DOI NG BUSI NESS W I TH CUBA Cuba in the Caribbean WHY CUBA? A - - PowerPoint PPT Presentation

DOI NG BUSI NESS W I TH CUBA

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Cuba in the Caribbean

WHY CUBA?

A strategic location, in the heart of the Caribbean, ideally located to become the Hub of the Americas. ____________ Political, economic, legal and social stability. ____________ Respected globally. Diplomatic relations with 190 countries. ____________ Member of international and regional

• rganizations.

____________ Highly qualified labour force ____________ Transport, communications and energy infrastructure available, all with investment and development plans. _____________ Commercial, investment and customs agreements with most countries in the region and internationally. High Human Development indexes ____________ High levels of safety. ____________ World class universities and research centres. _____________ World class health system. _____________ Culture, history, architecture and sites

• f unrivalled beauty in the region.

HIGHLY QUALIFIED WORKFORCE

52% 23% 19% 6%

Educational Stage Economically Active People

High school level education High school

38% 29% 23% 5% 5%

Distribution of workforce by occupational category

Operatives Technicians In services Administratives

WORLD CLASS EDUCATIONAL SYSTEM

How to do business with Cuba

• Foreign trade operations (imports and exports of goods and services) and
• Foreign investment business on the modalities considered by the Cuban law.

Two ways to do business

Cuban Foreign Trade

• Foreign trade operations are carried out by importing

and exporting companies specialized on specific groups of products, dealing with more than 3 000 companies worldwide.

• No importation quotas are required.

Cuba is signatory to the Vienna Convention on Contracts for the International Sale of Goods, and is a GATT and WTO founding member.

Cuban foreign trade by regions in 2015

The Americas 43% Europe 30% Middle East, Africa and Oceania 3% Asia 24 %

Merchandise exports to country of destination

Merchandise exports by classification of product

How to trade with Cuba

 Foreign companies do not require commercial presence

• r registration to trade with Cuba.

 Requirements to establish branch offices:

• 5 years of incorporation in its country of origin.
• 3 years doing business with Cuba, with annual

transactions over 500 000 USD.

• Equity stock not less than 50 000 USD.

The Chamber of Commerce of the Republic of Cuba may provide advisory services on the Cuban legal framework and practices, among other services.

www.camaracuba.cu

Foreign Investment in Cuba

Cuba has taken the following steps:  The approval of the updated Foreign Investment Policy (2011)  The creation of Mariel Special Development Zone (2013)  The passing of a new regulatory framework, Law 118 (2014)  The launching of the Foreign Investment Opportunities  The Business Opportunities Portfolio yearly updated Target: US$ 2 billion through foreign investment

SUMMARY OF BUSINESS OPPORTUNITIES

MINING RENEWABLE ENERGY AGRO-FOODS CONSTRUCTION TRANSPORTATION BUSINESS TOURISM HEALTH AUDIOVISUAL HIDRÁULIC SUGAR INDUSTRY OIL BIOTECH- NOLOGY INDUSTRY

FI HAV 2017 1ST week of November

35 TH HAVANA INTERNATIONAL TRADE FAIR

Structure of Transport in Cuba

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Maritime Administration of Cuba Institute of Civil Aeronautics of Cuba General Direction of Road Transportation Administration of Railroad Transport

Ministry of Transport

Maritime System

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Direction of Inland Waterway and Sea Transport Direction of Maritime Safety Direction of Port Administration

Maritime Administration

• f Cuba

Territorial Maritime Administration

1966 1994 1999 2013 2014 Navigation Law No.115 and Decree Law No.230 of Ports

Insertion in IMO  FAL 65  LINE LOAD 66 TONNAGE 69  COLREG 72  MARPOL 73  SOLAS 74  STCW 78  SAR 79  ISM, ISPS & ISCI Codes Insertion in ROCRAM Adherence to the Viña del Mar Agreement Adherence to the Caribbean MOU Insertion in MTOP  Bilateral Agreement signed on 09/01/17

Insertion of Cuba in the Maritime Organizations and International Maritime Treaties

:

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Operational Procedures Cuba- EEUU in Search and Rescue (SAR)

 Environmental Legislation  Certified Ports in ISPS Code

Volumes Transported 14 million tons, from which:  6,5 diverse fuels  5,0 massive cargoes and containers  2,5 exports Principal Imports Fuel, Containers, Steels, Frozen goods, Grains (Rice, Beans, Wheat, Maize and Soya), Fertilizers, Fodder and Equipment Principal Exports Sugar, Nickel, Alcohol, Charcoal, Zeolite, Coffee, Cocoa, Rum, Honey, and Fresh Fruits Receivers: China, Canada, México and Europa

Maritime Transport 2015

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La Habana Mariel Matanzas Nuevitas Cienfuegos Santiago de Cuba Port Administration

Containers General Cargoes Liquids Cargoes Cruisers Grain Sugar Port Services

Carúpano Guayabal

Ship Yards A

A A A A

Punta Francés Casilda

Moa

First Category Ports and designations

Cayo Largo Antilla

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Cruise ship Operations

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Other calls

 La Habana  Santiago de Cuba  Cienfuegos

3 Cruise Terminals

 Punta Francés  Cayo Largo del Sur  Casilda  Antilla

Signed contracts with 4 US Companies: CARNIVAL, ROYAL CARIBBEAN, NORWEGIAN CRUISE & PEARL SEAS.

“Cuba is a tremendous opportunity”

Arnold Donald, Carnival Cruise Lines President & CEO, December /2014

• Mariel Port is ideally positioned to

serve as first port of call on USEC services from Asia, WCSA & ECSA.

• Mariel is a greenfield location with

ample room for future expansion in protected deep waters.

• Mariel Special Development Zone
• ffers attractive legislative and fiscal

advantages for foreign investors to produce and assemble goods in Cuba for export to US and elsewhere in Caribbean.

• Cuba’s economy in undergoing with

significant growth in tourism, and the investments in the Mariel Special Development Zone. These economic changes will drive imports and exports of Cuba.

Mariel Port and Cuban Economic Development

Mariel Pier Mariel La Boca Pier Mariel Angosta Pier

TC Mariel PORT TERMINALS MANAGED BY ALMACENES UNIVERSALES S.A. IN MARIEL

The Port of Mariel is just 45 km West of Cuba’s capital city and its terminals are located in a sheltered deep water bay, in the center of Mariel Special Development Zone. TC Mariel, is designed to

• perate

New Panamax vessels, has a state-of-the- art port infrastructure, a Master Plan and areas reserved for future expansion and development. The Terminals have qualified and experienced staff who guarantee yield and productivity levels

• f

international standards in the port industry.

TC Mariel and Mariel Port Terminals are wholly-owned Cuban companies, belonging to the multimodal service leader group "Almacenes Universales S.A.“ TC Mariel has an administration contract with PSA International from Singapore, a Leader in Terminal Operation worldwide.

Mobile Gulfport New Orleans Housto n Progreso Veracruz Puerto Cortes Puerto Castillo Puerto Limon Mia mi Jacksonville Port Everglades Tamp a Kingston Cartagena

Mariel

Panama Bahamas Charleston Savannah Altamir a New Panamax ready (13,500 TEU) Post Panamax ready (> 5000 TEU) Panamax ready (4000~5000 TEU) Non Panamax ready (< 4000 TEU) Norfol k Cañaveral Caucedo

500nm 750nm 1000nm

The most interesting opportunities may open up for well established Caribbean ports such as Kingston, Freeport, Bahamas; Panama; Cartagena, and recently Mariel, Cuba.

TC MARIEL. GEOGRAPHIC LOCATION

TC Mariel Geographic Location

Infrastructure 2016 Future

Berth length 702 2400 Max draft (m) 17.0 17.9 Gantry cranes SPP 4 (6*) 24 RTG 12 72 Prime movers 22 132 Empty C. Handlers 4 18 Reachstackers 2 3 Area (ha) 27.7 95 Reefer plugs 1140 2500 Total capacity(TEU) 800,000 3,000,000 * With no need for additional work on the dock

Railway facility

RMG 2 2 Railway tracks 4 4 Capacity (TEU) 120 000

• 300. 000

ESP Mariel

PORT FACILITIES UNDER THE ADMINISTRATION OF ESP MARIEL

ESP Mariel La Boca ESP Mariel Angosta

Terminal Servicios Portuarios Mariel has three facilities located inside the perimeter of Mariel Bay, all three able to

• perate general cargo,

including Ro-Ro. 10 hectares reserved for future development. These facilities will gradually incorporate the transfer of general cargo currently

• perated in the Port of Havana.

The Terminals provide logistics support to off shore oil prospection on Cuba’s Exclusive Economic Zone in the Gulf of Mexico.

INFRASTRUCTURE

Infrastructure 2017 Short term

Area (Ha) 31 41 Berth Length (ml) 1480 2145 Maximum draft (m) 8,8 12,0 Gantry cranes 2 3 Fork lifts 12 18 Rolltrailers 14 22 Reachstaker 1 3 Tug master 3 5 Grabs 3 4 Trimming dozer

• 1

Front loaders 1 2

CONCEPT

Mariel Special Development Zone is a long term visionary project and a pillar of the update

• f Cuba’s economic model.

FRIENDLY BUSINESS ENVIRONMENT

Attractive fiscal regime with tax exemptions and reductions Only two approval levels within a term not exceeding 60 days One Stop Shop System

Team of professionals advising and assisting investors High standard infrastructures and services at the disposal of investors.

ventajas

MASTER PLAN FOR SECTOR A

Three phases of development on short, medium and long terms. Incorporates the highest urban and environmental quality standards Each phase incorporates activities of higher added value.

Advanced Manufactures Biotechnology and Pharmaceutical Industry Logistics Services

Pillar Industries

Construction services Banking and Financial entities

APPROVED USERS

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4 Wholly Owned Cuban Co 13 Wholly Owned Foreign Co 5 Joint Ventures 1 IEA 962,6 million USD 4 031 jobs

‘’… the will of the Cuban government is to develop respectful and cooperation relations with the USA; but it must be

• n the basis of full

equality and reciprocity, absolute respect for Cuba’s independence and sovereignty, without interference of any kind.’’

Josefina Vidal Ferreiro, General Director, USA Desk, MINREX - 17/10/16

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