Odebrecht Sees Cuba’s Mariel Port Expanding Sooner with Better U.S. Ties

By Daniel Trotta

HAVANA, Jan 30 (Reuters) – Cuba’s improved relations with the United States may result in a extra speedy growth of the port upon which the nation has staked a lot of its financial future, an govt whose firm constructed the port stated on Friday.

Brazilian conglomerate Odebrecht SA accomplished the $800 million mission at Mariel, west of Havana, slightly over a 12 months in the past. It is seen as a possible distribution heart for the Caribbean and Central and South America and is on the coronary heart of a particular improvement zone designed to draw overseas funding in Cuba.

The United States and Cuba are restoring diplomatic relations after 5 a long time of hostilities, although full commerce and journey will take longer as President Barack Obama wants the Republican-controlled Congress to utterly elevate the U.S. financial embargo of Cuba.

Mauro Hueb, director of Odebrecht’s operations in Cuba, stated he expects a spike in overseas funding because of improved expectations.

“We believe that (the embargo) will be lifted in the short to medium term,” he informed Reuters in an interview on Friday. “The Cubans always had expectations the blockade would be lifted and Mariel of course was a project looking toward the future.”

Odebrecht additionally has lodge and sugar pursuits in Cuba, plans to construct a plastics manufacturing facility at Mariel, and is increasing Terminal 3 of Havana’s worldwide airport, making the corporate an apparent advocate for Cuba.

Many potential overseas traders are extra skeptical of doing enterprise within the communist-ruled island, involved concerning the security of investments in a rustic that has proven a willingness to take over companies it finds engaging or to jail overseas executives.

At Mariel, Odebrecht constructed 700 meters of port connecting to roads and rails in an preliminary part that’s anticipated to final eight to 10 years earlier than growth. With sufficient demand, Cuba may triple the waterfront infrastructure to 2,140 meters.

Hueb stated that growth is likely to be wanted sooner, although he didn’t predict precisely how quickly. The embargo bans business vessels from U.S. ports for six months after they dock in Cuba.

“There could be an acceleration of the master plan for Mariel with the possible lifting of the embargo,” Hueb stated.

In the preliminary part, Mariel has the capability to deal with 1 million containers a 12 months and thus far has reached 30 to 40 % of that, Hueb stated.

A 12 months after Cuba declared the Mariel zone open for enterprise, no overseas firm has signed a deal. Odebrecht’s plastics manufacturing facility was as soon as anticipated to obtain the Cuban authorities’s approval within the second half of 2014 however it has since been delayed to a while in 2015. (Reporting by Daniel Trotta; modifying by Kieran Murray and Matthew Lewis)