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The East-West Transport Hub

The UAE’s world-class airports and seaports reflect
an ancient trading tradition

Drydocks and Shipyards, one of the largest and most modern ship repair facilities in the world, will likely expand with the development of the Maritime City project.

The Creek, the estuary that runs through the center of Dubai and has been the traditional center of Dhow traffic between the Gulf ports and Iran, Pakistan, India and all of East Africa, continues to provide a strong economic boost to the economy. It is also a fascinating attraction for tourists as the wooden hulled traditional ships are piled high with goods and stacked six deep in the quays that run along the Creek. These facilities will eventually be relocated, but for the present, they are a vivid reminder of the traditional (and ongoing) merchant history of the region.

Other UAE Ports

Abu Dhabi and Dubai enjoy most of the UAE’s attention, but the other Emirates also are expanding their port facilities. The Emirate of Sharjah has two major ports, for example, one on each of the UAE’s coasts. Port Khalid can handle deep-water vessels and is adjacent to the Sharjah Airport Free Zone and the Hamriyah Free Zone. The Port of Khor Fakkan, the only natural deep-water port in the Emirates, is a dedicated container port. It is the only UAE port to be located outside of the sensitive Straits of Hormuz, on the Gulf of Oman, and is the country’s closest port to the main East-West shipping lanes.

Recent expansion projects by the Government of Sharjah enable Khor Fakkan to handle the world’s largest container ships. The strategic location of this port has been a huge success as the global container shipping system has evolved into a mother ship and feeder ship structure. Khor Fakkan has emerged as part of a select group of global centers that service ocean-going mother ships that transit between regional hubs and offloading containers. Goods that are offloaded at ports like Khor Fakkan are distributed among dozens of local and regional ports which, in turn, are serviced by smaller feeder ships.

Ajman Port, which serves Ajman Free Zone, was recently dredged to handle deeper vessels. It has eight berths and two dry-docks for ship repair and maintenance.

The emirates that make up the UAE share a long history of international trade and commerce. As early as the 15th Century, sailors from the emirates were plying their way to India and along the coast of East Africa as far south as Mozambique. By the beginning of the 19th Century, the emirates’ ports had a fleet of over 60 ocean-going vessels with an estimated 20,000 sailors.

This tradition lives on today, albeit in a modern, 21st Century form: The UAE boasts one of most modern transportation infrastructures in the world and has plans to spend billions of dollars to make it even better. Its strategic geographic location and business-friendly free zones have made the UAE a preferred shipping center for East-West commerce, while the country’s world-class airports and dynamic airline industry are fueling the tourism sector, facilitating business contacts, and creating a global hub for international “through passengers.”

Ports and Shipping

Abu Dhabi

Abu Dhabi’s Mina Zayed has historically been the UAE’s main general cargo port, and the UAE’s significant exports of oil and gas also pass through several port terminals – primarily at the Ruwais industrial complex in western Abu Dhabi. Mina Zayed will become a “junior partner” by 2011, however, and will eventually be completely converted into resorts and marina facilities when Abu Dhabi expects to have a new port capable of handling nearly three times the tonnage of Mina Zayed.

This project, Khalifa Port, will be adjacent to the new $2 billion Al-Taweelah industrial zone. The new port will be managed by Abu Dhabi Terminals, which in turn will be managed by DP World, the Dubai-based global ports management company. With an aluminum smelter and other heavy industries locating at the Al-Taweelah complex, this port is destined to play a major role in the UAE’s economic future.

Dubai

Dubai is the world’s ninth largest container port – larger than Los Angeles or Long Beach. Dubai’s two principal ports – Port Rashid in Dubai City and Jebel Ali to the city’s south – have been key factors in the UAE’s growth as a transshipment hub. The 66 deep-water berths at Jebel Ali traditionally handle bulk

cargo and industrial material and primarily serve the huge Jebel Ali Free Zone. It is the UAE’s busiest port and the largest man-made harbor in the world. Along with the Great Wall of China and the Pyramids of Egypt, this port is the only man-made object visible with the naked eye from the Mir Space Station.

To meet rising demand, Dubai has major port expansion plans underway. A multi-phased, $1.25 billion expansion of Jebel Ali will result by 2020 in a port with 82 berths, 125 portside cranes, and a capacity to handle more than 21 million containers per year.


A ship is serviced at a UAE port.

Another major undertaking that will further solidify the UAE’s role as a shipping center is the development of Dubai Maritime City, the world’s most comprehensive maritime complex, located on a peninsula reclaimed from the sea. Maritime City’s 32 dry-dock berths will be home to ship repair and maintenance companies, and a cluster of high-rise office towers will serve the maritime industry. There will be retail outlets and commercial showrooms for yachts, ships and boats, as well as for high-end design services.

A modern marina will berth private yachts and feature hotels, restaurants and residences. And with a view to ensuring the UAE’s continued leadership in the maritime field, Maritime City will include the Dubai Maritime Learning Experience, an educational institution that will offer academic study and vocational training in all aspects of maritime commerce. Environmental groups, industry associations, and non-profit organizations concerned about maritime issues will be incorporated into the Learning Experience.

Dubai is about to undergo massive expansion of its maritime presence, but given the pace of business, that should not detract from upgrades to the existing facilities. The Dubai


6   US-Arab Tradeline June 2007

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