Plans Unveiled for Transshipment Hub in the Dominican Republic

Exciting news has emerged regarding the establishment of a transshipment hub in the Dominican Republic. This development comes at a crucial juncture as shipping companies seek solutions to navigate the complex landscape shaped by various policies, including tariffs and port fees introduced under the Trump administration.

DP World, a key player with over 25 years of presence in the Dominican Republic, has announced the signing of a memorandum of understanding with the government. This agreement paves the way for the expansion of port and Free Trade Zone operations in the country. Negotiations are underway with the Ministry of Industry, Commerce, and MSMES to finalize the expansion deal.

Industry experts have long advocated for the creation of a transshipment hub that can better cater to the needs of the Caribbean region. Given the evolving policies in the United States, such a hub could offer an alternative route for transshipping cargo and spur economic growth in the Dominican Republic.

The expansion plans outlined by DP World focus on enhancing operations at the Port of Caucedo on the island’s south coast, situated on the Caribbean Sea east of Santo Domingo. The company has invested significantly in the port since 2003, increasing its capacity from 900,000 to 2.5 million TEU with three berths. Additionally, DP World operates a logistics center in the free trade zone comprising six warehouses.

Emphasizing the strategic location of the facility, DP World points out that it currently handles over 60% of the Dominican Republic’s market share. With its proximity to the United States and duty-free access, the country presents an attractive proposition to become a transshipment hub for the region.

The expansion project entails a total investment of $760 million, with $380 million allocated to upgrading the port’s capacity to approximately 3.1 million TEU. Plans include expanding the quay and breakwater to accommodate larger vessels, installing new ship-to-shore cranes, and enhancing yard equipment. Another $380 million will be invested in the Free Trade Zone to add 225 hectares of development-ready land and improve infrastructure.

DP World’s operations in the Dominican Republic have already positioned it as one of the most significant ports in the Americas and among the top 15 in Latin America. The company envisions the port as a strategic hub for cargo redistribution to the Caribbean, Central and South America, and the United States.