Feature, Freight News, Logistics, Sea

DP World to Invest $760 Million in Port of Caucedo

[ May 29, 2025   //   Gary Burrows ]

DP World said May 15 it will invest US$760 million to expand the Dominican Republic Port of Caucedo, which it said would create a manufacturing and logistics hub for the Americas

DP World signed a memorandum of understanding, or MoU, with the Dominican Republic’s Ministry of Industry, Commerce and MSMES. MICM initiates negotiations that will raise Caucedo’s container handling capacity from 2.5 million twenty-foot equivalent units to about 3.1 million TEUs, while unlocking 225 hectares of development-ready land for the free trade zone.

 “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 Sultan Ahmed bin Sulayem, chairman and group CEO of DP World.

“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, which has operated in the Dominican Republic for more than 25 years, manages 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 US$700 million in its development, boosting capacity from 900,000 TEUs in 2003 to 2.5 million TEUs today through steady investment and modernization. Combined, these strengthen the Dominican Republic’s in facilitating trade and logistics throughout the Caribbean.

The new $760 million investment will be split evenly:

• US$380 million 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.

• US$380 million 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.

 DP World estimates the combined project will add 300,000 TEUs a year of cargo volume, attract US$3.9 billion in foreign direct investment and drive US$4 billion in new manufacturing output to support thousands of new jobs.

“This is a transformative investment, not just in infrastructure, but in the future of the Dominican economy,” said Morten Johansen, DP World Americas’s COO. “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.”

With its proximity to U.S. markets and duty-free access, the Dominican Republic offers a compelling environment for manufacturers and logistics providers, with competitive costs and robust tax incentives. Caucedo already serves as a vital transshipment and logistics hub in the region, and this expansion will enhance its role as a launchpad for global trade.

Tags: DP World, Port of Caucedo, Sultan Ahmed bin Sulayem