DP World to Invest $760M to Create Transshipment Hub in Dominican Republic

Plans were announced laying the groundwork for the creation of a transshipment hub in the Dominican Republic. It comes at a critical time as shippers consider steps to manage the Trump policies ranging from tariffs to port fees for Chinese-built ships. 

DP World, which has been operating in the Dominican Republic for more than 25 years, reports it signed a memorandum of understanding with the government of the Dominican Republic that calls for expanding its port and Free Trade Zone operations. The company will initiate negotiations with the Ministry of Industry, Commerce and MSMES to finalize the expansion agreement.

Industry analysts have called for the development of a transshipment hub that could better serve the needs of the Caribbean. Wth the changes in U.S. policies, it could now also provide an alternative to transshipping cargo via the United States and promote economic development.

DP World’s agreement calls for expanding the operations at the Port of Caucedo on the south coast of the island on the Caribbean Sea east of Santo Domingo. Since 2003, DP World reports it has invested more than $700 million in the development of the operations, including increasing capacity from 900,000 to 2.5 million TEU with three berths. It also operates a logistics center in the free trade zone with six warehouses. 

The company highlights the strategic location of the facility noting that it handles more than 60 percent of the DR’s market share. It says that with proximity to the United States and duty-free access, the DR offers a compelling environment and the opportunity to become the transshipment hub for the region.

The plan calls for investing $380 million into the port to increase capacity to approximately 3.1 million TEU. It would expand the quay and breakwater to accommodate larger vessels, add new ship-to-shore cranes and yard equipment. An additional $380 million would be invested in the Free Trade Zone to add 225 hectares of development-ready land and infrastructure improvements.

The website for the operation notes that it has already become one of the most important ports in the Americas region and is among the top 15 ports in Latin America. DP World highlights that it has the opportunity to be a strategic location for the redistribution of cargo to the Caribbean, Central and South America, and the United States.