A major part of Dubai's Port Rashid may be closed late next year primarily due to an inability to handle modern mega-sized container ships, said local reports.
Industry players believe that Port Rashid, the 'lifeline' of Dubai's foreign trade before Jebel Ali port opened in 1979, has fallen out of favour with shipping lines which currently prefer Jebel Ali, the region's largest port, as their regional hub.
Shipping giants Evergreen and COSCO moved out from Port Rashid to Jebel Ali last March, a move which reports say seriously affected the port's container business.
DP World, which operates all of Dubai's port facilities including Port Rashid and Jebel Ali, is reportedly planning to halt container operations at Port Rashid for some time already due to its close proximity to the city's populated areas.
Persistent logistical and traffic problems have plagued the port which is located between the Palm Deira and 'The World' cluster of man-made islands.
According to a shipping line official, DP World has been ''talking about it but could not do so because Dubai's cargo volumes have been increasing every year and the ports have limited capacity.'' ''Now with Jebel Ali's expansion, they can have all container operations in one port,'' he added.
Neighbouring emirate of Abu Dhabi is currently developing the massive Khalifa Port which will also be run by DP World.
Industry sources say that Khalifa's development is further proof of Port Rashid's end times and a source close to DP World plans has been quoted saying that DP World could stop using Port Rashid for container traffic in the later part of 2008.
Port Rashid, ahead of its time in 1972, is now an inadequate port with a draft of only 13 metres which turns away vessels with cargo capacity exceeding 6,000 TEUs.
On the other hand Jebel Ali has already upped its container handling capacity to 11.5 million TEUs per year via on-going expansion with that figure set to top 14 million TEUs per year by 2008.
Current expansion works include channel deepening to 17 metres which will enable mega-sized vessels with cargo capacity of 13,000 TEUs to call.
Reports say that Port Rashid is likely to remain open for general cargo vessels and expanded cruise activities with plans for a new cruise terminal in the area to support existing facilities.
The government is also developing Dubai Maritime City next to Port Rashid which will be a hotbed for maritime businesses across the board. Together with the Dubai Drydocks, these developments are expected to form the region's largest maritime services hub.
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