Contecon Guayaquil S.A. (CGSA), International Container Terminal Services Inc’s. (ICTSI) subsidiary in Ecuador, has welcomed the creation of a special economic zone (SEZ) at the country’s main seaport, the Port Guayaquil.
In a statement, ICTSI described it as “an immense opportunity to boost the country’s foreign trade”. On 20 April, the port operator, together with national government and port authority representatives, formally presented its Declaration of Special Economic Development Zone (ZEDE) – a high-impact project that aims to strengthen the competitiveness of Ecuador’s exports.
ZEDE will be situated in an area adjacent to the Port of Guayaquil – considered a prime and strategic location due to the port’s interconnectivity with the country’s main production centers, other maritime ports, and airports – creating a hub of strategic interest for national and international investments.
José Antonio Contreras, CGSA General Manager, said “The ZEDE promoted by Contecon Guayaquil S.A., has an unbeatable location, next to the Guayaquil Maritime Port, whose scheme has an absolutely clear and stable regulatory framework that will enable the development of long-term financial and tax planning while also covering activities included in the prioritized sectors of the Ecuadorian economy.”
The ZEDE offers a complete and stable regulatory framework of Ecuadorian legislation for the development of high-impact investments.
Within the framework, the project generates added value to the supply chain and provides the State and business operators a competitive area for their activities as required by law.
To attract businesses, the ZEDE will offer several tax incentives that include exemption from Income Tax for the first 10 years of the project and reduction of 10 points from the tax rate for the next 10 years.
Iván Ontaneda, Ecuadorian Minister of Production, Foreign Trade, Investments and Fisheries commented, “The declaration of this ZEDE speaks for itself, of coordinated public-private work and that it should continue as a state policy.”
ICTSI said sside from creating positive economic impact, the ZEDE will also join the Port of Guayaquil’s environmental scheme to become the first carbon-neutral special economic zone in Ecuador.
It will also implement a strict environmental sustainability plan starting from day one of its operations – a first for the region.