DP World Scales up Inland Transport to Support India-UAE Trade

Why It Matters

Scaling inland transport safeguards essential supply chains and mitigates disruption risks for the $100 bn India‑UAE trade corridor, while high freight costs remain a barrier for exporters.

Key Takeaways

• DP World moves 1,500 trucks daily from UAE ports to India.
• Focus on food, pharma, cold‑chain cargo to ensure supply resilience.
• High freight rates persist despite alternate feeder services.
• India‑UAE trade valued at $100 bn, boosted by 2022 partnership.
• Maersk adds Khor Fakkan, Salalah, Sohar routes for intermodal continuity.

Pulse Analysis

The ongoing closure of the Strait of Hormuz has forced shippers to rely on alternative gateways in the Gulf, prompting DP World to expand its inland transport network. By deploying 1,500 trucks per day from ports like Khor Fakkan and Fujairah, the logistics giant creates a multimodal corridor that links the UAE’s Jebel Ali hub with Indian importers. This rapid scaling not only maintains cargo flow but also demonstrates the flexibility of Gulf ports to act as resilient nodes when traditional maritime routes are compromised.

DP World’s strategy emphasizes the movement of high‑value, time‑sensitive commodities such as food and pharmaceuticals. The addition of refrigerated pit stops and coordinated customs procedures ensures that temperature‑controlled goods reach their destination without degradation. However, exporters warn that freight rates have surged, eroding profit margins despite the new feeder services. The cost pressure underscores the need for competitive pricing mechanisms and greater collaboration among carriers, port authorities, and governments to sustain trade volumes.

India and the UAE share a $100 billion trade relationship, accelerated by the 2022 Comprehensive Economic Partnership Agreement. Recent diplomatic engagements between Commerce Minister Piyush Goyal and UAE trade counterpart Thani bin Ahmed Al Zeyoudi aim to streamline procedures and address freight cost concerns. Meanwhile, major carriers like Maersk are diversifying routes to include Khor Fakkan, Salalah and Sohar, reinforcing intermodal connectivity. These combined efforts suggest a gradual normalization of trade flows, with inland logistics playing an increasingly pivotal role in the region’s supply‑chain resilience.