DP World and the Dominican Republic’s Ministry of Industry, Commerce, and Micro-, Small and Medium-sized Enterprises (MICM) have signed a $760m memorandum of understanding on the expansion of the Port of Caucedo and its free trade zone.
The deal will transform Caucedo into the Caribbean’s most advanced logistics hub, said DP World chairman and group CEO, Sultan Ahmed bin Sulayem.
The signing launches negotiations on raising Caucedo’s container handling capacity from 2.5m teu to 3.1m teu, as well as opening 225 ha of development-ready land for the free trade zone, said DP World.
The global port group has worked in the country for over 25 years, and currently manages Port of Caucedo’s marine terminal and an adjacent 86 ha free trade zone park. DP World’s investment over more than $700m has raised capacity from 900,000 teu in 2003 to its current level of 2.5m teu, it said.
“This agreement marks a major step forward in our vision—shared with our local partners and stakeholders—to enhance the country’s competitiveness and connectivity, creating greater opportunities for local communities and businesses to thrive,” said bin Sulayem.
The investment will be split evenly between the port expansion and free trade zone.
The port’s $380m is earmarked for expanding the quay and breakwater to accommodate larger vessels, new ship-to-shore cranes, yard equipment, advanced surveillance systems and security infrastructure, as well as upgrades to gates, roads and automation systems.
The free trade zone’s $380m will be spent on a new road network, utilities, a commercial and marketing centre to attract global tenants, and pre-built storage units.
DP World estimates the combined project will add 300,000 teu a year of cargo volume, attract $3.9bn in foreign direct investment, and drive $4bn in new manufacturing output, supporting thousands of new jobs.
Morten Johansen, COO, DP World Americas, said: “This is a transformative investment, not just in infrastructure, but in the future of the Dominican economy. 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. We are proud to help unlock the country’s full potential and build a foundation for long-term prosperity.”
