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Transportation in Cuba: Challenges in the transition to Renewable Energy

AN EXCLUSIVE INTERVIEW WITH:

(28th June 2024 London - The Net-Zero Circle) – The transportation system in Cuba faces numerous challenges that impact both the economy and the quality of life of its citizens. From 2010 to 2022, the country invested $27.386 billion in importing machinery and transportation equipment, according to the National Office of Statistics and Information (ONEI). Despite this investment, it has not been sufficient to address the sector's structural issues, which currently transports 50% fewer passengers than it did five years ago.

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Current challenges in Cuban transportation

The Minister of Transportation, Eduardo Rodríguez Dávila, highlighted in the podcast "Desde la Presidencia'' that Cuba is experiencing one of its worst moments in terms of transportation. Here are the main problems identified:

  1. Lack of foreign currency: Although transportation generates significant revenue, these funds are redirected to other economic needs, preventing reinvestment in the sector and affecting the availability of fuel and spare parts.
  2. Unsustainable operating costs: Transportation fares are centrally set and kept low to protect the population, leading to operational losses and an inability to carry out proper maintenance.
  3. Bureaucracy and delays: The processes for acquiring and distributing necessary resources for transportation are slow and complicated due to currency conversion and the involved administrative mechanisms.
  4. Disparities in economic operations: Private transport operators face higher costs for acquiring spare parts and fuel, resulting in higher passenger fares compared to the state sector.

Impact in public transportation

In Havana, only 34% of the 894 buses of the Provincial Transport Company were operational in 2023. The shortage of spare parts, batteries, lubricants, and tires is a persistent issue. Since 2016, imports of machinery and transport equipment have decreased significantly, reaching a minimum of $1.349 billion in 2021. This reduction has resulted in lower utilisation of the vehicle fleet, with decreases of 20% in buses, 9% in train cars, and almost 10% in cargo transportation between 2018 and 2022.

Renewable Energy: A viable solution

To overcome these challenges, Cuba is considering modernising the transportation sector through the use of Renewable Energy. Renewable Energy is essential for electric mobility in Cuba, and the first steps and investments are being taken to reduce the transportation sector's dependence on fossil fuels. However, the necessary conditions for extending this more reliable and less polluting mobility are not yet in place. The goal is to expand its use sustainably without overloading the national electro-energy system, which has its limitations.

Current initiatives

An example of these initiatives is the increase in various types of electric transportation in the country. Companies like Aguas de La Habana and ElectroAir are leading these efforts:

  • Aguas de La Habana: With four years of experience using electric vehicles, this company plans to extend their use to other parts of the capital and provinces. They are working closely with ElectroAir, a major producer of technical solutions in Solar Energy, to generalise this experience throughout the country. Aguas de La Habana has also trained its staff for the maintenance of these vehicles, ensuring their long-term sustainability.
  • ElectroAir: This foreign company is providing electric vehicles (EV), chargers, and charging stations, integrating Renewable Energy into Cuba's urban transport. During the Second International Renewable Energy Fair, their efforts and collaboration with local companies to promote electric mobility were highlighted.

Investment projects and international cooperation

Cuba has launched 22 projects aimed at attracting foreign investment in the transportation sector, with a total value of over $212 million. However, 63.6% of these projects are directed towards maritime transport, while only 18.2% focus on land transport. Most of the projects are concentrated in Havana, with initiatives also in the Mariel Special Development Zone, Cienfuegos, Matanzas, Las Tunas, and Granma.

Rodríguez Dávila emphasised the need to better leverage international cooperation opportunities, although the lack of experience has been an obstacle. Modernising transportation in Cuba requires significant investments and an integrated strategy that combines economic efficiency and environmental sustainability.

Solar Energy: The key

The transition to Renewable Energy is crucial for addressing the challenges faced by Cuba's transportation sector. By adopting Renewable Energy sources such as solar power for electric mobility, Cuba can reduce its dependence on fossil fuels, lower emissions, and improve the sustainability of its transportation system. This shift not only promises a more reliable and environmentally friendly transportation solution but also contributes to a more sustainable future for the country.

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