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Jafza breaks ground on new logistics park at Jebel Ali

Photo: DP World DP World officials attend a ground-breaking ceremony for the new logistics park at Jebel Ali Free Zone
DP World officials attend a ground-breaking ceremony for the new logistics park at Jebel Ali Free Zone
Jebel Ali Free Zone (Jafza), DP World’s trade and logistics hub, has broken ground on the first phase of its new ‘Jafza Logistics Park’, scheduled for completion in 2023.

The purpose-built trading and logistics development will accommodate the growing number of warehousing, processing and logistics activities carried out in Dubai, the company said.

“As the UAE continues to grow into a global processing and re-distribution gateway, we have experienced a significant spike in demand for logistics and warehousing space,” Abdullah bin Damithan, CEO and MD, DP World UAE and Jafza, said.

“We are building the Jafza Logistics Park in response to this increase in demand and to further boost the development of the UAE’s logistics sector.”

The project involves a total leasable area of over 46,000 sq m, of which 87% will be allocated to warehousing. The remaining space is dedicated to office facilities, DP World said.

Logistics companies in e-commerce and other growing sectors will benefit from the Park’s digital trade enablement, competitive costs, and customisable units. “We are in discussions with a number of large customers that need 60-80% of the space and may need to commission phase two ahead of schedule,” Bin Damithan said.

Jafza already plays host to over 460 companies from 30 countries, almost all international logistics providers which already operate from the free zone.

Located between Jebel Ali Port, Al Maktoum International Airport, and Etihad Rail’s Jebel Ali station, which has yet to come into operation, the park is expected to boost Dubai's credentials as a trading and logistics hub, and pave the way for further advancements in Dubai's ability to handle sea-air cargoes.

In stressing the wisdom of its strategy to move from a pure terminal operator to an end-to-end logistics player, DP World said, in an investor presentation issued earlier this month (April), that although containerised revenue had fallen from around 80% of the total in 2014 to only 45% in 2021, overall company revenues had increased from $3.4bn to $10.8bn over the same period.

In February, DP World announced throughput of 13.74m teu at Jebel Ali Port in 2021, up 1.9% on the year earlier. In the first quarter of 2022, container volumes fell 1.0% to 3.42m teu.

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