DP World and the government of the Dominican Republic have inked a USD 760 mn MoU to expand the Port of Caucedo and its freetrade zone, according to a press release published on Friday. The project is expected to catalyze about USD 3.9 bn in foreign direct investment, add 300k TEUs in cargo volume per year, bolster manufacturing output by USD 4 bn, and create thousands of jobs.

The funds will be split between port and freetrade zone:

  • Some USD 380 mn will go toward upgrading the Port of Caucedo, raising cargo capacity from 2.5 mn TEUs to 3.1 mn TEUs; shoring up general cargo operations; expanding the quay and breakwater to ready them for next-generation vessels; as well as installing ship-to-shore cranes, yard and security equipment.
  • The remaining USD 380 mn will go towards expanding the 86-hectare freetrade zone. The expansion will see the addition of 225 hectares, the establishment of a marketing center to solicit global tenants, and the building of a new road network and pre-built cargo units.

What they said: “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,” CEO Sultan Ahmed bin Sulayem noted.

Background: DP World manages both the Port of Caucedo’s marine terminal and the adjoining freetrade zone. Through its subsidiary Unifeeder, the port operator added fixed a weekly feeder service last year connecting the Dominican Republic port to other Caribbean ports. In 2023, the company added 1.2 mn TEUs in capacity for the port.

More moves in the Dominican Republic: DP World launched operations in late 2023 at its air cargo hub in Punta Cana. The hub was established in partnership with the Punta Cana Freetrade Zone (PCFTZ).

The latest on DP World’s ports and freezones: DP World is planning to expand another freezone—Jebel Ali FreeZone (Jafza)—with nearly AED 8.5 bn in investments to span the next three years to expand the zone and upgrade its infrastructure. DP World also completed developing the Philippines’ Manila South Harbor with Asia Terminals Inc. for USD 100 mn last week.

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