DP World and the government of the Dominican Republic have signed a memorandum of understanding to expand the port of Caucedo and its free trade zone with an investment sum of 760 million US dollars. This aims to create the conditions for the country to develop into a significant production and logistics hub for North and South America, according to a press release from the port operator DP World on May 12.
The memorandum, signed with the Ministry of Industry, Commerce, and MSMEs (MICM), marks the start of negotiations that will increase the container handling capacity of Caucedo from 2.5 million TEU
(Twenty-foot Equivalent Unit) to approximately 3.1 million TEU and release 225 hectares of developable land for the free trade zone.
“By increasing capacities and developing nearshoring opportunities, we will make Caucedo the most modern logistics center in the Caribbean,” said Sultan Ahmed bin Sulayem, Chairman and CEO of DP World. “This will not only strengthen the resilience of supply chains across America but also create a powerful engine for economic growth and job creation in the Dominican Republic. We look forward to deepening our partnership with the government and the people of this vibrant country and shaping a future where trade works
better for everyone.”
Thanks to its proximity to US markets and duty-free access, the Dominican Republic offers an attractive environment for manufacturers and logistics providers with competitive costs and solid tax incentives, according to DP World. Caucedo is already an important transshipment and logistics site in the region, and this expansion will further strengthen its role as a hub for global trade.
380 million US dollars will be invested in the port, including the expansion of the quay and breakwaters, so that next-generation ships can dock there and the handling of general cargo becomes possible. These funds will also be used for
new ship-to-shore cranes, yard technology, modern surveillance systems, and security infrastructure, as well as the modernization of gates, roads, and automation systems.
The remaining 380 million euros of the total investment amount will flow into the free trade zone, including a new road network, utilities, a commercial and marketing center to attract global tenants, as well as prefabricated warehouses.
DP World estimates that the project will bring a total of 300,000 more TEU of cargo per year, attract 3.9 billion US dollars in foreign direct investments, and increase production volume by a value of four billion US dollars, which could create thousands
