Post by : Badri Ariffin

In a significant move, DP World, in collaboration with the Government of the Dominican Republic, has revealed plans for a US$100 million investment to bolster the logistics and warehousing capabilities at the Caucedo Free Trade Zone (FTZ). This initiative aims to reinforce the nation's status as a key trading, manufacturing, and logistics center in the Americas.

This announcement was made during the 12th World Free Zones Congress 2026 and comes in addition to the previous commitment of US$760 million disclosed in 2025. The focused expansion seeks to enhance logistics capacity, optimize supply chain efficiency, and address the increasing demand for integrated industrial and trade services in the area.

The investment will be realized through a collaboration with the Dominican Republic’s Ministry of Industry, Commerce, and MSMEs, concentrating on the construction of cutting-edge warehouse facilities and sophisticated logistics infrastructure within the Caucedo FTZ. The expansion aims to improve the integration of port operations, free zone services, and logistics solutions, fostering a competitive environment for international trade and manufacturing.

This initiative builds on a crucial Memorandum of Understanding (MoU) signed in May 2025, under which DP World and the Dominican Republic pledged US$760 million for expanding the Port of Caucedo and its Free Trade Zone. The additional funding signifies growing confidence in the Dominican Republic’s strategic geographic position and its rising significance in global supply chains.

Caucedo has become a vital logistics hub in the Caribbean, bridging North America, Latin America, and global markets. The upgraded infrastructure is anticipated to draw new investments, bolster export-driven industries, and enhance the nation's capacity to serve both regional and international clients.

A recent study by Oxford Economics underscores DP World’s critical role in the Dominican Republic’s economy, indicating that the company supports nearly 5,000 jobs across the country and could potentially raise the nation’s goods exports to US$2.4 billion by 2035. In 2024, the Port of Caucedo facilitated roughly US$13.3 billion in trade, further demonstrating its significance for the national economy.

Morten Johansen, Chief Operating Officer of DP World Americas, emphasized that the Dominican Republic is becoming increasingly pivotal as a trade gateway in the region. The US$100 million investment will facilitate the transformation of Caucedo into an all-encompassing logistics platform, enabling sustained industrial development and trade expansion in the Americas.

Manuel Martínez, CEO of DP World Dominican Republic, remarked that the new logistics and warehousing facilities will offer customers enhanced capacity and operational flexibility, thus boosting the country's competitiveness as a central distribution and trade hub.

This latest investment reaffirms the enduring partnership between DP World and the Dominican Republic, aiming to enhance infrastructure, facilitate international trade, and create fresh economic growth opportunities. With the ongoing evolution of global supply chains, the expansion of the Caucedo Free Trade Zone is set to further elevate the Dominican Republic as a top choice for investment, manufacturing, and logistics in the Americas.

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