Santo Domingo: DP World plans to spend $200 million on expanding its container port in the Dominican Republic as part of its efforts to attract more shipping lines.

DP World acquired the port of Caucedo in this Caribbean nation from US-based CSX World Terminals in March last year.

According to Jack Williams, a DP World official and executive director of Zona Franca Multimodal Caucedo, the joint venture that owns and operates the port, the new investment is needed to position Caucedo as a key transshipment hub for the Caribbean region. "Dubai's attitude is that 'build and they will come'. The attitude is before you need it you must have it, rather than wait for it," he said of the plans to attract new shipping lines.

The Dominican government is studying the possibility of giving Boca Chica to private operators. DP World plans to be bidder when the port is put up for sale, Williams said.

When the two-year expansion plan is completed, Caucedo's berths will be a short distance from Boca Chica and acquisition of that port would allow DP World to extend quay all the way to Boca Chica.

Proximity to the United States makes security at Dominican seaport facilities crucial. Caucedo has signed the United States Container Security Initiative (CSI) under which American officials will be present within the port to inspect containers heading for the US.

"CSI will facilitate the movement of containers into the US. It reduces inspection and the time and cost involved," said Robert Valdez, commercial manager of the port.

To tackle problems of stowaways and ensure weapons and hazardous goods are not exported to the US, the port has a strict security system.

The port company also has under its payroll a security unit commanded by a serving Dominican general, who has one colonel, two lieutenants and 18 soldiers under him.

Capacity of 1.92m TEU targeted

  • The $300-million facility in Dominican Republic currently has a capacity 800,000 TEUs (twenty-foot equivalent unit) that will grow to 1.92 million TEUs under a three-phase expansion plan scheduled for completion within two years, officials said.
  • DP World has a 35 per cent stake in the company while the rest is held by Dominican partners and Spanish firm Dragados.
  • The $200-million planned expansion will include extension of quay from 650 metres to 1,100 metres.
  • The number of quay cranes will grow from five to 12 and rubber-tyred gantry cranes will increase to 36 from 17 at present.
  • A port logistics facility is also being developed and it will link with the cargo logistics centre of the nearby airport.
  • Caucedo's main rival is Kingston in Jamaica. Caucedo is used by 18 shipping lines and recently received a boost when Hapag-Lloyd relocated its regional base from Kingston.
  • Last year Caucedo achieved a throughput of 400,000 TEUs, becoming the top port facility in the country, ahead of nearby Boca Chica terminal that handles about 300,000 TEUs.