As Mexico’s automotive production ecosystem continues to recover and reposition for a shifting economic environment, Guanajuato maintains automotive leadership thanks to a solid performance in production and new investment.

Recording 828,544 units between January and November 2025, Guanajuato maintains automotive leadership as Mexico’s leading producer of light vehicles, a distinction it holds by a wide margin over other states where automotive production is significant, including Aguascalientes, Coahuila, and Puebla.

Driving Global Competitiveness

Driving this performance are the operations of four automakers:

* General Motors (Silao) at 293,531 units, led by the Silverado Double Cab (136,319 units) and Sierra Double Cab (124,881 units).

* Mazda (Salamanca) with 164,918 units, led by the CX-30 at 101,242 units.

* Toyota (Apaseo El Grande) at 190,866 units, with a standout 153,034 Tacoma pickup trucks produced (a key export model for Toyota in North America) and 37,832 hybrid Tacoma HEV units.

* Honda (Celaya) with 179,229 units, led by its HR-V model at 148,537 units and then by the new Acura ADX with 30,692 units.

As for plant utilization, data from El Economista underscores a region with diverse models and strong operational efficiency. For example:

* Honda Celaya is at 97.76% utilization for its 200,000-unit capacity facility.

* Toyota and GM plants are at just below 80% utilization.

* Mazda vehicles are at 71.96%.

What is more, amid global headwinds that include supply chain volatility, tariff and trade pressure, uncertain logistics and freight disruptions, and a rapidly shifting automotive commercial and product landscape, these utilization rates are indicative of a region maintaining a healthy pace of production despite all these factors. On the outlook for year-end numbers, while Guanajuato will fall short of its 2024 historic record of 913,120 units, the state is on pace to close the year with a volume between 870,000 and 884,000 units (a -1.7% to -4.7% decline vs the previous year). Even so, Guanajuato maintains automotive leadership as it also plays a key role in North America’s automotive supply chain and value-added mix—particularly the export of pickups and SUVs.

Likewise, the momentum of automakers such as Honda and Toyota with new hybrid vehicles and next-generation platforms in particular continues to strengthen the strategic position of the state within an industry rapidly transitioning towards electrification.

Magnet for Investment: Guanajuato Adds Over USD 260 Million and 33 Automotive Projects in 2025

In addition to installed capacity, Guanajuato maintains automotive leadership in investment attraction, with the highest number of announced projects in 2025.

Specifically, the state counted 33 projects announced and in the process of development through September 2025. By comparison, next was Querétaro with 26. In value, Guanajuato also had the highest announced investment between January and September 2025, at USD 262.12 million, according to the Automotive Investment Report Q3 2025 from Cluster Industrial.

Cumulatively, these 33 projects represent more than 3,000 new jobs and 323,495 m² of industrial construction and continue to reaffirm the state’s position as an attractive destination for advanced manufacturing, electronics, structural components, and electromobility.

From the first through the third quarter of 2025, some of these new investments included:

* Cheersson (Ruima Precision): Precision metal forming plant for auto parts in Apaseo el Grande, with an investment of USD 3.4 million and a built-up area of 52,297 m².

* Forvia Hella: USD 15.4 million for a new electronic units and remote key fob production plant in Amexhe.

* Mubea (Germany): USD 60 million for precision steel tube manufacturing in Celaya (18,000 m² industrial space).

* Ampure (USA): USD 4 million for expansion in León in support of electric-vehicle charger production.

* Pangea Made and Waldaschaff (Germany): León expansions for production of interiors and vehicle impact-structure components.

Announced projects through the fourth quarter of 2025 in Guanajuato included:

* SH PAC (South Korea): USD 40 million in investment for a new production plant in León and 120 new jobs.

* Sinoboom (China): Record USD 150 million investment for its new plant in Guanajuato Puerto Interior, creating 700 new jobs.

* Taigene (Taiwan): Expansion in the Colinas de León I with an investment of USD 33.4 million.

* Tongling México (China): USD 91 million for a new plant in Marabis Castro del Río that will have up to 540 jobs created through two phases of operations.

These investments contribute to not only the state’s potential to surpass the national production record of 913,000 units set in 2024 in 2026, but also to expand its industrial profile in advanced technologies, precision manufacturing and components with increasing relevance to the energy transition.

Conclusion

In a year marked by numerous changes for the automotive industry, Guanajuato maintains automotive leadership not only through production volume but through an ecosystem of manufacturing, innovation, and competitiveness with global resonance. With strong production from automakers that continue to lead the Mexican market, increasing output of next-generation vehicles and hybrid models, high plant utilization rates, and foreign and domestic investment, Guanajuato is setting the future of the automotive industry for the rest of North America. As it deepens its industry in electromobility, advanced manufacturing, and strategic integration into the auto sector’s supply chain, Guanajuato is positioning itself to remain a force to be reckoned with in Mexico’s industrial future and an essential player in the automotive sector’s next ten years.

High-net-worth clients are choosing the country as a center for estate planning and tax residency.

Brazil has long been a major buyer of Uruguayan goods and a key source of foreign direct investment, especially in industry and agriculture. This established economic relationship has set the stage for the recent surge in Brazilian investment in Uruguay, which has expanded notably in recent years.

Following the pandemic, this relationship gained momentum and diversified. New investor profiles have emerged, and interest has broadened. Experts note that Brazilians are now motivated by both business opportunities and lifestyle and long-term wealth planning.

Experts report that this trend is accelerating due to global uncertainty and recent tax reforms in Brazil. These factors are reshaping decisions and strategies for companies, investors, and prospective residents.

“There are high-net-worth clients who look to Uruguay as a center for estate planning or tax residency. We see this reflected in the closing of deals aimed at obtaining tax residency in Uruguay, as well as in relocations to the country’s interior and to areas such as Punta del Este. These decisions show that Uruguay is consolidating itself as an attractive center for estate planning and tax residency for high-net-worth clients,” said Javier Elenberg, managing partner at RSM Uruguay. This firm provides accounting, auditing, consulting, and tax services.

In terms of investments, Sebastián Risso, former executive director of Uruguay XXI and now director of his own consultancy, El Faro Advising, explained that new trends involve Brazilian companies seeking to establish a services and logistics hub in Uruguay. In addition, investors from this country are beginning to focus on the real estate, hospitality, and manufacturing sectors, taking advantage of free-zone regimes and temporary admission systems, among other tools offered by the country. These developments further reinforce the profile of Brazilians investing in Uruguay as a diverse and expanding segment.

This, he clarified, does not mean that Brazilian companies are considering leaving their country, but rather that they are interested in having a foothold in Uruguay to support their operations in Brazil. Moreover, the Uruguayan market is appealing as a first step abroad or as a testing ground for operations.

“The sectors currently generating the most interest among Brazilian investors are land and real estate. These areas offer strong and secure opportunities that align with the expectations of those seeking to diversify their assets or settle in Uruguay,” Elenberg noted. This aligns closely with the broader profile of Brazilians investing in Uruguay who prioritize stability, asset diversification, and long-term residency options.

Meanwhile, Francesca Magno, a partner at the global legal and tax services firm Andersen in Uruguay, said that many Brazilian family offices are planning part of their investment structures in Uruguay.

Beyond investments, consultants are also identifying a growing number of Brazilians interested in residing in Uruguay. In addition to tax considerations and the country’s stability, security is a fundamental factor, said Magno.

Punta del Este and Montevideo are the main hubs of interest for this group, which, according to Risso, consists mainly of families with parents aged 30 to 40 and school-age children.

RSM added that the profiles showing the greatest interest in relocating are, socioeconomically, middle- and upper-income individuals. They also note growing interest from young freelancers attracted by the country’s quality of life, as well as from business owners seeking to retire in a peaceful and safe environment.

“That stimulates the economy, because these are high-income families who use schools, hospitals, and local gastronomy,” said the former head of Uruguay XXI. The growing flow of Brazilians investing in Uruguay is therefore also having a secondary economic effect on services and local commerce.

The Reasons Behind the Increase in Inquiries

One of the most recent reasons that has accelerated the volume of inquiries, according to consultants, relates to the tax reform promoted by the government of Luiz Inácio Lula da Silva and unanimously approved in both chambers, which significantly redefines how the tax burden is applied in Brazil.

The proposal eliminates income tax for those earning up to 5,000 reais per month — about US$936 — and increases the burden on taxpayers with annual incomes above 1,000,000 reais.

“This type of change tends to generate greater interest in seeking more stable and favorable alternatives, and Uruguay is positioning itself as a concrete option for those looking for security and tax advantages,” Elenberg said.

But these changes, which will be implemented gradually over the coming years, represent only the tip of the iceberg for broader reasons. Some business owners are even observing the process cautiously, preferring to remain on standby and avoid anticipating major shifts until they see how the reform actually unfolds.

Another contributing factor is the presidential election scheduled for next year, which is generating strong uncertainty regarding Brazil’s political and economic direction.

Beyond political issues, Magno noted that economic factors also play a significant role in this trend.

One such factor is the limitation Brazilians face when trying to save in U.S. dollars within their own banking system. This restriction forces them to keep their wealth and investments tied to the real. Uruguay, by contrast, allows saving and transacting in dollars, enabling them to access the international economy more directly.

Although they could also do this in the United States or Europe — in euros — Uruguay emerges as a much closer option, making it particularly attractive for those looking to protect their capital. Along these lines, the greater interest in Uruguay is also explained by recent regulatory changes in countries such as Portugal and the United States, markets that until recently captured much of Brazilians’ attention.

“The global context makes Uruguay a country people are keeping an eye on,” Magno said.

The consultancy stressed that in order to sustain and further encourage these trends, it is essential to “take care of the country”: maintaining and strengthening security, as well as ensuring strong connectivity — two pillars considered indispensable for preserving Uruguay’s appeal in the region.

Other Investor Profiles Growing in Importance

In addition to Brazilian investors, Santiago Pierro, founder and chairman of the real estate developer Liderus Holding, communicated that Chilean interest in real estate investments has grown sharply, increasing by more than 30%, although their overall share remains small. In Punta del Este, this group is especially drawn to annual rental income, the quality of the beaches, the glamour of Uruguay’s eastern coast, and the variety of tourism options.

Another group on the rise is Paraguayans. “It has increased much more sharply — it has more than doubled — and what we’re seeing is that they are seeking to spend a large part of the year in this area,” he said.

“They generally settle in La Brava up to San Rafael and in La Mansa up to Las Delicias. They look for a store of value, a second home, and the feeling of belonging to a place internationally valued for its beauty and vast range of options in every sector,” he explained.

Conclusion

The current wave of Brazilians investing in Uruguay reflects a broader regional shift driven by economic uncertainty, tax policy changes, and the search for security and quality of life. Uruguay’s stability, favorable tax framework, and strong institutional environment have positioned it as a preferred destination for Brazilian capital and residency planning. As these trends continue to grow, Uruguay is likely to consolidate further its role as a strategic hub for South American investors seeking long-term opportunities and greater peace of mind.

An End of the Year with Heterogeneous Performance

Economic activity in the last few months of 2025 displays a heterogeneous picture, with a sectoral configuration advancing at different rhythms and with determining elements to approach the performance of the Peruvian economy in 2026, a year marked by national-level elections. According to the latest Current Economic Activity Progress Report by the National Institute of Statistics and Informatics (INEI), three sectors are expected to move by the end of 2025: electricity, manufacturing, and construction, linked to the dynamics of domestic demand and private investment recovery. These sectors are part of a larger framework of industrial sectors in Peru with varying levels of dynamism.

Sectors That Move the Economy in the Final Months of 2025

Electricity: A Confirmation of Productive Recovery

The electricity subsector registers an increase of 3.31% in October compared to October 2024. This subsector is highly correlated with productive activity; therefore, the registered increase points to a higher use of installed capacity in industry, commerce, and services, a key signal given the weight of the industrial sectors in Peru in sustaining national output.

Manufacturing: A Moderate Recovery Sustained after Volatile Months

The manufacturing sector registers a growth of 1.73% in September, corroborating a moderate recovery. This behavior results from two components: primary manufacturing, related to fishing and natural resource processing, and non-primary manufacturing, related to consumer goods and intermediate goods manufacturing. As one of the most relevant of the industrial sectors in Peru, this sector is key to economic diversification and job generation.

Construction: The Most Dynamic Sector

Construction has been the most dynamic sector, driven by rising domestic cement consumption. In October, this indicator rose by 9.1%, following a healthy 11.15% increase in September. This pattern points to an increase in the execution of private works, real estate projects, and self-construction activities. In the same way, capital goods and construction materials imports rose by 12.8% in October, pointing to the continuity of investment in expansion and machinery renewal in the industrial sectors in Peru that are based on infrastructure development.

Sectors That Mark the Deceleration at the End of 2025

Hydrocarbons: A Continuation of the Downward Trend

The hydrocarbons sector registered a decrease of 6.59% in October due to the contraction in the volumes of oil and natural gas. This reflects, once again, the operational and investment challenges that have been affecting the sector for years.

Agriculture: Moderate Growth but with Structural Gaps

The agricultural sector grew 4.21% in October, with mixed results between crop and livestock. Although positive, its growth is more modest compared to other sectors of the economy, due to productivity gaps, limited access to technology, and greater vulnerability to climate.

Public Investment: A Relevant Source of Deceleration

Central government spending on public investment registered a year-on-year fall of 6.59% in October. This is the fourth consecutive month of year-on-year variation in the negative. This also directly affects infrastructure works, equipment purchases, and multi-year investment in transport, sanitation, education, health, among other areas.

The Outlook for 2026: A Year of Elections and Economic Consequences

Electoral Cycles and Public Investment Execution

There is a recurrent pattern during electoral cycles: a slowdown in public investment execution during pre-electoral years. For example, in 2016, year-on-year execution fell to 70.4%, one of the lowest levels in a decade. In 2021, the performance was slightly better, but still below the level of 2022. This occurs, among other factors, by stricter control, by changes in technical teams, and by greater administrative caution.

The Counterpart of Weaker Public Sector: Private Investment

In this environment, where lower public sector execution is expected, the behavior of private investment will be central. Its performance, however, will be determined by factors such as political stability, macroeconomic conditions, and business expectations throughout the electoral process.

Business Expectations: Optimism with a Grain of Caution

According to the Monthly Macroeconomic Expectations Survey by the Central Reserve Bank of Peru (BCRP), the business environment in Peru is in optimistic territory. In November, 16 out of 18 indicators crossed the threshold of 50 points. Expectations for the economy 12 months ahead closed at 63.9 points, and the variable expectations for the firm’s situation at 12 months closed at 70 points. Both of these signal constructive sentiment in the medium term. However, the indicators related to investment and hiring at 12 months turned slightly lower, signaling greater caution in the context of the 2026 elections.

What to Watch in 2026: Variables to Follow

For 2026, several factors and indicators will be determining the performance of the Peruvian economy, both in the short term and in the medium term, among them are:

1. Construction: the key is that it continues at high levels and multiplies.
2. Fiscal revenues and, indirectly, the external sector: due to the normalization of metal prices, a substantial contribution is still expected, but with more moderate growth.
3. Public investment: It is to be expected that its pace will significantly decelerate in the pre-electoral months.
4. The reaction of the private sector to political uncertainty and electoral information.
5. Macroeconomic conditions: an adequate macroeconomic environment is key to generating positive signals for private investment. In this sense, the Peruvian economy heads into the year with low inflation, a stable exchange rate, and strong private consumption.

Conclusion

As 2026 begins, the performance of industrial sectors in Peru and the dynamics of demand, investment, and public spending will determine its capacity to continue with the stable growth of recent months. The continuity of construction, manufacturing, and electricity activity will be key for the second half of the year, in which the impact of the election results may start to be reflected, as well as the behavior of other productive sectors. In the short term, key variables to follow will be related to construction and its multiplier effects, the evolution of metal prices and their effect on exports and fiscal revenues, the magnitude of the pre-electoral public investment deceleration, and the reaction of the private sector to political uncertainty. In the context of the 2026 elections, uncertainty about economic performance is relevant, but with better macroeconomic conditions, domestic factors, and signals from political actors, Peruvian society and the business sector will be able to look at the year with more confidence.

Paraguay’s maquila system has drawn particular attention from Brazilian companies over the past few decades, with businesses expanding across the border in significant numbers to take advantage of Paraguay’s tax system. Brazilian news outlets recently noted the scale of investment on Paraguayan soil by Brazilian companies. The amount of Brazilian companies in Paraguay has been on the rise over the past few decades, partly as a result of the maquila system and the benefits that Paraguay can offer companies under this law, and also because the tax advantages offered by Paraguay have acted as a draw for foreign companies that have since set up business in Paraguay and changed the country’s industrial model. Folha de São Paulo reports that approximately seven in ten maquila regime companies that have arrived in Paraguay over the past 25 years are Brazilian.

Key Brazilian Sectors Expanding in Paraguay

The most important sectors for Folha are those involved with footwear production, the companies within which have seen considerable growth over recent years. The report indicates that there are a total of 203 active footwear companies under the maquila system by the end of 2024. There has been a particular increase in the number of Brazilian companies along the border, which has jumped in number by 182 since 2014. This growth is clearly important for the presence of Brazilian companies in Paraguay, with a number of Brazilian footwear producers moving part of their operations to Paraguay.

Grupo Lupo Begins Construction of New Investment

A story reported in the media that appears especially relevant for the continued growth of Brazilian companies in Paraguay is the case of Grupo Lupo, a textile company that was founded almost a century ago. In January, Grupo Lupo’s executives announced to investors the opening of the company’s first factory outside Brazil, in Ciudad del Este near the border with Foz do Iguaçu. The investment by Lupo is reported to be about 30 million Brazilian reais, with the new factory becoming part of the company’s strategy to expand in South America. The new company will produce 20 million pairs of socks a year and will generate 350 direct jobs. Lupo estimates that the factory will be running at full capacity by 2026. This case is also notable because it shows that the presence of Brazilian companies in Paraguay is not limited to sectors traditionally connected to maquila; Brazilian companies in Paraguay are starting to look for new ways to diversify operations to gain new market share, while also having a smaller fiscal and logistical impact.

Previous Investments: Guararapes, Texcin, and Estrela

The report by Folha also returns to a number of investments made by large Brazilian companies in the early days of the maquila boom. Guararapes (parent company of Brazilian retail chain Riachuelo) and Texcin were the Brazilian partners in an investment made between 2014 and 2015 to create a large center for garment production in Paraguay, a joint venture of USD 10 million. This venture was significant, as it generated around 2,000 jobs and thus had a pivotal impact on the apparel industry in Paraguay. Guararapes’ investment is connected to several other investments made by Brazilian companies along the border. The following year, one of Brazil’s more well-known toy manufacturers, Estrela, also opened a production plant in Paraguay. This case, along with those mentioned earlier in the report, helps put the situation of Brazilian companies in Paraguay into context. These investments show that, across different industries, from textiles to manufacturing and consumer goods, there were companies that identified the opportunities offered by Paraguay’s maquila regime.

Brazilian Companies in Paraguay: The Attraction of Paraguay’s Maquila System

The article reports that Paraguayan authorities have set a particular focus on the attraction of textile companies, as well as those that work with plastics and auto parts. The industries that operate under these categories currently represent 58.1% of all maquila regime companies, according to Paraguay’s Ministry of Industry and Commerce. The data released on Paraguayan exports indicate that in 2024, Brazilian companies in Paraguay produced around 60% of all products exported by Paraguayan maquiladoras and that these were destined for the Brazilian market. The same source shows that the number of maquila-certified industries in Paraguay was 292, with Brazilian companies in Paraguay representing 71% of these. These figures show how the relationship between Paraguay and Brazil is so integrated with the maquila system. For every 1% increase in the Brazilian GDP, the Paraguayan maquila exports increase by 4.1%, on average. These are all signals that Brazilian companies in Paraguay will continue to grow, using Paraguay as a platform for optimized production that can be directed at regional and even global markets.

 Tax Benefits in Paraguay and the Legal Framework

The Paraguayan maquila law also allows companies to establish a legal entity in the country, which has some important benefits that have made Paraguay particularly attractive for these Brazilian companies. Tax exemptions, zero duties when importing capital goods, raw materials, and services, and the payment of a tax of 1% of the value of exports are among the advantages of Paraguay’s maquila system. Paraguay’s maquila law took shape in the year 2000, with the publication of a decree to regulate its application, and the first maquila operations took place in the second half of 2001, as informed by Paraguay’s National Institute of Technology, Standardization, and Metrology. The close integration between Brazil and Paraguay is also clear within the maquila system, with every 1% increase in Brazil’s GDP resulting in a 4.1% increase in Paraguayan maquila exports. Maquila exports represent 68% of Paraguay’s total industrial exports, growing in recent years at an average rate of 20%.

Paraguay to Expand on the Attraction of Brazilian Companies

Natalia Cáceres, Executive Secretary of the National Council of the Export Maquila Industry, also stated that Paraguay plans to attract more Brazilian investors and strengthen this trend by participating in major trade fairs and international business events, highlighting the qualities of Paraguay’s industrial fabric. Cáceres emphasized that it is not about ‘dragging’ the industries out of Brazil. In fact, the country seeks to join with them so that they can improve their competitiveness. The country has a cost-efficient environment that complements the advantages of Brazilian industry. This type of message is important as it shows a longer term outlook for the growth of Brazilian companies in Paraguay. For Paraguay, the presence of Brazilian companies in Paraguay continues to be a very important tool to use to export production to regional and global markets in the most optimized way.

Existing Challenges for Maquila Industry: Credit and Labor

On the other hand, some business leaders have also highlighted certain issues, such as the lack of easy access to credit in Paraguay, as well as a shortage of skilled labor. In fact, these factors have been barriers that have limited the growth of production in certain areas of specific industries, even with the presence of tax advantages. The government has stated its commitment to working with other Mercosur countries to increase credit lines for the maquila sector and to improve training for the labor force. By the end of December, companies registered in the maquila system already had almost 30,000 people employed, which generated twice as many indirect jobs. The government has indicated its intention to continue increasing the participation of the maquila sector in the economy. Upon taking office in 2023, President Santiago Peña promised to create 100,000 new jobs in the maquila industry by 2028, reiterating his position that his government will not be raising taxes to attract new investors.

Conclusion

To summarize, the maquila industry in Paraguay, particularly with the entry of Brazilian companies, is a market with a clear and constant trend of growth, in part determined by how Paraguay has managed to incorporate itself into the productive development of its neighbor. The convergence of several favorable factors, such as tax exemptions, cheap labor, and access to Brazil, has made Paraguay a country that companies, from footwear and textile companies to Brazilian companies dedicated to the production of consumer and auto-parts, have used to set up operations that will allow them to be more efficient or diversified. This is evidenced by the Grupo Lupo factory, Guararapes, Texcin, and Estrela projects. However, the development of the maquila industry in Paraguay should also be accompanied by improvements in challenges such as credit and the lack of technically trained personnel. In this way, the maquila industry in Paraguay is certain to continue to grow in the coming years, with the introduction of policies that support international projection and infrastructure improvements, generating better jobs and a stronger position in the South American market.

The Dominican Republic has a strategic geographical location and strong connectivity to important trade routes that have made it a potential key logistics hub to move goods through the Caribbean and Central America efficiently. To this end, public and private sector investments have sought to make the Dominican Republic a logistics hub that can respond to growing trade volumes. Recent government investment initiatives, modernization efforts at national ports, and foreign trade activity have laid the groundwork to turn the Dominican Republic into a logistics hub.

Significant Investment in Ports

The Dominican government and the private sector have invested US$531.5 million in the national port system. Dominican President Luis Abinader announced that a modernization program at national ports has increased financial results, while the special agreement allowed to pay off debts amounting to RD$1.3 billion, to double the income of the Dominican Port Authority (Apordom), and to increase monthly collections from RD$56 million to RD$140 million. In this context, it is essential to make the Dominican Republic a logistics hub, ready to meet the demands of international trade and current market needs.

Foreign Trade Activity

Foreign trade activity is another indicator that sets the tone to turn the Dominican Republic into a logistics hub. According to the National Statistics Office (ONE), 65.5% of Dominican exports in 2024 were carried out through maritime channels, a year-on-year increase of 6.1%. Haina Oriental Port accounted for the majority of export activity, totaling US$4,170.4 million, followed by Las Américas International Airport with US$3,363.4 million and the multimodal port of Caucedo with US$2,228.9 million.

The increase in volume represents growth and the country’s strategic intention to optimize the operation of the ports of the Dominican Republic, to allow a more fluid transit of goods and services to the various markets in the world. The investment in infrastructure for cargo terminals and infrastructure, as well as the decision to improve operational efficiency, has allowed the Dominican Republic to position itself as a potential logistics hub for the region.

Network of Specialized Ports

In the Dominican Republic, there is a network of ports of various types and specializations that allows the management of a wide variety of goods in transit. Here are some of them:

• Arroyo Barril (Samaná): This port handles general cargo and also accommodates cruise ships.
• Azua: This port specializes in the reception and dispatch of liquefied petroleum gas, as well as cement and clinker.
• Barahona: Another specialized port in gypsum, salt, and cement exports.
• Boca Chica: A port that was built to service the sugar industry and that now receives containers and tourist ships.
• Manzanillo (Montecristi): It is another multimodal port that receives imports of clinker and exports refrigerated containers of bananas.

Puerto Plata, San Pedro de Macorís, Cabo Rojo, Amber Cove, La Romana, and Caucedo are other important ports for transit. The diversity of facilities and infrastructure reinforces its potential to make the Dominican Republic a logistics hub.

Competitive Context

The average score for Latin America and the Caribbean on the 2023 Logistics Performance Index (LPI) was 2.7 out of 5.0, below the global average of 3.0. Panama, Mexico, Chile, Argentina, and the Dominican Republic reported a decline in their scores, while other indicators improved (infrastructure from 2.5 to 2.6, quality of logistics services 2.7, and tracking and tracing 2.8). Brazil had the best score in the region at 3.2, followed by Panama at 3.1. Venezuela, Cuba, and Haiti were at the lower end of the scale.

To turn the Dominican Republic into a logistics hub, it is necessary to work on the operations of ports and logistical nodes, in addition to improving the quality of service and increasing supply chain efficiency. With these actions, the country could compete with other regional countries that are in the logistics business.

Expert Insights

According to Phany Benítez, Business Manager of PHIA Logistics, the Dominican Republic’s geographical location, together with its direct connections to the U.S., Mexico, Central America, and the Caribbean, makes it an ideal destination for transit and redistribution of goods. She also points out that DP World Caucedo, in Boca Chica, “is the one that receives the highest number of containers, both in imports as well as in exports, and continues to be the first gateway in foreign trade of the country.”

Caucedo, added the expert, stands out for its modernity, in terms of infrastructure, technology, and handling of containerized cargo, and is among the best ports in the Caribbean. The Haina River Port is also one of the main ports, but it is an older port with a smaller draft. It has, however, been working on its expansion to receive more vessels and streamline operations to be able to efficiently receive bulk cargo, fuel, vehicle imports, and a large diversity of merchandise.

Efficient Ports for both Importers and Exporters

Both Caucedo and the Haina River have efficient facilities that meet the operational needs of importers and exporters, according to Benítez. While Caucedo is better equipped for containerized cargo and large shipments, Haina, for its part, offers logistical advantages for bulk cargo and certain imports that do not require containerization. They are two complementary ports in their own way, and they are at the center of the plans to make the Dominican Republic a logistics hub.

Operational Challenges

As challenges, it has been reported that operations have been affected on some occasions by a lack of chassis to pick up and return containers to the shipping lines. This, to a greater or lesser extent, slows down some processes and has generated some congestion in some cases. As such, for the Dominican Republic to be a logistics hub, it must have investments in infrastructure and technology, as well as more operational efficiency to efficiently handle the growing volume of trade in an increasingly competitive context.

Export Markets

Dominican exports have a strong presence in the United States, the European Union, and Canada, among others. Products such as cocoa in all its forms, fresh and dried banana, cigars, jewelry, and pharmaceuticals have high demand in the international market. The expansion of port capacities and the reduction of bottlenecks in logistical operations are important measures to turn the Dominican Republic into a logistics hub that can support these and other high-value export products and services.

Conclusion

With strategic investments and positioning, in combination with a modern port infrastructure and improved operational efficiency, the Dominican Republic has taken major steps to make itself a leading logistics hub in the Caribbean region. The combination of factors such as public-private investment initiatives, the network of specialized ports with competitive advantages, and foreign trade activity, reinforces the competitive advantages of the Dominican Republic as a potential logistics hub. Solving operational bottlenecks and continuing to invest in new logistics and technological infrastructure are essential to make the Dominican Republic a logistics hub recognized in the region and abroad.