Abu Dhabi government has approved the AED500m ($136m) budget for infrastructure development at the Port of Fujairah, according to a statement carried by the official Emirates News Agency (Wam).

MEED earlier reported that Abu Dhabi Ports expects to tender the contract to deepen the berth to 16.5 metres, build a 1 kilometre quay and construct a 300,000 square-metre storage yard at the container terminal before end of the year.

Abu Dhabi Ports also recently awarded local MUC Engineering the consultancy contract for upgrading the port's container terminal.

MUC Engineering will help assess the business case for upgrading the terminal’s superstructures, including the installation of gantry cranes and yard equipment.

The planned port development is designed to boost the port’s  annual container handling capacity to 1 million twenty-foot equivalent units (TEUs) and 700,000 tonnes of cargo by 2030.

Abu Dhabi Ports signed a 35-year concession earlier this year with the Port of Fujairah to develop and operate the container terminal at the port, which was previously managed by Dubai-based DP World.

Operating and expanding the container terminal, which is located approximately 70 nautical miles from the Strait of Hormuz, is a key component of Abu Dhabi Ports’ future growth strategy.

Port of Fujairah is the only multi-purpose port on the eastern seaboard of the UAE. The port commenced full operations in 1983.