DP World expands Dominican port with $760M trade zone investment

DP World has signed a landmark US$760 million Memorandum of Understanding (MoU) with the Dominican Republic’s Ministry of Industry, Commerce and MSMEs (MICM) to expand its flagship Port of Caucedo and associated Free Trade Zone, in a move set to transform the nation into a powerhouse for regional logistics, manufacturing, and nearshoring.

The new agreement marks a pivotal step toward expanding Caucedo’s container capacity from 2.5 million to 3.1 million TEUs (twenty-foot equivalent units) and unlocking 225 hectares of land for new development within the Free Trade Zone.

Sultan Ahmed bin Sulayem, Chairman and Group CEO of DP World, emphasized the strategic significance of the deal, stating: “By boosting capacity and enabling nearshoring opportunities, we will transform Caucedo into the most advanced logistics hub in the Caribbean… creating a powerful engine for economic growth and job creation in the Dominican Republic.”

The $760 million investment will be split equally, with $380 million earmarked for expanding the marine terminal infrastructure—such as quay and breakwater upgrades, ship-to-shore cranes, and automation systems—and $380 million allocated to developing the Free Trade Zone with new road networks, utilities, pre-built warehouses, and a commercial hub to attract international tenants.

DP World, a long-standing player in the Dominican Republic since the early 2000s, has already invested over $700 million in building up Caucedo’s capabilities, steadily increasing throughput from 900,000 TEUs in 2003 to 2.5 million today. The port has since emerged as a critical transshipment and logistics gateway in the Caribbean.

This new phase of development is expected to add 300,000 TEUs annually, attract $3.9 billion in foreign direct investment, and support $4 billion in new manufacturing output, reinforcing the country’s growing reputation as a nearshoring haven for U.S. and Latin American supply chains.

Morten Johansen, COO of DP World Americas, described the investment as a long-term commitment to economic growth: “This is a transformative investment… not just in infrastructure, but in the future of the Dominican economy.” With its proximity to U.S. markets, duty-free access, and strong tax incentives, the Dominican Republic offers a compelling value proposition for global manufacturers and logistics providers. Once completed, the expanded Caucedo facility is expected to accelerate the country’s role as a strategic trade gateway across the Americas.