Mariel Economic Development Zone Project

Introduction to the Mariel Economic Development

The Mariel Economic Development is a term you are likely to hear more and more as trade between Cuba and America and other countries, including in Latin America, the Caribbean, and Europe develops over the coming decade.

This newly re-developed port area is destined, once completed, to be the largest and eventually the busiest industrial port in the Caribbean region.

The Mariel project is being largely funded by a Brazilian company named Odebrecht, which is investing over £500 million pounds into this massive project, in association with the Cuban government.

Maribel will overtake Havana port as the main arrival point for cargo ships and also cruise ships, with this being built as a deepwater port in the town of Mariel.

Mariel is located roughly 35 miles from Havana and around this development area, it will be classified as a free trade zone, the point being to attract large foreign investment into the area and into Cuba.

The massive expansion of the Panama Canal will enable much larger vessels to be able to navigate through to Latin America and the Caribbean.

This will be a significant development for the Mariel project because, in effect, it will also mean that larger vessels will be looking to sail through the Caribbean.

The Mariel development is being designed with the Panama Canal expansion in mind.

Seeing ships carrying over 10,000 containers each will soon be something possible in Cuba in Mariel, with both the Panama and Mariel projects.

Location, Location, Location

Mariel, and Cuba in general, is a wonderful location in that it sits at the mouth of the Gulf of Mexico (for access to U.S. cities such as Houston and Dallas), between North and Central and Latin America, and in the Caribbean.

For trade, Cuba sits beautifully in the center of this region and the new Panama extension will make access from the Pacific Ocean that much easier for large vessels.

In addition to the movement of products, the ability for the world’s largest cruise ships to sail to or from the Pacific, through the Panama Canal, and up to the deepwater port of Mariel makes it a very attractive option indeed, for cruise lines in the future.

Many of the Caribbean cruise ports require the use of tender boats in order to disembark passengers. Mariel will not require tenders.

Panama Canal Expansion

Further Developments

In addition to the developments in Mariel and Panama, the attractiveness of the Mariel trade area is further money being spent on improvements on the roads and connections between Mariel and Havana.

In the end, Mariel will be able to process triple the number of containers that Havana port can presently accommodate.

Mariel will put pressure on the United States to end its embargo and the new development will also offer healthy competition for the Port of Miami, Florida.

Competitive shipping rates and opportunities for the freight industry are going to make Mariel a genuine port to compete with nearby Miami.

The Cuban government is actively seeking investments for a number of projects in the Mariel Development Zone (known locally as ZEDM) including, for example, in transportation, biochemicals, glass, clean technologies, and agro-foods.

Even with the US trade embargo in place, Mariel is a project which will begin to make Cuba much more competitive on a global stage.

One suspects that, if anything, the Americans perhaps realize they cannot afford not to embrace the opportunities which Cuba are likely to offer in the coming future, particularly with growing interest from Brazil, Russia, and China in the chance to work with the Cuban government.

The growing willingness from Cuba to allow investment from abroad into areas such as the ZIALM is likely to grow and difficult for the U.S. government to ignore.