March 01, 2012

OFAC nixes Florida-Cuba passenger ferry idea

Posted by Doreen Hemlock - No Comments

Forget about boarding a ferry in Florida to see Pope Benedict XVI in Cuba this month. The U.S. Treasury Department’s Office of Foreign Assets Control has denied an application from Havana Ferry Partners to offer service to Cuba for the pope’s visit — or for any other occasion. 

OFAC, which oversees the U.S. embargo against Cuba, said ferry service is “beyond the scope of current policy.” While Washington has expanded the number of U.S. airports that can offer charter flights to Cuba, “ferry services were not included in the group of policy changes,” said OFAC’s Feb. 27 rejection letter.

Havana Ferry plans to appeal, said managing partner Leonard Moecklin Sr.

He sees no reason why authorized U.S. passengers can fly to Cuba and not take a ferry. Current rules on the embargo allow both “aircraft and vessels” to serve Cuba, and cargo already is shipped both by air and sea, he told CubaNews.

“A ferry would be less expensive for passengers and would let them take more baggage,” said Moecklin, who plans to sell tickets at least $50 cheaper than round-trip charter flights. “The demand is there.”

Havana Ferry has hired the Washington law firm Arent Fox and its senior policy adviser, former Sen. Byron Dorgan (D-ND) to handle its appeal. Dorgan sponsored the 2000 law allowing U.S. food sales to Cuba and played a key role in writing its regulations. Moecklin knows Dorgan from his days working with a Colorado firm, Miller Farms Exports, that sold food to Cuba.

Havana Ferry is one of several companies hoping to offer Florida-Cuba ferry service. Others are Orlando’s United Caribbean Lines, Paris-based Unishipping SA and Spain’s Balearia. The service was popular in the 1950s before the United States imposed its embargo on Cuba in 1962.

Moecklin’s company aims to operate a ferry that would hold 500-600 passengers and their luggage and later, haul freight and vehicles too. Initially, most passengers would be Cuban-Americans, who may visit family on the island whenever they wish. 

U.S. ferry service also would need a license from Cuba, but Moecklin said he has assurances for Cuban approval once Washington gives its go-ahead.

OFAC’s rejection came just two weeks after Moecklin went public with complaints about delays on an answer for his license application, first submitted in 2010. Moecklin likened the wait for a Treasury decision to being stuck in a black hole.

Moecklin said he initially felt disappointed by the denial letter, but is now emboldened. He’s confident OFAC will recognize that ferries — like planes — are allowed under current U.S. policy.

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