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The United Arab Emirates is accelerating work on a major crude oil pipeline, a project designed to bypass the strategically sensitive Strait of Hormuz, with construction now nearly 50% complete and commercial operations targeted for 2027. The development marks a significant shift in regional energy logistics and global supply chain resilience amid rising geopolitical instability in the Gulf region.
The new West-East pipeline project, led by the Abu Dhabi National Oil Company (ADNOC), will expand the UAE’s capacity to export crude through Fujairah on the Gulf of Oman, bypassing one of the world’s most critical maritime chokepoints. ADNOC CEO Sultan Al Jaber confirmed that the project is progressing rapidly and forms part of the country’s broader strategy to strengthen export continuity and reduce dependence on vulnerable shipping lanes.
The Strait of Hormuz handles nearly a fifth of global oil trade and remains a crucial corridor for energy shipments from Gulf producers to Asian and European markets. However, escalating regional tensions and disruptions linked to the ongoing Iran conflict have intensified concerns over supply chain security, tanker insurance costs, and shipping delays. Analysts warn that any prolonged disruption in Hormuz could severely impact global energy markets, freight rates, and inflation.
The UAE already operates the Habshan-Fujairah pipeline, which currently transports around 1.8 million barrels per day outside Hormuz. The new infrastructure project is expected to double that bypass capacity, significantly enhancing the country’s ability to maintain exports during regional crises. Fujairah, already one of the world’s largest bunkering and oil storage hubs, is expected to become even more critical to international maritime trade and energy logistics once the pipeline becomes operational.
For the global supply chain and logistics sector, the project represents more than an energy infrastructure upgrade. It highlights the increasing focus among Gulf nations on supply route diversification, infrastructure resilience, and energy security planning. Shipping companies and commodity traders have been closely monitoring developments around Hormuz as geopolitical risks continue to influence freight availability, tanker routing, and marine insurance premiums.
Industry observers believe the UAE’s investment could also influence future regional logistics strategies, encouraging more inland pipeline connectivity and alternative export corridors across the Middle East. The project aligns with broader efforts by Gulf economies to secure uninterrupted trade flows and reinforces their role in global energy supply chains despite mounting geopolitical uncertainty.
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India’s two largest container gateways, Mundra and Nhava Sheva, are facing mounting congestion as rising cargo volumes, truck driver shortages and rerouted shipments from the Middle East strain operations across the country’s logistics network. Shipping lines and logistics operators are reporting worsening turnaround times at both ports, with vessel delays averaging nearly two and a half days and some unscheduled ships waiting up to five days for berthing. The disruptions are slowing cargo movement, tightening yard space and forcing carriers to make last-minute operational changes. According to industry reports, a shortage of truck drivers has become a major bottleneck for container transfers between terminals and inland transport hubs. The issue has reduced the pace of cargo evacuation from ports, adding pressure on already crowded container yards. Terminal operators have intermittently restricted gate access to control container inflow, while export gate schedules continue to shift frequently. These changes are complicating truck planning and increasing uncertainty for exporters and freight forwarders. The congestion is being intensified by cargo diversions linked to disruptions in the Middle East, particularly around Gulf trade routes. Shipping lines have increasingly redirected transshipment cargo to Indian ports as alternatives to facilities in the Persian Gulf, sharply increasing container volumes in recent weeks. The pressure has begun affecting carrier schedules. Some shipping companies are rerouting vessels between terminals at short notice to avoid yard congestion. Danish shipping giant Maersk recently shifted several sailings from its regular terminal at Nhava Sheva to PSA Mumbai after facing space constraints and a growing container backlog. Industry stakeholders say these sudden terminal changes are creating operational and financial challenges for shippers, including higher handling costs and difficulties coordinating customs clearance and inland transportation. The latest disruption comes at a time when India has been positioning itself as a major global manufacturing and logistics hub. Over the past decade, the country has expanded port capacity, improved freight corridors and modernised customs processes to strengthen supply chain efficiency. However, the current congestion highlights the vulnerability of port infrastructure during periods of sudden trade realignment and geopolitical disruption. Logistics experts warn that prolonged delays could increase freight costs, extend delivery timelines and place additional pressure on exporters already dealing with volatile global shipping conditions. Follow CARGOCONNECT for more such updates.
The Centre is intensifying efforts to develop the Brahmaputra River into a major inland logistics and transport corridor, with a renewed focus on cargo movement, multimodal connectivity and sustainable river infrastructure across the Northeast. Speaking at the High Powered Review Board meeting of the Brahmaputra Board in Guwahati, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the government is positioning the Brahmaputra as a key economic asset capable of supporting regional trade, connectivity and logistics growth. The government’s strategy centres on expanding inland water transport infrastructure along National Waterway-2 (NW-2), which connects Assam and the Northeast to Kolkata and Haldia ports through the Indo-Bangladesh Protocol Route. Officials view the corridor as a cost-effective and environmentally efficient alternative to road and rail transport for bulk and containerised cargo movement. According to the ministry, projects worth nearly ₹751 crore have already been completed in Assam, including terminals at Pandu, Dhubri and Jogighopa, along with floating jetties and upgraded shore facilities. Additional projects valued at more than ₹1,100 crore are currently under execution, covering fairway development, ship repair infrastructure, tourist jetties and a Regional Centre of Excellence in Dibrugarh. The Centre is also planning a future investment pipeline of around ₹4,800 crore for the Northeast waterways sector. Proposed developments include community jetties, cargo vessels, dredgers, cruise terminals and supporting customs and immigration infrastructure at strategic river ports. The projects are aimed at improving last-mile connectivity, reducing logistics costs and expanding cargo handling capacity in riverine regions. The Brahmaputra Board is simultaneously being restructured into a technology-driven river basin management institution, with greater use of GIS mapping, LiDAR surveys and digital monitoring systems for flood management, erosion control and navigability planning. Government officials said inland waterways are expected to play a larger role in India’s freight ecosystem as the country seeks greener logistics solutions and improved multimodal connectivity. Cargo movement on national waterways has reportedly increased from 18 million metric tonnes in 2014 to over 218 million metric tonnes in 2025-26. The Northeast has emerged as a priority region for inland waterway development under the Centre’s broader maritime and logistics expansion strategy. Recent initiatives in the region include new cargo and immigration facilities, river navigation infrastructure and plans for urban water transport systems in Assam.
Chennai Port Authority has achieved a historic milestone by recording an all-time high cargo throughput of 57.9 million tonnes during FY 2025–26, marking a strong overall growth of 5.35 percent compared to the previous financial year. The achievement highlights the port’s resilience, operational efficiency, and strategic focus amid evolving global shipping dynamics and supply chain disruptions. The port registered robust growth across its key business verticals, reinforcing its position as one of India’s leading maritime gateways. Container handling emerged as one of the strongest growth drivers, with Chennai Port handling 1.94 million TEUs during the financial year. This represents a 6.59 percent year-on-year growth and the highest-ever container handling performance achieved by the port. The automobile segment also witnessed impressive momentum, with Chennai Port handling over two lakh cars during FY 2025–26. The segment recorded a 7.4 percent year-on-year increase, surpassing the previous year’s performance and strengthening the port’s reputation as a major automobile export hub in the country. In addition to containers and cars, Chennai Port also reported significant progress in the clean cargo segment. The port successfully attracted new clean cargo commodities such as pulses, food grains, bagged rice, and other diversified cargo categories. This strategic diversification is expected to further strengthen the port’s cargo profile and support sustainable trade growth in the coming years. Crude cargo handling also achieved record-breaking numbers, with the port handling 11.45 million tonnes of crude during FY 2025–26. The segment registered an impressive 11.17 percent year-on-year growth, making it the highest-ever crude handling performance in the port’s history. Despite uncertainties in global trade and logistical disruptions affecting shipping lines worldwide, Chennai Port maintained operational continuity and sustained its growth trajectory. The performance reflects the port’s infrastructure strength, efficient cargo management systems, and coordinated efforts between various stakeholders. Chennai Port Authority expressed gratitude to all stakeholders, port users, shipping partners, logistics operators, and associated agencies for their continued support and contribution toward achieving this milestone. The authority reiterated its commitment to building on this momentum and further strengthening Chennai Port’s role in driving India’s maritime trade and economic growth. With its strategic “4Cs” focus — Containers, Cars, Clean Cargo, and Crude — Chennai Port continues to power progress and play a crucial role in advancing India’s trade ambitions on the global stage. For more such news and updates, visit CARGOCONNECT.
