Diego Rodríguez Paez
Director of Logistics and Industry Practice
AMI
The Caribbean is more than a tropical getaway—it’s fast becoming a pivotal logistics battleground. As global carriers realign supply chains, rotate vessels to escape US fees on Chinese-built vessels and nearshoring surges, two island gateways—Kingston Freeport Terminal (KFTL) in Jamaica and DP World Caucedo in the Dominican Republic—are emerging as central hubs in the Caribbean. Focused on modernization, diversified trade roles, and geopolitical maneuvering, these ports illustrate how infrastructure, local integration, and strategic positioning will define the region’s role in global shipping.
This article explores how large-scale, the delicate task of balancing transshipment with local trade, and the regional strategic chessboard are shaping the future of these two vital terminals.
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1. Infrastructure Investments & Expansion
Kingston Freeport Terminal: From Crowded to Competitive
Kingston’s Westlands Expansion Project, launched in July 2025, will boost KFTL’s container storage capacity by over 25%. The project involves adding 15 new hectares to the terminal space for the construction of new berth facilities and the introduction of a modern automated gate system for domestic cargo, which is expected to significantly improve the speed at which local cargo is processed and released and expand throughput to 3.2 MN TEUs. These enhancements aim to address a pressing issue: space, as the city surrounds the port.
These moves build on earlier investments. Back in 2015–16, CMA CGM secured a 30-year concession over KCT (now KFTL) and immediately began dredging, deepening the harbor, reinforcing quay walls, and bolstering berth capacity—enabling the port to handle larger vessels and increasing capacity toward 2.6 million TEU annually.
DP World Caucedo: A $760M Vision for a Modern Hub
By contrast, in May 2025, DP World signed a landmark US$760 million Memorandum of Understanding with the Dominican government to jointly expand both the Port of Caucedo and its Free Trade Zone (FTZ).
This commitment is split equally:
- $380 million to enhance the port—expanding quay and breakwater, deploying modern ship-to-shore cranes, upgrading automation and security systems, and improving gate and road infrastructure.
- $380 million allocated to developing the Free Trade Zone—creating 225 hectares (or about 555 acres) of industrial-ready land, new road and utility networks, marketing infrastructure, and pre-built storage units.
The goal? Raise container handling capacity from 2.5 million TEUs to approximately 3.1 million TEUs, while crafting an integrated port-industrial ecosystem that sparks manufacturing, nearshoring, and logistics-led investment.
Comparative Perspective
Kingston’s expansion is a catch-up act—modernizing and adding storage space and processing to maintain competitiveness amidst rising regional alternatives. DP World, meanwhile, is crafting Caucedo as a fully integrated port–industrial ecosystem from the ground up. One involves optimizing existing assets, while the other entails building future-proof capacity.
2. Balancing Transshipment with Local Trade
Heavy Transshipment Reliance
Kingston has long been a transshipment hub, strategically located at the crossroads of North–South and East–West trade lanes. CMA CGM has leveraged this geography, building the terminal’s anchor as part of its global hub network.
Similarly, Caucedo draws about 70% of its volume from transshipment, with the remaining 30% serving local cargo, including regional shippers and manufacturers.
The Tightrope Act
The risk for both terminals is striking the right balance: being too dependent on transshipment makes them vulnerable to global carrier route changes or disruptions, such as Panama Canal delays. Too focused on local trade without sufficient scale, and they lose appeal to major carriers, driving throughput volume. The answer lies in building integrated ecosystems that service both global and domestic markets—creating resilience and reducing volatility.
3. A Contest for Caribbean Supremacy
Kingston and Caucedo compete not only with each other but also with ports like Cartagena (Colombia), Colón (Panama), and Freeport (Bahamas).
Dominican Advantage
DP World’s expansive FTZ and port upgrades are aligned with the government’s logistics strategy, including Law 30-24, which created a National Logistics Council to streamline trade policy. Government support, combined with the largest labor pool in the region (5.3 million), positions the Dominican Republic as a rising logistics power.
Jamaica’s Strategy
Jamaica counters with KFTL’s modernization, its deep natural harbor, and strategic location near the Panama Canal. The development of the CSEZ and KLP, along with investments by Kingston Wharves (e.g., cold storage and vehicle handling), showcases Jamaica’s multi-pronged effort to remain relevant in regional trade networks.
Geopolitical Stakes
Both ports are responding to shifting global conditions, including the Panama Canal’s constraints, U.S. and EU interest in diversifying supply chains, and oil-driven cargo growth from Guyana and Suriname. In this context, the war for infrastructure investment becomes a battle over who will anchor the future logistics corridors.
DP World’s investment is betting on integrated trade systems—port + FTZ—while CMA CGM and Jamaica rely on modernization and logistics parks to retain relevance. The winner may well be the one who secures scale andecosystem integration, transforming a seaport into a logistics hub.
Conclusion
Whoever builds not just berths and cranes, but self-sustaining ecosystems tied to manufacturing, nearshoring, and logistics services, will define the region’s standing in global trade. As DP World and CMA CGM race to expand, the real winner will be the island that transforms a port into a platform for regional and global economic resilience.
Next Steps…
Partnering for Smarter Maritime Strategies
At Americas Market Intelligence, we help ports, governments, and logistics stakeholders define their long-term maritime strategies with data-driven market intelligence. Our work encompasses a range of services, including transshipment competitiveness assessments (benchmarking against rival hubs), cargo flow and demand forecasting (e.g., grain, LNG, automotive, and containerized trade), and infrastructure feasibility studies (storage capacity, FTZ development, and cold chain opportunities).
We also design regulatory and policy impact analyses to evaluate the effects of trade laws, tariffs, and customs modernization, alongside stakeholder perception studies that identify risks and opportunities in attracting shipping lines or global investors. By combining these insights, we equip decision-makers with the clarity to prioritize the right projects, attract sustainable investment, and secure their place in the evolving Caribbean and global logistics landscape.
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