LOOKING AT
OPPORTUNITIES TO
INCREASE TRADE
A study to
demonstrate the
opportunities
within the region
Between the Dominican Republic, Aruba, Curacao and Sint Maarten
0
Dominican Republic, Aruba, Curacao
and Sint Maarten
Looking at Opportunities to Increase Trade
Embassy of the Kingdom of the Netherlands
Max. Henriquez Ureña #50
Santo Domingo, Dominican Republic
www.holanda.org.do
www.facebook.com/DutchEmbassyDR
T: (+1)809 262 0300
E: [email protected]
September, 2014
Santo Domingo, Dominican Republic
Table of Contents
Introduction
3
1. Current trade flows from the Dominican Republic to Aruba, Curacao and Sint Maarten
4
2. Potential trade flows from the Dominican Republic to Aruba, Curacao and Sint Maarten
9
3. Current and potential trade flows from Aruba, Curacao and Sint Maarten to the
Dominican Republic
14
4. Challenges
17
5. Future developments
26
6. Conclusion
28
Annex
29
2
Introduction
President Danilo Medina of the Dominican Republic announced his intentions to strengthen the
economic ties between the Dominican Republic and the Caribbean countries of the Kingdom of The
Netherlands, Aruba, Curacao and Sint Maarten including the public-bodies Bonaire, Sint Estatius and
Saba (BES) after a meeting with the Prime Minister of Curacao, Mr Asjes, and Prime Minister of Sint
Maarten, Mrs Wescott-Williams during a ACS-summit in Mexico early 2014. In the president’s own
words: “the Dominican Republic is able to provide its smaller regional neighbors with anything they
need”.
Coinciding with President Medina’s announcement the Embassy of the Kingdom of The Netherlands
had decided to compile a study, mapping exactly what President Medina was referring to i.e. “Looking
into ways to increase trade between the Dominican Republic and Aruba, Curacao and Sint Maarten”.
In order to provide a useful document with recommendations on how to achieve this goal, the study
has been divided into different stages that correspond to the sections of this report. In order to get a
clear and accurate picture of the current trade between the countries the first chapter provides an
inventory of the current trade flows. Even though these flows are modest, it was considered important
to include the available statistics as a guideline and a point of departure from which opportunities that
may exist can be assessed, but are not yet being exploited.
Chapter 2 intends to demonstrate how certain product categories (ordered following the Harmonized
System Codes) show export potential from the Dominican Republic to Aruba, Curacao and Sint
Maarten. This is done by examining the demand of the main imported goods by the NL-Caribbean
countries, and comparing this demand with the capacity of the Dominican Republic to supply these
products. In this way a realistic picture is drawn of the potential export from the Dominican Republic.
Some products that are already being traded on a small scale clearly show potential, while others
which are not yet being exported represent great commercial potential for Dominican producers.
Significantly fewer products are traded in the opposite direction, i.e. from Aruba, Curacao and Sint
Maarten to the Dominican Republic. This is a logical consequence of the fact that the NL-Caribbean
countries do not have major productive industries. Chapter 3 does however provide an overview of
what is currently being exported and looks into potential to increase export volumes.
Chapter 4 examines the obstacles which exist to further increase trade. No doubt the first and
foremost one is the issue of transportation. Although transportation could quite easily be facilitated, it
is not facilitated efficiently at the current. In this section an attempt is made to analyze why this is not
the case and how the problem could be solved. Other challenges are also discussed, such as the need
for a constant, reliable flow of products of high quality and sufficient volumes to meet the needs of
importers and wholesalers.
Future developments are discussed in Chapter 5. It offers a couple of suggestions for initiatives that
could possibly boost trade flows. Not only are these suggestions viable, they would also have a
positive effect on the integration of the entire Caribbean region by enabling easier inter-islandinteraction. Most importantly, there is a need for easier movement of people and goods between the
countries within the region, which would increase the trade and employment possibilities, thereby
benefitting both the Dominican Republic and the NL-countries in the Caribbean.
This report is based on literary research, analysis of statistical data and interviews with a wide variety
of interested parties from both the public and private sectors of the Dominican Republic, Aruba,
Curacao and Sint Maarten such as representatives of shipping agencies, transport companies, the
Haina International Terminals and Puerto Multimodal Caucedo, port authorities of Aruba, Curacao and
Sint Maarten, of Free Zones, Chambers of Commerce, ADOEXPO and CEI-RD, the EU Delegation and ,
producers, importers, buyers, wholesalers, etcetera from all four countries as well as BES.
This report aims to establish an awareness of the great opportunities that are waiting to be exploited.
As set out in Chapter 5, strong commitment in combination with intensive collaboration can surely
improve the trade and movement of persons. What is needed is a type of match-making between
exporters, importers and transportation facilitators: herein lies an important role for the governments
to act as facilitators.
3
1. Current trade flows from the Dominican Republic to Aruba, Curacao and Sint Maarten
The Dominican Republic exported a total of US$7.9 billion worth of products in 2013, according to
statistics of the Dominican Oficina Nacional de Estadística (ONE). Top export products, arranged by
“Harmonized System”-codes (in between parentheses) in order of magnitude, include Pearls, precious
stones and coins (71); Instruments (90); Tobacco (24); Machines, electrical appliances (85), and
many other products which can be seen in the table below.
Aruba imported a total of US$1.16 billion worth of products in 2013, while Curacao’s imports in 2011
totaled US$1.29 billion. Statistics of Sint Maarten’s imports were not available at the time this report
was compiled. Of Aruba’s imports in 2013 only US$9.3 million originated from the Dominican Republic.
In 2011 US$9.4 million worth of products were imported by Curacao from the Dominican Republic.
These imports included goods such as salt, sand, stone and cement (25); tobacco (24); plastic
materials and synthetic resin (39); and organic chemical products (29).
The following tables give an overview of the export from the Dominican Republic and import by Aruba
and Curacao:
Export Dominican Republic 2013 – Main Export Products
HS-code
Description
71
90
24
85
52
72
30
64
61
39
62
08
18
27
17
22
21
25
26
84
63
33
11
07
48
74
19
20
76
73
Pearls, precious stones and coins
Instruments
Tobacco
Machines, electrical appliances
Cotton
Cast iron, iron and steel
Pharmaceutical products
Footwear
Clothing of knitted and crocheted fabrics
Plastic materials and synthetic resin
Other clothing
Fruit
Cocoa
Petrochemical products
Sugar
Beverages
Other food product
Salt, sand, stone and cement
Metal-ore
Reactor, machinery and mechanical appliances
Rags
Perfumery and cosmetic preparations
Flour
Vegetables
Paper and cardboard
Copper
Cereal preparations
Vegetable preparations
Aluminum
Works of cast iron, iron and steel
Export Dominican Republic
2013 (x 1000 US$)
1.478.542
801.597
594.727
499.030
379.726
355.015
322.155
317.046
305.372
281.980
267.789
233.876
171.477
156.388
146.719
132.736
116.500
109.986
100.622
94.688
92.209
78.290
70.154
69.446
51.573
48.245
46.413
45.460
44.763
40.365
4
Import Aruba 2013 – Main Import Products
HS-code
Description
27
84
85
87
71
02
22
94
91
04
30
33
39
62
73
90
21
48
95
19
07
16
20
61
25
08
64
76
63
17
11
18
24
74
72
Petrochemical products
Reactor, machinery and mechanical appliances
Machines, electrical appliances
Cars, motorcycles and cycles
Pearls, precious stones and coins
Meat
Beverages
Furniture, articles for lighting and construction work
Clockwork
Dairy products
Pharmaceutical products
Perfumery and cosmetic preparations
Plastic materials and synthetic resin
Other clothing
Works of iron, iron and steel
Instruments
Other food product
Paper and cardboard
Toys and games
Cereal preparations
Vegetables
Meat and fish preparations
Vegetable preparations
Clothing of knitted and crocheted fabrics
Salt, sand, stone and cement
Fruit
Footwear
Aluminum
Rags
Sugar
Flour
Cocoa
Tobacco
Copper
Cast iron, iron and steel
Import Aruba 2013
(x 1000 US$)
93.862
85.782
81.028
73.567
56.683
40.107
39.231
38.854
34.854
30.958
28.472
27.571
27.504
26.810
26.246
22.781
22.529
21.357
19.997
18.143
17.941
17.142
16.910
15.954
15.241
14.722
14.064
10.094
9.678
7.355
5.567
4.095
2.974
2.068
1.865
Import Curacao 2011 – Main Import Products
HS-code
Description
84
87
85
30
02
22
73
88
39
90
94
Reactor, machinery and mechanical appliances
Cars, motorcycles and cycles
Machines, electrical appliances
Pharmaceutical products
Meat
Beverages
Works of cast iron, iron and steel
Aviation and space travel
Plastic materials and synthetic resin
Instruments
Furniture, articles for lighting and construction work
Import Curacao 2011
(x 1000 US$)
143.409
119.269
106.519
58.160
52.340
48.864
44.255
41.143
32.828
30.214
30.064
5
62
33
48
04
38
20
44
21
71
07
19
16
49
64
17
91
03
95
89
76
08
32
25
23
34
Other clothing
Perfumery and cosmetic preparations
Paper and cardboard
Dairy products
Various chemistry
Vegetable preparations
Wood
Other food product
Pearls, precious stones and coins
Vegetables
Cereal preparations
Meat and fish preparations
Bookstore articles and graphic art
Footwear
Sugar
Clockwork
Fish and seafood
Toys and games
Navigation
Aluminum
Fruit
Paint, varnish and ink
Salt, sand, stone and cement
Feeding stuff for animals
Soap
29.788
28.745
27.503
27.315
26.876
23.233
20.903
19.181
19.042
16.693
16.054
15.939
15.550
14.746
13.903
12.878
12.238
12.180
11.575
11.421
11.128
10.956
10.727
10.225
9.649
When reviewing the data compiled in the tables above, it is clear that the Dominican Republic exports
many products which are also important import products for Aruba and Curacao. Therefore the data
could be used as a basis to assess opportunities to increase trade. This will be done by combining the
demands of Aruba and Curacao and the potential of the Dominican Republic to deliver. Before doing so
it is important to chart the current trade between the Dominican Republic on the one hand and Aruba
and Curacao on the other.
According to the Oficina Nacional de Estadística of the Dominican Republic, in 2013 Aruba imported to
the total value of nearly US$ 7.7 million from the Dominican Republic. The combined weight of these
imports added up to nearly 114 million kilos. The table below demonstrates which products were
imported, sorted according to value FOB and the gross weight.
Export Dominican Republic to Aruba 2013
HS-code
Description
25
39
22
24
04
29
34
20
94
72
76
33
Salt, sand, stone and cement
Plastic materials and synthetic resin
Beverages
Tobacco
Dairy products
Organic chemical products
Soap
Vegetable preparations
Furniture, articles for lighting and construction work
Cast iron, iron and steel
Aluminum
Perfumery and cosmetic preparations
Value FOB
(x 1000
US$)
1.369
1.172
1.135
843
432
395
353
301
190
173
157
140
Kilos Gross
110.703.716
392.073
1.350.656
41.403
73.781
2.039
130.660
457.780
72.106
114.233
2.878
20.506
6
21
11
68
Other food product
Flour
Works of stone, gypsum, cement
108
99
87
25.060
40.803
247.739
Curacao imported a total value of US$ 1.5 million in 2013, according to the Oficina Nacional de
Estadística. These imports had a combined gross weight of 944.000 kilos. The table below shows the
most important products that were imported by Curacao from the Dominican Republic.
Export Dominican Republic to Curacao 2013
HS-code
Description
39
72
73
20
94
21
34
22
11
24
64
Plastic materials and synthetic resin
Cast iron, iron and steel
Works of cast iron, iron and steel
Vegetable preparations
Furniture, articles for lighting and construction work
Other food product
Soap
Beverages
Flour
Tobacco
Footwear
Value FOB
(x 1000
US$)
344
256
251
123
98
90
81
67
48
35
34
Kilos Gross
77.039
316.656
36.604
193.011
69.935
40.265
40.992
90.016
37.971
845
1.659
Of the three Caribbean countries of the Kingdom of the Netherlands, Sint Maarten imports the largest
volume of products from the Dominican Republic. In 2013 these imports totaled some US$ 10.5
million and represented a combined gross weight of nearly 27 million kilos.
Export Dominican Republic to St. Maarten 2013
HS-code
Description
22
08
72
25
39
24
07
34
16
94
04
84
33
76
89
44
30
28
56
21
01
71
Beverages
Fruit
Cast iron, iron and steel
Salt, sand, stone and cement
Plastic materials and synthetic resin
Tobacco
Vegetables
Soap
Meat and fish preparations
Furniture, articles for lighting and construction work
Dairy products
Reactor, machinery and mechanical appliances
Perfumery and cosmetic preparations
Aluminum
Navigation
Wood
Pharmaceutical products
Inorganic chemical products
Wadding and felt, rope as well as work thereof
Other food product
Live animals
Pearls, precious stones and coins
Value FOB
(x 1000
US$)
2.424
1.664
1.294
921
618
533
528
405
341
278
197
193
188
109
96
76
69
65
65
60
60
52
Kilos Gross
3.366.862
2.093.466
1.797.665
18.170.536
175.051
26.654
496.137
252.142
114.234
64.815
29.191
13.974
48.253
16.159
12.500
25.275
119
21.700
25.561
20.292
1.273
14.820
7
When evaluating the tables above it becomes evident that Aruba, Curacao and Sint Maarten import a
large amount of food products. This is most likely due to the fact that even though the countries are
relatively small, they do have a large tourism sector.
Aruba has a hardly considerable agriculture, which makes it very dependent on the import of agroand other food products from other countries for consumption by its own population of around
105.000 inhabitants. To this should be added some 1.5 million tourists annually, who have a large
impact on the consumption index. The same picture can be drawn for neighboring Curacao with no
agricultural sector, some 150.000 inhabitants and an annual total of 500.000 tourists. Finally, Sint
Maarten, consisting of a Dutch and a French part, totaling a combined population of between 70.000
and 80.000 people annually receives some 2 million tourists.
The enormous popularity of these Caribbean tourist destinations clearly makes them interesting
markets for exporters of tourism-related products, such as foods. The Dominican Republic, as an
exporter in the region, already provides part of the demands of Aruba, Curacao and Sint Maarten. All
three countries, for example, import beverages (22), dairy products (04) and tobacco (24) from the
Dominican Republic, as demonstrated by the tables above. Also flour (11), vegetable preparations
(20) and the category of “other food products” (21) (ranging from extracts from coffee and tea,
preparations for sauces and yeast, to soups and ice cream), are being exported to at least two of the
three NL-Caribbean countries, however only in relatively small quantities. With such potential markets
available, the Dominican Republic should be taking more advantage of what it has to offer as its main
export products, such as vegetables, cereal preparations, fruit, sugar, cocoa and perfume and
cosmetic preparations, to name but a few.
Other products for which potential markets are to be explored more but are not necessarily tourismrelated, are salt, sand, stone and cement (25), construction materials such as cast iron, iron and steel
(72), and plastic materials and synthetic resin (39). Also furniture, articles for lighting, and
construction work (94), machines, electrical appliances (85), pharmaceutical products (30), footwear
(which is imported by Curacao in very small quantities) (60), and clothing (61 and 62).
8
2. Potential trade flows from the Dominican Republic to Aruba, Curacao and Sint Maarten
Less than 1% of the total imports of both Aruba and Curacao originate in the Dominican Republic. For
Sint Maarten this is likely to be relatively higher, due to its location and the fact that there is a direct
shipping line from the Dominican Republic. However, this is difficult to confirm due to limited reliable
data relating to Sint Maarten’s import and export. Regardless of the numbers from Sint Maarten,
exports from the Dominican Republic to all three NL-Caribbean countries are surprisingly low.
According to information from the Curacao Central Bureau of Statistics, in 2011 the Dominican
Republic ranked 16th on the exporters list. The most important exporter by far was the United States
providing nearly 50% of the goods imported in that year. Other countries, in order of importance,
were the Netherlands, Puerto Rico, Venezuela, Panama, Colombia and South Korea.
As mentioned in the previous section, by comparing the demands of Aruba, Curacao and Sint Maarten,
and combining these with the capacities of the Dominican Republic to deliver, one can get a clear
insight in the present opportunities for trade between the Dominican Republic and the Dutch
Caribbean countries. Certain product categories feature among the highest ranked import products of
the three countries and are at the same time also the largest export products of the Dominican
Republic. It was already concluded that the agro-sector is interesting to study, due to its high
demand. The table below provides a list of products that have clear potential in Aruba and Curacao.
The utmost right column demonstrates the percentage of Dominican exports in the entire imports of
both countries. Again, statistical data on Sint Maarten are not available, for which it has been left out.
However, one can assume that similar results would emerge.
DR  Aruba – Products with Potential, Current Trade (x US$ 1000)
HSCode
71
90
24
85
72
30
64
61
39
62
08
18
27
17
22
21
25
63
33
11
07
48
74
Description
Pearls, precious stones
and coins
Instruments
Tobacco
Machines, electrical
appliances
Cast iron, iron and steel
Pharmaceutical products
Footwear
Clothing of knitted and
crocheted fabrics
Plastic materials and
synthetic resin
Other clothing
Fruit
Cocoa
Petrochemical products
Sugar
Beverages
Other food product
Salt, sand, stone and
cement
Rags
Perfumery and cosmetic
preparations
Flour
Vegetables
Paper and cardboard
Copper
Exp DR 2013
Imp Aruba
2013
DR  Aruba
2013
% DR of Imp
Aruba
1.478.542
801.597
594.727
56.683
22.781
2.974
25
7
1.242
499.030
355.015
322.155
317.046
81.028
1.865
28.472
14.064
28
0
21
6
305.372
15.954
3
281.980
267.789
233.876
171.477
156.388
146.719
132.736
116.500
27.504
26.810
14.722
4.095
93.862
7.355
39.231
22.529
1.201
7
16
2
0
200
753
65
109.986
92.209
15.241
9.678
3.555
84
78.290
70.154
69.446
51.573
48.245
27.571
5.567
17.941
21.357
2.068
95
3
25
46
9
0.04 %
0.03 %
41.76 %
0.03
0.00
0.08
0.05
%
%
%
%
0.02 %
4.37
0.03
0.11
0.04
0.00
2.72
1.92
0.29
%
%
%
%
%
%
%
%
23.32 %
0.86 %
0.35
0.06
0.14
0.22
0.44
%
%
%
%
%
9
19
20
34
15
03
04
02
Cereal preparations
Vegetable preparations
Soap
Fats and oils
Fish and seafood
Dairy products
Meat
46.413
45.460
36.722
33.194
12.075
11.751
5.258
18.143
16.910
9.613
5.858
15.554
30.958
40.107
125
19
390
0
11
186
0
0.69
0.11
4.05
0.00
0.07
0.60
0.00
%
%
%
%
%
%
%
The table above demonstrates that there is indeed great potential for Dominican exports to Aruba.
Only three product categories are currently being exported to Aruba at a significant scale. These are
tobacco (24), plastic materials and synthetic resin (39), and salt, sand, stone and cement (25).
However, only tobacco (24) (41.76%) and salt, sand, stone and cement (25) (23.32%) are relatively
significant in comparison to the total amount exported by the Dominican Republic. The category
plastic materials and synthetic resin (39) shows serious potential, since Aruba’s total import of this
category already relates 10% of the Dominican export.
The other categories show even greater potential: the Dominican Republic’s current share in the
Aruban market per product category being less than 1 percent (with the exception of sugar (17),
beverages (22) and soap (34) which are respectively at 2.72 percent, 1.92 percent and 4.05 percent).
Products which could be easily provided by the Dominican Republic, and are in high demand in Aruba,
are products related to the tourist industry such as foods. The categories fruit (08), cocoa (18), sugar
(17), beverages (22), flour(11), vegetables (07), cereal preparations (19), vegetable preparations
(20), soap (34), fats and oils (15), fish and seafood (03), dairy products (04) and meat (02) are all
notable import products of Aruba. The Dominican Republic does export most of these products to
Aruba, but only in very small amounts.
It is surprising to see, for example, that fruit (08) was exported by the Dominican Republic for a total
value of US$233.876.000 in 2013, however of this export only US$ 16.000 was destined for Aruba.
This is a staggeringly low amount regarding the total import value of fruits in Aruba (US$
14.722.000). A similar discrepancy can be seen in relation to vegetables (07), of which a mere US$
25.000 was imported from the Dominican Republic, while Aruba imported nearly US$ 18.000.000.
Considering the Dominican Republic’s exports totaled nearly US$ 70.000.000 worldwide, it is evident
that opportunities for increased commercial activity in the Aruban market are very real.
Other food products show similar potential. Meat (02) is only a small export product of the Dominican
Republic, currently representing a value of US$ 5.3 million. Aruba imported US$ 40 million in 2013,
none of which originated from the Dominican Republic. This means that even though meat (02) may
not be a prime export product of the Dominican Republic, the country could definitely discover a new
market for its meat in Aruba, where the demand is high.
Cereal and vegetable preparations (19 and 20) are exported by the Dominican Republic at nearly
equal total value. Aruba also notably imports both product categories. However, once again an
insignificant amount of these imports originate from the Dominican Republic. Fats and oils (15) are not
imported by Aruba from the Dominican Republic at all, and soap (34), fish and seafood (03) and dairy
products (04) only marginally. Highlighting the latter, for example, of the nearly US$ 31 million in
dairy products (04) imported by Aruba, only US$ 186.000 originates from the Dominican Republic.
Another interesting group of products are those related to apparel. Footwear (64), clothing of knitted
and crocheted fabrics (61), and the miscellaneous category of other clothing (62) feature among the
Dominican Republic’s most important export products. Aruba imported about US$ 14 million of
footwear (64), roughly US$ 16 million of clothing of knitted and crocheted fabrics (61), and almost
US$ 27 million worth of the other clothing category (62). Similar to the category food products, only
an insignificant value (respectively US$ 6.000, US$ 3.000 and US$ 7.000) of Aruba’s imports related
to apparel originated from the Dominican Republic in 2013.
The final category worth studying is perfumery and cosmetic preparations (33). These products
feature among the largest import products of Aruba at the value of US$ 27.5 million in 2013. Only
0.35% originated from the Dominican Republic, which is surprising since their total export is US$ 78
10
million. In conclusion: there is higher potential for Dominican exporters of perfumery and cosmetic
preparations (33) than the mere US$ 95.000 worth of products that were exported to Aruba in 2013.
As demonstrated, there is a wide gap between the totality of Aruban imports and the amount imported
from the Dominican Republic.
The next table gives a similar overview of the potential for Dominican exports to Curacao, based on
export data of the Dominican Republic for the year 2013, combined with import data of Curacao for
the year 2011, due to lack of more recent figures. This means that when comparing the numbers it
will not give an accurate picture of the potential for more trade, but it will give a strong indication.
DR  Curacao – Products with Potential, Current Trade (x US$ 1000)
HSCode
71
90
24
85
72
30
64
61
39
62
08
18
17
22
21
25
63
33
11
07
48
74
19
20
34
15
29
03
04
02
Description
Pearls, precious stones
and coins
Instruments
Tobacco
Machines, electrical
appliances
Cast iron, iron and steel
Pharmaceutical products
Footwear
Clothing of knitted and
crocheted fabrics
Plastic materials and
synthetic resin
Other clothing
Fruit
Cocoa
Sugar
Beverages
Other food product
Salt, sand, stone and
cement
Rags
Perfumery and cosmetic
preparations
Flour
Vegetables
Paper and cardboard
Copper
Cereal preparations
Vegetable preparations
Soap
Fats and oils
Organic chemical
products
Fish and seafood
Dairy products
Meat
Exp DR 2013
Imp Curacao
2011
DR Curacao
2011
% DR of Imp
Curacao
0.00 %
0.00 %
31.97 %
1.478.542
801.597
594.727
19.042
30.214
2.855
0
1
913
499.030
355.015
322.155
317.046
106.519
4.931
58.160
14.746
29
0
1
0
305.372
9.022
1
281.980
267.789
233.876
171.477
146.719
132.736
116.500
32.828
29.788
11.128
3.604
13.903
48.864
19.181
353
3
81
0
1
380
38
109.986
92.209
10.727
6.044
3.330
12
78.290
70.154
69.446
51.573
48.245
46.413
45.460
36.722
33.194
28.745
7.339
16.693
27.503
3.096
16.054
23.233
9.649
9.416
144
0
22
390
0
123
9
217
9
0.50
0.00
0.13
1.42
0.00
0.77
0.04
2.25
0.10
%
%
%
%
%
%
%
%
%
24.765
12.075
11.751
5.258
5.820
12.238
27.315
52.340
2.121
0
101
0
36,45
0.00
0.37
0,00
%
%
%
%
0.03
0.00
0.00
0.00
%
%
%
%
0.01 %
1.08
0.01
0.73
0.00
0.01
0.78
0.20
%
%
%
%
%
%
%
31.04 %
0.19 %
Looking at the table above, one immediately observes many similarities with the facts and figures
relating to Aruba and the Dominican Republic. Curacao imports almost exactly the same product
11
categories, at similar quantities and, strikingly, very few of these imports originate from the
Dominican Republic.
Nearly a third of all tobacco (24) in Curacao originates from the Dominican Republic. The same is true
for the construction related category of salt, sand, stone and cement (25), while the organic chemical
products (29) even transcend 36 percent. Plastic materials and synthetic resin (39), the tenth largest
export product of the Dominican Republic in 2013, hardly gets exported to Curacao. This is surprising
because the country in fact does import nearly US$ 33 million of the category. Currently providing
only 1.08% of these imports, there seems to be potential for Dominican exporters to increase their
share in the market.
Also similar to Aruba’s figures, the Dominican Republic provides less than 1% of imports of most
product categories to Curacao. This is true even for the Dominican Republic’s major export products.
Food and food related products clearly present a huge opportunity, as is the case for Aruba. Fruit, the
12th largest export product of the Dominican Republic at a total value of nearly US$ 234 million, is
exported to Curacao for only US$ 81.000 even though this category was imported with a the value of
more than US$ 11 million in 2011. This figure is likely to have increased over the last few years with
the number of tourists on the rise.
Sugar (17), beverages (22), other food products (21), flour (11), vegetables (07), cereal preparations
(19), vegetable preparations (20), fats and oils (15), fish and seafood (03), dairy products (04) and
meat (02) all demonstrate similar potential in numbers. All these categories have their relatively high
figure of total imports by Curacao (and these figures are likely to be even higher for 2013) in
common, however, hardly any of Curacao’s imports of these categories originate from the Dominican
Republic. At the same time the quantities exported by the Dominican Republic in 2013 indicate that
Dominican exporters could easily provide Curacao with sufficient agri-products.
Categories related to apparel also seem to provide lucrative opportunities as they are in high demand
in Curacao, and rank among the largest export products of the Dominican Republic. The same
categories as mentioned in relation to Aruba apply: Footwear (64), of which Curacao imported well
over US$ 14 million in 2011, clothing of knitted and crocheted fabrics (61), imported over US$ 9
million, and other clothing (62) imported for a value of nearly US$ 30 million. With the Dominican
Republic exporting all three categories in 2013 against a value of well over US$ 300 million (other
clothing (62) reaching roughly US$ 267 million), the percentage of Dominican exports to Curacao is
extremely low. Footwear (64) was not exported to Curacao in 2011 at all, while the Dominican
Republic’s shares in clothing of knitted and crocheted fabrics (61) and other clothing (62) markets
were 0.01%. There are clearly opportunities for Dominican exporters to increase their share in the
Curacao clothing markets.
Perfumery and cosmetics preparations (33), as for Aruba, feature as another interesting product
category in the Curacao figures. In 2011 Curacao imported already more than Aruba in 2013. This
means that in all probability the current market in Curacao for the products of this HS-code is even
larger. The Dominican Republic delivers about 0,5%. Similarly to Aruba, the Curacao market seems to
be interesting, perhaps with even more potential.
Only some of the product categories that show potential have been highlighted. The tables can serve
as a tool to gain insight in the potential for trade. Annexed to this report is a complete list of all HScode categories. Unfortunately there are no data available of Sint Maarten, but there are most likely
many similarities. Especially due to its huge tourist flows one can quite safely assume that the
categories showing potential in Aruba and Curacao will also apply to Sint Maarten.
Special attention has been given to food products. These are especially in high demand in the Dutch
Caribbean countries with a booming tourist industry. The food products currently consumed are mainly
shipped from Miami. Products from producing countries are collected in Miami, where they get
repackaged for further distribution in the Caribbean region. Due to this quite lengthy trajectory which
introduces many middle men in the process, food prices in the Caribbean are high. If the Dominican
exporters were to sell directly to the importers of Aruba, Curacao and Sint Maarten at a reasonable
price and in substantial volume this could open a major market for the Dominican Republic. This would
also be extremely beneficial for the importing countries because it would not only reduce
12
expenditures, but for example the fruit and vegetable products would be much fresher for sale on local
market as well as for the tourist industry.
At the moment, this is not taking place. This is clearly not for a lack of business opportunities as has
been outlined before. Opportunities exist, but are not yet being exploited. Other obstacles impede the
trade from taking place, which will be addressed in the following chapter. Before doing so it is
necessary to study the reverse trade flow, or what is being imported by the Dominican Republic from
Aruba, Curacao and Sint Maarten.
13
3. Current and potential trade flows from Aruba, Curacao and Sint Maarten to the Dominican
Republic
Aruba, Curacao and Sint Maarten are relatively small and have a low production capacity. Therefore
their exports are comparatively low. In 2013, Aruba exported a total value of US$ 41.7 million, of
which 25% (US$ 11.5 million), falls in the HS-code 71 (Pearls, precious stones and coins). Other
major export categories of Aruba include reactor, machinery and mechanical appliances (84), furniture
to be removed (99), cast iron, iron and steel (72), cars, motorcycles and cycles (87) (which are
second-hand), and perfumery and cosmetic preparations (33). The table below gives an overview of
Aruba’s export over 2013:
Export Aruba 2013 – Main Export Products
HSCode
71
84
99
72
87
33
38
85
73
90
91
28
42
76
Description
Pearls, precious stones and coins
Reactor, machinery and mechanical appliances
Furniture to be removed
Cast iron, iron and steel
Cars, motorcycles and cycles
Perfumery and cosmetics preparations
Various chemistry
Machines, electrical appliances
Works of cast iron, iron and steel
Instruments
Clockwork
Inorganic chemical products
Leather goods and travelling articles
Aluminum
Export in value ( x 1000
US$)
11.541
4.425
3.809
2.682
2.341
2.313
1.763
1.725
1.383
1.188
1.077
940
752
743
Similarly, Curacao exported over US$ 160 million in 2011. Its largest export category is HS-code 84
(Reactor, machinery and mechanical appliances) at about US$ 18.5 million, rather surprisingly; this
category is followed by HS-code 88 (Aviation and space travel). Furthermore, the country exports
quite a high amount of (second-hand) cars and motorcycles (87), sugar (17) or products that contain
high levels of sugar, and similar to Aruba a large portion products in the category 71 (Pearls, precious
stones and coins), clockwork (91) and tobacco (24).
Export Curacao 2011 – Main Export Products
HSCode
84
88
87
17
71
91
24
21
33
85
34
98
02
73
25
Description
Reactor, machinery and mechanical appliances
Aviation and space travel
Cars, motorcycles and cycles
Sugar
Pearls, precious stones and coins
Clockwork
Tobacco
Other food product
Perfumery and cosmetic preparations
Machines, electrical appliances
Soap
Not specified
Meat
Works of cast iron, iron and steel
Salt, sand, stone and cement
Export in value ( x 1000
US$)
18.583
17.525
12.842
9.653
8.011
7.022
6.988
6.063
5.933
5.561
5.116
5.024
4.381
3.784
3.154
14
22
32
76
30
04
49
90
72
Beverages
Paint, varnish and ink
Aluminum
Pharmaceutical products
Dairy products
Bookstore articles and graphic art
Instruments
Cast iron, iron and steel
2.946
2.789
2.775
2.735
2.485
2.342
2.076
2.041
Only few of the export products listed above are shipped to the Dominican Republic. Aruba exported
roughly US$ 622.000 to the Dominican Republic in 2013, while in 2011 Curacao’s exports to the
Dominican Republic totaled US$ 500.000. These figures make the export market of Aruba and Curacao
seem quite insignificant, however; there is definitely potential to increase trade from Aruba and
Curacao (and logically Sint Maarten as well) to the Dominican Republic, despite the low production
capacity of the smaller countries. The potential of Aruban exports is illustrated in the following table.
Aruba  DR - Products with Potential, Current Trade (x 1000 US$)
HSCode
71
84
72
33
38
85
73
90
91
28
42
76
Description
Pearls, precious stones and coins
Reactor, machinery and mechanical
appliances
Cast iron, iron and steel
Perfumery and cosmetic preparations
Various chemistry
Machines, electrical appliances
Works of cast iron, iron and steel
Instruments
Clockwork
Inorganic chemical products
Leather goods and travelling articles
Aluminum
Exp Aruba 2013
Imp DR 2013
11.541
253.988
Aruba  DR
2013
0
4.425
2.682
2.313
1.763
1.725
1.383
1.188
1.077
940
752
743
1.168.413
461.722
169.483
235.287
1.309.742
261.674
235.538
8.641
91.230
28.008
106.986
6
0
8
4
3
1
0
0
0
1
0
As follows from this table, the current export is negligible in relation to the Dominican Republic.
However, it is also evident that certain products show potential. For example, product category 84
(Reactor, machinery and mechanical appliances), is a major import product of the Dominican Republic,
which saw more than a billion dollars’ worth of products enter the country from foreign markets in
2013. A more detailed analysis of the data on ex- and imports of the Dominican Republic and Aruba
could be an interesting starting point as a follow-up study based on this report, especially considering
that Aruba already exports nearly US$4,5 million.
The following table sketches potential exports from Curacao (compiled in 2011) to the Dominican
Republic (figures of 2013). The table serves merely the purpose of providing an indication of business
opportunities between both countries, which should closely resemble the actual situation in 2013.
Even though Curacao exports significantly more to the Dominican Republic than Aruba, the figures
show that the amount of export is not particularly impressive. However, the table does demonstrate
there could be potential for growth, which should be analyzed in more detail. For example, Paint,
varnish and ink (32), bookstore articles and graphic art (49), and paper and cardboard (48) could be
interesting products. The Dominican Republic imports all three product categories in quite high
volumes and Curacao could possibly provide more volume.
Two other particularly interesting product categories are reactor machinery and mechanical appliances
(84) and machines, electrical appliances (85). The Dominican Republic imports well over US$ 1 billion
of both categories, very little of which however originates from Curacao.
15
Curacao  DR – Products with Potential, Current Trade (x 1000 US$)
HSCode
84
71
21
33
85
34
02
73
22
32
76
30
04
49
90
72
48
Description
Reactor, machinery and mechanical
appliances
Pearls, precious stones and coins
Other food product
Perfumery and cosmetics preparations
Machines, electrical appliances
Soap
Meat
Works of cast iron, iron and steel
Beverages
Paint, varnish and ink
Aluminum
Pharmaceutical products
Dairy products
Bookstore articles and graphic art
Instruments
Cast iron, iron and steel
Paper and cardboard
Exp Curacao
2011
18.583
8.011
6.063
5.933
5.561
5.116
4.381
3.784
2.946
2.789
2.775
2.735
2.485
2.342
2.076
2.041
1.865
Imp DR 2013
1.168.413
253.988
155.720
169.483
1.309.742
80.520
114.285
261.674
174.857
93.450
106.986
531.281
192.609
52.160
235.538
461.722
392.782
Cur  DR
2011
288
0
0
17
7
125
0
3
0
0
0
0
0
0
0
0
13
This section intended to demonstrate that, however limited the Aruban and Curacao export sectors
may be, they present opportunities and potential for Dominican importers. This potential becomes
more evident when the perhaps biggest challenge in increasing trade between the Dominican Republic
and the countries of Aruba, Curacao and Sint Maarten could be tackled: the lack of transportation.
Closely related to the (lack of) transportation to and from the potential markets, is the fact that
although ships could sail to the three countries loaded with cargo, for their return voyage to the
Dominican Republic there is no guarantee for the same volume of cargo. This has an effect on the
transportation costs, negatively influencing the flow of products. However, if more cargo can be
generated this would have a positive effect by lowering the costs. In combination with innovative ideas
to generate new sorts of cargo for the return-voyage, the increase of existing exports could encourage
the exploitation of the limitedly existing or even new shipping-lines in the Caribbean region and
thereby stimulate more regional integration.
16
4. Challenges
Where the previous section outlined the great potential there is for exporting Dominican products to
Aruba, Curacao and Sint Maarten, this section intends to explain why this potential is currently not
being exploited. Numerous interviews with a wide variety of actors within public and the private
sectors all lead to one main challenge, a challenge that can certainly be overcome, but a challenge
nonetheless. It can be described as ‘the chicken and the egg” situation: there is insufficient regular
transportation by sea, because there is insufficient regular supply and demand of goods. The producer
is not willing to increase his production and the importers and wholesalers are reluctant to order until
they are assured that there will be sufficient transportation. This dilemma requires to be tackled.
With regards to the existing high demand for products in (the Dutch part of) the Caribbean region, for
example fresh vegetables (07) and fruit (08), one could easily see trading volumes increase. Logically
this could lead to cheaper and more regular shipping options. As set out below, the harbor facilities
are there. However, transportation between the Dominican Republic and other parts of the Caribbean
currently barely exists, which could possibly be explained by the fact that insufficient volumes drive up
the prices of direct transportation between the Dominican Republic and the Dutch Caribbean countries.
Facilities
The Dominican Republic boasts twelve professional seaports, the largest two being the Puerto
Multimodal Caucedo (Caucedo) and Haina International Terminals (Haina), both providing excellent
and state-of-the-art facilities. In 2011 all twelve ports combined moved 25,8 million tons of products
and 1.48 million Twenty-foot Equivalent Units (TEUs). Caucedo handled 8.220 million tons, or 850.679
TEUs, while Haina handled 10.047 million tons and 352.340 TEUs. About 75% (in value as well as in
weight) of all exports of the Dominican Republic are shipped by sea, and even 89% of imports arrive
via maritime transport. Of the exports nearly 50% goes to the United States, which is also the main
source of imports, accounting for approximately 39% of goods shipped to the Dominican Republic.
Other important trade destinations are Haiti, Puerto Rico, Cayman Islands, the Netherlands, the
United Kingdom and Spain for Dominican exports, China, Venezuela, Mexico, Trinidad and Tobago,
Colombia and Brazil for imports. Caucedo, for example, has connections to North America, Europe,
South America (namely Brazil, Venezuela, Colombia, Peru and Chile) and Asia. The current situation
ranks the Dominican Republic 48th in the world and 4th in the Mesoamerican region in terms of
maritime connectivity.
HAINA
CAUCEDO
Gantry cranes
2
2.880
33
250.000
3
Mobile cranes
Not specified
1
922
45
500.000
6
2
36
Not Specified
Number of terminals
Available docking length (m)
Maximum depth in container terminal (f)
Available storage surface (m2)
Reach stackers
An interesting development is the construction, currently underway, of the Caucedo Logistics Center.
This entails an expansion of the existing port and its facilities with the objective to promote Caucedo
as a regional hub. Goods can be stored, transshipped and reassembled in consolidated containers in
order to prepare them to be shipped to neighboring countries. Aruba, Curacao and Sint Maarten would
be ideal destinations for such consolidated containers. The Caucedo Logistics Center will be a “freezone” which means taxes can be avoided. Currently, bonded warehouses are available against 1,5
percent ad valorum of the entire container. Warehouses are already being sold, in parts of 890 m2 as
well as entire warehouses. Facilities for refrigerated storage are being planned and Caucedo is working
with customs to speed up the clearance of products which at the moment takes about 2 to 3 days but
should, according to representatives of Caucedo, become a matter of hours.
17
Facilities in the ports of Aruba, Curacao and Sint Maarten are, like Caucedo and Haina, of high quality.
These ports are smaller but meet all the requirements of a modern sea port.
In Aruba, all non-containerized cargo and most Ro-Ro and break-bulk cargo is handled at the
Barcadera port. Ships have a 350 meter long berth with 9,75 meter depth at their disposal. In the
near future (mid 2015) container transportation will also be directed to the Barcadera harbor by which
the Aruban government intends to turn the port into a kind of sub-hub for free-zone and
transshipment cargo. Currently container cargo is directed to the Oranjestad port which also serves as
the main entry for cruise ships. The cargo area in the Oranjestad port comprises an area of 1.4 million
square feet and has storage capacity for 7.500 TEUs. Furthermore, the port is equipped with a 250
meter long container vessel berth, 36 reefer points and one 50 ton gantry crane, capable of moving
20 to 25 containers per hour. The depth of the Oranjestad port varies from 32 to 36 feet.
Willemstad Harbor is Curacao’s main sea port, located on the south side of the island. It provides
RoRo and LoLo services, as well as services for general cargo vessel, tankers and cruise ships. Repair
and bunkering services are also available. Maximum berth length is 280 meters and maximum draft
12.8 meters. However, vessels up to 13,7 meters draft can be allowed access after consultation with
the Curacao Port Authority. The container terminal at Willemstad is equipped with two 50 ton gantry
cranes moving about 30 to 35 containers per hour. There are also a mobile container crane, many
covered and open storage facilities, seven berths and several barges available. The harbor consists of
numerous wharfs with excellent facilities. Besides the Port of Willemstad, Curacao has smaller ports at
Bullen Bay, Caracas Bay, Fuik Bay and St. Michiel’s Bay. The Curacao Port Authority can provide
excellent and detailed information on specifications and available facilities of all ports and wharfs.
Besides receiving some eight cruise ships daily, each carrying between 4.000 and 6.000 passengers,
the port of Sint Maarten hosts a state-of-the-art cargo section located mainly at the Captain David
Cargo Quay and the Cargo South Quay. The first has a length of 540 meters and Ro-Ro and Lo-Lo
facilities. Maximum depth is 10.5 meters or 35 feet. Two 100 tons Gottwald Shore cranes provide
service and the port has storage facilities of over 3.000 TEUs.
Transportation
At the moment only one shipping line ferries weekly between the Dominican Republic and Sint
Maarten, this connection by Tropical Shipping leaves Caucedo on Wednesday, calls in at Saint Thomas
of the Unites States Virgin Islands and finally arrives in Philipsburg on Sunday, meaning the total trip
takes four days.
In September 2014 a shipping line makes its first voyage from Rotterdam in The Netherlands, via the
Dominican port Haina to Willemstad Harbor in Curacao, continuing to Oranjestad in Aruba, sailing on
to the Southern part of the American continent. Otherwise Aruba and Curacao are reached by indirect
transportation via ports like Cartagena, Kingston and Miami.
Below follows a summary of current shipping routes by different shipping companies. Included are the
routes that run between the Dominican Republic and Aruba, Curacao and Sint Maarten (be it mostly
indirectly). It should be stressed out here that the overview is not exhaustive but meant to give a
broad survey of the present reality and an insight in the opportunities for shipping companies.
18
Crowley sails back and forth between the Dominican Republic, Puerto Rico and St. Thomas where
relay vessels ship cargo to smaller islands in the direct vicinity of St. Thomas.
From Florida and the North-East coast of the United States lines also exist to the Dominican Republic
and Haiti, and to the eastern Caribbean islands, one of those being Sint Maarten.
Maersk sails from New Orleans to Brazil, stopping in Caucedo on the way.
19
Another Maersk service goes from Caucedo to Houston, visiting numerous ports in Central America
and Mexico, taking the following route: Caucedo; San Juan; Cartagena; Manzanillo; Puerto Limon;
Santo Tomas; Puerto Cortes; Houston; Altamira; Veracruz; Santo Tomas; Puerto Limon; Manzanillo;
Cartagena; Caucedo. The entire round trip takes five weeks.
ZIM currently offers feeder services between Jamaica and the Dominican Republic. This service is
mainly fed from Houston, New Orleans, Mobile and Tampa.
Furthermore, the Dominican Republic is part of the North South Express, creating opportunity to
export to the United States (via the port Charleston, New York and Baltimore).
20
From Kingston ZIM’s Guaranao Maracaibo Express sails to both Aruba and Curacao before arriving in
Venezuela. Transit time to Aruba and Curacao is two to four days.
The Eastern Caribbean service of King Ocean Services loads in Port Everglades as well as in the port of
Sint Maarten. From there the line goes south along many islands (St. Kitts, St. Barth, Nevis,
Dominica, Anguilla, St. Lucia, Barbados, Grenada, Montserrat, and St. Vincent) and Suriname and
Guyana.
Another line of King Ocean Services connects Florida (Jacksonville and Port Everglades) to Aruba,
Curacao and Bonaire. This is a two-weekly service, leaving from Jacksonville every Wednesday and
from Port Everglades every Saturday. King Ocean Services offers 20 feet and 40 feet dry and
refrigerated containers, flat racks and break bulk cargo shipment.
21
CMA CGM has a weekly line departing from the United States East coast to Kingston, passing by the
Dominican Republic (Rio Haina) and also stopping over in Sint Maarten (Philipsburg). The line passes
the following route: New York; Norfolk; Savannah; Miami; Kingston; Rio Haina; San Juan; Philipsburg;
Fort de France; Vieux Fort; Point Lisas; Port of Spain; Bridgetown; St. John’s; New York.
The trip from Río Haina through San Juan to Philipsburg, Sint Maarten, has a transit time of two days.
Another feeder line CMA CGM offers includes Aruba and Curacao, the so-called Venezuela – Colombia
line goes from Cartagena; Willemstad; Oranjestad; Maracaibo; Guaranao; Guanta; El Guamache;
Baranquilla; Cartagena.
A third interesting service runs between many of the Leeward Islands with Philipsburg as its base port,
stopping in Philipsburg; Charlotte Amalie; San Juan; Charlotte Amalie; Christiansted; Philipsburg;
Basseterre; Point a Pitre; Philipsburg; Gustavia; Philipsburg. This service, which is offered on a weekly
basis, could be quite easily connected to a similar inter-island service of CMA CGM: Point a Pitre,
Roseau; Port of Spain; Point Lisas; Saint Georges; Campden Park; Vieux Fort; Castries; Point a Pitre.
22
Both inter-island services come close to the idea of service that goes completely round, i.e. from the
Dominican Republic to Puerto Rico, Sint Maarten, following the existing routes south and then going
west to Curacao and Aruba before sailing up north again to the Dominican Republic or perhaps
Jamaica and/or Haiti. This idea will be further explained in the following section.
Seaboard Marine offers a weekly line from Miami to Venezuela that also stops over at Curacao,
Bonaire and then Aruba and offers RoRo service.
Other services (RoRo and LoLo) go back and forth between Miami and the Dominican Republic: Miami;
Caucedo; Rio Haina; Puerto Plata; Miami and New York; Puerto Plata; Kingston; Haina; New York.
23
The leeward islands are also being served weekly (LoLo) through a round route that stops over at the
following ports: Miami; Philipsburg; Basseterre, St. Kitts; Antigua, St. Johns; Bridgetown, Barbados;
Point Lisas, Trinidad; Paramaribo, Suriname; Georgetown, Guyana; Point Lisas, Trinidad; Kingston,
Jamaica; Port-au-Prince, Haiti, Miami.
Besides such existing services and shipping lines, various actors in the private shipping sector have
indicated that many initiatives for improved transportation to and from Aruba, Curacao and Sint
Maarten are being considered. Such initiatives include a direct connection from the Dominican
Republic to Aruba and Curacao, a route connecting the Dominican Republic, Haiti and Curacao, a line
connecting Sint Maarten with Puerto Rico, the Dominican Republic, Haiti, Jamaica and Cuba.
Product quality, quantity and continuity
The demand for food products is very high in Aruba, Curacao and Sint Maarten: there is a flourishing
tourist industry in addition to the local consumption. Millions of tourists visit every year. The hotels
and resorts demand very large amounts of fresh food products. Similarly the many cruise ships,
restaurants, as well as local supermarkets, are main buyers of food products in particular fresh
vegetables, fruit and poultry which could be provided by the Dominican Republic.
However, it is of vital importance to importers that the products comply with certain requirements. In
the first place the quality of the products must be excellent. Tourists expect the best and the tourist
industry has a reputation to live up to. Secondly, the enormous demand means that sufficient quantity
has to be guaranteed for if this is not the case importers/buyers will source elsewhere. Lastly, the
tourist industry requires continuity of imports. The Dominican Republic seems to have the capacity to
live up to all three of these requirements. Sint Maarten currently receives most of its imports from
Florida, from where ships carry supplies frequently and continuously. This means that Sint Maarten
can rely on a constant flow of fresh products of high quality. For the Dominican Republic to step in, it
is therefore of vital importance to offer a similar service. Not only do Dominican exporters have to
offer high quality and quantity products on a continuous basis, but also transportation needs to be
reliable and constant. Furthermore, cooperation by the governments is required in terms of ensuring
favorable legislation in the area of customs and taxes.
Volume needed in both directions
The first chapter of this report outlined the great potential for products of high volume and value to be
exported by the Dominican Republic to the countries of Aruba, Curacao and Sint Maarten. It also
showed that in reverse there are opportunities to export other products to the Dominican Republic.
24
This is especially important if the aim is to establish direct shipping lines. If ships can go back and
forth fully loaded this would greatly lower the shipping costs.
Since the exports from Aruba, Curacao and Sint Maarten will not match the potential export volumes
of the Dominican Republic other possibilities to create comparable volumes have to be explored.
One suggestion which was presented is to ship solid waste and scrap. Waste is a problem for the
countries of Aruba, Curacao and Sint Maarten, which lack space to store or process their waste. Waste
and scrap could be shipped to the Dominican Republic for processing. Recycling opportunities or
ingenious ways to generate energy could be explored.
Another suggestion would be to return the empty Presidente beer bottles and crates. Initiatives could
be undertaken together with Presidente (Cervecería Nacional Dominicana).
25
5. Future developments
Throughout the study it has become apparent that certain concepts have the potential to increase the
trade in the region. In the following paragraph these potentials will be briefly sketched.
Hub and sub-hubs
Where the Caucedo Logistics Center aims at being a hub for the entire Caribbean region, Sint Maarten
and Aruba or Curacao could function as a sub-hub from where feeder-lines can provide services to
neighboring countries: their geographical locations are perfect and they have state-of-the-art ports
that can provide excellent services. When operated efficiently, transportation costs can be reduced
making the whole export-import chain cheaper: prices of products will thereby decrease substantially.
Circular line
Shipping lines that sail on a regular schedule, preferably more than once a week, in a circular
movement along several countries in the Caribbean region would obviously greatly improve the interconnectivity and thereby the integration of the region.
Passenger-cargo-transportation
A third and quite ambitious plan involves combining two main sectors that are of equal importance to
the Caribbean region: passenger and cargo movement. Besides cargo services, there is a demand for
passenger transportation services for people doing business in the region and tourists who want to do
“island-hopping”. Cheaper and more regular transportation would enable easier movement of people,
thereby stimulating commercial activities, cooperation and regional integration. Transportation
services based on a ferry-like model could exist between the many Caribbean destinations using the
example of Scandinavia.
In order to make such services feasible and cost-efficient a combination of passenger and cargo
transportation could offer a solution as a ferry could easily offer RoRo services for cargo transport as
well. One study that was reviewed for this report gave some examples of passenger-cargo ferries
already operating in other regions:



RMS St. Helena: Cargo liner with 128 passenger capacity, between Cape Town and Saint
Helena (British Overseas Territory)
Aranui 3: passenger/cargo vessel with 220 passenger capacity, between Tahiti and Marquesas
(French Polynesia)
Cruise ferries: features of a cruise ship on a RoRo ship, mainly in the Baltic region
A combined service would increase trade, tourism, and be a positive influence on social relations and
cultural interaction in the region, thereby contributing to regional integration.
In order for the passenger-cargo-transportation idea to work, the appropriate vessels to be acquired
will have to offer passenger and cargo space. These ferries will have to be put in service, which will
only be possible if many parties from various sectors collaborate together. Infrastructure for this type
of vessels will have to be developed in all ports in the region that could be interesting for a passengercargo-service, a marketing campaign will have to developed to inform potential clientele. Initiating this
kind of dual service would require substantial investment and coordination.
Caribbean Merchant Fleet
The establishment of a joint Merchant Fleet could be implemented in two ways. The first option is
based on the concept that governments would take the initiative and the lead to develop a shipping
fleet in public ownership that initiates a route between the countries and is financed through public
funds (for example provided by the Dominican Republic, Aruba, Curacao and Sint Maarten). However,
both representatives from the private and public sector have voiced doubts about the capability and
the know-how of public sector to successfully set up and run such a joint Merchant Fleet.
26
Therefore the second option would be more feasible: a combination of a public and private initiative.
Shipping and logistics companies are already familiar with the region and aware what is or is not
feasible. In order to encourage private companies to create new shipping lines an incentive might be
required. An option would be to provide a subsidy for the start-up. For example, in year 1, 75% of the
investment could be subsidized, reducing it to 50% in the year 2 and to 25% in year 3. After three
years the commercial endeavor should be able to continue on its own steam and the private
companies will be solely responsible for successfully running the line. This financing formula could be
vital in creating better inter-regional transportation, and thus increase trade flows between the
countries. It would give producers and traders the necessary time to explore and create their markets.
Shipping companies would have sufficient time to get the lines up and running without risking serious
financial losses.
Besides state and private investment, these concepts might also qualify for funding through European
Union programs focused on the regional development of the Caribbean region and/or through grants
and loans provided by the World Bank/ IFC or other regional funding mechanisms. In April 2012 the
European Union decided, together with partner countries in the Caribbean region, to launch a
Caribbean Investment Facility within the European Development Fund. These facilities were specifically
created to stimulate investment in key infrastructure projects, in order to increase competitiveness in
global markets and boost economic growth and reduce poverty. The Caribbean Investment Facility
combines European Development Fund grants with lending and private sector capital. Main priorities
for eligible projects include interconnectivity, energy infrastructure, transport, environment, climate
change adaption and mitigation, social services infrastructure and support for private sector
development, particularly small and medium enterprises.
27
6. Conclusion
The conclusion which can be drawn from this study is that with a major effort by and collaboration
between the public and private sectors of the Dominican Republic and the countries of the Kingdom of
the Netherlands in the Caribbean region, including the public bodies Bonaire, Saba and St Eustatius,
an increase of trade flows can be realized.
In particular de Dominican Republic, as a large producer of many different products ranging from agriproducts to apparel and chemicals, can benefit from exporting directly in the region avoiding
additional (unnecessary) time and cost for transportation. Furthermore by increasing exports, the
production in many sectors, particularly in the agricultural sector, needs to be stimulated thereby
creating many more jobs and with that a more vibrant labor market.
For the countries Aruba, Curacao and Sint Maarten as well as Bonaire, St Eustatius and Saba the
benefits are obvious: a larger range of goods, in particular fresh argi-products, imported at a lower
price would reduce the “cost-of-living” for the local population substantially. At the same time the
costs would drop for the tourist sector to provide excellent quality and a continuous flow of a more
varied selection to their clientele. Furthermore by creating sub-hubs for transshipments the regional
connectivity would also create more employment.
For all countries improved transportation, would enhance the connectivity thereby stimulating the flow
of goods and persons. Regional integration starts here!
28
Annex
DR  Aruba/Curacao – Potential (statistics Aruba – 2013, and Curacao – 2011) x 1000 US$
HScode
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Description
Live animals
Meat
Fish and seafood
Dairy products
Animals other
Live plants
Vegetables
Fruit
Coffee and tea, mate and
spices product
Grains
Flour
Oil seeds and oleaginous fruits
Vegetable substances
Other vegetable
Fats and oils
Meat and fish preparations
Sugar
Cocoa
Cereal preparations
Vegetable preparations
Other food product
Beverages
Feeding stuff for animals
Tobacco
Salt, sand, stone and cement
Metal-ore
Petrochemical products
Inorganic chemical products
Organic chemical products
Pharmaceutical products
Fertilizers
Paint, varnish and Ink
Perfumery and cosmetic
preparations
Soap
Albumen and glue
Gunpowder and explosives
Photographic equipment and
supplies
Various chemistry
Plastic materials and synthetic
resin
Rubber
Hides, skins and leather
Leather goods and travelling
articles
Fur and imitation-fur
Wood
Total Import
Aru + Cur
1.053
92.447
27.792
58.273
125
3.552
34.634
25.850
DR  Aru + Cur
55
0
11
288
0
3
48
97
% DR of import
(rounded)
5%
0%
0%
0%
0%
0%
0%
0%
7.821
11.514
12.906
1.556
71
125
15.274
33.081
21.257
7.699
34.197
40.144
41.710
88.095
17.594
5.830
25.969
75
93.862
9.272
7.408
86.633
807
21.843
403
8
3
0
2
0
9
0
201
2
248
28
103
1.133
72
2.155
6.884
0
0
0
2.130
22
0
68
5%
0%
0%
0%
3%
0%
0%
0%
1%
0%
1%
0%
0%
1%
0%
37%
27%
0%
0%
0%
29%
0%
0%
0%
56.316
19.262
3.119
2.134
239
607
0
0
0%
3%
0%
0%
4.151
43.545
0
10
0%
0%
60.332
17.416
100
1.554
13
0
3%
0%
0%
18.661
11
34.900
3
0
73
0%
0%
0%
29
45
46
47
48
49
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
78
79
80
81
82
83
84
85
86
87
88
89
Cork
Wattlework and basketwork
Materials for the manufacture
of paper
Paper and cardboard
Bookstore articles and graphic
art
Wool, yarn, textile and crin
Cotton
Other vegetable textile fibres
Synthetic fibre
Synthetic staple fibre
Wadding and felt, rope as well
as work thereof
Carpet
Special textile tufted and
embroidery
Textile, technical articles of
textile
Knitted and crocheted fabrics
Clothing of knitted and
crocheted fabrics
Other clothing
Rags
Footwear
Headgear
Umbrella's and walking-stick
Feather, fluff and artificial
flowers
Works of stone, gympsum,
cement
Ceramic products
Glass and glassware
Pearls, precious stones and
coins
Cast iron, iron and steel
Works of cast iron, iron and
steel
Copper
Nickel
Aluminium
Lead
Zinc
Tin
Other base metals
Tools, utensils,cutlery and
crochery
Works of base metals
Reactor,machinery and
mechanical appliances
Machines, electrical appliances
Rolling stock
Cars, motorcycles and cycles
Aviation and space travel
Navigation
43
414
0
1
0%
0%
65
48.860
0
437
0%
1%
24.024
12
1.098
64
280
1.338
216
1
3
0
0
18
1%
5%
0%
0%
0%
1%
1.565
3.722
4
0
0%
0%
551
2
0%
1.253
36
1
0
0%
0%
24.976
56.598
15.721
28.810
2.758
763
4
11
95
6
0
0
0%
0%
1%
0%
0%
0%
1.429
0
0%
12.708
16.064
11.853
198
22
10
2%
0%
0%
75.725
6.797
25
0
0%
0%
70.501
5.164
36
21.515
469
510
21
841
164
9
0
294
0
183
0
0
0%
0%
0%
1%
0%
36%
0%
0%
11.336
11.995
4
23
0%
0%
229.190
187.546
2.695
192.836
41.684
14.362
225
56
0
45
0
40
0%
0%
0%
0%
0%
0%
30
90
91
92
93
94
95
96
97
99
Instruments
Clockwork
Musical instruments
Arms and ammunition
Furniture, articles for lighting
and construction work
Toys and games
Various works, brushware
Art-objects
Furniture to be removed
TOTAL
52.995
47.732
2.312
414
7
0
1
0
0%
0%
0%
0%
68.918
32.157
10.329
1.087
8.654
2.441.243
143
13
4
1
5
18.744
0%
0%
0%
0%
0%
0,77%
31