Global terminal operator DP World is set to plough some $760m into its Caribbean transhipment hub of Caucedo, following the signing of a Memorandum of Understanding (MoU) with the Dominican Republic’s Ministry of Industry, Commerce.
Half of the investment will go into expanding the container terminal from 2.5m teu to 3.1m teu, expansion of the quay and breakwater, to accommodate next-generation vessels, crane, container handling, IT, and landside infrastructure.
According to the eeSea liner database, the facility handled 1.48m teu last year, representing a utilisation level of 59%.
The remaining $380m is set to be invested in the adjacent free-trade zone (FTZ), earmarked for “a new road network, utilities, a commercial and marketing centre to attract global tenants, and pre-built storage units” across some 225 ha.
DP World estimated the combined project will add 300,000 teu of cargo volume annually, attract $3.9bn in foreign direct investment and drive $4bn in new manufacturing output.
“This is a transformative investment, not just in infrastructure, but in the future of the Dominican economy,” said Morten Johansen, chief operating officer, DP World Americas.
“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 near-shoring and global trade,” he added.
With some form of port call fee set to be applied in November to China-built ships and Chinese carriers by the US trade representative under its 301 action, Caribbean transhipment hubs are expected to position themselves to act as important intermediate points in trades into the US – under the USTR’s current proposals, sailing distance under 2,000 nautical miles from the US will not be subject to the fees and most, including Caucedo, fall within that.
“By boosting capacity and enabling near-shoring 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,” added Sultan Ahmed bin Sulayem, chairman and group CEO of DP World.
