Dubai has announced a $1.14 billion expansion project on to boost the capacity of its major Jebel Ali port to meet increasing traffic. The project involves building three new terminals and 82 berths equipped with 125 quayside cranes. The project will be carried out in four phases and be completed by 2020.

The client is the Ports, Customs and Free Zone Corporation. The Dubai Ports Authority (DPA) handled about 4.2 million standard container units (TEU) last year, or a 20 per cent increase from about 3.5 million TEU in 2001. The expansion plan calls for an increase in capacity from the present 4 million TEUs to 21.8 million.

In terms of tonnage, DPA handled 51.83 million tonnes, compared with 46.7 million tonnes in 2001.

The construction of the project's first phase started last year, and it involves the dredging and widening of the port's approach channel to receive super-container vessels. Work on widening and lengthening the channel began in March last year, of which 30 per cent has been completed.

Phase 1 is from 2002-2005, phase II from 2005-2007, phase III from 2007-2010 and phase IV from 2010-2020. The finance for the project will come from Dubai Ports Authority funds and from banks.