Port officials attend Cuba summit

Port officials attend Cuba summit
Feb 7, 2006, 05:27 AM

CORPUS CHRISTI - The Port of Corpus Christi is planning ahead for the
day when the United States embargo on Cuba is lifted. In fact, port
officials were in Mexico City this past weekend, discussing potential
business opportunities with Cuba. The development of Cuban oil resources
could be a real boost for this area.

Over the past three years the port of Corpus Christi shipped 20,000 tons
beans and 50,000 tons of grain to Cuba. Right now a trade embargo means
those are the few items allowed. But if officials ever lift the embargo,
the port may get into the oil business with Cubans.

"We saw this as a very first step in starting to talk about that, right
now nobody can do any of that trade...that's not legal...we knew that
going in," said John Larue from the Port of Corpus Christi.

The port already possesses refining capability and the development of
potential Cuban oil reserves could be a big boost for industries like
offshore rig fabricators, as well as oil drilling and production services.

"I think they feel the technology and the understanding of finding oil
and pulling it out of the ground as efficiently as possible that rests
in the United States," Larue said. This weekend's meeting included major
companies like Valero, Exxon-Mobil and Caterpillar construction.

"This was not just a bunch of port people or others sitting around
talking about what could happen some day...this was major players in the
energy industry trying to get a sense of what was going on in Cuba."

Last year, Cubans spent 750 million dollars on U.S. agricultural and
humanitarian supplies so if Congress and the president ever lift the
full embargo, South Texas is prepared for the windfall.

The meeting did hit a bit of a hiccup, when Cuban delegates were asked
to leave the American-owned Sheraton Hotel, because of pressure from the
U.S. Treasury Department. They said the Mexico City Sheraton, is a
subsidiary of an American company and the meeting was a violation of the
embargo. The delegates moved to another hotel and resumed the meeting.

In the meantime, port officials said serious talks are underway on a
deal to export chicken and rice to Cuba. Telephone poles are also
another possible export item. It may sound a bit strange at first
glance, but the island suffers a lot of hurricane damage on an annual
basis. Talks on possible deals for these types of products are underway,
but no timetable has been set.

Online Reporter: Shaun Hegarty
http://www.kristv.com/Global/story.asp?S=4463213