Public Special Economic Development Zones (ZDEEP) in Guatemala have become drivers of development, generating jobs and fostering innovation. With the creation of these zones, ZOLIC has expanded its reach, transforming the country’s industrial and commercial infrastructure.
On Guatemala’s Caribbean coast, at the heart of commerce and industry, lies the “Santo Tomás de Castilla” Free Trade and Industrial Zone (ZOLIC), a logistics gem that has been driving the country’s economic development for more than half a century. Since its founding 51 years ago, ZOLIC has been a cornerstone, but the last 15 years have been the most transformative in its history.
ZOLIC’s transformation began in 2008 with the approval of amendments to its Organic Law through Decree 22-73. This reform was a watershed moment, allowing for the creation of Special Economic Development Zones (ZDEEP) through Decree 30-2008, expanding ZOLIC’s scope beyond Santo Tomás de Castilla to any part of the country.
The ZDEEPs are not only areas of opportunity, but also represent a modern vision of economic development.
The legal certainty provided by the regime has been a magnet for investment. Over the past five years, ZOLIC has seen more than Q550 million invested in the construction of the first Special Zones, creating over 10,000 direct and indirect jobs. This investment has not only boosted the local economy but has also strengthened the country’s industrial, commercial, and logistics infrastructure.
As of early 2024, ZOLIC has registered 22 ZDEEPs, of which five are fully operational, nine are awaiting authorization from the Superintendency of Tax Administration (SAT) to begin operations, and another nine are in the process of being approved by the ZOLIC Board of Directors. These zones are distributed across the departments of Escuintla, San Marcos, Zacapa, and Izabal, encompassing agro-industrial, commercial, and industrial developments.
Byron Gaitán, General Manager of ZOLIC, stated, “The creation and expansion of the ZDEEPs are tangible proof of our ability to innovate and adapt to the needs of the global market. We are not only building infrastructure, but also sowing the seeds of progress and prosperity for future generations of Guatemalans.”
PUMA I
According to Marco Lemus, Puma’s regional operations manager, ZDEEP is the oldest such facility, having been in operation for 11 years. He noted that the country’s strategic location and legal certainty were key factors in their decision to invest in Guatemala; the company sought to import and export hydrocarbons, petroleum products, and fuels to Central America and the Americas.
At ZDEEP PUMA I, there is a terminal with a storage capacity of 1.2 million barrels, over the course of its eleven years in operation, have invested $1.41 billion And according to Lemus, they still have “potential investments and are not ruling out opening their doors to other clients in the near future as part of the company’s strategy.”.
This Development Zone generates 100 direct jobs and the same amount—or a little more—indirectly.
QUETZAL FREE ZONE
Andrés Sandoval, General Manager of the Quetzal Free Trade Zone highlights an investment of just over Q 200 million and the generation of 280 jobs Between direct and indirect jobs, the facility was just inaugurated in March.
He points out that being located just 4 kilometers from Puerto Quetzal makes operations much easier, more efficient, and faster. He adds that they offer top-quality facilities, including warehouses starting at 600 square meters, and a flexible model that adapts to businesses of any size.
As additional advantages, it boasts a thriving population of approximately 150,000 residents with varying work capacities, and excellent electrical and water supply services.
GATE OF THE ISTHMUS
The Mexico-Guatemala border region has always held enormous potential, as it serves as the main land trade gateway between North America and Central America, which is why Puerta del Istmo decided to utilize the ZDEEP model due to the numerous logistical and tax benefits it offers to all companies that establish themselves within the Zone, making it Guatemala’s primary tool today for attracting domestic and foreign investment, notes its CEO, Fredy Palma.
Puerta del Istmo offers state-of-the-art facilities that meet high standards of infrastructure and security, and creates the conditions necessary to ensure the competitiveness of our users’ operations, given that more than 900 vehicles cross the border area daily.
It features Guatemala’s only Transfer Center, which allows freight to be transported directly from Mexico to Puerta del Istmo on full loads using the weight and dimension limits applied in Mexico, thereby reducing border crossing times to 2 hours, making the PDI Transfer Center a significant achievement for the facilitation of international and Guatemalan trade.
Puerta del Istmo has invested to date Q154 million quetzales for the development and construction of 46,000 square meters in industrial buildings, and as of June 2024, they are investing Q 84 million quetzales more for the construction of an additional 30,000 square meters of new industrial warehouses.
It has generated 1,250 direct jobs and around 3,000 indirect jobs, is currently on track to bring in 4 new companies, which will create an additional 500 direct jobs.
MICHATOYA PACIFIC
Architect Carlos Eddy López, CEO of ZDEEP Michatoya Pacífico, notes that positioning the country as a key player in the global industry and international trade, as well as taking advantage of the tax benefits offered by the regime, were key reasons for investing in Guatemala.
In the first phase of construction, The investment amounts to US$1.41 billion, but it It projects reaching US$1.4 trillion and generate 65,000 direct jobs and 260,000 indirect jobs, through which they hope to help create decent employment opportunities that will help reduce irregular migration to the United States.
ZDEEP is located at 30 kilometers from Puerto QuetzaIt is located 72 kilometers from Guatemala City. It is positioned as a world-class logistics hub covering an area of more than 10 million square meters. It is home to the country’s largest, most innovative, and most sustainable ZDEEP, featuring renewable energy, efficient water use, and a nursery with 150,000 native trees.
It features its own six-lane connector road linking the CA-9 Puerto Quetzal highway with the CA-2 Oriente highway, designed to streamline transportation logistics.
ZOLIC and ZDEEP continue to drive development and progress, reflecting Guatemala’s commitment to a prosperous and sustainable future through a history of transformation, innovation, and opportunities across the country.