New Risks to the Port That Became the UAE’s Lifeline As Hormuz Closed

Added: 2026-05-14

[00:00:00]First of all, take us through. How's business been?

[00:00:03]What numbers are you seeing right now? Good morning.

[00:00:07]Thanks for having me. Yes, so far, I mean, the and from the I mean, the start of the war and sort of a located outside of this type of thought and we have to adjust heartedly. So while we were observing, obviously a week to ten days of of congestion at the beginning, because we had enormous, obviously amount of volumes that we had to handle.

[00:00:33]I mean, simultaneously, and as much as you have all sort of business continuity plan in place, I think none a single industry stakeholder is prepared to absorb such a significant volume. But the board converted from a travel shipment platform now to a 100% gateway status.

[00:00:53]We were initially handling about 2000 containers a week.

[00:00:57]As of today, actually, we handle about 50,000 containers a week.

[00:01:01]The truck movements ramped up from hundreds per week now to 7400 per day to 7000 per day. And all of this, obviously, it was possible because of a of a very detailed and synchronized coordination among the different operators involved.

[00:01:22]How close are you to maximum capacity? So as of now, we are operating at optimal capacity. So the port is close to 70% occupancy ratio. We maintain, obviously, that the level of of occupancy with with a sole objective to make sure that the cargo can keep moving. So as soon as the cargo is discharged within a matter of two or three days. The Cowboys is being evacuated to other other cities, offering their aid. I mean, we had obviously to build, I mean, a very complex network of logistic facilities in couple of days and weeks.

[00:02:01]And for instance, we launched a dry port located up 80 kilometers from the from Sharjah called Saja. It operates with a 78 hours capacity.

[00:02:12]And and that obviously enabled, obviously, to to move the cargo smoothly. I cleaned up.

[00:02:20]Farid We know that the Revolutionary Guard has extended its control to the two ports, including Kofar Khan. I'm just wondering, how confident are you that it will not be attacked? I see.

[00:02:38]I cannot obviously give any any warranty.

[00:02:41]You know, I'm obviously I'm not a war expert.

[00:02:44]What I can tell you, Linda, is obviously what they claim as a as a scope.

[00:02:50]I mean, geographical control obviously do not make sense.

[00:02:54]And I mean, they are referring to a UAE territorial waters.

[00:03:00]And as of now, obviously, as a matter of sovereignty in this, I mean, those territorial waters is obviously under the UAE control.

[00:03:10]So what is important for us is to maintain that level of confidence with the ship operators, ship owners. I believe that the the response and the management of this crisis that we were able so far to provide to the industry illustrate that we are capable, obviously, to maintain that level of trust, but as well as safety of our fellow ships, to maintain the service continuity in in the eastern coast ports of of of the UAE has been the right course.

[00:03:47]Alcon has been referred to as a lifeline.

[00:03:49]How do you protect a lifeline, which is also a high value target?

[00:03:53]I mean, what measures have you considered?

[00:03:56]What measures are in place? I, I mean, I cannot necessarily give obviously, the entire security plan that is around for can. Obviously, we have the business continuity plan in place, which makes sure, obviously that in case of any threat first, obviously the safety of our operators but as well that of the ships and the crews is prioritized.

[00:04:25]I mean we we are not compromising, obviously, in any manner on on the safety of of our people and our partners.

[00:04:34]I mean, second, and the fact that we are able to move the cargo smoothly and maintain that level of occupancy are showing the terminal and enable I mean, has enabled obviously a smooth management and and maintain when we see a port not necessarily crowded with with too many people or or for instance, you know, pedestrian traffic in the in the port.

[00:04:59]And we were very clear that we I mean it's not only about increasing a force, but building a proper system. I mean, surrounded by processes and high level of quality nation with with the different stakeholders from port authorities to national security, but as well customs.

[00:05:18]And that has obviously enabled, although on a smooth and the safe management of the crisis as needed to. Fareed, overnight we heard from President Trump saying that the war is close to to ending.

[00:05:36]How much impact might that have on your business?

[00:05:39]My Jebel Ali become the de facto the main port again.

[00:05:44]How are you assessing such a scenario? I, I think we have clearly learned that relying obviously today on a single point of entry or particularly on this kind of island was obviously do not make sense. And as I'm speaking, those have been redesigned and the projects now are under way to reinforce this new UAE still logistically does the objective is obviously to provide alternative options. I would say beyond that, given that emotions, I believe that to therefore function as a gateway has proven that it it should and it became a default set up.

[00:06:33]So so while yes, the state will definitely reopen and traffic as well and will flow via the state, but the shippers, shipowners, importers are very clear obviously about their supply chain strategy that relying eventually on only one option is obviously of a risk. And and I believe since since COVID, we learned the hard way of adjusting and and and being flexible.

[00:07:03]Obviously, when it comes to a fair amount, you've also cleaned up.

[00:07:07]So far. Ed, you're suggesting that the customer psyche has changed for good, has changed fundamentally.

[00:07:13]It's not about cost anymore. Well I go I collect I think the the I mean the fastest route or the longer through to they do not matter as long as we are capable to deliver of cargo at a destination is what matters and and the obviously we have noticed an increase with the with the supply chain costs which are to some extent justified considering the risk that the ship owners and the ship operators are facing in the region.

[00:07:49]And this will stabilize obviously along the way.

[00:07:52]We have seen that trend during during COVID when rates jumped literally from the thousand dollar to a $15,000. I mean, along the way, the rates obviously bring down. And I just and I believe that time all those disruptions are proving that supply chain today is not just in the in a single element of consideration in the in in the trade strategy. It's the I would say it's the critical defacto factor of of success, of making sure that the right traits continue to work as the.