Local Business

Jebel Ali Port and Jafza see steady growth in construction and steel sector

Staff Report/Dubai
Filed on November 10, 2020

Jebel Ali Port, DP World’s flagship port, handled over five million metric tonnes of metal, steel and construction materials in 2019.

At an average, the port has handled around 4.5 million TEU from 2010 to 2019, which equates to one billion metric tonnes until 2019. Over 50 million metric tonnes of general cargo has been handled from 2010 to 2019.

Additionally, Jebel Ali Free Zone (Jafza) has witnessed significant growth in the steel, metal and construction segment in 2019, generating Dh13.9 billion.

Jebel Ali Port and Jafza’s combined capacity and capabilities create DP World, the UAE’s multimodal trade and logistics hub that connects traders and owners to over 3.5 billion consumers. The recent growth and handling capacity underscores the Jebel Ali hub’s strength and competence to enable trade and support the metal, steel and construction segment.

Top traded commodities for imports comprised iron and steel, wood, salt sulphur, earth stone, glass and aluminum, while export commodities included iron and steel, aluminum, copper and lead, and salt sulphur, earth stone.

China, India, Ukraine, Russia and Germany are key trade partners for import, whereas trade partners for exports include India, the USA, the UK, Pakistan and Iraq. The Port and Free Zone has retained its leading status owing to competitive ocean freight rates, operational flexibility, unparalleled connectivity to the region, landside conversion and other salient facilities like land for storage, logistics and warehouses.

Mohammed Al Muallem, CEO and managing director, DP World, UAE Region and CEO of Jafza said: “The construction sector is considered one of the main indicators of a nation’s economy and development. It is also one of the most important business segments in Jafza. We acknowledge its vital role in the regional and global economy.”

According to a report by GlobalData, the construction sector in the UAE recorded a growth of 3.3 per cent in 2019. Pre-Covid-19, this figure was expected to increase to 4.3 per cent in 2020. However, with the onset of the virus and the subsequent drop in oil prices, the dynamics of the market has changed, leading to a drop in business.

“Despite the challenging conditions, looking at the gradual market recovery and the resumption of trade and business activities, we are expecting an increase in demand for our facilities from steel and construction material companies. We are confident that this sector will grow both locally and regionally as we move into 2021,” Al Muallem said.

He added: “We are well aware that the times are tough for our clients, hence, we are offering easier rental terms, including monthly rentals and deferred rental payments. These robust incentives will help support business continuity. Additionally, a range of government stimulus packages will also promote the steady growth of the sector.”

Thanks to its strategic location, Jafza has attracted numerous local and global steel companies over the years, including Danube Building Materials, Conares Steel, Mammut, Nippon Steel, ArcelorMittal, Tata Steel, Baosteel and CNBM.


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