construction projects. "This is just a short-term diversion," he said. "People always want the most cost-efficient, most reliable trade route, and Jebel Ali was always offering that."

Why Fujairah, and why now?

The Hormuz closure exposed the need for gateways outside the Strait, and DP World is backing that lesson with a $2bn–$3bn investment in two new Fujairah terminals announced in July. The plan includes a 2.5m teu container terminal near Fujairah airport and a general cargo terminal at Dibba, with phased operations targeted within 18–24 months — a timeline Al-Hassan concedes is tight.

"We're targeting in 18 months. But if you speak to anyone, they'll tell you that's probably impossible. Twenty-four months is usually what it is."

He stressed the investment is not a knee-jerk reaction or a Jebel Ali replacement. "When we took the decision for Fujairah, it wasn't a knee-jerk reaction to what's just happening today. We will always look at it as one integrated UAE port system." East African transshipment cargo and Northern Emirates-bound freight are seen as long-term demand. "The challenging part is: what do we do when the Strait is open?" he said.

Where did trade flows shift instead?

Saudi operations have benefited from rerouted flows. The South Container Terminal at Jeddah Islamic Port, expanded over four to five years to 4m teu capacity, posted record throughput months in July and again in October as Saudi trade leaned on Red Sea ports. DP World will open a $250m logistics park in Jeddah in Q1 2027 and continues developing a special economic zone on the Oman–UAE border.

No major regional investment projects were suspended during the conflict. Once carriers are satisfied with security and insurance costs decline, Al-Hassan expects the Strait to resume its central role in regional trade — with Jebel Ali traffic recovering inside three months of safe passage resuming.