Ingresar
USD 760 Million Port and Free Trade Zone in Dominican Republic
By Guzmán Ariza, Attorneys at Law
The government of the Dominican Republic has signed a Memorandum of Understanding (MoU) with global logistics company DP World for a proposed USD 760 million investment to expand the Port of Caucedo and its Free Trade Zone. The agreement, signed with the Ministry of Industry, Commerce, and MSMEs (MICM), outlines plans to increase port capacity and open additional land for industrial development.
The proposed expansion would raise the port’s handling capacity from 2.5 million to approximately 3.1 million twenty-foot equivalent units (TEUs), and develop 225 hectares of land adjacent to the terminal. The investment would be split evenly: USD 380 million directed toward port infrastructure, including quay extensions, equipment upgrades, and improved logistics systems; and another USD 380 million for the Free Trade Zone, including new road networks, storage facilities, and a commercial and marketing center.
DP World currently operates the marine terminal at Caucedo and manages the associated Free Trade Zone. Caucedo has developed into a key transshipment point in the Caribbean and a growing hub for logistics and manufacturing.
According to estimates, the expansion could increase annual cargo volume by 300,000 TEUs and attract up to USD 3.9 billion in foreign direct investment, with potential for increased manufacturing output and employment.
The Dominican Republic’s free trade zones, established under Law 8-90, have played a significant role in the country’s export and investment strategy. These zones offer companies tax exemptions and other incentives for operating export-focused manufacturing and service operations. As of 2023, more than 80 zones were active, employing over 190,000 people and contributing to a significant share of the country's exports.
The expansion of Caucedo aligns with the government's broader interest in positioning the country as a logistics and nearshoring destination, leveraging its geographic location and trade agreements such as the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).
Further details on the timeline or final approval of the project have not yet been disclosed.
Guzmán Ariza, Attorneys at Law
Guzmán Ariza is a leading full-service law firm in the Dominican Republic, consistently ranked among the country’s top-tier firms by the most prominent global legal directories such as Chambers and Partners and The Legal 500.
With ten strategically located offices across the nation's principal business and tourism hubs, we are uniquely positioned to support clients in seizing opportunities within the largest and fastest-growing economy in Central America and the Caribbean.
Our multilingual team is well-versed in advising international clients across a broad spectrum of practice areas. In the field of intellectual property, we offer robust counsel and representation in both commercial transactions and litigation. Our services cover trademark and trade name protection, copyright and patent registration and enforcement, as well as licensing, assignments, and the transfer of IP rights.
Guzmán Ariza is globally connected through active memberships in prominent international legal networks, enabling us to effectively support cross-border matters and multinational transactions.