DP World begins construction of $150m agri-terminals complex at Jebel Ali

DP World, one of the world’s largest port operators, has started the construction of its new agri-terminals complex at Jebel Ali Port as part of efforts to bolster the UAE’s food security.

The company is investing Dh550 million ($150 million) in building the new unit along with Adroit Overseas Canada and Al Amir Foods, DP World said on Monday.

That's nearly three times the Dh200 million that the company had initially revealed at the launch of the project in July 2022.

The first phase of the new project, which will be used for storing and processing various agricultural products, including pulses, grains, corn, and soybeans, is scheduled for completion in early 2025.

It will have a total storage capacity of 200,000 metric tonnes, developed over two phases, along with processing and packaging units.

The new project is also set to stimulate more than Dh1.2 billion in new international trade as the UAE continues to forge new trade ties with different countries across the globe, DP World said.

“This investment will add world-class infrastructure to our flagship port, support national efforts to strengthen food security and significantly expand our flourishing agricultural trade ecosystem in Dubai,” Sultan bin Sulayem, group chairman and chief executive of DP World, said.

The UAE government has been prioritising food security and innovation in agriculture after the coronavirus pandemic disrupted the global food supply chain.

The National Food Security Strategy 2051 aims to put the UAE at the top of the Global Food Security Index by 2051.

The Arab world's second-largest economy aims to boost the contribution of food and agriculture to its economy by $10 billion and create 20,000 jobs in the next five years amid measures to boost food security in the country, Minister of Economy Abdulla bin Touq said in September.

He also unveiled seven key pillars to transform the food and agriculture sector with an emphasis on domestic innovation, a UAE-first culture and food supply chain, and giving farmers the necessary support and resources to make the country a global leader in agricultural technology and sustainability.

Spanning a quayside area of nearly 100,000 square metres, the new agri-terminals will be Dubai's largest multi-tenant facility for integrated agricultural processing and silo storage, DP World said.

Jebel Ali Port currently handles about 73 per cent of the UAE's food and beverage trade by value.

“The terminal is designed to seamlessly transfer commodities directly from ship to facility through an advanced conveyor belt system,” the company said.

It is also expected to enhance bulk handling by about 750,000 metric tonnes annually, making a “substantial impact” on Dubai's trade dynamics and food security efforts, it added.