Monday, May 11, 2015

The U.S. Permits Ferry Service to Cuba

The U.S. has granted licenses to four American firms to operate ferry services to Cuba for the first time in more than a half century
The U.S. Treasury granted licenses to four American companies to operate ferry services to Cuba for the first time in more than a half century, potentially bringing the former Cold War antagonists closer.
A 1950s advertising leaflet from West India Fruit & 
Steamship Co., promoting sea travel to Cuba. 
Photo: Björn Larsson
The move is part of President Barack Obama’s strategy to normalize relations with Cuba by engaging in direct talks with the government of President Raúl Castro. Reviving a mode of travel between the two countries that was common in the 1950s would ease the people-to-people contact that is a cornerstone of Mr. Obama’s policy of engagement.
“It is an important symbol that re-establishing of relations with Cuba is a legacy project for Obama,” said Robert Muse, a lawyer who represents one of the three companies. “He is going as far and as fast as possible.”
A Thomson Dream cruise ship arriving in Havana 
bay. AP
The proposed ferry services must still obtain Havana’s approval, lawyers for the companies said, but that the U.S. move clears the way for negotiations.
Unclear was how receptive Cuba’s government would be, as it seeks to balance economic benefits with concerns that any sudden change could endanger the island’s one-party rule.
“We are in contact with the Cuban authorities to get the necessary clearance for an approved port, which ideally will be Havana,” said Alexander Panagopoulos, owner of Athens-based dry-bulk operator Arista Shipping, who teamed up with American cruise-industry veteran Bruce Nierenberg to form Miami-based United Caribbean Lines. The new company got its license on Tuesday.
“Cuba will welcome initiatives that change the economic status quo, but they will fit the operation to what politically they can absorb,” said John Kavulich, president of the U.S.-Cuba Trade and Economic Council, which provides information about Cuba issues.
Apart from United Caribbean, the Treasury granted licenses to Fort Lauderdale, Fla.-based Havana Ferry Partners LLC, San Juan, Puerto Rico-based America Cruise Ferries Inc., and Baja Ferries USA LLC, which is based in Coconut Grove, Fla., according to the companies and license notifications. The agency’s Office of Foreign Assets Control confirmed it issued licenses, but didn’t say to whom.
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