Cuba invests to compete

While Havana’s port is already developed and receiving trade, it is draft restricted, presenting the seaside town of Mariel with the chance to exploit the larger ships that will pass through the Canal.

Neil Davidson, senior analyst, ports and terminals, Drewry Maritime Research, said to Port Strategy: “Cuba is well located to take part in this, but to do so needs a deep water port. For transhipment, Mariel will have to compete with existing hubs like those in Panama and also Freeport, Caucedo and Kingston.”

But in terms of location, Mariel, which sits on Cuba’s northern coast and is about 190 miles from Florida, should be competitive.

“If we assume that one day the US embargo will be lifted, Mariel is absolutely on the right coast/in the right location for direct US-Cuba trade. However, the embargo does have implications for Mariel in terms of transhipment – I’m not sure that the US would be able to be served by feeder vessels carrying Asian cargo and plying to and from Mariel with the embargo still in place,” Mr Davidson added.

Despite being an added attraction, establishing an FTZ could also prove more difficult as it “forces companies to put down roots”, Mr Davidson told PS.

While the US embargo against Cuba is still in place, it seems the country will have to rely on other governments like Brazil, Mexico, China and Singapore to compensate.

It is understood that the project will cost around US$900m and will be built by Brazil’s Odebrecht and operated by Singapore’s PSA.