Due to the softer market conditions, global port and terminal operator DP World has announced that it is to delay its massive Terminal 3 (T3) expansion at Jebel Ali Port into 2017, with the expansion of its Terminal 4 (T4) also expected to be delayed, according to Reuters.
The T3 terminal plan is set to add 1.5 million TEU to Jebel Ali Port and once both T3 and T4 are completed, total capacity will reach more than 22 million TEU.
Dima Jardaneh, Head of Regional Economic Research at Standard Chartered, said: “After the 2009 financial crisis, trade helped support Dubai in part thanks to government stimulus in the region. Now Dubai's trade is feeling the impact of a contractionary economic environment and the absence of stimulus.”
PTI previously reported that work had begun on DP World’s T4 expansion project, with phase one of the project anticipated to be completed in 2018, should the delays not affect the overall plan.
Despite the softer market conditions, DP World made a profit of 50.2% in H1, 2016, which was nearly US$200 million more compared to H1, 2015.
In previous reports, DP World announced its intention to rethink the way it handles the unloading of cargo containers, with the announcement that it wants to utilise Hyperloop One’s futuristic pod for transporting containers.
In an example infographic, the pod is capable of transporting people from Dubai Airport to Abu Dhabi Airport four times faster than by rail, which suggests immense possibilities for cargo transport.
— Port Technology Int (@PortTechnology) August 16, 2016
Fact File: T3, is a mammoth 4 million TEU, semi-automated terminal spread over 720,000 square metres that towers over the port’s landscape, and will have 19 remote-controlled quay cranes. T4 will be located on a reclaimed island north of the existing Terminal 2, allowing DP World to further expand capacity to a total of 7.8 million TEU in line with market demand. The port complex will be equipped with at least 110 cranes with a total quay length of around 11,000 metres once phase 1 of T4 is completed..