The charade at PortMiami on ferry services to Cuba may be indicative of a bigger drama unfolding at investor expense. There are now as many as ten ferry companies looking to start Miami-Cuba passenger and cargo service, but there are no docking facilities on either side of the Florida Strait to support the business. Miami aims to put in place temporary berths, but that move is not being reciprocated by Cuban authorities. Havana is prioritizing the cruise-ship industry, given the lure of cash-laden tourists. The case study underscores our view: the opportunity cost of Cuba-directed deal flow is high, if not extreme. Investors should be satisfied with conservative expectations. ■
Learn more at the Miami Herald.
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Image shows indicative ferry terminal. Credit: Felix50 at Can Stock Photo Inc.