President Luis Abinader witnessed the signing of a memorandum of understanding Friday, 9 May 2025 between the Dominican government, represented by the Ministry of Industry and Commerce and DP World Dominicana, a Dubai, United Arabian Emirates company calling for an investment of US$760 million to expand the DP World Economic Zones Dominicana free zone park and increase the capacity of its port terminal located in Caucedo, half an hour from the capital city. The expansion is expected to generate US$4 billion in foreign investment.
Minister of Industry and Commerce Víctor Bisonó and DP World chairman and group CEO, Sultan Ahmed, emphasized the the Dominican Republic’s potential as a logistics hub, the significance of the investment in manufacturing when announcing a major cargo capacity expansion to position the country as the leading regional nearshoring and trade hub in the Caribbean.
DP World Dominicana plans to allocate US$380 million towards the development of its DP World Economic Zones free zone, which would involve an expansion of 225 hectares of development-ready land for free trade zone, along with an additional 50 hectares of waterfront land south of the existing port. The funds will enable the construction of a new road network, utilities, a commercial and marketing center to attract global tenants and pre-built storage units.
The MoU, signed with the Ministry of Industry, Commerce (MICM), initiates negotiations to invest another US$380 million that will raise Caucedo’s container handling capacity from 2.5 million TEUs (the standard 20 foot container unit of 20-foot used to measure shipping capacity) to approximately 3.1 million TEUs, facilitating the handling of increased cargo volumes potentially generated by the expanded economic zone. The investment funds 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.
Sultan Ahmed bin Sulayem, chairman and group CEO of DP World, 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. 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.”
In a press release on the deal, the Dominican Presidency reports that the primary objective of this collaborative agreement is to stimulate foreign investment, enhance national competitiveness and connectivity, and solidify the Dominican Republic’s position as a strategic logistics hub for trade throughout the Americas.
During the signing ceremony, Manuel Martínez, CEO of DP World Dominicana, stated that the multinational company’s planned future investment in its local operations reflects the confidence DP World has demonstrated in the country since commencing operations in 2003. He affirmed that the current moment is ideal for driving economic growth in the Dominican Republic, citing its strategic location, growing economy, stable political climate, and robust financial system. These factors, he noted, make the nation a highly attractive destination for manufacturing and logistics companies seeking nearshoring opportunities.
Martínez further emphasized that “as a result of the projected investment by DP World in the Dominican Republic, we would have a unique model of integrated services, combining the development of an industrial and free zone park with manufacturing and logistics activities, all within the same complex as one of the port terminals with the highest capacity and strategic connectivity globally.”
Minister of Industry and Commerce, Víctor (Ito) Bisonó, highlighted that “this memorandum is much more than a signing; it is a declaration of confidence in the Dominican Republic. In a global context of adjustments and new rules of the game, DP World decides to bet on our country. This investment lays the foundation for a unique logistics-industrial ecosystem in the region and consolidates our position as a strategic axis of hemispheric trade.”
Also present at the signing ceremony were the Minister of Public Administration, Sigmund Freund; the Customs Agency director Eduardo Sanz Lovatón; ProDominicana executive director Biviana Riveiro; the DP World for the Americas executive vice president, Morten Johansen; United States Embassy chargé d’affaires Patricia Aguilera; the Víctor Pichardo; the Mayor of Boca Chica, Ramon Candelaria, director of the Airport Department.
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.
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12 May 2025