Port Infrastructure Utilization

This is not an upgrade. It’s a redefinition of Dubai’s logistics role in the region. HH Sheikh Mohammed Bin Rashid Al Maktoum reviewed and approved Mina Al Hamriya’s next phase deepening the UAE’s commitment to strategic self-reliance. The data speaks clearly: Port Performance: H1 2025 • 2,700 vessel calls recorded in the first 6 months of 2025 → Up from 2,430 in H1 2024 → +11.1% growth in traffic, reflecting port agility and diversified use cases • AED 9.07 billion in trade volume (USD 2.47 billion) handled between January–June 2025 → Driven by livestock, perishables, steel, breakbulk, RoRo, and traditional dhow cargo • Storage footprint doubled from 3.4 million to 6.4 million sq. ft → +88.2% increase, unlocking staging efficiency for multi-commodity throughput Infrastructure Investment (2024–2025) • 1,150 meters of new quay wall completed in 2024 • 700-meter quay with 12-meter draft approved in 2025 → Enables large vessel handling and future integration into regional feeder networks. • Draft depth optimization: Now supports large livestock carriers and breakbulk ships, without disrupting legacy dhow berths Strategic Function: Food Security and Emergency Supply • Livestock trade hub: → Expected to handle over 1 million head of cattle in 2025, primarily for GCC consumption • Agrifood import stability: → Primary gateway for fruits, vegetables, chilled food, and fast-cycle perishables → Supports UAE’s 24–48 hour national food sufficiency buffer model • Emergency re-routing capability: → Functions as an operational alternative to Jebel Ali for essential commodities in event of global disruption Geostrategic Context • Bilateral impact: → Supports food, steel, and construction material flows to/from Iraq, Saudi Arabia, Oman, and East Africa • Soft power via hard assets: → By modernizing a traditional port, Dubai signals capability without abandoning cultural trade heritage • Resilience vs throughput: → Mina Al Hamriya is optimized not for volume alone, but for responsiveness, diversification, and continuity Economic & Policy Implications 1. Trade is regional. Dubai’s multi-port strategy reduces chokepoint risk and enhances supply chain control. 2. Ports are sovereignty tools. Infrastructure now underpins food security and national import autonomy. 3. Dual-speed logistics in action. Hamriya bridges legacy shipping with industrial-scale throughput. 4. Smart infrastructure is strategy. This expansion is precision-built for risk, volatility, and geopolitical change. As HH Sheikh Mohammed bin Rashid stated: “We are transforming our ports into dynamic gateways that not only connect the world and accelerate the flow of goods, but also drive innovation and opportunity. Our goal is to lead global trade with a transformative vision and new standards.” In every quay and corridor, the UAE writes its future. This is how the UAE leads by building what others only talk about.

Another good day at Shanghai Yangshan Phase IV Container Terminal. While China adjusts to lower export volumes, the container terminals still show increases in volumes. One of the reasons for this is accelerating containerization of exported goods. But that is not why Phase IV is being watched so closely. This terminal is a lab and and a showcase for terminal #automation and #digitalization. First, the Shandong Container Terminal operates 24/7 and the operator handles 6.5 million TEUs with the staff of about 400. By comparison, elsewhere, terminals of similar size employ in excess of 1,000 dockhands. On average, Phase IV handles 25,000 TEUs a day. In May 2023 it handled 26,066 TEUs. #Productivity of this terminal reaches 213% productivity seen in a traditional port. Each STS crane at the site handles a remarkable 63.88 TEUs/hour. One way to achieve it was to eliminate crane operators from the quays and replace them with remote operators who can supervise multiple STS cranes at the same time. To handle these kind of transfer rates, the terminal had to digitalize the whole process of synchronizing the equipment, sequencing the moves, automating ground transports and automated yard cranes. While typical terminals rarely discuss their ability to run efficient yards, here custom optimization software is used to stack the containers in the yard in such a way that the yard doesn't get clogged while the export containers are exchanged for import containers between the ships and the hinterland. In fact, the managers expect that additional digitalization within the terminal and also in logistics outside the terminal's gates will allow the terminal to handle about 1,000,000 TEUs in excess of the designed capacity! Normally, a terminal approaching 80-85% design utilization is looking at land expansion and major equipment upgrades, but here, the #technology and #equipment is already state of the art, so it all comes down to better #computing.

Africa's Underutilized Ports: A Missed Opportunity for Growth I've always been fascinated by Africa's vast coastline and its potential for economic growth. With over 30,000 km of coastline, Africa has direct access to some of the world's busiest shipping routes. However, many of its ports remain underutilized or struggle with inefficiencies that limit their full potential. Most African ports handle just a fraction of their potential capacity. For example: - West African ports like Tema (Ghana) and Abidjan (Ivory Coast) are growing rapidly, but still don't match the scale of major global hubs. - Lagos' Apapa and Tin Can Island ports (Nigeria) are notorious for congestion, with ships sometimes waiting weeks to unload cargo. - East African ports like Mombasa (Kenya) and Dar es Salaam (Tanzania) face inefficiencies, causing delays of over 10 days. The consequences of inefficient ports are far-reaching: - High inland transportation costs: Moving a container from an African port to a city just 500 km inland can cost more than shipping the same container from China to Africa. - Limited economic growth: Inefficient ports hinder Africa's ability to participate in global trade, limiting economic growth and development. However, change is happening. Massive investments are flowing into port modernization, with new terminals, deeper harbors, and digital logistics solutions. For example: - Lamu Port in Kenya - Lekki Deep Sea Port in Nigeria - Developments in Djibouti These investments aim to integrate African ports into efficient supply chains, improving road and rail connections and reducing bureaucracy. Africa's underutilized ports are a missed opportunity for growth. However, with investments in port modernization and a focus on efficiency, Africa can unlock its maritime potential, slash logistics costs, attract more investment, and become a trade powerhouse. #AfricaPorts #MaritimeTrade #EconomicGrowth #PortModernization #Logistics