Transportation Sector Investment Opportunities
The transportation sector is an area in which the Cuban government is looking for investment in from foreign companies. The information below provides some background information on the transportation sector in Cuba and the opportunities.
Cuban Tramnsport Infrastructure
The first railroad in Spanish America, one of the first airlines to issue in the era of commercial flights, one of the oldest naval industries on the continent are some of the elements that make up the roots and traditions of the Cuban transport sector.
They have played an important role in all the stages of Cuban history.
After an intense period of development during the first years of the Revolution, transport in Cuba suffered from the impact of the difficult years following the collapse of the socialist bloc during the 1990s.
It was not until the beginning of the new century did recovery of the main services take place, corresponding to the advances being felt in the national economy.
Principal Regulatory Provisions:
- Law 109 of the Roads Safety Code of September 17, 2010
- Law 115 of the Inland Waters Navigation of October 2, 2013.
- Decree Law 168 on Transport Operation Licensing of November 26, 1996
- Decree Law 180 on Railroads of December 15, 1997
- Decree Law 230 on Ports of September 13, 2002
- Decree Law 255 on Civil Aviation of October 5, 2007
- Decree 278 of the Air and Sea Search and Rescue System of December 30, 2006.
Cuba has a broad-based transport infrastructure that includes the branches of automotive, rail, maritime-port and air transportation.
Thsi infrastrcuture is currently being organized, modernized, and technologically updated, being improved by human resources and materials available and to improve the efficiency in its use as well as in the overall development of all the branches to coordinate with the country’s economic-social growth within the context of the world economy.
It is important to insert foreign investment into this sector in order to accelerate the attaining of these objectives and with it to achieve the needed competitiveness of transport both in cargo and passengers, demanded by the various production spheres and national economy services; all of the foregoing supported by the presently existing strengths as follows:
- Qualified human resources in a wide range of transport specialties, in all branches, with the education base necessary to quickly assimilate new technologies and develop transportation products and services (sailors, plane crews, rail specialists, planners, scientists, etc.)
- To Grade 9: 17,498
- Grades 9 to 12: 26,754
- Middle Technicians: 24,179
- University Graduates: 8,194
Vast roadways network of over 60,000 kilometers of roadways for automobile transportation and over 8,000 kilometers of rail lines interconnecting by Loading and Unloading Centers that exist throughout the country.
Even though they require technical improvement also interconnect the main economic and population centers with a network of ports and national and international airports that in turn have all the port and airport services available according to world standards.
Installed capacity for ship repairs in the more than 40 shipbuilding facilities and dry docks all over the country which, although they need to be modernized, are an important departure point for taking advantage of existing opportunities for this service in the Caribbean.
This is complemented by the existence of International Quality Classifying Company “Registro Cubano de Buques” having over thirty years of experience in this sector.
Installed capacity of workshops and industries for automotive and rail transportation that can be modernized and adapted to new technologies with minor investments in order to develop the manufacture of spare parts and accessories for transport in all its branches.
Strategic location in Latin America and the Caribbean region for developing transport services and products.
The growing domestic market for passenger and merchandise transport as well as for their auxiliary and connected services.
Objectives to be Attained with Foreign Investment
1. Management for shipbuilders for the development of the naval industry both for attention to the domestic fleet for crossings and auxiliary services and to broaden exportations of products and services in this activity.
2. Management of wholesale commercialization of spare parts and accessories in the different branches of transport, including the development of local manufacturing and/or repairing of components having the greatest rotation on the domestic market and their possible exportation.
3. Efficient management of specialized transport services of cargo and passengers, both on national territory and internationally, including exploitation and technical assurance.
4. Efficient management of services related to commercial and agricultural aviation-oriented towards both the domestic and international markets.
5. Management of transport products and services (including activities of training, research, project, and administration) in Cuba and in third countries.
Cuban Parties associated with foreign capital businesses:
CDC S.A. is a company providing naval repairs and construction services; repairs and maintenance of fuel storage tanks; production of bottled oxygen and acetylene and all the technical services satisfying the needs of domestic and international clients both in the naval and industrial sectors.
Its Quality Management system is registered by Lloyd’s Register of the UK and the Oficina Nacional de Normalizacion.
Empresa Comercializadora AXESS is a company that commercializes on a wholesale basis both imported products and those purchased in Cuba.
With over 30 years of experience in the wholesale market of automotive spare parts, parts and accessories in Cuba, it is the best commercializing company within the automotive sector.
It has a network of stores and warehouses distributed all over the country.
Empresa Provincial de Transporte de La Habana is a company that provides passenger public transportation services in Havana using tis fleet of over 900 buses of different categories (articulated and rigid) grouped at 16 bases distributed over Havana.
It also has facilities dedicated to repairing spare parts and accessories.
Empresa de Transporte de Trabajadores in a company providing transport services for tourism employees all over the country.
It operated a total of 998 buses distributed over 21 bases.
The company provides services not only to employees directly connected to the tourism industry but also to employees of other companies and government organizations.
Sectorial Policy
To develop port infrastructure, the building and repairing of vessels in shipbuilding companies, the purchase and/or management of ships, technical assurance activity and the exploitation of automotive transport, manufacture and repairing of spare parts and accessories, management of workshops and other rail system activities and in everything regarding commercial and agricultural aviation.
