The government of the Dominican Republic has signed a US$760m memorandum of understanding with DP World to expand the Port of Caucedo and its Free Trade Zone and become a leading manufacturing and logistics hub for the Americas.
The MoU will raise Caucedo’s container handling capacity from 2.5 million 20ft equivalent units (TEUs) to approximately 3.1 million TEUs, while unlocking 225 hectares of development-ready land for the Free Trade Zone.
The new US$760m investment will be split evenly, with US$380m spent on 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. The other US$380m will be used 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.
Sultan Ahmed bin Sulayem, chairman and Group CEO of DP World, commented, “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.
“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. We are proud to deepen our partnership with the government and people of this vibrant nation, building a future where trade works better for everyone.”
DP World estimates the combined project will add 300,000 TEUs a year of cargo volume and attract US$3.9bn in foreign direct investment, driving US$4bn in new manufacturing output to support thousands of new jobs.
Morten Johansen, chief operating officer, DP World Americas, commented, “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.”
In related news, DP World recently announced that its new US$80m state-of-the-art Sokhna Logistics Park in Egypt is nearing completion. The 300,000m2 logistics park is set to open in June this year. Click here to read the full story