Dubai-based DP World has announced a significant investment plan, earmarking $760 million for the expansion of the Port of Caucedo and its associated Free Trade Zone (FTZ) in the Dominican Republic. This initiative is poised to position the Dominican Republic as a frontrunner in manufacturing and logistics across the Americas, tapping into the country’s strategic geographic location, favourable tax incentives, and competitive costs.
Morten Johansen, Chief Operating Officer of DP World Americas, described the project as “transformative,” asserting that it will not only enhance infrastructure but also bolster the future of the Dominican economy. According to DP World’s projections, the expansion is set to generate billions in foreign direct investment and create thousands of job opportunities, reinforcing the nation’s status as an attractive destination for nearshoring and global trade.
The investment plans include increasing the container handling capacity at Caucedo from 2.5 million to approximately 3.1 million TEUs (twenty-foot equivalent units) and developing 555 acres into a dedicated Free Trade Zone. This mirrors DP World’s previous expansions, such as a $114 million project in late 2020 that also aimed to enhance the port’s logistics capabilities and further integrated the Dominican Republic into global supply chains.
Infrastructure enhancements under the new project will be split evenly between port operations and the FTZ. The port will receive $380 million for upgrades including the expansion of the quay and breakwater to accommodate next-generation vessels, the installation of new ship-to-shore cranes, enhanced security infrastructure, and modernised automation systems. Likewise, the Free Trade Zone will benefit from new road networks, utilities installations, and facilities designed to attract global tenants, further boosting the Dominican economy.
Sultan Ahmed bin Sulayem, Chairman and Group CEO of DP World, remarked on the significance of this expansion: “By boosting capacity and enabling nearshoring opportunities, we will transform Caucedo into the most advanced logistics hub in the Caribbean.” This sentiment highlights the growing trend of nearshoring—where companies relocate their operations closer to their markets—which has become increasingly prevalent as businesses seek resilient supply chains in response to disruptions from global events.
Beyond purely infrastructure developments, recent years have witnessed DP World investing in the cold logistics sector within the Dominican Republic. A modern refrigerated warehouse has been constructed in collaboration with Emergent Cold Latin America, aimed at enhancing the country’s capacity for temperature-controlled logistics—a vital aspect for sectors such as food and pharmaceuticals. Collectively, these developments not only promise to strengthen local economies but also improve the quality of life across the region.
Moreover, DP World is actively expanding its logistics capabilities with projects such as the forthcoming multimodal air cargo logistics hub in Punta Cana. This facility is expected to enhance connectivity through air, land, and sea, further embedding the Dominican Republic in global trade networks.
As DP World continues to invest heavily in the Dominican Republic, recent initiatives also underscore its commitment to sustainability. The company has embarked on a multi-phase electrification project at Caucedo, which includes acquiring electric vehicles to reduce dependency on diesel and lower carbon emissions significantly over the upcoming decade.
These strategic investments and expansions signify a promising trajectory not just for DP World, but for the Dominican Republic as it seeks to leverage its position as a logistics and manufacturing crossroads between North and South America. This shift could not only reshape the region’s economic landscape but also signify a new era of operational efficiency and sustainability in global supply chains.
Reference Map
- Paragraphs 1, 2, 3, 4
- Paragraph 4
- Paragraph 4
- Paragraph 5
- Paragraph 5
- Paragraph 5
- Paragraph 5
Source: Noah Wire Services
Subscribe to Industry Updates
