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

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Cuba in the Caribbean

WHY CUBA? A strategic location, in the heart of the High Human Development indexes Caribbean, ideally located to become ____________ the Hub of the Americas. High levels of safety. ____________ ____________ Political, economic, legal and social World class universities and research stability. centres. ____________ _____________ Respected globally. Diplomatic relations World class health system. with 190 countries. _____________ ____________ Culture, history, architecture and sites Member of international and regional of unrivalled beauty in the region. organizations. ____________ 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.

HIGHLY QUALIFIED WORKFORCE Educational Stage Distribution of workforce Economically Active People by occupational category Operatives Technicians High school level education In services Administratives High school 5% 5% 6% 38% 23% 19% 52% 23% 29%

WORLD CLASS EDUCATIONAL SYSTEM

How to do business with Cuba Two ways to do business  Foreign trade operations (imports and exports of goods and services) and  Foreign investment business on the modalities considered by the Cuban law.

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

Merchandise exports to country of destination

Merchandise exports by classification of product

How to trade with Cuba www.camaracuba.cu  Foreign companies do not require commercial presence or 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.

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

RENEWABLE AGRO-FOODS MINING CONSTRUCTION TRANSPORTATION ENERGY AUDIOVISUAL HIDR Á ULIC BUSINESS TOURISM HEALTH SUGAR BIOTECH- OIL INDUSTRY INDUSTRY NOLOGY SUMMARY OF BUSINESS OPPORTUNITIES

35 TH HAVANA INTERNATIONAL TRADE FAIR FI HAV 2017 1 ST week of November

w w w.mitrans.cu Structure of Transport in Cuba Institute of Civil Aeronautics of Cuba Maritime Administration of Cuba Ministry of Transport Administration of Railroad Transport General Direction of Road Transportation

w w w.mitrans.cu Maritime System Maritime Administration of Cuba Direction of Inland Waterway and Sea Transport Direction of Maritime Safety Direction of Port Administration Territorial Maritime Administration

w w w.mitrans.cu Insertion of Cuba in the Maritime Organizations and International Maritime Treaties : Insertion in ROCRAM Adherence to the Viña del Mar Agreement Adherence to the Caribbean MOU 1994 1999 Insertion in IMO  FAL 65 Navigation Law No.115 and  LINE LOAD 66  TONNAGE 69 Decree Law No.230 of Ports  COLREG 72 1966  Environmental Legislation  MARPOL 73  Certified Ports in ISPS Code  SOLAS 74  STCW 78  SAR 79 2013 Insertion in MTOP  ISM, ISPS & ISCI  Bilateral Agreement Codes signed on 09/01/17 2014 Operational Procedures Cuba- EEUU in Search and Rescue (SAR)

w w w.mitrans.cu Maritime Transport 2015 Transported 14 million tons, from which: Volumes  6,5 diverse fuels  5,0 massive cargoes and containers  2,5 exports Fuel, Containers, Steels, Frozen goods, Grains (Rice, Principal Beans, Wheat, Maize and Soya), Fertilizers, Fodder Imports and Equipment Sugar, Nickel, Alcohol, Charcoal, Zeolite, Coffee, Principal Cocoa, Rum, Honey, and Fresh Fruits Exports Receivers: China, Canada, México and Europa

w w w.mitrans.cu First Category Ports and designations La Habana Matanzas Port Administration Mariel A A Nuevitas Casilda Punta Francés Cayo Largo A Ship Yards A Carúpano Moa Containers Cienfuegos Antilla General Cargoes Guayabal A Liquids Cargoes Grain Sugar Santiago de Cuba Cruisers Port Services

w w w.mitrans.cu Cruise ship Operations 3 Cruise Terminals  L a Habana  Santiago de Cuba  Cienfuegos Signed contracts with 4 US Other calls Companies: CARNIVAL, ROYAL CARIBBEAN, NORWEGIAN  Punta Francés  Casilda CRUISE & PEARL SEAS.  Cayo Largo del Sur  Antilla “Cuba is a tremendous opportunity” Arnold Donald, Carnival Cruise Lines President & CEO, December /2014

Mariel Port and Cuban Economic Development • 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 offers 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.

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. Mariel Mariel Angosta Pier La Boca TC Mariel, is designed to Pier operate New Panamax vessels, has a state-of-the- art port infrastructure, a Master Plan and areas reserved for future expansion and development. TC The Terminals have qualified Mariel and experienced staff who guarantee yield and productivity levels of international standards in the port industry. Mariel Pier

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.

TC MARIEL. GEOGRAPHIC LOCATION TC Mariel Geographic Location The most interesting opportunities may open up for well established Norfol k Caribbean ports such as Kingston, Freeport, Bahamas; Panama; Charleston 1000nm Savannah Cartagena, and recently Mariel, Mobile Housto Jacksonville Gulfport Cuba. n New Orleans Cañaveral Port Everglades Tamp 750nm a Bahamas Mia mi 500nm Mariel Altamir a Progreso Kingston Veracruz Caucedo Puerto Castillo Puerto Cortes New Panamax ready (13,500 TEU) Post Panamax ready (> 5000 TEU) Puerto Limon Cartagena Panama Panamax ready (4000~5000 TEU) Non Panamax ready (< 4000 TEU)

Infrastructure 2016 Future 702 2400 Berth length 17.0 17.9 Max draft (m) 4 (6*) 24 Gantry cranes SPP 12 72 RTG 22 132 Prime movers 4 18 Empty C. Handlers 2 3 Reachstackers 27.7 95 Area (ha) 1140 2500 Reefer plugs 800,000 3,000,000 Total capacity(TEU) * With no need for additional work on the dock Railway facility 2 2 RMG 4 4 Railway tracks 120 000 300. 000 Capacity (TEU)

PORT FACILITIES UNDER THE ADMINISTRATION OF ESP MARIEL Terminal Servicios Portuarios Mariel has three facilities located inside the perimeter of Mariel Bay, all three able to ESP operate general cargo, Mariel Angosta including Ro-Ro. ESP Mariel 10 hectares reserved for future La Boca development. These facilities will gradually incorporate the transfer of general cargo currently operated in the Port of Havana. The Terminals provide logistics support to off shore oil ESP Mariel 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 of 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.