Abu Dhabi Ports has signed a 35-year concession agreement to develop and operate the Port of Fujairah, which was previously managed by Dubai-based DP World.

A new entity, Fujairah Terminals, was formed to operate the port in the Northern Emirate, Abu Dhabi Ports said in a statement.

The agreement grants Abu Dhabi Ports the right to develop the port’s infrastructure in addition to managing all container, general cargo,roll-on/roll-off (RORO) ships and cruise ships that call on the port.

Planned works on the terminal include deepening of berths to 16.5 metres to increase capacity and accommodate larger vessels as well as the development of a 1 kilometre quay. A 300,000 square metre yard of storage space will also be built.

The development works are expected to begin in 2018 and be completed in 2021. The port is expected to remain operational during the construction period.

The port will also be fitted with modern equipment such as STS post panama quay cranes, rubber tyred gantry cranes and new information technology (IT) systems. The new quay cranes will begin operations in 2021.

Located on the UAE’s east coast, the port offers direct access to the Gulf of Oman and Indian Sea. This allows vessels calling on the port to bypass the Strait of Hormuz.

The port’s capacity is expected to reach 1 million twenty-foot equivalent units (TEUs) and 700,000 tons of general cargo by 2030.