KHALEEJ TIMES : DP World’s planned expansion on the UAE’s east coast is expected to strengthen the country’s trade infrastructure and improve the resilience of the logistics giant’s operations, according to a new assessment by Moody’s.

The ratings agency said the agreement in principle between DP World and the Fujairah Ports Authority to develop two new terminals under a 50-year concession is credit positive for the Dubai-based operator because it diversifies its maritime gateways and supports revenue stability.

The project comes as regional shipping routes face heightened scrutiny following disruptions to traffic through the Strait of Hormuz since March 2026. Moody’s said the new terminals, located on the Gulf of Oman outside the strategic waterway, would provide an alternative route for imports and re-exports and help mitigate the impact of any future disruptions.

According to Moody’s, the development will increase DP World’s container handling capacity in the UAE by about 13 per cent to nearly 22 million twenty-foot equivalent units (TEUs) annually. The agency estimates the additional capacity could accommodate close to half of the re-export volumes currently handled through Jebel Ali, helping the company retain cargo flows that might otherwise be vulnerable to relocation during prolonged trade disruptions.

The project comprises the Al Rugaylat Container and Multi-Purpose Terminal and the Dibba General Cargo Terminal. The Al Rugaylat facility is expected to handle up to 2.5 million TEUs each year, in addition to 1.7 million tonnes of general cargo and 190,000 car equivalent units, while the Dibba terminal will add up to 3.6 million tonnes of annual general cargo capacity.

Moody’s said the facilities would be integrated with DP World’s existing UAE operations, including Jebel Ali Port, Jebel Ali Free Zone and the company’s domestic logistics network, enhancing connectivity across the country while reducing reliance on a single maritime gateway.

Although construction is expected to take around three years and be completed in phases, Moody’s said the investment is unlikely to materially increase DP World’s forecast capital expenditure of $3 billion in 2026. The agency noted that the company maintains strong financial flexibility, supported by $4.6 billion in unrestricted cash, approximately $1.6 billion in available committed credit facilities and around $1 billion in additional term-loan capacity as of the end of 2025.