A new container terminal that Dubai-based DP World is building at its Jebel Ali Port hub will significantly increase capacity there.

The global shipping operator has started construction work on the first phase of the $1.6 billion Terminal 4 (T4) project that will de-liver  new capacity of 3.1 million teu (twenty-foot equivalent unit) by 2018, taking Jebel Ali Port’s total capacity to 22.1 million teu. The port complex will be equipped with at least 110 cranes with a total quay length of around 11,000 m by that time.

T4 will be located on a reclaimed island north of the existing Terminal 2 allowing DP World to further expand capacity to a total of 7.8 million teu in course of time in line with market demand, said a statement.

As part of the project, a bridge is being built to provide access to the island from land near Terminal 2.

Sultan Ahmed Bin Sulayem, chairman of DP World, said: “The new capacity is a response to feedback from customers expressing the need for more capacity at Jebel Ali due to an expected increase in trade in the run up to Expo 2020. Shipping lines will be able to bring more of the world’s largest vessels to our terminals, helping improve the efficiency of the region’s supply chain.

“Jebel Ali continues to respond to market demand as in the past.  Despite the addition of 2 million teu capacity in Terminal 3 scheduled in the second half 2015, the port still experiences high levels of utilisation.

“With Jebel Ali’s total capacity set to reach 22.1 million teu in 2018, we are ensuring our flagship asset in Dubai continues to have sufficient capacity to serve the future growth demand of the UAE and the wider region.”

Terminal 4 will be equipped with semi-automated quay cranes.

Under Phase 1, T4 will feature a 1,200-m-long quay with an 18 m draft and 13 of the world’s largest and most modern quay cranes, remotely operated from a sophisticated control room off the quayside. Some 35 automated rail mounted gantry cranes (ARMG) will operate in the yard.

Meanwhile, DP World reported it handled 30.6 million teu  across its global portfolio of container terminals in H1 2015, with gross container volumes growing by 4.1 per cent on a like-for-like basis.

Growth was largely driven by Europe and UAE terminals. Overall, the Mena region showed an increase of 6.9 per cent in terms of gross volume. The company’s UAE terminals handled 7.9 million teu, representing growth of 6 per cent, while Europe has been resil-ient.

The data shows that the Asia Pacific and Indian Subcontinent regions improved performance by over 400,000 teu over Q1, while the Americas and Australia have been largely flat.

“The recent capacity addition at Nhava Sheva (India) will provide further room for growth,” a company statement said.

With regards to consolidated terminals, volumes grew 3.5 per cent with Mena driving the growth.