The Dubai-based ports and logistics operator DP World today said it plans a $760 million expansion of the Dominican Republic’s Port of Caucedo and its Free Trade Zone (FTZ), setting the stage for the country to become a leading manufacturing and logistics hub for the Americas.
According to DP World, the Dominican Republic offers a compelling environment for manufacturers and logistics providers by offering competitive costs, robust tax incentives, and proximity to U.S. markets and duty-free access.
“This is a transformative investment, not just in infrastructure, but in the future of the Dominican economy,” Morten Johansen, Chief Operating Officer, DP World Americas, said in a release. “The expansion is expected to generate billions in foreign direct investment, create thousands of new jobs, and solidify the Dominican Republic’s position as a premier destination for nearshoring and global trade.”
Under the deal with the Dominican Republic government, DP World will raise Caucedo’s container handling capacity from 2.5 million TEUs (twenty-foot equivalent units) to approximately 3.1 million TEUs, while developing 555 acres of land into a Free Trade Zone.
DP World, which has operated in the Dominican Republic for over 25 years, currently manages both the marine terminal at the Port of Caucedo, and the adjacent 212-acre Free Trade Zone Park. Since 2003, the company has invested more than $700 million in its development, boosting capacity from 900,000 TEUs in 2003 to 2.5 million TEUs today.
The new $760 million investment will be split evenly between:
- $380 million for the port, including the expansion of the quay and breakwater to accommodate next-generation vessels and general cargo operations, new ship-to-shore cranes, yard equipment, advanced surveillance systems and security infrastructure, and upgrades to gates, roads and automation systems.
- $380 million for the Free Trade Zone, including a new road network, utilities, a commercial and marketing center to attract global tenants, and pre-built storage units.
“By boosting capacity and enabling nearshoring opportunities, we will transform Caucedo into the most advanced logistics hub in the Caribbean, not only strengthening supply chain resilience across the Americas but also creating a powerful engine for economic growth and job creation in the Dominican Republic,” Sultan Ahmed bin Sulayem, Chairman and Group CEO of DP World, said in a release.
