President Abinader states that Dom Rep is consolidating as world-class logistics hub

This is an automated translation of the original release published in Spanish.

By the Presidency of the Dominican Republic. 

Santo Domingo - President Luis Abinader stated this Wednesday that the Dominican Republic is consolidating its position as the world-class logistics hub, which is advancing to become the main and most important hub in the entire region.

During the inauguration of the first Dominican Republic Logistics Summit 2024 (DRLS2024), the motto of which is: "Connecting Global Opportunities", the president said that the Dominican Republic enjoys a privileged geographical position and excellent infrastructure, connectivity and logistics services, dedicating more than 300,000 square meters to international logistics.

In that sense, President Abinader said that the geographical position has allowed the country to attract the attention of important multinational companies, airlines and logistics companies that are developing competitive operations from here, which allows them to reach multiple destinations in different parts of the world.

When offering his opening speech, the head of state expressed that the Dominican Republic is currently in a historic moment of transformation and opportunities, which must be taken advantage of.

At the event held at the Embajador Hotel in Santo Domingo, the president explained that geographical location is an unmatched advantage as a key factor to increase exports, since a 10% decrease in transportation costs could increase exports by some 30%.

He highlighted the importance of logistics for the Dominican Republic, which is, he noted, multifaceted and profound. "Global connectivity not only benefits our exporters and importers, but also attracts foreign investments, generating employment and promoting the development of industrial clusters," President Abinader highlighted.

He added: "The Dominican Republic continues to be positioned in the top 10 countries in the Latin American and Caribbean region with the best performance in terms of maritime connectivity."

Also, he said that the country connects with more than 55 countries and 170 international destinations, thanks to extensive air connectivity. "Two of the eight international airports that operate in the country, the Las Américas International Airport and the Punta Cana International Airport, have positioned themselves as important distribution centers for foreign companies," he explained.

Port connectivity

Regarding port connectivity, President Abinader said that, thanks to the efficiency and notable capacity of the country's ports, at the end of 2023 the Dominican Republic achieved an important milestone by mobilizing an impressive volume of TEUs of containerized cargo – close to 2.3 million.

He added that this milestone gives evidence of the strength that the country has in terms of port infrastructure and the trust that international trade actors have placed in our country.

Air cargo sector

The president also highlighted the air cargo sector, where last year the country's airports handled a total of 30 million kilos of air cargo. He stressed that this constant flow of goods by air is testimony to the agility and important connectivity that characterizes the national logistics system.

"Our economy has demonstrated sustained and robust growth, with an average GDP growth rate of 5.03% over the last 10 years, significantly exceeding the regional average of 1.37%," he said.

He highlighted that this notable performance is due to the implementation of solid policies, especially by the Central Bank, and the structural flexibility of our economy in the face of changing global conditions.

Likewise, he explained that political stability is a pillar of the nation and added that collaboration between the public and private sectors ensures that the working and commercial conditions of the logistics sector remain stable in the short term.

Pioneers in the world in successful implementation of the free zone regime

The president indicated that the Dominican Republic is considered one of the pioneer countries in the world in successful implementation of the free zone regime, in which it registers more than 830 companies, in operations spread across 88 parks located throughout the national geography.

He maintained that in terms of jobs and exports the results are also outstanding, since at the end of 2023 more than 198,000 direct jobs were registered, the highest level in its history.

Exports also registered an important milestone, reaching, for the first time, more than 8,000 million dollars, which is equivalent to a growth of 38% compared to 2020.

He stressed that the effort and coordinated work between the public and private sectors have been key to achieving the growth and fruits that are evident today, both in the free zone sector and in the logistics sector.

Implementation and optimization of security protocols

For his part, the general director of Customs, Eduardo Sanz Lovatón , highlighted the leadership of President Abinader, who, when he assumed command of the country's destiny, found a legal framework to regulate international trade that dated back to 1942.

"Today we have modern, regulated customs legislation, also accompanied by maritime legislation," Lovatón highlighted.

He said that when President Abinader assumed power in 2020, the average dispatch through the foreign trade single windows was nine days and, to date, the average dispatch of the permit that allows expediting the loading is of two days and six hours.

The president of the Shipping Association of the Dominican Republic, Jaak Rannik, highlighted the strategic and privileged geographical position that the country has, which is based on enviable connectivity with maritime cargo ports that handle more than 4,000 ships a year and of these, more than 30 weekly departures stand out to connect directly to markets in the region.

He also highlighted that the country has eight airports and handles nearly 150,000 air operations, in connection with more than 70 countries.

The summit, organized by the Association of Shipowners of the Dominican Republic (ANRD), the General Directorate of Customs (DGA) and the National Trade Facilitation Committee (CNFC), has the support of more than 50 leading and allied companies and entities of the sector.

Within the framework of DRLS2024, topics on connectivity, innovation, sustainability, logistics opportunities and nearshoring will be addressed by national and international experts, through a series of keynote conferences and discussion panels.

This event will serve as a central point for the creation of commercial connections through different business rounds, as well as visits to areas of the highest level of logistics activity .

The country's strategic location, favorable for rapid connection that reduces export and import times to and from Europe, the US, Asia, Central America and South America, was highlighted during the ceremony, with connectivity lines being deployed from the Dominican Republic to various points on the global map.

President Abinader was accompanied by the president of the Senate, Ricardo de los Santos; the president of the Chamber of Deputies, Alfredo Pacheco; the Minister of Industry and Commerce, Víctor -Ito- Bisonó; the extraordinary and plenipotentiary ambassador of the European Union to the Dominican Republic, Mrs. Katja Afheldt; the commander of the Dominican Navy of the Dominican Republic, Vice Admiral Agustín A. Morillo Rodríguez, and the director of Infotep, Rafael Santos Badía.