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Home International Customs Cuba

Port of Mariel likely to become economic engine for Cuba

byCustoms Today Report
14/07/2015
in Cuba, International Customs
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HAVANA: The Special Development Zone Mariel (ZEDM), is expected to be the main port of entry and exit for Cuban foreign trade and a major development pole located in the center of trade in the Caribbean and the Americas.

The Zone should become an economic engine for Cuba. Its installment is part of a process of updating the Cuban model of development. The port will have a capacity to receive three million containers a year and offer new opportunities for foreign investments, guarantees for business, free transference abroad for utilities and a fiscal regime with tax incentives.

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The explanation was made by the Cuban Minister of Foreign Trade and Investment Rodrigo Malmierca Díaz closing the 9th Brazil-Cuba Meeting for Economic and Commercial Affairs, that he presided by the Cuban side. The details not only landed brought in the capital from the colossal South American nation, but also in Porto Alegre, Río Grande do Sul, Sao Paulo and Río de Janeiro, in an international launching that previously had occurred in Vietnam, China, Russia and Cuba during the third day of FIHAV 2013.

That November 5 the protagonist per excellence of the Fair was a conference about the business opportunities in ZEDM, delivered by Malmierca and Ana Teresa Igarza, general director of the Office in charge of administration and control of national and foreign investments and directing the Program of Development and Business.

In the theater of EXPOCUBA, with a large presence of directors and business executives of Cuban and foreign entities as well as ambassadors of several countries, they offered a panoramic view of the mega project that covers 465,4 km², almost center in the port of Mariel (strategically located in the middle of commercial networks between Asia, Latin America and Europe) and entails several municipalities of the province Artemisa, one location due to the existence there of railway infrastructure, roads and others as well as the proximity to Havana, the principal government institutions, several science centers and the José Martí International Airport.

The port will have a capacity to receive three million containers a year for Cuban foreign trade This will be the main door of entrance and exit of foreign trade in the island for the coming years. Shortly it will receive big ships with a large draft President Raúl Castro accompanies former Brazilian president, Lula da Silva during his visit to the zone in February 2013

Meanwhile, at the entrance of the central pavilion a simple and efficient stand of ZEDM began to receive foreign business persons. More than fifty companies from Spain, France, Italy and Brazil showed interest in business and investments in the area. Also confirmed was that the first phase of the project of the new terminal of containers that will be inaugurated in January 28 of 2014, before the opening of the expansion of the Panama Canal. Quite a sight to see Bright under the sun of the Caribbean, satellite images reflects well defined and harmonious installations. If we zoom in we can see large trailer trucks, 300 feet high cranes, containers lined up, roads, railroads, buildings in different construction phases; conclusively an advance of a well prepared plan. When we close up to the almost concluded works that will soon be inaugurated and their protagonists, the workers looking like busy bees with their colored helmets on gigantic platforms of the port busy in all sorts of constructions.

The first of its kind in the Island and living example of an economy in evolution, ZEDM is an industrial platform for imports, production and sale for the internal and foreign market, linked to a modern mega port that will assume sea trade being developed in Havana, that villa of relations with the international market since that the 16th to 18th centuries in which docked ships from the Flotas de Indias (Fleet of the Indies) then grandiose for its almost one thousand tons of displacement, many filled with spices, gems and different riches taken from other colonized lands and stored in the Key of the Gulf until embarkation to Spain.

From then to today’s commercial activity has evolved to the point of needing ships of unforeseen sizes. A ship of Panamax class, designed for the maximum size allowed by the Panama Canal displaces 65 000 tons, The post-Panamax reaches between 150 000 and 170 000 tons and can transport up to 12 thousand containers. They are so huge that to get them to do the crossing expansion works were executed in that waterway.

The construction today of new docks, warehouses, highways, railroads and so many works, to move all sea trade from the port of Havana to Mariel, is just part of the total project of ZEDM, that was born through the agreements of the 6th Congress of the Communist Party of Cuba, that in its Guideline 103 promotes “the creation of a Special Development Zones that would allow increase of exports, effective imports substitution, developing projects of top technology and for local development as well as contributing to generate new sources of employment”.

The Infrastructure of mega port Mariel have been carried out since 2010 by Compañía de Obras de Infraestructura (COI), an independent subsidiary of the Odebrecht Group, the largest engineering and construction company of Brazil and the Cuban investor Zona de Desarrollo Integral of Mariel for a cost of 900 million dollars. Of this total 640 million were supplied by Brazil and the rest by Cuba. The investment includes areas for containers, warehouses, freezers, fuel supply, distribution of food and other shipping services. The terminal of containers will be administered by the company PSA International of Singapore, one of the most experienced port operators in the world.

Cuba is prepared to take advantage of the scenario approaching in 2015 when, already expanded, the Panama Canal will allow a larger circulation of mega ships. The ZEDM by then will be more than strategically, enviably located in the middle of a zone in the planet with the largest port activity and world trade.

Its port terminals will be able to receive ships of merchandize for transfer to other ports in the Caribbean and Latin America and around three million containers a year.

ZDEM is therefore an interesting opportunity for foreign capital. In his presentations on September in Vietnam and China and in October in Russia, Malmierca referred to reasons, advantageous, legal conditions, favorable environment and potential sectors for investment. Intention is to create a special climate in which foreign capital will have better conditions than in the rest of the country he explained to the auditorium. Also the ZDEM is undoubtedly, the industrial and services zone of more importance for the economic future of Cuba.

The objectives of the ZEDM are to generate exports, sources of employment and financing, technological transferences and logistic systems, as well as attracting national and foreign companies In July four giant cranes arrived from China, built in Shanghai for the mega port

Tags: Port of Mariel likely to become an economic engine for Cuba

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