United Arab Emirates-headquartered operating port and logistic operator DP World has signed a $760m memorandum of understanding (MoU) with the government of the Dominican Republic to expand the Port of Caucedo and its Free Trade Zone.
DP World states that the MoU signed with the Ministry of Industry, Commerce, and MSMES (MICM), initiates negotiations that will raise Caucedo’s container handling capacity from 2.5 million TEUs (twenty-foot equivalent units) to approximately 3.1 million TEUs, while unlocking 225 hectares of development-ready land for the 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 86-hectare Free Trade Zone Park.
Since 2003, the company has invested more than $700m in its development, boosting capacity from 900,000 TEUs in 2003 to 2.5 million TEUs today through steady investment and modernization.
The new $760m investment by DP World will be will be split evenly $380m 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.
The rest $380m for the Free Trade Zone, includes a new road network, utilities, a commercial and marketing center to attract global tenants, and pre-built storage units.
DP World estimates the combined project will add 300,000 TEUs a year of cargo volume, attract $3.9bn in FDI, driving $4bn in new manufacturing output to support thousands of new jobs, setting the stage for the country to become a leading manufacturing and logistics hub for the Americas.
“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,” says Sultan Ahmed bin Sulayem, chairman and group CEO of DP World.
He also adds that, “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.”
