Andres Sandoval, CEO Zona Libre Quetzal
Since its inauguration, the Special Public Economic Development Zone ZDEEP Zona Libre Quetzal (ZLQ) has established itself as a key driver of development for the Escuintla region, boosting trade, investment and job creation. One year after its start-up, the achievements made and challenges overcome have consolidated its strategic position within Guatemala's logistics and economic ecosystem.
With 300 jobs generated in its first year and projections that aim to reach 1,000 direct and indirect jobs by 2025, the company continues to advance. Currently, it has 9 users operating in the areas of logistics and commerce, and an investment of more than US$10 million. With the expansion of its infrastructure, it is expected that, by the end of this year, more users will be added and 150,000 operating square meters will be reached. Andrés Sandoval, CEO of ZLQ, shares with us in an interview the impact of the zone, its evolution and projections for the coming years.
How would you describe this first year of operation of Zona Libre Quetzal?
It has been a challenge that has revealed much of the potential of the figure. The operation has its complexities, but the benefits to the companies and the ease of job creation are significant.
What have been the major achievements since the inauguration?
During this first year, we have been able to consolidate our position as a development hub for Puerto Quetzal and Puerto San José, boosting economic activity and improving local infrastructure. We have optimized the logistic flow in Puerto Quetzal and APM Terminals, and boosted the competitiveness of companies in Guatemala with operational solutions. In addition, we have become the ZDEEP with the most users and the largest operational extension, exceeding 77,000 square meters.
What were the main challenges you faced in this first year and how did you overcome them?
One of the main challenges has been to strengthen cooperation with SAT, ZOLIC and our users, a constant learning process based on experience. Thanks to the growth of Zona Libre Quetzal and the support of SAT, we have expanded our team and will soon increase the ZOLIC staff. Our priority continues to be optimizing customer service and user experience, aware of the growth that is to come.
The local economy is experiencing remarkable growth, with our current and confirmed customers already generating close to 200 direct jobs and more than 100 indirect and construction jobs.
How many users does Zona Libre Quetzal currently have and what type of companies operate in it?
We currently have 9 active users and expect significant growth this year. Our customers include logistics and trading companies that manage warehousing, consolidation and deconsolidation of goods, as well as those that start transformation and assembly operations.
How has the occupancy and operation of the ZDEEP ZLQ evolved since its inauguration?
Occupancy has increased because customers, seeing SAT's operability, trust the system and recognize our logistical benefits, which has boosted demand.
Which sectors have shown the greatest interest in establishing themselves in Zona Libre Quetzal?
There is a strong manufacturing sector that is present in Guatemala right now because of the nearshoring. Although we have managed to close some small foreign ones, it takes time to close the big clients but we are in the process.
The logistics sector is strongly interested because it sees that there are more and more needs near the port that we can meet. I am sure that this sector will be further consolidated in the area.
What impact has the Free Zone had on the local economy and on Guatemala's foreign trade?
The local economy is experiencing remarkable growth, with our current and confirmed clients already generating close to 200 direct jobs and more than 100 indirect and construction jobs. Demand for labor and services continues to increase.
Our customers include logistics and trading companies that manage warehousing, consolidation and deconsolidation of goods, as well as those that start transformation and assembly operations.
Although the impact on foreign trade is still in development, we are already seeing companies installed that have achieved significant operational savings by being able to export with ease. This will strengthen the regional competitiveness of companies in Zona Libre Quetzal, positioning Guatemala as the economic center of the Northern Triangle and a strategic point to the south of Mexico.
How has the Free Zone facilitated logistics and international trade?
More and more companies that were not previously established in Guatemala are choosing to set up in the ZLQ, which allows them to be more competitive by not having to pay taxes on the merchandise they will eventually export.
More than $10 million dollars have been invested, I estimate, since the inauguration. This number will increase significantly this year both for the development of the project and for the users themselves who are investing.
This advantage offers them the opportunity to consolidate, deconsolidate and pick according to local demand as well as demand from other Central American countries. In fact, several companies have chosen to centralize their operations at ZLQ precisely because of the ease of importing and exporting, thus optimizing their logistics processes.
How much has been invested in the area since its inauguration and how has this figure evolved over the last year?
More than $10 million dollars have been invested, I estimate, since the inauguration. This number will increase significantly this year both for the development of the project and for the users themselves who are investing.
What are the growth expectations and projections for the second year of operation?
We expect to reach at least 1,000 direct user jobs in the next year and to have more than 150,000 meters occupied by users as well. We want Zona Libre Quetzal to be seen as part of the port infrastructure of Puerto Quetzal and to be a solution for local and foreign investors.
How do you envision Zona Libre Quetzal in the next 3 to 5 years?
We envision being the area always leading in all metrics and hopefully representing a significant percentage of Guatemala's GDP and generating more than 15,000 jobs.
What message would you give to investors and businessmen who are not yet familiar with the Quetzal Free Zone?
I would tell them to talk to us and give their operations a thorough review. We are solving many operational logistics problems and I believe we are a solution for everyone. If you don't take the lead, rest assured that your competition will, and they will be more competitive.