Global Miami Jan/Feb 2023

GLOBAL MIAMI

Paradigm Shift

How Olé is Re-Inventing Life Insurance in Latin America

Plus Cargo’s Future at MIA

Interport’s Gary Goldfarb

Dominica Opens Up

Olé CEO Michael Carricarte

RISK IS THE REWARD

The first watch brand to embrace the world of sailing, the Corum Admiral collection celebrates its nautical origins. With its unique 12-sided case and nautical pennants as hour markers, it is instantly recognized the world over.

ADMIRAL 45 CHRONOGRAPH • ADMIRAL 38

©2022 Coldwell Banker Realty (FLA License No. 2027016). All Rights Reserved. Coldwell Banker Realty fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell Banker Logo, Coldwell Banker Global Luxury, the Coldwell Banker Global Luxury logo are registered and unregistered service marks owned by Coldwell Banker Real Estate LLC. The property information herein is derived from various sources that may include, but not be limited to, government records and the MLS. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification.

13000-13001 LEWIN LN | SOUTHWEST RANCHES | $54M

325 LEUCADENDRA DR | GABLES ESTATES | $37.5M

8955 COLLINS AVE #LPH | ARTE - SURFSIDE | $19.9M

30 PALM AVE | PALM ISLAND | MIAMI BEACH | $43M

9530 W BROADVIEW DR | BAY HARBOR ISLANDS | $25M

5275 HAMMOCK DR | CORAL GABLES | $10.9M

You don’t just want a house. You want the right house.

Experience Matters

Audrey opened her own real estate firm in Miami in 1984 and has established herself as one of the city’s preeminent purveyors of luxury homes. Audrey Ross is the go-to broker to bring your real estate transaction to the most satisfying conclusion. Call Audrey to unlock exclusive properties with our list of off market properties. You have the dream. We have the tools to find what you’re looking for.

Vol 1/Issue 2 FEATURES

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Cruise traffic returns to PortMiami as cruise lines and Miami-Dade invest in future growth. The port – including both cruise and cargo sides – has an economic impact of $45 billion on the state’s economy, according to a PortMiami report from fiscal year 2021.

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BACK TO GLOBAL SEAS INSURANCE

With its AI digital platform, Olé is upending the life insurance market in Latin America. Having spent close to a decade understanding how life insurance was sold in Latin America, the Carricarte brothers have a whole new approach.

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SUPPLY CHAIN MASTERS

Walking into the warehouses at Interport Logistics’s headquarters just west of Miami International Airport is like stepping into a giant beehive. Industrial storage racks stretch up to the 36-foot ceilings like massive slats of honeycomb. But instead of storing honey, they house air conditioning units, pallets of whiskey, and cotton t-shirts.

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GOING VERTICAL

Miami International Airport’s new $2 billion Vertically Integrated Cargo Community (VICC) is a state-ofthe-art facility that will double the airport’s cargo capacity and cement its position on the global stage.

THE MOST TRUSTED LOGISTICS PAYMENT PLATFORM

With the largest multi-modal logistics network in the industry, PayCargo allows for faster release of cargo and improved daily cash flow for all types of freight payments and invoices.

A Template for Miami’s Success

Our cover story this month is about a company that is both unique and emblematic of what makes Miami such a superb place to base a global business. Olé defines what so many other cities have, for decades, tried to figure out: what we have – and what they lack.

Why is it that cities such as Houston, Dallas, New Orleans, and even Atlanta have fallen short of the success that Miami (a relatively small city compared to others) has had in attracting domestic and foreign companies to relocate here and serve the region? After all, other cities have thriving ports and airports, large workforce populations, and all the requisites of finance, legal, and accounting services. Yet, they haven’t become the center for pan-hemispheric trade, nor have they garnered the enormous influx of capital and corporations that Miami is now witnessing. Why? What’s the “magic?”

Not complicated for a Miamian to answer. Miami (and South Florida as an extension) has been a hemispheric trade interchange for decades: the right geographic location north and south and now east/ west; a thriving multi-lingual, multicultural population that grows yearly; a world-class education and healthcare system; and the unique desire to imagine, create, and develop in an environment that encourages new startups and innovative ideas. People come here on planes, trains, boats, and yes, rafts, with a burning desire to succeed in a city where the new holds sway as much as the old. They will risk it all for the chance to be

part of the American Dream.

Why us and not Houston, Dallas, New Orleans, or Atlanta? We’re at the right place at the right time with the right population, along with the stroke of luck of having political leadership that is unabashedly pro-business and pro-innovation, helping lure a new talent pool with a focused vision. As the late Representative Dante Fascell once said, “The unique thing about Miami is that we’re in the Caribbean but close to the United States.” He understood that Miami is a special global trade city, buffeted from the economic domestic downturns that affect those other mainland cities. His vision is now unfolding in a most dramatic way.

The Carricarte family, creators of Olé (and Amedex, decades ago) clearly is a case study of why Miami has thrived. The first-generation family came here to have a better life (in this case from Cuba). They embraced all the benefits that a global city can provide. They raised a family with strong moral values, giving them a great education and a strong work ethic. They saw opportunity, envisioned what could be done to bring their idea to market, and worked hard to make it happen. Fortunately for them, and for us, they chose Miami as the fulcrum for their success.

RICHARD ROFFMAN PUBLISHER GLOBAL MIAMI MAGAZINE

PUBLISHER

Richard Roffman

EDITOR-IN-CHIEF

J.P. Faber

SENIOR VP INTERNATIONAL

Manny Mencia

DIRECTOR OF OPERATIONS

Monica Raucci

ASSOCIATE PUBLISHER

Gail Feldman

NEW BUSINESS DEVELOPMENT

Sherry Adams

Amy Donner

Gail Scott

MANAGING EDITOR

Kylie Wang

ASSOCIATE EDITOR

Yousra Benkirane

DIRECTOR, STYLE & ART

Harriet Mays Powell

WRITERS

Doreen Hemlock

Joe Mann

Katelin Stecz

ART DIRECTOR

Jon Braeley

PHOTOGRAPHERS

Rodolfo Benitez

Tiege Dolly

Emily Fakhoury

PRODUCTION DIRECTOR

Toni Kirkland

CIRCULATION & DISTRIBUTION

CircIntel

BOARD OF ADVISORS

Ivan Barrios, World Trade Center Miami

Ralph Coutié, Miami International Airport

Gary Goldfarb, Interport

Bill Johnson, Strategic Economic Forum

David Schwartz, FIBA

Bill Talbot, Beacon Council

EDITORIAL BOARD

Alice Ancona, World Trade Center Miami

Greg Chin, Miami International Airport

Paul Griebel, World Strategic Forum

Jerry Haar, Florida International University

James Kohnstamm, Beacon Council

John Price, Americas Market Intelligence

TJ Villamil, Enterprise Florida

COVER PHOTO by Rodolfo Benitez

Global Miami Magazine is published monthly by Global Cities Media, LLC. 1200 Anastasia Ave., Suite 217, Coral Gables, FL 33134. Telephone: (305) 452-0501. Copyright 2023 by Global Cities Media. All rights reserved. Reproduction in whole or part of any text, photograph, or illustration without o\prior written permission from the publisher is strictly prohibited. Send address changes to subscriptions@ globalmiamimagazine.com. General mailbox email and letters to editor@globalmiamimagazine.com

Crypto as an Alternative National Currency? A Fool’s Bet

BY JERRY HAAR

With the collapse of cryptocurrency exchange FTX, those three letters will be removed from the arena that serves as home to the Miami Heat basketball team and a popular venue for musical events. While many local politicians and business leaders have been promoting Miami as a hub for fintech, including cryptocurrency, their unbridled enthusiasm can impede due diligence on firms like FTX that seek to promote branding.

In this instance it is not just about FTX, which new CEO John Ray asserts is really “just old-fashioned embezzlement,” but a case of the financial instrument itself –cryptocurrency.

The verdict is still out on cryptocurrency, a digital currency that exists only electronically. The advantages of crypto are compelling: protection from inflation; secure and private; self-governed; and cost-effective for transactions. The negatives are significant, however: crypto can be used for illegal transactions such as drug trafficking and money laundering; adverse effects of coin mining on the environment (enormous amounts of energy required); susceptibility to hacks; and no refund or cancellation policy.

Recent times have not been good to crypto. Digital currencies have lost over $2 trillion during the past year. In the second week of November alone, crypto fell 21 percent. Big companies are not bullish on cryptocurrency, cases in point being Tesla (will no longer accept it for payment) and Facebook/Meta (sold its crypto intellectual property and assets).

While individuals should be free to invest in any financial instrument they choose, entire nations should not. Yet that is precisely what El Salvador has done, becoming the first country in the world to use Bitcoin as legal tender in 2021.

A careful examination of El Salvador’s experiment with cryptocurrency should give one reason to pause. President Bukele launched a virtual wallet named “Chivo” (meaning “awesome” in Spanish) and paid

people $30 to download the app and use it. But so far only 20 percent have – no surprise, since one in three Salvadorans lacks access to a mobile phone with internet. As for businesses, only 20 percent accept the digital currency.

El Salvador’s experiment with cryptocurrency has cost the country $375 million so far, a sizeable loss for a GDP of $60 billion. Not to be deterred, President Bukele is keen on building a “Bitcoin City” near the country’s Conchagua volcano.

Those who champion cryptocurrency as legal national tender regard it as a tool to reform financial services, making them more inclusive and accessible. The IMF, World Bank, and central banks, on the other hand, argue that crypto can facilitate money laundering, undermine capital controls, and expose citizens to major price volatility. Besides crypto’s negative impact on macroeconomic stability, financial integrity, and consumer protection, the adoption of crypto as a national currency would make it impossible to estimate tax revenue.

To quote Harvard economist Jeffrey Frankel: “Cryptocurrencies are backed neither by reserves nor by the reputation of a well-established institution such as a government, private bank, or trusted corporation.” Todd Baker, a financial services executive and Columbia Business School fellow is more concise and harsher, asserting: “Crypto is money without a purpose.”

Miami has been masterful in promoting the city as a global business and finance hub, not just a tourism and leisure destination. Within the financial realm, crypto is “hot” at the moment, joining derivatives (such as options and warrants, forwards, and futures) in the portfolio of financial instruments. But entire nations such as El Salvador that speculate on crypto, substituting it or placing it alongside their national currencies, can create collateral damage. Impacts can include distress sales of real estate, shuttered businesses, defaults on bank loans, and repatriation of capital to meet obligations in their home countries.

The Latin warning “caveat emptor” (buyer beware) is meant for consumers. Nations that consider banking their treasuries on speculative instruments should heed the warning, as well. l

Jerry Haar is a professor of international business at Florida International University and a fellow of the Woodrow Wilson International Center for Scholars and the Council on Competitiveness, both in Washington, D.C. He is also a board member of the World Trade Center Miami.

Recent global transactions affecting trade & investment

international business advisor in its Government Solutions Practice Group. Ambassador Rocha, who previously served as a special advisor on international business at Foley from 2009 to 2012, will help clients with immigration issues and international business opportunities.

EC1 PARTNERS LAUNCHES FOURTH GLOBAL HUB IN MIAMI

International fintech recruiter EC1 Partners added a fourth global hub in Miami alongside its three existing hubs in New York, Singapore, and London.

DISNEY CRUISE LINE SELECTS PORT EVERGLADES AS HOMEPORT FOR SECOND YEAR

A new agreement has named Port Everglades as Disney Cruise Line’s second year-round homeport. The 15-year partnership includes a minimum of 10.6 million passenger movements and three five-year extension options that could add another 11.25 million movements. The agreement provides for one ship to be homeported in Port Everglades year-round beginning in Fall 2023, joined by a second, seasonal ship in 2025.

MIAMI-DADE, ROYAL CARIBBEAN SIGN $2.8B PORTMIAMI DEAL

Miami-Dade County commissioners have approved a development and lease agreement with Royal Caribbean Cruises projected to net the county $2.8 billion over the next 50 years. The deal is expected to create 12,000 permanent cruise-related jobs, including 1,000 new positions at Royal Caribbean’s Miami headquarters. It also includes the construction of a new terminal at PortMiami for exclusive use by Royal Caribbean and its subsidiary companies.

BTIG OPENS REGIONAL OFFICE IN MIAMI BEACH

BTIG’s newest location opened in Miami Beach in late November. The global financial services firm’s new location in the Starwood capital group headquarters building is its third largest in the U.S., accommodating all of its business divisions, including investment banking, research, and institutional trading. BTIG, LLC and its affiliates operate out of 20 cities in the U.S., Europe, Asia, and Australia.

ALDI EXPANDS IN MIAMI

The German supermarket chain Aldi has secured a 20-year ground lease at Midway Crossings shopping mall near Miami International Airport. The deal provides Aldi with four five-year renewal options.

HOLLAND & KNIGHT LOOKS TO STRENGTHEN GLOBAL ENERGY PRACTICE

Law firm Holland & Knight has recruited a new nine-partner transactional and regulatory team from Eversheds Sutherland, a global multinational law practice, all members of which have experience in the energy industry. The team is led by energy and renewables partner Ram Sunkara in Houston and tax partner Amish Shah in Washington, D.C.

AMERICAN AIRLINES TO ADD OVER 700 MIAMI JOBS

American Airlines is looking to fill around 600 roles in its reservations department and 100 in customer service roles at Miami International Airport this year. The company hired more than 2,000 team members in Miami in 2022 and continues to expand.

U.S. AMBASSADOR REJOINS FOLEY & LARDNER LLP

Foley & Lardner LLP announced that former U.S. ambassador to Bolivia, Manuel Rocha, has rejoined the firm’s Miami office as a senior

FLIGHT UPDATES

American Airlines and Spirit have resumed flights from Miami International Airport (MIA) to Managua, Nicaragua after a 2.5-year pause due to the pandemic. American is also now offering a third daily flight from Miami to Sao Paulo (GRU) and Buenos Aires (EZE), while suspending its nonstop flights to Paramaribo, Suriname, effective March 1. Meanwhile, Delta Airlines is planning to resume its service to Havana, Cuba in April 2023 with two daily nonstop flights from MIA. Eastern Airlines has also launched a new monthly route connecting MIA to Santo Domingo, and low-cost carrier French Bee is now offering nonstop service from MIA to Paris Orly Airport (ORY).

MIAMI-DADE COUNTY WINS GLOBAL BUSINESS AWARD

The county received the Global Business Relationship Management (BRM) Community Excellence Award in December, recognizing its IT department’s BRM capabilities and its impact on business. The county’s BRM program was created to promote collaboration across Miami-Dade County’s departments and make them more efficient and effective. At-

lanta-based BRM Institute is a non-profit corporation established to help organizations grow business relationship management capabilities.

as flower importers) that require time-sensitive, temperature-controlled segments of the supply chain. Mogul, an international oil and gas exploration company, will use the FLORA companies to help grow revenues from approximately $70 million in 2022 to $185 million by 2025.

WORLD TRADE CENTER MIAMI SIGNS MOU WITH CARIBBEAN EXPORT AND CANNING HOUSE

A memorandum of understanding between Caribbean Export, World Trade Center Miami, and UK-based Canning House is designed to increase trade relations between Latin America and the Caribbean. Canning House is the United Kingdom’s leading forum on Latin America.

TOGAL.AI WINS WORLD’S LARGEST CONSTRUCTION TECH COMPETITION

After winning Miami’s eMerge Americas Startup competition, Miami-based Togal.AI’s team traveled to Dubai to compete in The Big 5 – the world’s largest construction event with more than 38,000 companies from 60 countries. After several rounds of pitching, Togal.AI won first place in the Start-Up City Pitch Competition. The company’s AI-powered construction software can process site designs and building requirements in less than a minute.

NORTHMARQ OPENS NEW MIAMI OFFICE

Northmarq is expanding its debt and equity platform in South Florida with plans to open a debt/equity office located in Miami’s Brickell financial district. The Miami team will be responsible for originating, underwriting, and closing debt and equity financing for commercial and multifamily properties in the Miami metropolitan area and Southwestern Florida.

U.S. SENATE CONFIRMS FIU PROFESSOR AS U.S. AMBASSADOR TO THE OAS

Professor Frank O. Mora, who previously led Florida International University’s Kimberly Green Latin American and Caribbean Center and teaches politics and international relations, was confirmed by the U.S. Senate as the permanent U.S. representative to the Organization of American States (OAS). The appointment carries the rank of ambassador. The OAS is a leading multilateral organization that works to strengthen peace and security in the Western Hemisphere. Mora was nominated to the diplomatic role by President Biden.

AIR CARGO FORUM TO BE PERMANENTLY HOSTED IN MIAMI

In 2024, Miami will become the permanent host of the Air Cargo Forum, which was held at the Miami Beach Convention Center last November. Almost 4,000 people attended the trade show with more than 220 companies exhibiting from the global air cargo, transportation, and logistics industry.

SANCTUARY WEALTH LAUNCHES MIAMI-BASED FIRM FOR INTERNATIONAL CLIENTS

Sanctuary Wealth’s Sanctuary Global subsidiary has launched a new Miami-based partner firm, Diagonal Investment Office, to oversee $200 million in assets for international clients. The boutique family firm serves wealthy Latin American clients who want to invest in the U.S.

MOGUL ENERGY INTERNATIONAL, INC. ACQUIRES “FLORA” GROUP

The group includes Florida Beauty Flora, Florida Beauty Express, Floral Logistics of California, and Tempest Transportation, all of which provide refrigerated trucking and logistics services to companies (such

GENERAL ATLANTIC OPENS MIAMI OFFICE

Global growth equity firm General Atlantic has opened a new office in Miami Beach, its fourth U.S. office and its 16th worldwide. “With the establishment of our Miami office, we are well-positioned to play a larger role in advancing the city’s growing and dynamic tech sector,” said Chairman and CEO Bill Ford.

SAUDI ARABIA ACQUIRES MAJORITY STAKE IN MAGIC LEAP

The South Florida-based augmented reality company completed a deal reportedly worth $450 million to make Saudi Arabia its majority stakeholder. The Public Investment Fund (PIF), which acquired the interest in Magic Leap, is controlled by Crown Prince Mohammed bin Salman and invests in projects deemed worthy of diversifying the country’s national economy. Through PIF, the country also owns minority stakes in American companies like Disney, Uber, Boeing, and Meta, among others. l

Recent Miami Trade Stats: The Big Picture

OVERALL TRADE IS ON THE RISE, IF ONLY CONSERVATIVELY

BY YOUSRA BENKIRANE

In the Miami Customs District, which encompasses all of South Florida’s ports and airports, cargo volume has been steadily growing after COVID-19 slowdowns and is projecting a conservative increase in the coming year. As trade through South Florida leverages the growth of nearby offshore manufacturing – and avoids some of the worst slowdowns in the global supply chain – demand for imported products and commodities is on the rise. From August 2021 to August 2022, imports increased by approximately 12 percent. Exports rose as well, by approximately 4 percent, led by shipments to South America.

On the import side, China is still Greater Miami’s top import source as of August 2022 ($611 million that month), despite the decrease in trade flows amid Chinese COVID shutdowns. Colombia follows next ($345 million in August), as gold imports regained demand.

The overall increase in year-to-year imports was explained primarily by an increase of product from Vietnam (a jump of 83.9 percent to $77.9 million), led by a surge in shipments of integrated circuits. Imports from Colombia also grew sharply, up 29.2 percent, led by not only gold (up 76.9 percent to $99 million) but by telephones (up 27.2 percent to $55.4 million) and integrated circuits (up 107 percent to $41 million).

On the export side, Brazil remains the leading destination from the Miami Customs District ($1.19 billion in August). The overall increase in year-to-year numbers can be attributed to increased shipments to Argentina (up $84 million, or 61 percent), Chile (up $69.8 million, or 19.7 percent to), and Brazil (up $42.8 million, or 4.86

percent). In terms of products, the growth in exports was led by increases in computer shipments (up $66.9 million, or 25.5 percent); medical products such as vaccines, blood, antisera, toxins, and cultures (up $53.6 million, or 92.2 percent); and telephones (up $41.8 million, or 12.3 percent). Additionally, while the export of aircraft parts decreased overall compared to the previous year (down 21.6 percent), year-byyear aircraft parts shipments to the United Arab Emirates (UAE) increased a breathtaking 634 percent to $146 million, thanks

to the UAE’s demand for air travel following the easing of the pandemic.

On the sea side, PortMiami recorded cargo growth of 8.88 percent from August 2021 to August 2022. Reflecting that cargo increase, Florida East Coast (FEC) Railway now runs two trains daily into and out of PortMiami, with each train carrying 50 to 80 containers (aka TEU’s or 20-foot equivalent units). Inbound containers came primarily from the interior of the U.S., while outbound containers were destined primarily for Central and North Florida and the

FLORIDA EAST COAST RAILWAY, OWNED BY GRUPO MÉXICO, RUNS TWO TRAINS DAILY INTO PORTMIAMI

MIAMI CUSTOMS DISTRICT 2022 TRADE VALUES

Our thoughts turn gratefully to those who have made our success possible. It is in this spirit that we say Thank You and send our best wishes for The New Year!

THE LUXURY PROPERTY PROFESSIONALS

Southeast U.S.

Indeed, data from PortMiami shows an increase in rail cargo volumes over the past several years. During the 2021 fiscal year, FEC trains moved 37,938 containers by rail in and out of PortMiami, 52 percent more than in the 2020 fiscal year, when FEC trains moved 24,908 TEUs. As of June 2022, volume was up 44 percent from the pre-pandemic level in June 2019. New trends and disruptions in the global supply chain are giving East Coast seaports like PortMiami, which has an economic impact of $43 billion and generates about 334,500 jobs, the ability to receive more cargo shifting from the West Coast to the East Coast.

MIAMI CUSTOMS DISTRICT TOP EXPORT DESTINATIONS 2022

MIAMI CUSTOMS DISTRICT TOP IMPORT ORIGINS 2022

Miami International Airport, meanwhile, experienced a slight decrease in the year-to-year dollar value of overall freight carried (down 6.41 percent) despite substantial increases in freight volume. This can be attributed to export decreases in high-ticket categories like aircraft parts (down $168 million or 22.6 percent), gold (down $36.7 million or 47.6 percent), and fine art paintings (down $32.7 million or 78.2 percent), and import decreases in vaccines, blood, antisera, toxins, and cultures (down $81.6 million or 98.8 percent), and gas turbines (down $50.3 million or 51.5 percent).

Overall, while Latin America and China remain the top sources for imports to the

Miami Customs District, Europe showed the fastest growth, with France increasing by 82 percent to $126 million, and Italy increasing by 27.7 percent to $65.3 million. The fastest growing export destinations between August 2021 and August 2022 were the United Arab Emirates (up 264 percent to $124 million), China (up 155 percent to $61.7 million), and Peru (up 39.9 percent to $73.8 million). l

Sources: The Observatory of Economic Complexity, United States Census Bureau USA Trade® Online, PortMiami, Miami International Airport

FLORIDA ROOTS. GLOBAL REACH.

The Hemisphere’s Next Vacation Hotspot

WITH NEW AIR ROUTES FROM MIAMI, THE ISLAND NATION OF DOMINICA POSITIONS ITSELF FOR SUSTAINABLE TOURISM

BY YOUSRA BENKIRANE

Floating along the scenic Indian River, our expert boatman Aza points out places where the second “Pirates of the Caribbean” movie was filmed. Also hidden amongst the mangroves is a secluded local hangout, the Bush Bar, where “Time Stands Still.” The motto is fitting – tucked among majestic Bwa Mang trees, and offering homemade coconut and rum cocktails, time really does seem to stop at this jungle gem. Here, as elsewhere, locals are happy to proffer advice on where to visit on this tiny island nation in the Caribbean’s farthest reaches.

No matter where you go in Dominica – and no, the country has nothing to do with the Dominican Republic, so don’t let the locals hear you say that – people will offer up lessons on the island’s flora and fauna: which fruits you can eat, what teas you can make, and which leaves are used as medicine. Throughout the picturesque island you can find coffee, bananas, cocoa, nutmeg, cinnamon, ginger, papaya, guava, and pineapple, amongst other plants. As you might expect, agriculture is Dominica’s main export. The country trades mostly with other neighboring Caribbean islands, but even Miami receives a portion of its ginger imports from here.

In recent years, however, Dominica has sought to increase their services exports – in particular to position the island as a destination for sustainable eco-tourism, attracting new types of visitors looking for a rustic tropical vacation that treats the environment responsibly.

As it is, the island offers stunning natural habitats that align with its Ministry of Tourism’s goals to promote agra-tourism, aqua-tourism, and adventure-tourism, among others – like tubing through the famous Titou Gorge, where I tried to stay dry in my tube despite Mother Nature’s opposite agenda.

To further Dominica’s eco-tourism agenda, the government has put extraordinary efforts into protecting the island’s natural habitats and wildlife. In its promotion of sustainable tourism, it encourages visitors to preserve the nation’s unspoiled natural beauty and requires new developments to use renewable sources for things like power and water.

These initiatives go hand in hand with Dominica’s efforts to protect itself from natural disasters, since the island nation, like much of the Caribbean, is susceptible to climate-related increases in tropical storms. In 2017, Hurricane Maria wreaked havoc on the island, much of which is still recovering. Shortly after the crisis, Prime

Minister Hon. Roosevelt Skerrit promised to rebuild the country as the “world’s first climate-resilient nation” at the 72nd United Nations General Assembly. To follow up on his vow, Dominica began pursuing initiatives to become a leader in the development of renewable energy sources.

Currently, wind and hydropower account for 28 percent of Dominica’s electricity production, and the nation hopes to achieve energy independence by 2030. The government offers incentives for the importation of solar-related equipment and is working on several sustainability projects, including the installation of solar streetlights and, most notably, geothermal plants that will convert heat from the earth’s core to electricity.

In March 2019, the World Bank approved a $27 million investment for the first of these geothermal projects, a 7-megawatt geothermal power plant which aims to increase the share of renewables and diversify the country’s energy matrix. “This is an extraordinary opportunity for Dominica to reach its energy and climate goals by investing in geothermal, and to build a greener and more resilient future,” says Tahseen Sayed, World Bank Country Director for the Caribbean. “The country has huge potential to provide reliable, low-cost, renewable, and high-quality energy in support of climate resilient growth.”

That effort is now expanding with the island’s Geothermal Risk Mitigation Project to further lower electricity costs and increase the share of renewable energy in the country’s energy grid from 25 to 51 percent, reducing greenhouse gas emissions by 38,223 tons of

THE CARIBBEAN REBOUND

The Caribbean has always been a hotspot for vacationers, derailed by the pandemic in 2020 and 2021. Now, many of the islands are recovering and gearing toward growth. The number of foreign tourists is expected to rise in Caribbean countries this year, including Dominica. So far, the Dominican Republic has lead the recovery, with foreign arrivals up 40 percent from 2019 levels, followed by the U.S. Virgin Islands (up 33%), Bonaire (up 30%), and Martinique (up 26%). “Caribbean tourism is seeing a strong recovery,” says Carolin Lusby, Ph.D., Assistant Professor in Tourism at Florida International University’s Chaplin School of Hospitality & Tourism Management. “COVID-19 has put an increased emphasis on the resilience of the tourism-dependent economies of many Caribbean islands and nations. The focus on sustainability served many islands well and will continue to be important, as well as creating experiences centered on well-being for both locals and travelers and protecting natural resources through the creation of protected areas, both land and marine. Economically, the Caribbean, which has seen much leakage, is focusing on keeping more money in the local economy.”

carbon per year.

The project is truly international in scope: The Dominica Geothermal Development Company Ltd is implementing the project with a $17.2 million credit from the International Development Association, $9.95 million from the World Bank’s Clean Technology Fund, and $10 million in grants from the UK’s Department for International Development. Technical assistance is being provided by the governments of New Zealand and France, while proceeds from the country’s Citizenship by Investment Program are also providing part of the funding (see sidebar). Already, a $12.5 million contract with Iceland Drilling Company is producing two wells for another geothermal plant expected to be operational by 2024. It will also generate foreign exchange by providing electricity to the neighboring French islands of Guadeloupe and Martinique.

SUSTAINABLE VISITING

The island’s “sustainable” resorts are one of Dominica’s major tourism appeals. Jungle Bay, Coulibri Ridge, Secret Bay, and Cabrits Resort & Spa Kempinski are all eco-resorts on the island, with Hilton and Marriott both planning to join them. All use sustainable practices to maintain Dominica’s land and community while providing a luxury experience. Discover Dominica CEO Colin Piper says these projects “let people value nature, then return to a place where they can comfortably lay their heads.” They also combine sustainability with a “high-end lifestyle” experience.

Take Coulibri Ridge, a 14-suite off-grid luxury resort atop a mountain ridge in southern Dominica, just minutes from Soufrière Bay, where the Atlantic Ocean meets the Caribbean Sea. The brainchild of Canadian-born entrepreneur Daniel Langlois, Coulibri Ridge was originally designed as a long-term research project on creating and running a cutting-edge, self-sufficient eco-resort tightly entwined with the local community. As we walked through the villas, built from stone sourced from the property, Langlois explained how solar panels fuel all the resort’s power needs, how all its water is filtered rainwater, and how much of the restaurant’s produce is grown on-site.

The project took more than 20 years of research on environmental testing, infrastructure building, and community engagement to ensure the highest level of sustainable development and collaboration. Celebrating its official grand opening in October of 2022, Coulibri Ridge is now a model for self-sustainability. “This was to push the limit of what can be done,” Langlois says. It’s also self-consciously high-end, with a 1,000-square-foot Sky Penthouse that comes with a private pool and terraces that overlook the sea, Martinique, Morne Fou summit, and Sulphur Spring Valley.

Part of what is sustaining the growth of eco-tourism in Dominica is new accessibility. Prior to 2021, most people who visited Dominica had to go through neighboring islands. But in December 2021, American Airlines launched direct flights from Miami. It started with two flights per week, grew to three flights per week in early 2022, and now offers daily flights. Partly as a consequence, North American tourists have grown from 17 percent of total visitors to 30 percent. Samuel Johnson, CEO of Dominica’s International Airport Development Company, explained how prior to AA’s direct flight, most visitors were experienced divers or nature enthusiasts coming to see Dominica’s coral reefs. “Now, we have seen more and more casual visitors just come to explore. If it was not for the direct flight, Dominica would never make their radar.” Johnson’s company plans to open a new international airport in 2026 to handle the growing demand.

The Dominica Citizenship by Investment Program (CBI) is one of the world’s longest-running economic citizenship programs. Operating since 1993, the program invites investors to make an economic contribution to the country. In return, if they meet strict legal and other requirements, the applicant and their family are granted full citizenship of the Commonwealth of Dominica. To qualify for the CBI Program, the government requires either a $100,000 contribution made into the Government Fund or an investment in government-approved real estate with a value of at least $200,000. The most common real estate options available are shares in high-end tourist accommodations. Additional payments are required for any dependents included in an application, as well as due diligence and government fees. Applications are processed by the Ministry of Finance’s Citizenship by Investment Unit; approval takes about three months from the submission of a fully completed application.

(Shown above: Titou Gorge)

THE DOMINICA CBI PROGRAM

The new international airport will also allow for long-haul flights complete with a cargo facility that has refrigeration capabilities. Since Dominica grows one of the largest varieties of flowers in the Caribbean, the new airport will allow it to become a flower exporter at an international level. According to Miami International Airport, 90 percent of fresh-cut flower imports to the U.S. enter through MIA, so a Dominican flower source could join the floral flights into Miami once the air cargo facilities expand. “The airport is more than just tourism, but also our ability to trade,” emphasized Johnson. “By 2026… the existing [airport will] be bursting at the seams.”

While floral exports will boost the nation’s income, however, Dominica is betting that sustainable tourism will be the driving force for economic development. In competition with the sun, sea, and white sand beaches that other Caribbean islands also provide, Dominica is offering a new way to travel. With the latest eco-projects and the development of the international airport, the island is positioning itself to become a recognized global tourist destination. From the food to the waterfalls, it’s all about the adventure. Taking sulfur mud baths in a tub hidden by trees, exploring the rainforest, or eating meals made from locally sourced food items, all provided a whole new experience for me. Sustainability isn’t just a trend for the island – it’s becoming way of life.

By my fourth day in Dominica, I had discovered a hidden adrenaline junkie in myself, deciding I would take the plunge –literally – and go cliff diving. Unbeknownst to me, that meant climbing up a small mountain in my bare feet behind a half-naked man dripping water all over the slippery rocks. After hurling myself off of Mount Everest 2.0, I crashed into the waters below with a newfound appreciation for the country’s natural playground. l

SAMUEL JOHNSON, CEO OF INTERNATIONAL AIRPORT DEVELOPMENT COMPANY, POINTS TO THE NEW AIRPORT LOCATION (ABOVE)

PRIME MINISTER HON. ROOSEVELT SKERRIT IS REBUILDING THE COUNTRY AS THE WORLD’S FIRST CLIMATE-RESISTANT NATION.

Now, we have seen more and more casual visitors just come to explore. If it was not for the direct flight, Dominica would never make their radar.

World Trade Center Miami is Here for You!

World Trade Center Miami, the largest and oldest trade association in Miami, is part of the World Trade Center Association global business network of 315 World Trade Centers in 92 countries with over two million members.

Whether your business is looking to find your next customer, expand to international markets or make global connections we have the resources, services and decades of expertise to successfully grow your bottom line.

WE PRODUCE WORLD CLASS TRADE SHOWS

• The annual Americas Food and Beverage Show now in its 27th year – the ideal meeting place for decision makers and buyers from all sectors of the global food and beverage industry.

• The Air Cargo Americas Show, now in its 17th year, held bi-annually, brings together top executives from all sectors of the aviation and logistics industry.

• The Supply Chain Americas Conference is held annually and in conjunction with the Air Cargo Americas Show is one of the leading events focused on innovation and resiliency in the global supply chain.

SCHEDULE OF EVENTS:

• International Women’s Day Luncheon: March 8, 2023

• Miami World Trade Month: May 2023

• Americas Food & Beverage Show: September 18-20, 2023 Miami Beach Convention Center

• Air Cargo Americas/Supply Chain Americas Show & Conference: October 31-November 2, 2023

• State of the Ports: November 2023

The Roar of the Isthmus

PANAMA’S ENVIOUS GDP GROWTH IS PREDICATED, IN PART, ON TRADE WITH MIAMI

BY DOREEN HEMLOCK

When COVID-19 hit, no world region suffered more economically than Latin America and no regional nation more than Panama. In 2020, the economy of the services-dependent country shrunk by nearly 19 percent, and unemployment spiked to double digits. Passenger flights to the main airport stopped for months.

Now Panama is roaring back, with an assist from Miami. Economic growth topped 15 percent in 2021 and was poised to top 6 percent in 2022, surpassing preCOVID levels. No Latin American nation has rebounded as strongly, with growth forecasted to continue in 2023.

Key to the surge: increased foreign investment and greater exports, with South Florida as a leading partner and with growth extending far beyond Panama’s famed Canal and banking sector.

Millicom, the telecom company that runs operations from Miami suburb Coral Gables, shows the trend. In June, Millicom completed its purchase of Panama’s biggest mobile, cable, and internet service provider, known as Tigo Panama. Since 2018, the Europe-based firm has invested more than $2.5 billion in Panama, even setting up headquarters for its new mobile payments unit called Tigo Money. “The government of Panama was really helpful” in providing spectrum for communications and facilitating internet services during the pandemic, says Esteban Iriarte, Millicom’s chief operating officer.

PANAMA DELEGATIONS VISIT MIAMI

To spur greater investment and trade, a delegation of two-dozen Panamanian leaders visited Miami in November and met with South Florida business and government counterparts. The group even hosted a

PANAMA AND THE WORLD: A Comparison of GDP Growth

seminar on “Doing Business with Panama” that was attended by more than 75 people at a Hilton Hotel west of Miami International Airport.

“During the pandemic, we had to rethink everything – our role in the world, and what we wanted to bring to Panama,” Carmen Gisela Vergara, general administrator of business promotion authority ProPanama, told the audience. Government and business leaders decided on a plan to facilitate foreign direct investment in various areas, including multinational office space, near-shore manufacturing, and renewable energy. “We want to be the hub for sustainable investment in Latin America and the Caribbean,” Vergara said.

More than 180 multinationals now keep regional offices in Panama, with at least 30 of them setting up since the pandemic began – including Tigo Money – delegates told the Hilton group. The Central American nation of roughly 4 million residents offers incentives, from tax breaks to training grants, in order to lure investments.

During COVID, Panama also decided to ramp up local exports, identifying South Florida as a prime market. This September, the country participated for the first time in the Americas Food and Beverage Show

Source: World Bank group. *Projections from World Bank June 2022 report.

We want to be the hub for sustainable investment in Latin America and the Caribbean.

CARMEN GISELA VERGARA, PROPANAMA, SPEAKING AT THE “DOING BUSINESS WITH PANAMA” SEMINAR IN MIAMI

TOP:

PACIFICO BUSINESS PARK, AN INTERNATIONAL LOGISTICS AND BUSINESS CENTER BUILT TO ATTRACT FOREIGN INVESTMENT

2020 2021 2022

in Miami Beach, organized by the World Trade Center Miami. Sixteen Panamanian companies showcased their wares, offering items from hot sauce and tropical honey to craft beer and liqueur made from Panama’s prized geisha coffee.

Panama’s leaders say the new growth strategy is working because their country is so business-friendly. Among its advantages: using the U.S. dollar as its currency; registering new businesses online in as little as 20 minutes; and steering clear of the leftist, populist drift in some Latin American nations.

“Panama can be considered a beacon of liberty, prosperity, and democracy in Latin America,” says Jose Alejandro Rojas Pardini, advising minister for the facilitation of private investment. A Purdue graduate, he worked for General Electric in the U.S. before returning to work in his homeland. “Social, economic and political stability in our country has been key to a solid and sustainable recovery.”

STRONG GROWTH, HIGH-INCOME STATUS PRE-COVID

Before COVID, Panama’s economy was already surging. Between 2014 and 2019, economic growth averaged more than four times the rate across Latin America and the Caribbean: 4.6 percent yearly vs. 0.8 percent yearly regionwide. That speedy advance had propelled Panama into the ranks of “high-income” nations, joining such powerhouses as the United States, Germany, and Japan, according to the World Bank. Growth back then came largely from services – especially transport and communications – as well as construction, including the $5 billion-plus widening of Panama’s Canal in the 2010s, the bank says.

During the pandemic, the expanded Panama Canal never shut down – “not for one day,” says minister Rojas Pardini – and trade through it now exceeds pre-COVID levels. Cruises through the Canal are also increasing, many by top lines that call Miami home, such as Carnival, Norwegian, and Royal Caribbean.

With so many business links, Florida is targeting Panama for its own growth. The state’s economic development agency, Enterprise Florida, sent a delegation to Panama in September, led by Florida Transportation Secretary Jared W. Perdue. The group included executives from some 20 transport and logistics firms and key Florida seaports, including Port Everglades and PortMiami.

Miami-Dade County’s leaders see potential for joint business promotion with

Panama, so both locales can fill different links in the broader supply chain. For example, Panama could serve as a base for “nearshore” manufacturing of electric-vehicle batteries or other high-value goods that are made in Asia. Those goods could then be sent to Florida for distribution across the U.S.

“We share so much with Panama –business, culture, and similar economic sectors,” says Maria Dreyfus-Ulvert, executive director of Miami-Dade’s International Trade Consortium, which promotes the county as a global business gateway. “Even our skylines are similar,” she says, referring to the dense cluster of skyscrapers in Downtown Miami and in Panama’s fast-growing capital, Panama City. Indeed, some now call Panama City “the Miami of Central America.” Stephanie Pragnell, ProPanama’s investment coordinator and a graduate of two Florida universities, summed up business opportunities this way to the Hilton audience: “There are so many synergies and ways we can collaborate in this brave new world after the pandemic.” l

TOP: THE PANAMA SKYLINE CAN BE MISTAKEN FOR MIAMI, THEY ARE SO SIMILAR.

MIDDLE: THE PANAMA CANAL STAYED OPEN DURING THE PANDEMIC AND TODAY, TRADE IS EXCEEDING PRE-COVID LEVELS.

BOTTOM: JOSE ALEJANDRO ROJAS PARDINI, MINISTER FOR THE FACILITATION OF PRIVATE INVESTMENT, SPEAKING IN MIAMI

THE NEW GENERATION OF LUXURY

Taking Audio Books Global

HOW ONE NONPROFIT IS PUSHING THE ENVELOPE

During the pandemic, the audiobook industry exploded. With people forced to stay at home, the earbuds went in. According to the Audio Publishers Association, its 28 member companies saw a revenue increase of 12 percent in 2020 and an additional 25 percent in 2021, topping out at $1.6 billion that year. Large companies have also bought in, with Amazon, Apple, and Google developing their own digital book platforms; annual double-digit growth is expected for the next decade.

Now comes Miami-based Audiobook World Awards Academy (AWAA). Founded in 2021, AWAA is a nonprofit organization that promotes audiobooks as an educational tool, looking to increase their availability in disabled and disadvantaged communities worldwide. Co-founder and president Marzia Lavinia Di Pietro gives the example of a nursing home. Many elderly don’t have easy access to physical books or have conditions that limit their ability to read. Audiobooks provide them with a way to enjoy literature. “These individuals can just lay down in bed and let the story flow through their mind,” Di Pietro says.

AWAA is taking their mission overseas to provide educational tools to disadvantaged communities. Currently, they’re partnering with Lions Club International, an organization that builds schools in Africa, by providing students with access to audiobooks. “Paper books are susceptible to a lot of damage,” says AWAA co-founder and CEO

Massimiliano Biasiol. “But even in Africa, it’s pretty easy to find a Wi-Fi center to download audiobooks. So, essentially, we can create a paperless school for these kids who live in remote villages.”

AWAA opened a European branch in Monaco last March and plans to extend its influence with a YouTube channel, podcast, and TV channel on CIBORTV. “If we can increase access to information through audio, then we’re putting together an effort for a brighter future,” says Biasiol. l - by Katelin Stecz

PHOTO BY RODOLFO BENITEZ

LOCA TED IN THE HEA RT OF CO RAL GABLES, MIAMI FL

Recognized as one of the top travel agencies in the nation. American Society of Travel Advisors agency of the year.

Recognitions received from the South Florida Business Journal, Miami Today, Greater Miami Chamber of Commerce, Coral Gables Chamber of Commerce, among many others.

Paying it Forward

HOW A MIAMI COMPANY IS REVOLUTIONIZING THE WAY THAT COMPANIES PAY FOR FREIGHT

BY DOREEN HEMLOCK

Paper payments for freight? Not if you’re a customer of PayCargo, which offers an online platform that lets shippers pay electronically, speeding up the payments and reducing the time for cargo to be released from seaports, airports, and other facilities. The platform also provides easy-to-use electronic data not available when paying for freight through traditional means such as vouchers, checks, or cash.

In June, PayCargo secured $130 million in investment from Blackstone Growth, part of the behemoth global investment firm Blackstone. That infusion – coming on top of $160 million raised in 2020 and 2021 from Insight Partners – is accelerating overseas expansion beyond Europe and the Middle East. PayCargo is now setting up offices in Japan, Vietnam, Australia, and New Zealand, and it plans to open in Chile, Panama, and Mexico in 2023, says CEO Eduardo Del Riego.

“By the end of 2024, we hope to be on both coasts of Latin America – east and west – and in the Caribbean,” Del Riego told Global Miami in a wide-ranging interview.

CHALLENGING TIMES, AS TRADE SLOWS

PayCargo was launched in 2007 by a group of South Florida shipping executives who saw the need to modernize freight payments. By 2019, the venture had matured its business model and grown substantially, processing a record $2 billion in payments that year. Business then doubled each year to $4 billion in payments processed in 2020 and $10 billion in 2021. This year, it’s on pace to reach $20 billion, according to Del Riego.

Today, PayCargo serves more than

40,000 customers, including heavyweights DHL, UPS, and Kuehne & Nagel. They pay some 5,000 vendors from shipping lines to airlines, train operators to warehouses.

PayCargo’s business has soared recently, partly because of overseas expansion. It first grew across Europe and earlier this year opened in the Middle East in Dubai (United Arab Emirates) and in Asia in Hong Kong and Taiwan. Adding to revenue, freight rates had risen sharply due to

COVID-19 up-ending supply chains and crimping the availability of metal shipping containers and other supplies.

But PayCargo’s growth is set to slow in 2023, Del Riego says, as the world economy also slows. Many analysts predict a global recession in 2023, though earlier predictions of a recession in the U.S. never materialized. Regardless, world trade is already slowing, slashing the rates to ship goods. In early 2022, U.S. importers paid about $18,000

PHOTO BY EMILY FAKHOURY

By the end of 2024, we hope to be on both coasts of Latin America –east and west – and in the Caribbean.

EDUARDO DEL RIEGO, CEO OF PAYCARGO

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to transport a metal container by sea from Shanghai to Los Angeles. Now, they pay roughly $1,800 to ship that same container, down 90 percent, because of shrinking demand in the U.S.

“For PayCargo, we’re forecasting to grow about 50 percent next year,” Del Riego said. “That’s still pretty impressive, if you consider that global trade – if it grows at all – is expected to rise only by 1 percent.”

PayCargo charges a fee for each payment it processes, currently about $6 to $12.50 per transaction. In 2021, its revenue topped $40 million, and for 2022, it expects to reach at least $100 million. The tally also includes revenue from a tech company that PayCargo is now buying.

That acquisition and strong growth should boost PayCargo’s global employment to top 300 at year-end, including some 50 at their Coral Gables headquarters adjacent to Miami and 25 at a tech hub in Downtown Miami. Hiring is easier now that the tech boom has increased the number of programmers locally, he says. “We also have a partnership with Florida International University, which helps us to get programmers, developers, and logistics specialists,” Del Riego said.

MORE CREDIT FOR TRADE IN EUROPE

Of course, doing business globally presents diverse challenges. For example, to start an office some countries require more paperwork than others, while other administrations move more quickly. Setting up in Dubai and the United Kingdom went “relatively fast,” but took longer in Hong Kong, Taiwan, and Vietnam, Del Riego said.

Operations also differ. “There tends to be more credit offered in Europe than in the rest of the world,” Del Riego explained. Companies in Europe often get 30 to 180 days to pay for freight shipments, whereas importers in the U.S. typically get no credit and U.S. exporters tend to offer 15 to 30 days. “In Europe, it’s part of the sales presentation for freight to include credit.”

For PayCargo, the new investment from financial giant Blackstone offers more than cash. Blackstone owns or has interest in some 200 seaports and more than 1.1 billion-square-feet of warehouse space worldwide. It’s keen on three trends, says Vini Letteri, senior managing director at Blackstone Growth: “the proliferation of electronic payments, the digitization of the

supply chain, and the modernization of business-to-business payments.” PayCargo fits perfectly in that mix and ranks as “a category leader,” according to Letteri.

Blackstone is starting to introduce PayCargo to some of its portfolio companies, which could become customers, Del Riego says. With quicker release of cargo and better data, “ports and warehouses can operate more efficiently, so working together makes all the sense in the world.”

The potential for growth remains enormous. Less than 10 percent of U.S. cargo payments – and less than 1 percent of freight payments globally – are now handled electronically, with most still relying on paper, from vouchers to checks to cash. Says PayCargo’s CEO: “There’s a lot of upside.” l

BLACKSTONE IS STARTING TO INTRODUCE PAYCARGO TO SOME OF ITS PORTFOLIO COMPANIES, WHICH COULD HELP PORTS AND WAREHOUSES OPERATE MORE EFFICIENTLY.

Reaping the LatAm Winds

HOW A NICHE FOCUS ON LATIN AMERICAN CLIENTS HAS PROPELLED IFB

BY J.P. FABER

When Roberto Gatica joined IFB as their senior VP for international banking in 2015, he came with a perfect resume. He’d just finished a stint with Spanish private banking group Sabadell, managing a portfolio of 250 Latin American clients. Before that, he’d spent 10 years with Chile’s Banco de Crédito e Inversiones as head of their Corporate Banking Group. And before that, he’d spent a decade in Mexico working for Grupo Santander, First Union, and Citibank.

Like his current employer, International Finance Bank, “the advantage is that we have done this for 30 years,” says Gatica. That experience with Latin American culture, he says, has been critical. “Any bank can offer banking solutions, but not with the same closeness. We are a niche bank with a human touch.”

That sense of contact and interaction gives IFB its competitive edge, especially with Latin Americans who are more comfortable with personal relationships. The other advantage is that large U.S. banks have backed away from international clients because of the increased cost of regulatory compliance for foreign depositors. “In the banking community, the international client has become less important than it was in the past for the big players,” Gatica says. “They have become a [greater] risk.” He says large U.S. banks have shed most of their foreign clients, except for the most important ones.

IFB, meanwhile, specializes in taking on foreigners for loans and deposits. “The regulators know us, they know our portfolio, they know our clients. They have been reviewing us for 30 years. So, for us it’s easier,” says Gatica. It also helps that many of the bank’s shareholders are Latin Americans, which helps banking relationships in their countries. David Schwartz, President & CEO of the Miami-based Financial &

International Business Association (FIBA), says that, “IFB is a long-time member of FIBA and Roberto has been a well-respected banker in Miami for many years. His experience in the Latin American market goes a long way to explaining IFB’s success.”

For these and other reasons – such as capital flight from Latin America that pumped $80 million into IFB from Peru alone in 2021 – the bank has grown from $350 million in deposits in 2015 to just under one billion dollars today. It has also become a more balanced institution, moving from a community bank model where most loans were in residential real estate, to one with equal weight between commercial real estate, residential real estate, corporate, and commercial/industrial loans. “We look at our portfolio every day, and are very, very careful to maintain this balance,” says Gatica.

As for clientele, the preponderance of IFB’s deposits come from Venezuela, followed by Ecuador and Argentina. U.S. deposits come in at slightly more than 50 percent, but that figure is misleading, says Gatica, because the bank does business with numerous domestic LLCs that are, in fact, holding companies for foreign nationals.

While Gatica is not bullish for banking in general in 2023, he says the advent of left-leaning governments in Latin America

bodes well for banks that can accommodate foreign citizens looking to protect their assets. Other trends also favor IFB, such as the growing shift of Mexican investments from Texas and Arizona to Florida. “You have the Brazilians coming, the Europeans coming, the Canadians coming – you name it,” Gatica says. “Right now, Argentina is the most active in terms of deposits, followed by Chile and then Peru. So for us it’s a big opportunity, because being international is part of our DNA.” l

PHOTO BY RODOLFO BENITEZ

The advantage is that we have done this for 30 years. Any bank can offer banking solutions, but not with the same closeness. We are a niche bank with a human touch.

ROBERTO GATICA, SENIOR VP FOR INTERNATIONAL BANKING AT IFB

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Settling Global Disputes

WHY MIAMI IS NOW A TOP HUB FOR ARBITRATION IN THE AMERICAS

BY DOREEN HEMLOCK

It was a glorious autumn Sunday in Miami – sunny and breezy, a perfect day to be outdoors – when nearly 200 people gathered indoors for a conference on international arbitration. Some came from South America, some from Europe, all keen to discuss ways to resolve disputes where no party has “home-court” advantage.

Fifteen years ago, such a specialized gathering would have been unimaginable. But Miami has blossomed into a hub for international arbitration, especially for commercial disputes in Latin America. A recent survey of lawyers from 39 countries ranked Miami No. 2 in the Americas for the practice, trailing only after New York. Indeed, the University of Miami Law School now shines as one of the few places worldwide to offer a master’s in international arbitration, attracting top practitioners to teach.

Conference attendee Alicia Menendez personifies the city’s rise. A longtime international lawyer in Miami, she began handling arbitration cases three years ago. Now, she represents investors from Canada, Portugal, and beyond in a dispute with a Latin American country that “expropriated” their businesses, the Cuban-American attorney with Shook, Hardy & Bacon in Downtown Miami says. “[I came] to meet up with colleagues from multiple countries. More events like this in Miami can help grow international arbitration here.”

WHAT ARBITRATION IS AND WHY MIAMI IS A HUB

International arbitration is a practice where parties in conflict choose private individuals to resolve their dispute. It differs from mediation in that the individuals act more

like judges that issue decisions, rather than facilitators for the parties to reach a settlement themselves. Most arbitration decisions are binding and final. The practice is gaining ground as a more neutral, cost-effective, and streamlined solution than litigation.

Miami, long a gateway for business with Latin America, has been targeting arbitration as a growth area for decades, recognizing that foreign investment – and accompanying disputes – have been on the rise in the Latin region.

Leading the advocacy effort is the Miami International Arbitration Society, a group made up largely of lawyers. The Society helped get Florida law changed to allow overseas attorneys not in the Florida Bar to work on international arbitration cases in the state. It also helped train court judges in Miami-Dade County to handle questions that might arise from arbitration cases – moves that make Miami more “arbitration-friendly,” says the Society’s chair Don Hayden of law firm Mark Migdal & Hayden.

Much of the international arbitration in Miami now centers on commercial contract disputes in Latin America. Both sides in those conflicts see the city as convenient because of its ample airlinks, abundant hotels, state-of-the-art digital links, and easy access to stenographers, translators, and arbitrators who speak Spanish, Portuguese, and other languages besides English.

“Foreign investors in Latin America often turn to arbitration so they won’t be home-towned,” says Hayden, meaning they won’t face judges abroad who may favor the parties of their homeland, or won’t have to deal with unusual aspects of a legal system different than their own. “And what better location for international arbitration than Miami,” he says, “because for Latin Americans, many have second homes here, and for Americans and other foreign investors, you still have the protection of U.S. courts to enforce any arbitration award.”

What really put Miami on the world map, however, was hosting a key global conference. In 2014, the city welcomed the International Council for Commercial

What better location for international arbitration than Miami, because for Latin Americans, many have second homes here...

DON

HAYDEN (LEFT) OF LAW FIRM MARK MIGDAL & HAYDEN, WITH LOUIS O’NAGHTEN AND ALEXIS MOUREE AT THE INTERNATIONAL ARBITRATION CONFERENCE

Arbitration (ICCA) for its biennial meeting. That influential group had met just once before in the United States, back in 1986. The conference not only brought some 1,000 top practitioners to Miami, but also provided funding to the host city to develop arbitration programs for things like training and promotion.

That sparked more conferences and encouraged more players to enter Miami’s arbitration market, from law firms to venues that host the hearings, says Hayden. Los Angeles-based law firm Quinn Emanuel, for example, which has 900-plus lawyers in 31 offices worldwide, opened a Miami office in 2021 to focus on litigation and arbitration. Atlanta-based King & Spalding, which has 1,200-plus lawyers in 23 offices worldwide, touted arbitration among several practice areas to explain why it opened a Miami office in 2022. And Veritext Reporting, a U.S. chain known for court reporting and translation, recently opened a multi-party arbitration center in Downtown Miami.

WHAT MAKES A GOOD ARBITRATION HUB

To be sure, Miami is not alone in chasing the arbitration business. Panama, Atlanta, Houston, and Rio de Janeiro are also active. Some of those rivals have specialties. Oil-rich Houston is big in energy cases, for example, while Rio is strong for domestic Brazilian disputes, given delays in Brazil’s courts.

To keep arbitration growing long-term, Miami needs to stay strong in several key areas. Venues for hearings, for example, must keep up with technology. California-based JAMS, the largest private provider of arbitration and mediation services worldwide, just improved capabilities at its 10-yearold Miami office, offering high-resolution monitors with top-quality sound to better handle witnesses from afar. It also added virtual moderators for online sessions, says lawyer Gary Birnberg, who, like all JAMS members, serves only in neutral roles such as mediator or arbitrator.

The city also needs a pipeline of attorneys skilled in arbitration. That’s where UM’s International Arbitration Institute comes in. Many of the Institute’s graduates practice first in Miami, and, given their experience, often write Miami into contracts as the seat for arbitration if needed, Birnberg says.

Arbitration panels also must include specialists in different industries and not only professionals skilled in law. Consider aviation. When a company misses payments on a leased jet, courts sometimes order the

jet seized. But that means the plane stops generating cash. An aviation specialist on an arbitration panel might help devise a payment plan or other options to help the jet owner get paid. Birnberg himself is part of a group that helped start a new global court specializing in aviation. The Hague Court of Arbitration for Aviation launched in July in the Dutch city known for its court of international justice.

“If we in Miami are going to be on par with New York for international arbitration in the Americas, it’s because we have all these elements in place, but also because we’re a more pleasant and economical locale than New York,” says Birnberg. “With our sunny weather, come October or November, there’s a huge argument to hold hearings in Miami, even when cases may be seated elsewhere.”

That helps explain why some 200 people turned out on Sunday, Oct. 30 for the Miami International Arbitration Society’s 1st Annual LatAm Investor-State Arbitration Conference, focusing on disputes between investors and governments in Latin America. But not everyone came from chillier climes.

Valeria Romero, a Colombian attorney with a master’s in corporate law from Spain, was excited to attend an event conveniently

hosted at UM, where she’s completing another master’s – this time in international arbitration. She’s keen on arbitration to widen her opportunities in Miami and beyond.

“Lawyers sometimes have a limited scope of work. But with international arbitration, you can learn about other legal systems,” says 29-year-old Romero. “And frankly, it’s a practice that’s really growing.” l

With our sunny weather, come October or November, there’s a huge argument to hold hearings in Miami, even when cases may be seated elsewhere.

MIAMI LAWYER GARY BIRNBERG (BELO,W, RIGHT) SPEAKING AT THE ARBITRATION CONFERENCE

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Canadian Candor

Last November, the Canadian Consul General in Miami, Susan Harper, departed for her next posting in Dallas, Texas after more than six years of service in Miami. About a month into her new role, we sat down with the new Consul General, Sylvia Cesaratto, to discuss her position and priorities. Cesaratto, who has worked for the Canadian Foreign Service all over the world (including postings in the UK, Brussels, Belgium, and Panama), is taking over at a time when Canada is now one of Florida’s biggest international economic partners.

What are your primary responsibilities?

The Consulate General of Canada in Miami is like a mini embassy. We provide consular support to Canadian citizens who travel here and to Canadian companies who want to do business in Florida, but also to those Floridian companies who want to establish relationships with Canada. We also have a foreign policy dimension, where we work on nurturing relationships with key influencers in the political stream and provide advice and analysis back to our headquarters. We do a lot of work together with our U.S. partners here in Florida to address security concerns, such as the presence of organized crime, irregular migration, and the illegal trafficking of guns and narcotics. We want to strengthen what’s happening in the Caribbean but also limit what moves into the States and eventually north into Canada.

What kind of trade relationship do Miami and Canada have?

Canada and the U.S. share partnerships like no two other countries. At the U.S.-Canada border, there are billions of dollars worth of trade that happens every day. The thing is, we don’t sell things to each other as much [as we] make things together. A perfect example of this is the automotive industry. A car can pass through the border many times before it’s completed. This speaks to our integrated nature. We have been working on strengthening our supply chains, [and] on working together to address the ongoing impact of COVID on our economies. We’ve pledged to work together on irregular migration coming up from Central America. We’re working very closely when it comes to Haiti, which is an emerging crisis and pertinent here in Florida given the large diaspora.

How important is foreign direct investment to your role?

We figure there are about 3.5 million Canadians that come to Florida every year. That’s 10 percent of our population and 15 percent of Florida’s. But they don’t only come here to spend a couple of weeks

or grab a cruise. Many come to live here for at least six months. That is important in terms of what they bring to the local economy. [Canada is] the biggest foreign investor when it comes to private real estate. In Florida, we estimate there’s a stock of about $60 billion in private property owned by Canadians. And, of course, they pay property taxes, which are about $600 million. Then, we figure they spend about $6.5 billion when they’re here. There are also about 500 Canadian-owned companies in Florida [that] employ about 60,000 Floridians. The bilateral trading relationship is almost $8 billion between Canada and Florida.

How can the business relationship between Canada and Miami be improved?

We’re looking to position Canadians to not only come to Miami because there are a lot of opportunities here, but also to look at it as a gateway to Latin America. We also need to get more Floridians up to Canada. Government and non-government organizations are looking to develop trade missions, which is fantastic. But they’re not looking at Canada, though Canada is Florida’s top trading partner. There is a solid foundation from which to build. Canadians come here for the beaches and the sun, but they don’t necessarily think of Florida as a business destination. So that’s also our challenge, to change that perspective and build those partnerships.

What have been some of the other challenges while working in Miami?

We have gone up to Tallahassee to ensure that any kind of actions that pertain to protectionism do not become commonplace here in the state. We have seen it in a couple of jurisdictions, so we make sure we are not excluded. It is a partnership; we create things together. There are some domestic actions that don’t consider the impact on their partners, like Canada. And we are so integrated that if it affects Canada, it will ultimately affect Miami. l

Check It Before You Wreck It

USING AI AND 3D TECHNOLOGY, CHECKTOBUILD AIMS TO IMPROVE CONSTRUCTION EFFICIENCY

For general contractors, the process of getting an inspection done can be long and arduous, involving time, money, and a fair dose of faith. Miami-based CheckToBuild is out to change that. The brainchild of entrepreneur Alejandro Ruiz Lara, the tech startup has created an innovative construction management solution, using artificial intelligence (AI) and 3D models to fast-track the process; while it cannot grant an inspector’s approval, it can ensure quality and avoid any slowdowns from requested changes. It can also catch costly mistakes.

CheckToBuild’s CB2 platform, a construction analysis engine, compares the original design of a construction project with video taken by the contractor at the site, and, within minutes, can provide an overview of any potential geometric deviations from the original blueprints. The technology does this by building a 3D model from the

BY YOUSRA BENKIRANE

designs, instantly overlapping the model with the construction design to compare every element in reality versus its architectural intent. After this “inspection,” the platform provides results of what is working, what is not, and potential costs for the builder.

CheckToBuild’s technology mitigates two of the biggest issues in the construction management industry, those of delays and cost overruns. A formal inspection process can take days or longer to complete, but the process is reduced to minutes with CheckToBuild’s technology.

For example, its software was used to inspect the progress in a 232,737-squarefoot, $16.5 million office building project in Madrid. During construction, the client noticed an area where water did not drain properly. Knowing this would represent a safety concern, the client wanted to know if there were any deformations in the floor’s

The technology does this by building a 3D model from the designs, instantly overlapping the 3D model with the construction design to compare every element in the reality versus the architectural intent.

ABOVE: USING THE SOFTWARE TO BUILD A 3D MODEL FROM THE ARCHITECTS PLANS IN ORDER FOR THE “INSPECTION” TO BEGIN

To engage our community on global issues

The World Affairs Council of Miami is an all-volunteer team working to elevate a non-partisan, non-profit startup to a world-class center for public education on global affairs by and for Miami.

Since our founding in August 2021, we have:

• Launched a free-for-the-public world affairs Distinguished Speaker Series in partnership with Miami Dade College.

• Held an annual world affairs trivia contest for local high schools and sponsored the winners’ travel to compete in D.C.

• Connected local innovators & entrepreneurs with Miami-based diplomats in partnership with Venture Café Miami.

Contact us to help build Miami’s premier nonprofit for global affairs. Your support means the world.

The World Affairs Council of Miami is a 501(c)(3) taxexempt non-profit organization. Contributions are tax-deductible to the full extent of the law.

structure, so videos were taken by CheckToBuild and compared with 3D models. It was soon clear that a 30-square-foot area was uneven, causing an accumulation of water. An inspection by traditional methods would have taken several days.

“CheckToBuild provides a key tool in the digital transformation of construction,” says Óscar Liébana, project coordinator of Spain’s FCC Construcción. “Its automation technology improves, speeds up, and brings accuracy to some tasks that have historically been slow and expensive.”

Originally based in Madrid, CheckToBuild began working on pilot projects in 2020, with its team continuing to design and patent the technology. Using comparative models, Ruiz Lara concluded his software could save builders up to 37 percent in wasted materials and become 87 percent more efficient in the inspection process. He then dedicated four months to testing the international waters by offering CheckToBuild’s services in Chile, Peru, Colombia, the U.S., and the UK. By February 2022, it was clear the U.S. would prove most fruitful.

Ruiz Lara partnered with the University of Miami in a start-up program designed

to generate business, securing an account with Moss & Associates Construction, one of the southeast’s largest privately held general contractors. “Real estate in Florida is rapidly growing, so it only made sense for us to establish [in Miami],” he explained. By May 2022, CheckToBuild became a U.S.based company with international outreach.

Since relocating to Miami, the company has raised $1.5 million in an initial investment round, and is continuing to develop both its technology and business model. “Since we moved to Miami, we have increased our number of customers and created revenue of $120,000, but we are still selling in a controlled way to strategic customers so that when we are finished with our product by June 2023, we will be able to scale our sales process and system,” Ruiz Lara said.

As for relocating from Madrid, “Miami has this perfect mixture between Latin culture and American business,” according to Ruiz Lara. “I have the best of my country [Spain] and the best of the U.S. in terms of business opportunities, open-mindedness to new technologies, and investments in new projects.” l

Since we moved to Miami, we have increased our number of customers and created revenue of $120,000, but we are still selling in a controlled way to strategic customers...

ALEJANDRO RUIZ LARA (ABOVE), ENTREPRENEUR AND FOUNDER OF CHECKTOBUILD

T-ROC Does It All

HOW AN EARLY CELLPHONE ENTREPRENEUR TOOK ON GLOBAL RETAIL SOLUTIONS

BY YOUSRA BENKIRANE

Brett Beveridge, founder and CEO of The Revenue Optimization Companies (T-ROC), began his entrepreneurial journey as a 23-year-old who sold cell phones out of a van with a college friend. He turned that venture into Let’s Talk Cellular & Wireless, which became the largest independent mobile wireless retailer in the country at the time, with close to 300 stores nationwide. After taking the company public and selling it to Nextel, Beveridge moved to San Francisco and founded Let’sTalk.com, a company that analyzed and rated cell phone and internet services. Nextel also purchased Let’sTalk, and Beveridge joined the firm, helping them grow by another 300 stores.

Three years later, Beveridge wanted to reignite his entrepreneurial engine. In 2000, Beveridge founded T-ROC, a Miami-based sales and revenue accelerator for some of the biggest retail brands in the world. His formula: Supply teams of trained workers who can act as specialists within larger retail organizations. For clients like T-Mobile, Walmart, Samsung, and Xfinity, the T-ROC squads arrive fully qualified to provide services ranging from personalized sales programs to product subassembly.

“They’re looking to increase their brand awareness, their customer journey, and obviously, their market share,” Beveridge says of his clients. “So, T-ROC has put together this ecosystem of people and technology solutions that help our customers achieve their goals.”

Twelve years ago, for example, Walmart took on T-ROC to staff a single StoreWithin-A-Store (SWAS) wireless department. The multinational retail corporation was struggling to sell electronics. T-ROC provided Walmart with tech consultation, a high-performance sales team, and end-toend program management. “If you live here in South Florida and you go to a Walmart’s electronic department, you most likely are talking to a T-ROC-er and not a Walmart employee,” says Beveridge.

Today, T-ROC employs around 8,000 employees and 30,000 contractors worldwide, with clients in the U.S., Mexico, Canada, Peru, Chile, Colombia, and the Dominican Republic. Most of their overseas teams work for the affiliates, subsidiaries, or divisions of their U.S. customers, like Walmart in Canada and Mexico, or PlayStation in Colombia and Chile.

“We are taking over the entire customer experience,” Beveridge says. “We’re engaging with the customer, we’re establishing a relationship with them, determining their needs, and presenting the right products. Then we just ring Walmart’s register. So, it’s their inventory, their cash, but we manage the entire sales process for them.” Since T-ROC took over, Walmart has seen a 1,000 percent increase in the sell-through rate for their electronics, and T-ROC is now in more than 1,300 Walmart locations.

Next, it wants to get into the product

T-ROC

BRETT BEVERIDGE, CEO

8,000 EMPLOYEES

30,000 SUB-CONTRACTORS

ANNUAL REVENUE: NOT DISCLOSED

HEADQUARTERS: MIAMI

OPERATIONS IN THE U.S., CANADA, MEXICO, CANADA, PERU, CHILE, COLOMBIA, AND THE DOMINICAN REPUBLIC

fulfillment business. The company has just opened a 2,500-square-foot logistics warehouse in Doral, west of Miami International Airport. The facility provides shipping and inventory capabilities to broaden the range of services T-ROC can offer customers, including things like product assembly and their most recent technology, the VIBA solution. The Virtual Interactive Branding Ambassador is an instore device that customers can use to check product availability and reach a live – or robotic – sales assistant. “We’re a growth company,” says Beveridge. “We’ll always be a growth company. And that’s what we think about every day.” l

PHOTO BY RODOLFO BENITEZ

Investing in the Trade Future

MARIA DREYFUS-ULVERT TAKES DADE’S INTERNATIONAL TRADE CONSORTIUM TO NEW HEIGHTS

BY DOREEN HEMLOCK

It’s not just Miami-Dade County’s airport and seaport that set records for business in 2022. The county’s International Trade Consortium (ITC) also reached new heights, handling an unprecedented 50-plus incoming delegations looking to buy, sell, or invest in the greater Miami area.

Give credit to Maria Dreyfus-Ulvert, a 15-year veteran at the ITC who’s been leading the office as interim director since August 2021 and then as executive director since October 2022. A former United Nations diplomat and trade commissioner for her homeland of Nicaragua, Dreyfus-Ulvert knows what visitors need to learn about business in Miami, working closely with the region’s economic groups. She also exudes enthusiasm about how cross-border links help people and communities advance together.

“There were weeks we handled three or four incoming delegations,” says Dreyfus-Ulvert, who leads a five-member team. “And not all were from Latin America. Miami is more international than ever.”

Miami-Dade County created the ITC in 2002 to promote the area as a trade hub and global gateway. The office helps incoming missions by setting up agendas and coordinating meetings with leaders of the airport, seaport, Beacon Council, Greater Miami Chamber of Commerce, and other groups. It also organizes Dade delegations overseas, each led by an elected official – though trips were suspended under COVID-19.

The ITC serves as the liaison with consulates and encourages the opening of those diplomatic offices in Miami. “We’re celebrating the addition of Ireland, which brings us to 73, making Miami probably the third-largest consular center in the U.S. after Washington and New York,” says Dreyfus-Ulvert. Her office also manages the county’s Sister Cities program, strengthening links with Dade’s current 33 sisters, including Brazil’s Curitiba and Mexico’s Veracruz. “The program is an opportunity to share best practices,” says Dreyfus-Ulvert, whose office piloted the recent InterAmerican Conference of Mayors and Local Authorities, including leaders from some of its sister cities.

The ITC team was busiest in 2022 receiving overseas visitors, who sometimes found Miami unexpected. “Many delegations are surprised we are open and never fully closed during the pandemic. And they’re impressed with Miami’s development as a tech hub and want to be part of it,” says Dreyfus-Ulvert.

Those delegations engage with numerous local organizations, including some on the ITC board. The World Trade Center Miami (WTCM), for example, often hosts the visitors, explaining Miami’s trade scene and inviting them to the Center’s annual trade shows for food and beverage and air cargo, says WTCM CEO Ivan Barrios. He recognizes Dreyfus-Ulvert for her experience, hard work and team approach.

“Maria knows international trade, local government and Miami well,” says Barrios of his long-time colleague. “She’s a dedicated

professional.”

Dreyfus-Ulvert took an early interest in international relations. She grew up in Nicaragua during Cold War hostilities in the 1980s as her father led Nicaragua’s private-sector group and later became foreign minister. Her high school education began in the U.S. and ended in Costa Rica. She studied government at Georgetown University in Washington and later earned her master’s from Columbia University’s School for International and Public Affairs before representing Nicaragua at the United Nations. It wasn’t until after the Sept. 11, 2001 attacks on New York City that she moved to Miami. For 2023, Dreyfus-Ulvert’s ITC goals include re-launching outbound missions and starting a database to help small businesses go global. She cautions, however, that missions take time to bear fruit. ITC’s 2008 trip to Istanbul, for example, contributed only years later to Turkey starting a trade office, consulate, and direct airline service in Miami. “I look at all these delegations as an investment,” she says. l

There were weeks we handled three or four incoming delegations. And not all were from Latin America...

World-Class Convenience and a Very Warm Welcome

Realize the benefits of one of the world’s top cruise ports in one of the largest consumer regions: Greater Fort Lauderdale. We offer close proximity to popular Caribbean destinations and enticing pre- and post-cruise activities, from relaxing on golden beaches to enjoying cosmopolitan dining and nightlife – all in Florida’s most welcoming destination.

We offer everything for smooth sailing:

• Modern, innovative terminals that make transit a breeze

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• Fully scalable to accommodate any size ship or passenger volume

• Friendly and flexible service 24/7 through our Harbormaster Office

• Year-round berthing available

• Easy access through direct highways and FLL, Fort Lauderdale-Hollywood International Airport

BACK TO

GLOBAL SEAS

Cruise traffic returns to PortMiami as cruise lines and Miami-Dade invest in future growth

BY JOSEPH A. MANN JR.

In the early months of 2020, COVID-19 outbreaks on cruise vessels around the world prompted strict government rules on ship movements, causing companies to cancel all cruise activity and paralyzing Miami’s worldclass cruise industry. The pandemic converted part of PortMiami, the world’s largest and busiest cruise port, into a ghost town, and also impacted its role as a major cargo center.

Now, after more than two years away, the prodigious floating cities have returned to Miami. Since the U.S. Centers for Disease Control and Prevention (CDC) discontinued its strict COVID program for cruise ships in July 2022 and allowed cruise line companies to set their own policies for managing the disease, cruise lines working from PortMiami began scheduling routes, advertising special deals, booking passengers, and attempting to return to normal as quickly as possible.

“Cruising is back,” says Fort Lauderdale-based Kristina Cooper, an independent travel agent with Travelmation LLC who works with many clients traveling through PortMiami. “The travel business and cruising in particular are really booming now that COVID testing and vaccine requirements have been lifted.” Cooper is also the vice president of finance and administration for Travelmation, a licensed travel agency with more than 1,000 agents nationwide which also holds the title of Authorized Disney Vacation Planner. “Everybody was ready to sail and cruising really spiked in popularity. It felt like the black cloud over cruising was lifted.”

Another expert in tourism also sees a dramatic improvement in PortMiami’s cruise business. The cruise sector’s post-COVID recovery at PortMiami is “amazing,” says Patricia Drolet-Sadar, adjunct professor at Florida International University’s Chaplain School of Hospitality and Tourism. “The cruise capital of the world is back in full operation,” she says, following a difficult period when some cruise lines faced uncertain financial futures. As for PortMiami, “they have done an exceptional job of attracting new cruise lines and retaining previous [ones]. New investment and continuous improvements” by the port, Miami-Dade County, and the cruise companies are critical to the port’s current and future success.

PortMiami is a huge economic machine. The port – both cruise and cargo sides – has an economic impact of $45 billion on the state’s economy, according to a PortMiami report from fiscal year 2021. It also supports more than 334,000 jobs statewide, including direct, indirect, and induced employment. The cruise industry at PortMiami generated over 30,000 jobs in 2017, according to a study cited in November by Miami-Dade County, and had an economic impact of $5.8 billion for the county.

HOW COVID SANK THE INDUSTRY

The black cloud over PortMiami began gathering after a record year for passenger traffic in 2019. According to port figures, PortMiami handled more than 6.8 million passengers in fiscal 2019, a record for the port, up from nearly 5.6 million in FY2018, 5.3 million in FY2017 and just under 5 million in FY2016.

Owned by Miami-Dade County, the seaport operates on a fiscal year starting on October 1. For FY2020, there were nearly 3.5 million passengers before cruises were halted by the CDC’s “no sail” order on March 14, 2020, so most of this total covers the period between Oct. 1, 2019, and mid-March 2020. In FY2021, the passenger total collapsed to 252,000.

At the time of Global Miami’s editorial close, PortMiami had not released passenger figures for FY2022. But industry and private sector sources believe it will be much higher than the previous year.

The world’s most important cruise lines sail from PortMiami. These include Carnival Cruise Line (the world’s largest cruise company), Disney Cruise Line, MSC Cruises (third largest internationally), Norwegian Cruise Line, Royal Caribbean Group (world’s second-largest cruise operator), Viking Ocean Cruises, and Virgin Voyages. Carnival’s parent, Carnival Corp. & plc, also owns Princess Cruises, Holland America Line, Seabourn, P&O Cruises (U.K.) and Cunard. Royal Caribbean owns Celebrity Cruises and Silversea Cruises.

PENT-UP DEMAND

The lack of COVID restrictions and pent-up demand put wind in the sales of cruise companies in 2022. Major cruise lines report that recent bookings have been strong and project positive growth in calendar year 2023, despite continuing to sustain financial losses. For Dec. 31, 2022, for example, the website cruisetimetables.com said that PortMiami was expected to embark about 16,580 passengers on five ships, two from Carnival, two from Royal Caribbean and its subsidiary Celebrity, and one from Norwegian.

A Norwegian Cruise Line official said that Nov. 2022 was “the best-booked month” in the history of the company. And Norwegian’s parent, in its third-quarter 2022 SEC report, said that overall occupancy was at about 82 percent for the quarter and that the company expected “historic occupancy” figures by second-quarter 2023.

But because the massive cruise ships were idle for many months due to COVID, companies are still reporting net losses and heavy debt loads, despite receiving some financial relief from obligations to Miami-Dade County. In its third-quarter report, for in-

Cruising is back. The travel business and cruising in particular are really booming now that COVID testing and vaccine requirements have been lifted.

KRISTINA COOPER, INDEPENDENT TRAVEL AGENT WITH TRAVELMATION LLC

A CRUISE SHIP LEAVING PORTMIAMI SAILS BY THE PIER ON MIAMI BEACH

stance, Norwegian posted a net loss of $295.4 million (GAAP), compared to a loss of $845.9 million in Q3 2021. It also expects a net loss in Q4 2022 even with occupancy projected at the mid- to high-80 percent range.

In its fourth quarter 2022 business update, Carnival’s parent reported a net loss of $1.6 billion on revenue of $3.8 billion, or 80 percent of 2019 revenue. Carnival said its full-year 2023 advanced bookings are “higher than its historical average at higher prices” in constant currency, and that “booking volumes during the fourth quarter of 2022 for 2023 sailings are nearing 2019 comparable booking levels, with November booking volumes exceeding 2019 levels.”

The Royal Caribbean Group logged a small profit of $33 million for Q3 2022, on revenue of $3 billion. RCG reported its load factors during the quarter were 96 percent overall, with sailings to the Caribbean at nearly 105 percent. RCG also expected strong bookings in Q4 2022 and for full-year 2023, at “record pricing.”

NEW CAPITAL IS KEY

A critical sign of the cruise industry’s intentions for PortMiami is capital investment, and two major agreements were finalized over the last year that will help ensure the port’s dominant role in the sector.

In November 2022, Miami-Dade County approved a 50-year agreement with Royal Caribbean covering new port construction and development that will create thousands of cruise-related and construction jobs and generate $2.8 billion in net revenues for the county. It also extends and/or modifies existing leasing accords that provide the county with revenue.

Under this and other agreements with cruise line partners, PortMiami is now projected to receive 10.2 million passengers per

year by 2031, according to the county. That’s up from FY2019’s pre-COVID peak of more than 6.8 million passengers, and means a large increase in cruise line payments to county coffers over time. The complex agreement covers a variety of areas, including:

l Construction of a new terminal (Terminal G) for Royal Caribbean and its subsidiaries, and a new berth (Berth 10). The county will initially finance this project (for up to $325 million) and Royal Caribbean will reimburse 47 to 53 percent of the costs.

l Completion of Royal Caribbean’s new world headquarters (including upgrades to existing structures) at PortMiami. The company had already spent $70 million on the headquarters project and campus before work was halted during the pandemic. This project, estimated to cost $450 million, will be financed by the county. Royal Caribbean will repay the county 125 percent of capital construction and financing costs.

l Royal Caribbean guarantees the county minimum annual payments for burgeoning passenger traffic over time. RC, like

TOP: THE NORWEGIAN CRUISE LINE TERMINAL AT PORTMIAMI STRIKES AN IMPOSING PRESENCE ON THE WATERWAY BELOW: TERMINAL G COMPLETED IN 2013, IS NOTABLE FOR IT’S ICONIC “SAILS,” THAT ILLUMINATE IN THE EVENING

Partners

Cruise Capital of the World Global Gateway of the Americas

Cargo Partners

Cruise

other cruise lines, pays the county per passenger fees for wharfage, dockage, and harbor services. These fees will be increased over the life of the agreement; as passenger traffic grows, the county receives more money.

MSC INVESTING $350 MILLION

Another industry leader, MSC Cruises, began work in March 2022 on a $350 million terminal (Terminal AA/AAA) at PortMiami that will be the largest cruise terminal in the United States upon completion. The four-story building, to occupy 490,000-square-feet, will be able to berth three advanced generation cruise ships at once and handle 36,000 passengers each day. Part of Switzerland-based MSC Group, MSC Cruises will use the terminal to expand its presence in the North American market. The impressive new structure is being built by Italy-based Fincantieri Infrastructure and designed by Miami-based Arquitectonica.

Carnival also inaugurated the expansion and renovation of its Terminal F in November 2022. The project cost $195 million and is the third terminal used by Carnival at PortMiami.

These outlays come on top of hundreds of millions of dollars already invested by companies like Carnival, Norwegian, Virgin Voyages, and others in a variety of projects, as well as by the port in areas like shore power technology designed to reduce pollution.

If PortMiami is to maintain its ascendancy among cruise ports, it must remain welcoming, easy to access, and user-friendly. “Cruise terminals are really the first impression travelers have on their vacation, so having a positive experience is so important,” says Cooper, who has been booking clients to PortMiami since 2017. “The terminals are an extension of the brand’s guest experience, before guests even get on the ship,” she says. “Because PortMiami is such a major player in the cruise industry, their cruise terminals are the biggest and best. I have personally helped my clients troubleshoot through a variety of different issues while embarking and disem-

The terminals are an extension of the brand’s guest experience, before guests even get on the ship. Because PortMiami is such a major player in the cruise industry, their cruise terminals are the biggest and best.

barking cruises, but I can honestly say that none of those issues have ever happened at PortMiami. The staff is generally very helpful, and the facilities are top notch.”

Still, there is a caveat. Even as PortMiami’s cruise business is expanding rapidly under more lenient COVID protocols, potential travelers should do their homework before booking a cruise. Don’t assume that everything is back to the pre-COVID era; different companies may have different rules covering COVID testing and vaccination for adults and children. And just as important, countries visited by cruise lines have their own laws and regulations.

Global Miami Magazine reached out to the media relations departments and executives at Carnival, Royal Caribbean, and MSC requesting interviews with executives for this article. We were not granted any. l

KRISTINA COOPER, ON THE IMPORTANCE OF GOOD TERMINAL DESIGN, SUCH AS THE NEW ONE (ABOVE) FOR MSC CRUISES NOW BEING BUILT AT PORTMIAMI

Paradigm Shift

With its AI digital platform, Olé is upending the life insurance market in Latin America

BY J.P. FABER

BRIAN CARRICARTE AND MICHAEL CARRICARTE

Michael Carricarte and his brothers Andrew and Brian were no strangers to the personal insurance markets of Latin America when they came up with their big idea in 2020. They had, after all, worked with their father — Mike Carricarte Sr. — creating one of the largest health and life insurance companies in the Americas. That company, Amedex, rewrote the rules by offering a unique proposition: offering international major medical insurance to VIP clients who wanted access to state-of-the-art medical facitilies in the U.S. Amedex was sold in 2005 to BUPA International for one of the highest multiples at the time.

PHOTO BY RODOLFO BENITEZ

Now, the three brothers were about to embark on an idea even more revolutionary: offering life insurance to Latin Americans through a mobile digital platform that could issue policies in a matter of hours – or even minutes – rather than weeks, in the same way Rocket Mortgage in the U.S. transformed the home-lending business by offering mortgages online.

“We were sitting at a Starbucks in Mexico City and talking about how insane the health insurance industry was in Latin America,” says Michael, who was involved with another firm, the Pan American Private Client life insurance company, which he helped launch in 2010 and ran for nine years. “We were talking about what needs to be disrupted out there, what needs to change.”

Having just spent close to a decade understanding how life insurance was sold in Latin America, the brothers came up with a whole new approach. “It’s an incredibly underserved market, and way behind the times in terms of the technology,” Michael says. Indeed, Latin America has one of the lowest penetration rates of health insurance coverage in the world, with only 1.3 percent penetration rate region-wide. In terms of life insurance, only 15 percent of Latin American adults who can afford such policies hold them, compared to 52 percent of U.S. adults.

What Latin America does have, however, is a 70 percent digital adoption rate, “which means we can reach people digitally on a mass scale,” says Michael. And not only did he and his brothers come up with a new AI-backed digital underwriting methodology of providing life insurance via the web or a mobile app, they also decided to flip the entire doom-and-gloom approach to selling policies.

“Normally, if I tell someone I sell life insurance, they don’t want to talk with me. It’s the best way to end conversation with someone you’re sitting next to on a plane,” Michael says. “That is because most life insurance is sold by fear. Our approach, and our tag line, is ‘living your best life.’ To do that, you need to be protected.”

By the end of 2020, the Carricarte brothers had honed their concept. Using massive amounts of data collected from years of policy underwriting in Latin America – and designing AI-enhanced algorithms based on that data – they developed software that could qualify buyers in about 10 minutes and then issue a policy on the same day.

Also understanding that LatAm life insurance buyers still expect the personal touch of a sales agent, the Carricartes

assembled a team of insurance brokers who could work with the customer and close the deal. “Direct to consumer works in the U.S., but not in Latin America, where personal relationships are everything,” says Michael. “We got the 12 largest international brokers in Latin America, people we have known for decades, and had them sit around a table and further the concept…. Normally, they’re fiercely competitive, so this is one of the few times they joined together. We called them the G-12.”

In the end, all 12 agreed to band together to facilitate the launch of the new concept. Collectively, they also agreed to invest in a seed round of $3 million in funding. This gave the participating brokers a gateway to thousands of new policy commissions, with the cache (and convenience) of using cutting-edge technology. It gave the Carricartes distribution and access to a huge base of potential agents and clients.

That meeting took place in early 2021; by December, the Olé Insurance Group had officially launched, making history as the first fully digital insurance product across Latin America. “It was super innovative for the region,” says Michael.

Now into its second year of operation, Olé has members in 30 countries, with over 3,000 policies sold – “and not one single application was filled out by hand, not one went for a medical exam, and 80 percent were approved in less than 24 hours,” Michael says. “This is really life insurance made easy.” This year looks to be gang busters for Olé, with anticipated revenue projected to grow by 200 percent (to $15 million) and the network of contracted agents to expand from 2,500 to 5,000 by the end of the year.

THE UNDERLYING TECHNOLOGY

As impressive as the numbers are expected to be, the technology behind the company is even more so. Andrew Carricarte, who has his own software company, advises Olé on technology development, strategy, and deployment.

“The technology is based on a combination of things,” he says. “We work with re-insurers, so they have a ton of claims data going back years over a large population. We can draw out where the risk is and combine that with our 40 years of experience [in the Latin marketplace].” What that means, he says, is that “we can know the risk difference between Mexico and Peru, and have the ability to customize the rates based on age, country, and amount of coverage.”

Companies that offer blanket pricing across the region for a certain age range, for

example, says Andrew, are sure to run into trouble, even if they use a mobile platform. “Some of the ‘insurtech’ approach to growing is taking on all kinds of customers. They grow at any cost and that can mean losses that can crush them. We are more selective, using technology to leverage the customer base and better assess risk.”

In addition to the demographics of age, nationality, education, and income (affluence usually means better health), the Olé AI interface also looks at individual habits as predictors of health. “We look at drinking patterns, extracurricular activities, travel, etc.,” says Andrew. “What is this person’s lifestyle like? Is this person generally healthy or at risk? What medications are they taking?”

More than merely assessing the individual risk factors, however, is Olé’s expansion of the market to include the emerging middle class of Latin America. “We are actually democratizing life insurance to a whole new segment of the population who otherwise would not have bought it due to the complexity and cost of the product,” says Andrew.

The job of integrating this new technology within the company, and making sure it is deployed successfully, falls to brother Brian Carricarte, who is head of operations for Olé. “You’re building all these processes from scratch, recreating an old business in a new way,” he says. “The industry accepted where it was and wasn’t pushing to change their ways. So, part of this is just being bold enough and innovative enough to. The people who have been in the industry – the sellers, the buyers, the re-insurers – need to see things done in a cleaner, faster way… you show them a different way, that you don’t

Latin America is caught in the crosshairs of being more consumer driven but still high contact. You’re seeing high tech adoption and mobile apps, but there is still a huge alignment with individuals and agencies.

BRIAN CARRICARTE, OLÉ INSURANCE GROUP

MEXICO CITY: A GROWING MIDDLE CLASS THAT CAN NOW AFFORD LIFE INSURANCE

need to fill out an hour-long application... you can do it in 10 minutes.”

As head of operations, Brian is also concerned with maintaining strong relationships with the agents who sell the policies, something that is critical to Olé’s success. “Latin America is caught in the crosshairs of being more consumer-driven but still high contact. You’re seeing high tech adoption and mobile apps, but there is still a huge alignment with individuals and agencies.”

Beyond the mechanics of assembling an array of agents is the Olé philosophy and its innovative marketing approach: the idea that a good life insurance policy is the way “to live your best life.” One of their breakthrough concepts is to sell life insurance to much younger candidates. This allows them to sell the policies at much lower prices, due to less risk, and to reach a much larger audience – a potential of 200 million adults out of 660 million residents in Latin America.

“We are going after the younger people,” says Michael. “Whereas the average age of the insurance agent [in Latin America] is in their 60s, and traditionally the average age of the client is someone in their late 50s, our average client is 40.” What these younger clients get, besides low premiums and a friendly user experience, is peace of mind; the same as for any life insurance client, knowing that if anything happens to them, their families will be cared for. The difference is price. Someone in their 40s can pay $1,200 a year – $100 a month – for $350,000 in coverage.

Olé also sells only term life, which provides coverage for a stipulated period, with no changes in payments or payouts – let’s say $100 a month for 20 years, with a payout of $500,000 in the event of tragedy. Term insurance allows the company to offer substantial discounts, based on their algorithms of predictable life spans.

Bringing the brothers’ years of experience to the industry was nothing to discount, either. “We understand risk and we understand how to underwrite risk,” says Michael. Olé is also a rarity among insurtech companies, which typically act only as distributors; Olé is what’s called a full-stack company, which means they are the insurance company, the distributor, and the underwriter. They are also licensed in Puerto Rico, which allows them to sell their products internationally.

“I am a huge fan [of Olé],” says Lisa Wardlow, an international insurance consultant with 27 years in the industry, including long stints working as a strategy advisor to the world’s largest insurance firms, such as

London-based MIS, Farmer’s Life, and Munich RE Group. “[Major insurers] haven’t realized the huge potential of the LatAm market,” she says. “LatAam has an insurance coverage gap, which means they are not getting the necessary products and services that a well-performing nation should have.” According to industry analysts, the current market for life insurance in Latin America is about $150 billion. The potential market is closer to $400 billion.

In the past, says Wardlow, “getting life insurance [in Latin America] was like getting a root canal. Olé is changing that…. The thing I like about them is that they are creating something new.” She also touts Olé’s understanding of the newly emerging class of younger, affluent Latin Americans, which the company is targeting.

“In LatAm, the emerging high-net worth individuals must be served with innovative products,” Wardlow says. “It’s a matter of what they want, rather than what they need, which is what Olé is really out to do –celebrate life with new products. They can issue a policy in less than a day at an affordable price that now brings to this new emerging market products that they want – and that are no longer being sold based on duress.”

Another example of their expanding

PHOTO BY RODOLFO BENITEZ

We are actually democratizing life insurance to a whole new segment of the population who otherwise would not have bought it due to the complexity and cost of the product.

MICHAEL CARRICARTE, CEO, OLÉ INSURANCE GROUP

A WHOLE NEW MARKET

POPULATION OF LATIN AMERICA: 660 MILLION

POTENTIAL LIFE INSURANCE POLICIES: 286 MILLION

CURRENT PERCENTAGE OF ADULTS WITH LIFE INSURANCE IN LATIN AMERICA: LESS THAN 15%

CURRENT PERCENTAGE OF ADULTS WITH LIFE INSURANCE POLICIES IN THE US: MORE THAN 50%

CURRENT TOTAL LIFE INSURANCE MARKET IN LATAM: $149.8 BILLION

POTENTIAL TOTAL LIFE INSURANCE MARKET IN LATAM: $399.6 BILLION

THE OLÉ PROPOSITION

TERM LIFE INSURANCE UP TO $1 MILLION WITH NO MEDICAL EXAMS

ONLINE APPLICATION IN LESS THAN 10 MINUTES

RESPONSE IN LESS THAN 24 HOURS

100 PERCENT DIGITAL PROCESS

SCALABLE SALES PLATFORMS FOR AGENTS

AGENT COMMISSIONS PAID IN DAYS

distribution channels is BCP Global, a digital fintech platform that reaches across the region with business services for the middle class. Backed by Bradesco and Blackrock, BCP offers users the ability to run an investment account, a trading account, or a bank account, etc. “We offer different solutions to the LatAm middle class,” says CEO Mauricio Armando. “We think investing is really important, but protecting your family is super important. The way you can do it with Olé, without having to go to a hospital for medical exams, gives a solution for the middle to upper class of LatAm.”

For that reason, BCP carries the Olé app, offering one more channel into the region – in this case to thousands of clients in Colombia, Mexico, Brazil, and Peru. “On the technology side, we are trying different distribution channels, using apps for customers

or for agents to quote prices to customers,” says Armando. “It’s all mobile and digital, just unheard of. And with BCP, we have business to business – life insurance as a business product, like the others BCP offers.”

With the Olé model in place and rapidly growing, the team of brothers is already looking for other opportunities. There is the entire world of wellness, of providng basic health insurance and other add-on products that compliment the client’s lifestyle. “A lot of our agents are also wealth advisors, and they are asking for potential products like college pre-pay plans,” says Michael.

In the meantime, the model – offering super affordable life insurance to younger clients – is working. “We are finding our sweet spots, like 40-year-olds for $350,000 in coverage. I’ll take that all day long,” Michael says. He offers one perfect example: a

29-year-old Chilean woman, who now holds a $350,000 life insurance policy costing just $19 per month. “She was approved in less than 24 hours, with no medical exam.”

Olé is currently in the process of a $10 million Series A funding round with Mundi Ventures as lead investor; Mundi is a Spanish VC firm which manages more than 500 million Euros in several funds. They have developed expertise in state-of-the-art insurtech startups and scaleups.

“The insurance industry is characterized by a fragmented value chain and scarce digitalization of processes. This has opened an enormous market for the entrance of tech-enabled insurtechs, such as Olé, challenging or agumenting incumbents,” says Javier Sanchez Gonzalez, an investment associate at Mundi Ventures. Olé plans to use the investment to grow the business and become the leading provider of life insurance to the middle class of Latin America.

As satisfying as that proof of concept is, however, Michael says it’s just part of the personal [read: family] bonus. “How lucky am I? I get to work with my two brothers, innovate another aspect of the insurance industry, and leave a bigger legacy to our dad.” l

THE EXPANSIVE WAREHOUSES

OF INTERPORT, WEST OF MIAMI INTERNATIONAL AIRPORT.

Supply Chain Masters

THE KEY FOR INTERPORT IS FLEXIBILITY, KNOWLEDGE – AND OWNING NOTHING

By Katelin Stecz

Walking into the warehouses at Interport Logistics’ headquarters just west of Miami International Airport is like stepping into a giant beehive. Industrial storage racks stretch up to the 36-foot ceilings like massive slats of honeycomb. But instead of storing honey, they house air conditioning units, pallets of whiskey, and cotton t-shirts. Orange forklifts load and unload pallet after pallet to be tagged and processed. Lines of semitrucks wait in holding docks, delivering or picking up from 82 bay doors; employees buzz around, completing each task with alacrity.

If you really look at us, we are in the information business. We are a non-asset driven logistics provider.

GARY GOLDFARB, INTERPORT’S CHIEF STRATEGY OFFICER.

“Yes, it is like a beehive,” says Gary Goldfarb, Interport’s Chief Strategy Officer. “But,” he emphasizes, “there is no queen bee.”

It’s a surprising statement from someone of such status in the company. As Interport’s chief strategy officer, Goldfarb is responsible for taking the logistics giant into the future. Since he started working with the company in 2014, Interport has grown from about 40 employees to more than 100 at their Miami headquarters and about 400 within the entire Interport Group of Companies. Interport currently has around 850 active accounts and occupies a total of 400,000-square-feet around the country, 300,000 in Miami and most of the rest in Los Angeles. Its Miami warehouses load a collective average of 42 shipping containers worth of goods every day.

The warehouse operations, however, are just the tip of the proverbial iceberg. While Interport’s warehouses sort, store, and deliver a blistering catalogue of goods – perfumes, clothing, hardware, tools, household appliances, shoes, lighting, consumer goods – that represents only about 25 percent of the company’s business as a provider of supply chain solutions. All of the remainder is based on using the most efficient delivery systems available, with personnel operating from eight regional offices outside the U.S. and an IT office in Costa Rica.

“If you really look at us, we are in the information business,” says Goldfarb. “We are a non-asset driven logistics provider. Basically, we do not own trucks, containers, ships, or airlines. We rent the warehouses. We don’t want to be stuck with a given rail line. We need to deliver from anywhere in the world to anywhere else in the world as efficiently as possible, so we refuse to have any assets.” That way, says Goldfarb, Interport will always choose the best delivery solution for a given company, from steamship lines to air cargo carriers, rather than one which uses its own transportation alternative.

“We always have to be able to make the best decision for the customer,” Goldfarb explains. “We don’t own anything. Instead, we organize the movement of [products] and provide the information to the customer on a real-time basis… I am like a travel agent for cargo.” More than one-third of Interport’s business never even touches the U.S.; their ROW (of “Rest of World”) team organizes shipments from Switzerland to Brazil, for example, or from Asia to Central America, or from France to Asia. The remainder

moves from foreign sources to the U.S., or from the U.S. to foreign destinations.

Goldfarb, who has worked in global trade and supply chain management for the last 50 years, has been integral to the development not just of Interport, but of South Florida’s entire trade scene. He has helped expand Miami’s Foreign Trade Zones (FTZ), established the Marine Industries FTZ in Fort Lauderdale, and developed game-changing software for the industry. Goldfarb has also helped create programs at both Florida International University and Miami-Dade College for supply chain management and logistics. Among many other achievements, he currently sits on the board of Miami-Dade’s economic development Beacon Council (where he was past chair) and is Vice Chairman of the World Trade Center Miami.

While Goldfarb has served as the high-profile rainmaker for the company, bringing in new clients, he is quick to defer to colleagues for the operational success of the company. Key among them is Jose De Vivero, CEO of Interport, who has been with the company since its inception. Before starting Interport in 2002, De Vivero worked with Goldfarb at the Golden Eagle Group, and in 2014, Goldfarb joined the Interport team as the Chief Strategy Officer.

As one of the founders, De Vivero has been integral to the growth of the company; besides running day-to-day operations, he’s been responsible for keeping Interport up to date with technological innovations. “Technology has been a huge part of our growth over the years,” says De Vivero. “Every six months, we kind of step back and evaluate the technology that we’re using because it

changes so fast. We’re always looking into new things that we can adapt to be more efficient and provide a better service to the customer.”

One example is the company’s use of RFID, or radio frequency identification technology, for processing and tracking all the goods Interport receives. When a new shipment arrives at the warehouse, employees tag the boxes with an RFID tag and activate it with an RFID reader. Once the tag is activated, it works like a barcode, but instead of using a laser to read the code, the RFID system uses radio waves. This allows a radio frequency reader to identify a product anywhere in the warehouse – or even inside a shipping container – without having to unpack and scan each item.

“Before we started using these, we would have to shut down for two weeks to do inventory and count every single item. But now, we can have inventory done in six to eight hours,” says Goldfarb. For the tall stacks of goods in the warehouse, Interport uses a drone to float up and down the shelves, taking inventory as it goes.

Alex Guzman, Interport’s customer service manager, echoes Goldfarb. “With a drone, you can take an aisle, read it with RFID tags, and do a complete 100 percent accurate inventory in [a short] time,” says Guzman. “If a customer wants to know where something is, we can give them the

information from the drone even faster.”

Interport also uses customized software to track everything, with all goods scanned from the moment they enter the Interport system. Their “track-and-trace” program provides customers with real-time information about their supply chains, even providing key performance indicators so they can see at which points their supply chain is slow or lacking. “Everything is one single system, so the customer can follow it electronically,” Goldfarb says.

Interport’s tracking system, right down to individual items, also allows the firm to act as a fulfillment house. For one customer, they ship thousands of individual packages to consumers in Brazil, for example; for another, thousands of packages every night to the Dominican Republic. “Every day, we go out with several thousand packages that are delivered to people’s doors,” Goldfarb says. “We bring it in by mass, and then one goes out per household, to, say 2,000 households. We’re like a fulfillment center, but we don’t take the orders.”

In some cases, Interport becomes not just a weigh station for the client, but their entire storage and supply backbone. One customer who manufactures air conditioning units in Japan had been shipping the units directly. Now, millions of dollars’ worth of inventory is stored at Interport’s U.S. warehouses for shipping on demand. “We created

Every six months, we kind of step back and evaluate the technology that we’re using because it changes so fast. We’re always looking into new things that we can adapt to be more efficient and provide a better service to the customer.”

JOSE DE VIVERO (SHOWN CENTER), CEO OF INTERPORT, HAS BEEN WITH THE COMPANY SINCE ITS INCEPTION IN 2002.

a system where they process the order, then we pick and send with an OK from Japan,” Goldfarb says.

The same thing happened with a brake pad manufacturer in Taiwan. “They had their own warehouse, doing all their own picking and packing. One day they had a problem with incorrect labels and couldn’t ship them. They said, ‘This is crazy.’ So, they gave up their warehouse and do everything with us now,” says Goldfarb. Adds De Vivero, “With our customers, we want them to see us as a company that’s not a service provider but part of their organization. We’re here to make them better. We’re here to make them grow.”

Another technology that gives Interport an edge is their cold storage capabilities, which plays off Miami International Airport’s designation as the first U.S. airport (now there are more) capable of moving products in a temperature-controlled environment throughout the shipping process. “We can handle anything from -18 degrees to 55 degrees Fahrenheit, whether it’s cheese or meat or medicine. We create special cold boxes, whatever is necessary,” says Goldfarb.

That mentality – “whatever is necessary” – runs through Interport’s corporate culture. Their commitment to customer service often works to their advantage for reasons besides the obvious. In tackling one customer’s specific problems, Interport usually finds an inventive solution that works for other customers as well. “With one customer, we had to create a whole new track-and-trace portal that we actually developed in-house, and it worked really well. So, then we started to provide that service to all our customers,” says Guzman.

Interport also maintains a corporate culture that encourages the educational and technical advancement of employees. According to Goldfarb, Interport tries to recognize and support its employees who demonstrate drive and willingness to learn within the company. That means paying for employees’ continued education.

As Goldfarb strides down a corridor containing ladders, tools, and PVC pipe, he recounts the story of one Interport employee who started out working in inventory. He showed aptitude in technology and is now involved with Interport’s RFID and about to pursue his master’s degree. When Goldfarb reaches the end of his story, he stops and surveys some of the employees who are scanning new products. “If you’re willing to learn, we’re willing to help you learn,” he says.

When Guzman started working for Interport, for example, he was in a basic warehouse data entry position. Within seven months, he was promoted to assistant warehouse manager. A few years later, he moved into customer service, and has now been Interport’s customer service manager for the last five years and is directly involved in some of Interport’s technological innovations.  Goldfarb, for his part, continues to ply the trade network of greater Miami, with strong personal relationships with everyone from members of the Consular Corps and the Beacon Council to Miami-Dade’s Mayor Levine-Cava (the county controls the sea and air ports) and the World Trade Center Miami (WTCM).

“Gary is one of the real movers in the

trade community,” says Ivan Barrios, CEO of the WTCM. “He’s been instrumental in getting things done that benefit trade to and from the area, and in bringing in new companies to operate from here.” Goldfarb was involved in the creation of Foreign Trade Zones in Miami, which allow for goods to arrive in bulk and then be sorted or assembled and reshipped tax- and tariff-free. The Interport warehouses themselves, for example, act as Foreign Trade Zones.

“My job is to create something new, and bring in new accounts,” says Goldfarb. “A lot of my time is devoted to public organizations. I spend maybe five percent of my time in the warehouse. Once it’s in the house and operating, I’m out. It runs smoothly because the CEO runs it smoothly.” l

Going Vertical

BY KYLIE WANG

On November 30th, the ballroom at a Hilton hotel near Miami International Airport was buzzing. Hundreds of top trade officials from the airport, PortMiami, Enterprise Florida, American Airlines, World Trade Center Miami, and more were in attendance for the annual State of the Ports luncheon.

As Miami International Airport (MIA) director Ralph Cutié took the stage, there was no question that Miami’s airport had a record year in trade. It was the number one airport in the U.S. for international trade in 2022 and was on pace to

MIAMI INTERNATIONAL AIRPORT RANKINGS

(Among all U.S. airports)

No. 1 in International Freight

(followed by Chicago O’Hare, Los Angeles Int’l, and New York’s JFK)

No. 4 in Total Freight

(behind Memphis Int’l/FedEx, Louisville Int’l/UPS, and Los Angeles Int’l)

No. 5 in Total Cargo (freight + mail)

(behind Memphis Int’l/FedEx, Louisville Int’l/UPS, Los Angeles Int’l, and Chicago O’Hare)

Source: FTA, MIA

set a record for total cargo moved (over 2.8 million tons) by year’s end. But there was a question about one aspect of the airport’s future. While cargo numbers had been steadily rising for the last few years, propelled in part by high demand during the pandemic, MIA was quickly topping out. Its full capacity was forecast to be reached by 2025, and an initial proposal for a new cargo facility had stalled in January 2022 after Miami-Dade County Mayor Daniella Levine-Cava had rejected it in favor of further negotiations.

It was a surprise, then, that Cutié announced the imminent approval of that same facility, MIA’s new $2 billion Vertically Integrated Cargo Community (VICC), a state-of-the-art facility that will double MIA’s cargo capacity and cement its position on the global stage.

CCR Group, one of the world’s leading investors in aviation infrastructure, and Airis, an aviation facility development company, had submitted the unsolicited proposal for the project to Miami-Dade County back in 2020. Negotiations between MIA and CCR+Airis were finally approved by the Board of County Commissioners (BCC) last March and since then have resolved most issues, with a few specifics still being finalized. Final approval by the BCC is expected in the first quarter of this year.

A PROJECT WHOSE TIME HAS COME

For the fastest-growing large U.S. airport, the VICC is now a necessity. In the last few years, MIA has experienced double-digit increases in cargo, and is expected to continue that pace in 2023. “Currently, we’re almost at capacity,” Cutié admitted during his State of the Ports speech. “This project will posit MIA as one of the premier cargo airports in the entire world. It will keep us competitive.”

In its proposal, CCR+Airis offered this assessment: “Cargo operations at MIA

Top: The current cargo area at Miami International Airport

Below: Forecast of the total tonnage of cargo after the expansion

Currently, we’re almost at capacity. This project will posit MIA as one of the premier cargo airports in the entire world. It will keep us competitive.

RALPH CUTIÉ, DIRECTOR, MIAMI INTERNATIONAL AIRPORT (MIA)

PHOTO BY RODOLFO BENITEZ

encompass 34.9 percent of the net operable airport land area today, however it represents only 6.6 percent of total MIA revenues. This disparity… means MIA will begin to lose appreciable cargo volume to other competing airports sometime soon… along with thousands of associated jobs and associated economic benefit.” The VICC, with a projected $35.5 billion in economic benefit over its 50-year lease, would be the solution.

The five-story facility will be an uncommon sight in the U.S., where multistory cargo terminals are so far unheard of, but is actually modeled off of a similar concept at Hong Kong’s airport (HKIA), the world’s busiest international cargo airport. In 2021, HKIA’s facility was able to move five million tons of cargo, equal to what MIA could be moving upon completion of the VICC –although those numbers aren’t likely to be met until 2041, according to estimates by the airport.

“It used to be that the U.S. led the world in terms of aviation infrastructure,” says Ron Factor, Airis chairman and the VICC’s executive development officer, “but we lost that position after 9/11, understandably. Our airports are old… and their infrastructure is out of date. Most of the high-value, high-tech, time-sensitive materials are moved by air transport, but there’s very little accommodation in the U.S. network to handle that. Our quest is to bring the standards of our airports up… and regain leadership in this sector.”

The VICC will be a major step in that direction, expected to satisfy capacity demands for the next 25 years and bring the airport into a new era on the global stage. It should keep MIA’s cargo capacity from cresting until at least 2041 and will create more than 3,000 permanent cargo operations jobs (as well as almost 14,000 during construction), ensuring that MIA will remain the leading economic engine in Miami-Dade County and the state of Florida.

“It being the first facility of its kind in the country does put us on the world stage,” says Basil Binns, deputy director of the Miami-Dade Aviation Department. “It very well may be a prototype for how cargo development spaces are programmed in areas like Miami that have limited square footage and a limited footprint.”

CCR+Airis is already working on a similar proposal for a VICC to Los Angeles International Airport (LAX), another land-constrained aviation gateway. Both LAX and MIA require unique blueprints

since the metropolitan airports have little space to expand – which is why the VICC is being built up rather than out. It’s an unusual, vertical take on the kind of single-story cargo processing facilities seen at large U.S. airports like MIA and LAX.

Of course, no two VICCs are the same, and Factor says the LAX VICC is still in the works while Miami’s “is years ahead.” The Miami VICC will also have a specific custom design to accommodate the movement of perishables, one of MIA’s main cargo functions, while the Los Angeles project’s design will focus more on moving the electronics and equipment that characterize trans-Pacific trade.

Even with other good candidates like LAX, Miami was CCR+Airis’ first pick, partly because of its current cargo growth and partly because “Miami has leadership that promotes commercial expansion,” according to Factor. Indeed, Cutié has

It very well may be a prototype for how cargo development spaces are programmed in areas like Miami that have limited square footage and a limited footprint.

BASIL BINNS, DEPUTY DIRECTOR OF THE MIAMI-DADE AVIATION DEPARTMENT.

embraced the project, telling Global Miami that the VICC is “a unique opportunity… to enhance our air cargo capacity and operations… as well as to leverage advanced technologies, develop high-efficiency facilities with e-commerce centers, and minimize our fixed costs.” What’s more – and a key element for county approval – the $2 billion price tag is being funded by the private sector, primarily by the CCR Group.

Of the five floors at the VICC, four will be dedicated to cargo processing. Automated facilities using robotic technology will take over the first two floors, while levels three and four will handle more “traditional” processing of cargo, according to Binns. The top floor will fulfill the last C in VICC –“community” – with amenities for workers ranging from restaurants to retail to even a potential daycare for employees’ children.

FINAL APPROVAL EXPECTED IN Q1

While final approval by the BCC is pending, the airport expects to receive the go-ahead in the next few months. “I wonder how much more we could accomplish if [our facilities] were more updated, if we were technology-ready, if we had the right kind of infrastructure we need,” said County Commissioner Jean Monestime, who recently finished his tenure. He and his colleagues were initially concerned that the VICC proposal needed “more vetting” before negotiations could be approved, but after

several amendments to the proposal ensured that other planned projects near or in MIA would not be disrupted, those negotiations got the green light. Binns, who is the chief negotiator, agrees that one of the biggest challenges was how to relocate facilities on the land in the West Cargo Area that the VICC would take over. “Part of what we’re negotiating is those replacement facilities, whether they be temporary or permanent – permanent is our goal – for the displaced tenants,” he said.

The VICC is not the only private sector company trying to expand cargo capacity at MIA. Several operators, including FedEx and DHL Express, are already in the midst of, or have just completed, their own expansion. In 2021, FedEx added 138,000-squarefeet to its main sorting facility at MIA, a $72.2 million project, and DHL Express invested $78 million to expand its hub, a move that will double its sorting capacity. Florida East Coast Railway and Atlas Air have also presented conceptual expansion plans for review to the airport. These efforts are not sufficient to handle demand, however, from myriad other cargo carriers. “We’re in a fortunate position right now where everyone wants to expand,” says Binns, “which is what makes the concept of a VICC so attractive.”

Besides allowing the airport to better utilize its current facilities, the VICC will also provide a sustainable model in aviation facility development. By consolidating cargo operations, the VICC will reduce MIA’s

CO2 emissions by 10,000 metric tons per year, largely by reducing emissions from trucks that currently must move between three separate cargo areas at the airport. Its solar panels will also generate as much as 3,600 MWh (megawatt hours) of clean energy annually. Thanks to these and other sustainability initiatives, the VICC will receive a Gold certification from the Global Infrastructure Basel Foundation (GIB), a United Nations-backed nonprofit, making it the first aviation sector project in the Western Hemisphere to receive the designation. The GIB SuRe certification, which stands for Sustainable and Resilient Infrastructure, is a global standard made to “drive the integration of sustainability and resilience aspects into infrastructure development.”

Construction is expected to begin early this year, immediately following final approval by the BCC. l

Map of Miami International Airport. Several operators, including FedEx and DHL Express, are already in the midst of, or have just completed, their own expansions. The new VICC will be in the West Cargo Area, highlighted in red.

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Art Week

by the Numbers

A LOOK AT THE IMPACT OF ART ON MIAMI DURING ITS ANNUAL GLOBAL SHOWCASE

BY HARRIET MAYS POWELL

Miami was once again the center of the art world from November 30 through December 4, 2022, when a total of 20 international art fairs participated in the annual Art Week event, including the famous Art Basel. More than 1,200 galleries exhibited their works, as thousands of artists and tens of thousands of art lovers took part. The week also included pop-ups, street festivals, installations, parties, talks, concerts, and more. For a quick appreciation of Art Week’s financial impact on Greater Miami, we have assembled some of the numbers.

HOTEL ROOM RATES

ART BASEL

76,000 ATTENDEES

The fairest of the fairs, Art Basel, the mother ship that began it all, celebrated its 20th year in Miami:

A total of 76,000 attendees visited the Miami Beach Convention Center venue.

The fair included 282 galleries from 88 countries and territories. Two-thirds of the galleries came from North and South America. 25 galleries participated for the first time.

$638.47 RATE

During the week, the Miami Beach average daily room rate almost doubled to $638.47. By comparison, the 52-week average for Miami Beach was $368.69.

50 GALLERIES

DESIGN MIAMI

The official sister fair to Art Basel, Design Miami showcased collectible design:

A total of 50 gallery and curio presentations.

14 separate collaborations and satellite exhibitions.

35 speakers over four days.

PARKING REVENUE

$232,370 REVENUE

Art Week generated parking revenue of $232,370 in the Miami Beach Convention Center area versus $63,549 for the week of 11/15-11/20/22, almost four times as much.

LA PRAIRIE AT THE STANDARD

The luxury Swiss skin care brand took over a poolside space at The Standard hotel on Belle Isle for their Cobalt Club event.

During the week:

There were 155 skin caviar facials and 58 cobalt blue manicures.

5 kilos of caviar were consumed.

155 bottles of champagne were served.

All 102 rooms at the hotel were sold out. Over 600 margaritas and over 400 Frosés were downed.

MONEY SPENT ON ARTWORK

$65.1

BILLION SALES

Art Week participants refuse to disclose the total value of sales. However, according to the 2022 Art Basel and UBS Global Art Market Report, annual worldwide art sales were projected to reach $65.1 billion in 2022, up 29 percent from 2020. No doubt, the Miami art scene made a significant contribution to this staggering total. Some indicative sales:

Katherine Bradford’s 2022 “Girl Friends” sold for $90,000

Gina Beavers’ 2022 “Drama Queen Lip” sold for $60,000

March Avery’s 1999 “Psyche’s Wings” sold for $75,000

Six Editions of Alex Prager’s “Coffee Bar” sold for $420,000

EDITION HOTEL

127 SPA TREATMENTS

127 spa treatments were booked

120 guests attended Pilates classes

300 bottles of Ruinart champagne were popped

$3 MILLION

THIS YEAR’S BANANA?

Nothing in Art Basel Miami Beach’s 20-year history can compare to the moment in 2019 when a banana duct-taped to a wall sold for $120,000. But the 2022 edition of the fair offered up something that came close: an ATM with a scoreboard that ranked customers by their bank balance. When people withdrew cash, the machine took a photo and added it, along with a name and account balance, to a scrolling leaderboard. Electronic Dance Music (EDM) artist Diplo turned out to have a current account balance of $3 million. The ATM Leaderboard later sold for $75,000.

155 CAVIAR FACIALS

SOLD $420,000 ‘COFFEE BAR’

SOLD $90,000 ‘GIRL FRIENDS’

SOLD $60,000 ‘DRAMA QUEEN LIP’

BALANCE

Timeless Luxury. Memorable Moments.

A true icon surrounded by 150 acres of tropical landscape. We invite you to soak in our rich history, world-class golf, European spa, decadent dining, including our internationally recognized Signature Sunday Brunch or Afternoon Tea and more.

The Biltmore, where luxury and good taste never go out of style. THE BILTMORE HOTEL

1200 Anastasia Avenue | Coral Gables, Florida 33134

Reservations: 305-445-1926 | www.biltmorehotel.com

SILVIA TCHERASSI CONQUERS THE WORLD OF FASHION FROM MIAMI

BY HARRIET MAYS POWELL

Although designer Silvia Tcherassi started out as an interior designer, it was a desire to explore different creative fields that ultimately lured her into fashion. Now, after 30 years, she is a truly global brand with boutiques in Coral Gables, Cartagena, and Madrid, plus retail partners and online sales from around the world. Her runway shows take place in the fashion capitals of Milan, Paris, and, most recently, New York. Recently we met at her headquarters in Coral Gables and discussed her design philosophy, her inspirations, and her definition of elegance.

Of Italian descent, Tcherassi was born and grew up in Colombia, in the coastal city of Barranquilla. She explains that it was this exposure to the Caribbean that greatly affected her perspective, adding that she “always looked outward, to the ocean and to the wider world.” This international point of view is underlined by the fact that her fabrics are all specially made in Italy, the clothes then being produced in Colombia. For decades, she says, “I have used these same fabric and manufacturing facilities and I consider them family.”

Along that familial vein, Tcherassi’s 29-year-old son Mauricio is the one who started the firm’s online division, which now accounts for 70 percent of the revenue. And her 23-year-old daughter Sofia is the creative director of the ready-to-wear, as well as a smaller couture line, Atelier, which together make up the remaining 30 percent of the business.

Known affectionately in her native country as one of Colombia’s “three S’s” –the other two being actress Sofia Vergara and singer Shakira – Silvia says her heritage is “part of my brand’s DNA.” Nonetheless, she insists that fashion doesn’t have a nationality. But given her global touch points, Tcherassi is well-equipped to discuss the differences between European, American, and Latin style.

American fashion is “more practical,

more comfortable,” she says, citing Ralph Lauren as “the pioneer,” whereas Europeans tend to have a more artistic approach. Now, she says, Latin America has become another driving force in fashion. “For years, some of the greatest European fashion houses, like Dior, Givenchy, and Prada, have drawn inspiration from Latin America,” she says. However, she insists “that Latin America fashion is very diverse,” citing Uruguayan Gabriella Hearst (Chloe), Cuban American Lazaro Hernandez (Proenza Schouler), and herself as three designers with completely different approaches.

I ask if color is always important to her work and Tcherassi replies that Latins love color, but that she personally is “very

For years, some of the greatest European fashion houses, like Dior, Givenchy, and Prada, have drawn inspiration from Latin America.

SILVIA TCHERASSI

much drawn to white,” explaining that at the beginning of her career she worked solely with neutral colors. But when she discovered the world of color, “a whole new universe opened up. Now I like to take risks, trying new palettes and unexpected combinations.”

It is her meticulous attention to quality and minute detail that Tcherassi feels is key to her success. “I am uncompromising,” she says, often returning samples and prototypes that fail to meet her exacting standards. (Amazingly, given the level of artistry and craftsmanship evident in every piece, her prices are very reasonable, ranging from $650 to $1,500. And her demi-couture Atelier prices are also well below designer norms, starting at around $3,000.) Tcherassi’s hand literally touches everything. She oversees the architecture and interior design of the boutiques, chooses the lighting, decides on the specific scent of the Tcherassi candle, and even picks the floral arrangements at her Coral Gables headquarters.

Given the frenetic pace all fashion designers must endure, creating numerous collections throughout the year, where does she find her inspiration season after season? Her fundamental drive, she says, comes from an “attraction to elegance,” but elegance that is “effortless, not pretentious or excessive. Inspiration can come from art, nature, and architecture, or the work of pioneering women like Frida Kahlo, Louise Bourgeois, and sculptor Anne Truitt.” All have been enduring inspirations for her. For her most recent Resort collection (available now in stores

and online), Tcherassi says she was inspired by Mark Rothko’s color fields, as well as the underlying sense of mystery that permeates Cy Twombly’s work. “But you must have the ability to make something your own,” says the resident of Miami’s Coconut Grove, who also maintains a home in Cartagena, where she owns two historic hotels.

When discussing ephemeral fashion trends as opposed to timeless style, Tcherassi says that a designer should have a clear and coherent vision, but also the ability to adapt to the times. A prime example of this is her enduring love of flowing dresses and kaftans. These appear in every collection but are renewed each season with her latest prints and patterns. “A brand can evolve and incorporate trends, but its essence must remain intact,” she says. “Individuals should be able to experiment with trends, but must retain an identity, some quality that makes each person unique.” l

Now I like to take risks, trying new palettes and unexpected combinations.

SILVIA TCHERASSI

Think Global, Act Local, Augusto Perera, PA Intellectual Property Law Firm Based

in Coral Gables

When starting a business or an art project, business owners and talent are caught up in the demands of getting their business off the ground toward a path of growth. Sometimes the value of that intellectual property is overlooked.

Business owners and talents can lose those rights or get into costly litigation battles with no end in sight. I can advise you on how to better protect your rights to trademarks, copyrights, and other intellectual property rights in the U.S. and overseas.

With law degrees from the two main legal systems in the world, I understand the contrasts between common and civil laws, and the challenges they present to our clients.

Call Augusto Perera, P.A. for all your intellectual property rights needs. We can help you with:

• Copyright registration

• Trademark availability searches and protection

• Trademark disputes

• Terms and conditions and privacy policies for websites and mobile apps

• Trademarks and copyrights recordation with Customs authorities with goal of preventing unauthorized importation/ exportation of your products

121 Alhambra Plaza, Suite 1500, Coral Gables, FL 33134

O: 305-489-1901

M: 786-200-8674

E: ap@tmmiami.com

W: tmmiami.com

Seafood Emporium

TRULUCK’S HOLDS REIGN AS THE PREMIERE PLACE FOR SEAFOOD

BY J.P. FABER

One of the great mysteries of Miami is why there are not more seafood restaurants in a city that rests on the mouth of a river feeding into Biscayne Bay and the Atlantic Ocean beyond. If you dine at Truluck’s – one of the oldest restaurants in the high-rise maze of Miami’s Brickell financial district – it really doesn’t matter. You need look no farther for stunningly fresh food from the ocean.

Chef Odel Arencibia, who cut his teeth as a chef for Sol Melia hotels in Cuba, followed by stints at Capital Grille, Addison Reserve, and the Mondrian on Miami Beach, is modest about his contribution to the mantra of fresh seafood. “We go for the best ingredients, the best fish, the best crabs, from anywhere in the world – including the best down here, like black grouper and stone crabs,” he says. “If there is an angle for us to improve or enhance, we will, but we fight for the prime seafood, fresh out of the water.”

That translates into lobster tails from South Africa, colossal king crab legs from Alaska, branzino from the Mediterranean waters off Spain and Greece, sea scallops from the New England coast, giant prawns from Nigeria, and so on, often prepared with as little intervention as possible. “We don’t do much to our sea scallops, for example,” says Chef Odel, beyond grilling and serving them with an Italian piccata sauce enhanced with a subtle flavor base of popcorn. “We try to dress them just a bit, but they are premium on their own.”

Having said that, some of Chef Odel’s enhancements bring out the best. His sea bass, from the Pacific waters off Chile, is marinated in miso and then glazed with a miso reduction that provides a hint of sweet and sour without overpowering the flaky, flavorful fish.

If there is an angle for us to improve or enhance, we will, but we fight for the prime seafood, fresh out of the water.

CHEF

ODEL ARENCIBIA (ABOVE) THE GRILLED SEA SCOLLOPS (TOP LEFT) ARE SERVED WITH ITALIAN PICCATA SAUCE.

It’s served on a bed of fried rice with crab meat and fresh veggies, topped with cucumber slaw and a drizzle of ‘Hawaiian’ sauce (Japanese mirin, fresh jalapeño, and soy).

Another dish of complex tastes is Chef Odel’s crab and shrimp Napoleon – “one of those dishes you can share,” he says – a layered cake of crab meat, shrimp meat, and diced mangoes and tomatoes, stacked on a slice of beefsteak tomato in a pool of smoked tomato vinaigrette. The result is an unusual, refreshing combination of tastes.

In some dishes, Chef Odel’s intervention is minor, just enough to heighten the flavor. His delightful tuna crudo is made from sushi grade ahi, folded together with avocado, lime, and sea salt. Other fruits of the sea are presented as is, in all their glorious freshness, simply accompanied by a dipping sauce – plump shrimp from the Indian Ocean served with a chili-based cocktail sauce, or jumbo stone crabs served with a mustard-based sauce.

There are plenty of sides to accompany the main dishes, like lyonnaise potatoes with a truffle drizzle or garlic mashed cauliflower. There is also a quartet of steaks on the menu and a fine iceberg wedge salad with blue cheese and warm bacon. But seafood is king here.

The setting for Truluck’s is as elegant as its food and service. Occupying the ground floor of the Truist high rise, the entrance is skirted by a circular driveway that wraps around a large black olive tree, an easy entrance for valet parking. Inside, the seating is either at red-leather banquettes or free-standing tables, all white tablecloth adorned with fresh red roses. The lighting and background music are both muted so as not to upstage the cuisine.

Truluck’s is a national chain, with six locations in Texas, two in Florida, one in Illinois, and one in Washington DC, so they take pains to provide consistency in service and product, albeit with variation for local seafood options. The waitstaff performs impeccably, providing a reliably sophisticated restaurant experience.

"Ours is a tradtion of good food and good drink, with an elegance that doesn't feel stuffy," says Kim Vazquez, Truluck's Brickell managing partner. “Plus, the seafood is transcendent.” l

TOP LEFT: CRAB & SHRIMP NAPOLEON WITH MANGO AND SMOKED TOMATO VINAIGRETTE.

TOP RIGHT: MISO-GLAZED SEABASS WITH CRAB FRIED RICE AND CHILLED CUCUMBER SLAW.

MIDDLE: TUNA CRUDO WITH AHI SUSHI, LIME, AND AVOCADO. BOTTOM: FRESH FLORIDA STONE CRAB CLAWS SERVED WITH MUSTARD.

An Island off the Downtown

A STAY AT THE MANDARIN ORIENTAL HOTEL

BY KYLIE WANG

With only 33 locations worldwide, the Mandarin Oriental Hotel Group (MOHG) is far from the world’s largest hotel chain. But what it lacks in quantity, it makes up for in quality and reach. Focusing on luxury resorts, hotels, and residences, MOHG has properties worldwide, in cities like Prague, New York, Geneva, Jakarta, and Marrakech, to name a few.

The Miami location is on the smaller side, with 15 floors of rooms and one level devoted to business services, including meeting spaces and a ballroom for conferences and workshops. Catering is also available, as are planning services for both large and small events. On the ground and lobby floors, you’ll find everything from a wine room to a hair salon to a private beach. A highlight is the staff; like the guests, many are foreign-born, and all delightfully helpful – which is good, because navigating a stay at the Mandarin Oriental can be tricky.

For starters, the biggest tip we can offer is to sign up for the “Fans of M.O.” program when you arrive. The Mandarin Oriental’s free membership program, Fans of M.O. gets you benefits like complimentary Wi-Fi (usually about $15 per night), faster booking, and other offers. Booking online also gets you two additional perks: a choice of free breakfast, room upgrade, pressing services, early check-in, late check-out, streaming Wi-Fi, dining or spa credits, or a celebratory treat – ours was a mini “Zen Garden” with multi-flavored chocolate bonbons. The views of the Miami skyline and Biscayne Bay, meanwhile, are unbeatable.

The real draw of the Mandarin Oriental is the amenities. You could spend a weekend without leaving the grounds and still find more to do. For those with leisure time to explore the city, the hotel

THE MIAMI SKYLINE

ABOVE: THE HOTEL BOASTS A BAYSIDE POOL AND A SMALL PRIVATE BEACH

OPPOSITE TOP LEFT: THE HOTEL LOBBY

TOP RIGHT: THE MO BAR LOUNGE

BOTTOM LEFT: LA MAR TERRACE DINING

BOTTOM RIGHT: LUXURY ROOM INTERIOR

MANDARIN ORIENTAL, MIAMI

500 BRICKELL KEY DRIVE 305.913.8288

MANDARINORIENTAL.COM/MIAMI/BRICKELL-KEY FOR BOOKING: WHATAHOTEL.COM

TOP: MANDARIN ORIENTAL OVERLOOKING

offers a walking audio tour of Brickell and the downtown, laced with historical tidbits. For those who wish to relax on-property, there are plenty of activities.

The hotel has its own private stretch of sand, Brickell Beach, where visitors can sunbathe on padded beach chairs overlooking the bay. On Saturday and Sunday mornings at 9 am, there’s a complimentary Vinyasa Flow yoga session on the beach for Fans of M.O. members; you’ll be told these sessions last only 45 minutes but be prepared for slightly over an hour. Pro tip #1: Grab a coffee from the complimentary station in the lobby, available daily from 6:30 am to 10 am, before you go.

Afterwards, visit La Mar, the on-site Peruvian restaurant led by acclaimed chef Gastón Acurio, open early for breakfast (7 am to 11 am, daily) or brunch (weekends from 12:30 pm to 3 pm). Breakfast can be one of the Fans of M.O. perks and features both an a la carte menu and a buffet for $42.

Pro tip #2: Have an omelet – like cumulus clouds, they are buoyantly fluffy, soft, and large. La Mar is also open for dinner and features an eclectic menu of elevated Peruvi-

an dishes.

The pool at Mandarin Oriental isn’t the most impressive, but the service is. A team of energetic young staffers are constantly in motion, tending to guests’ every need, from lugging enormous umbrellas around for perfectly placed shade, to fluffing and replacing towels, to serving sushi and coconut cocktails poolside (available 11 am to 6 pm). There’s also a full bar with TVs, patio seating, and a hot tub. Pro tip #3: Take a chair on the south side of the pool so the sun isn’t shining in your face and umbrellas can be easily placed.

The hotel gym, on the lobby floor, is suitable only for on-the-go workouts, with little beyond basic equipment. The spa, however, is the opposite, a large and fully stocked wellness retreat that includes treatments from anti-aging facials to Thai massages. Offerings include: the red eye recovery treatment, designed to help you recover from jet lag; the 80-minute fertility treatment, personalized for pregnant and nursing mothers; and suite experiences, available at hourly rates, that allow you to enjoy the spa at your own pace with cus-

tomized treatments. There is also an on-site JGS Salon that offers a variety of hair care services, including cuts, highlights, extensions, keratin treatments, and blowouts. Pro tip #4: Book online to save 30 percent on your treatment.

After a full day, the place to wind down is the MO Bar Lounge, which has a small menu of light bites like the Oasis Pool Cafe but with a much larger menu of drinks. It’s worth a visit on live music nights (Friday and Saturdays 8:30-11 pm and Sundays 7:30-10 pm), when trumpeter Renoir Rodriguez takes the stage with the Fox Brothers to deliver upbeat, jazz and R&B-inspired music. Pro tip #5: Arrive during the early portion of the set to get a good table.

The Mandarin Oriental sits off the beaten path on Claughton Island (also known locally as Brickell Key) just east of Miami’s Downtown and Brickell hubbub, which is another of its charms. For the businessperson visiting with a plus one, the hotel provides more than enough to occupy your significant other while you’re off conducting commerce. l

Dinner and a (Over-the-Top) Show

AT EL TUCÁN, YOU COME FOR THE MEAL, BUT STAY FOR THE ENTERTAINMENT

BY KYLIE WANG

There’s a giant ring hanging from the ceiling and there’s a woman in it. Well, not exactly in it, but moving through it, around it, hanging from it, etc. She lands gracefully on a small stage as the thumping sounds of a remixed pop song – courtesy of an in-house DJ – come to a halt and applause fills the room. Fifteen minutes later, three more women appear, this time in nude-colored bodysuits and transparent high-necked coats, their arms stuck through the chests and necks of plastic mannequin heads. They perform a sultry dance number, strutting between tables, the translucent heads eyeing the audience as they swivel back and forth at the command of the dancers.

This is El Tucán, where tigers prowl on wraparound video screens and where every night (Wednesday through Saturday) there is a show. You come for a meal and stay for the performances. Roughly every 15 to 30 minutes there’s a new one, and they get wilder and ever more intense as the night goes on. By closing time at 3 am, guests are dancing on tables under the refracted lights of a disco ball no matter what day of the week it is.

This is a place to escape, a place to bring a friend to relax and be amused after a day of client meetings and deal negotiations. Just don’t forget your reservation or you will be turned away.

Meanwhile, there is food. The eclectic menu focuses on sushi but stretches to include things like empanadas and truffle mac & cheese. Variety is, after all, the spice of life, and Michelin-starred Chef Julien Jouhannaud is not afraid of a good dose.

The imperial Wagyu beef sliders go way beyond a typical burger, with Manchego cheese, caramelized onions, quail egg, and a shishito pepper on top. The aged Manchego is a zesty counterbalance to the sweetness of the onions, while the quail egg adds texture and a little extra boost – quail eggs, it turns out, provide more protein by weight than chicken eggs and double the iron.

Pursuing the protein vein, the teriyaki chicken is a good choice, though not as inventive as the sliders. The strip of chicken, cut into bite-size portions, is a tender, soft pillow on a bed of teriyaki sauce that has neither of the usual pitfalls – neither too sweet or too salty.

For sushi, the Kobe roll is El Tucán’s signature dish. Torched at the table, dusted with grated black truffle, and combining both shrimp tempura and Wagyu beef, it’s a dish that manages to embody the restaurant’s vibrant and overtly decadent atmosphere.

El Tucán also boasts a raw bar, sushi & sashimi platters, a chef’s omakase menu, and six different kinds of sake. The cocktails are diverse, with interesting twists. The “Miami Mule” comes with the surprising addition of cinnamon syrup, making the traditional cocktail with a ginger bite a little sweeter. The “She Is Hot and Green” combines Belvedere vodka with cucumber juice, ginger, lemon, and the striking addition of wasabi.

Is there similar food to be had in Miami? Sure. Is there a more unique dining experience? Unlikely. l

TOP: ONE OF THE NIGHTLY FLOOR SHOWS ABOVE CENTER: THE INTERIOR IS AS ECLECTIC AS THE ENTERTAINMENT ABOVE: THE SUSHI PLATTER

The Real Estate Issue

An overview of Miami’s real estate renaissance including:

• Foreign Direct Investment

• New Commercial Developments

• New Residential Projects

• Selling to Foreign Buyers

• Profiles of Industry Leaders

• Banks Financing the Boom

Via direct mail the readership of Global Miami are the “C” class executives of corporations either headquartered in Miami, or those with regional offices located here as well as new-to-market entities that are seeking to create or relocate businesses to Greater Miami. This audience extends to economic development agencies, chambers of commerce, and direct foreign investors in Miami’s leading trade partners, especially the nations of the Caribbean, Central America, and Latin America via American Chambers of Commerce, World Trade Centers and the International Consular Corp. National distribution includes key trade cities: Houston, Dallas, New Orleans, Chicago, and New York.

30,000 copies monthly

ADVERTISE WITH US

sales@globalmiamimagazine.com

Waterfront Properties

Now that the Miami winter weather is finally in place and temperatures have dropped, waterfront properties with the capacity for boating and extensive outdoor areas are in high demand. We asked three local realtors for waterfront listings in Miami with a focus on the outdoors and privacy. This is what they offered.

LISTING PRICE: $14M

VILLA CARAVANE

Oversized waterfront lot (20,850-square-feet) with a dock, white concrete floors, impact glass sliding doors, and a covered terrace. Large gourmet kitchen opens to private garden, veranda, and oversized pala-

pa perfect for hosting dinners outdoors. Tropically themed with an expansive master suite. Listing Agent: Tawny Martinez (Fortune International Realty), 786.543.5212

101 Cale Florida Dr., Key Biscayne 4 bed / 5.5 bath. 3,093 sq. ft.

LISTING PRICE: $16.55M

LUXURIOUS MODERNITY

A highly modernized home located on a 13,125square-foot lot with office, gym, and service quarters. Soaring ceilings, top of the line kitchen, and 75-feet of water frontage, equipped for

boating. A short walk to a private beach and nine private parks, all under the supervision of security. Listing Agent: Alan Eskenazi Bone (Miles Goldstein Real Estate), 786.493.7772

422 Golden Beach Dr., Golden Beach 7 bed / 7.5 bath. 6,720 sq. ft.

LISTING PRICE: $25.95M

A BAYFRONT PARADISE

Part of the exclusive Bay Point gated community. Unmatched bay views, a guest house, and 190feet of waterfront on a sprawling 35,910-squarefoot lot. Minutes from Miami’s premier cultural

neighborhoods, with an upstairs terrace and recently renovated rooms. A private haven, centrally located. Listing Agent: Chad Carroll (Compass, The Carroll Group), 305.400.9507

4355 Sabal Palm Rd., Miami 6 bed / 6 bath. 8,322 sq. ft.

Jenny Cipoletti Jersey City NJ

The Other Side of Trade

BY ALICE E. ANCONA

The past several years have been tough for pro-trade advocates. International trade has dominated the headlines like never before, but unfortunately, it has been portrayed as the bad actor, often misunderstood.

That is probably the best place to begin: trade, despite getting a lot of attention, is still misunderstood. And the component of trade which is misunderstood the most is the service industry.

What is a service? Simply put, if you can’t make it, mine it, or grow it, it’s a service. A services export is any service provided by a person in one country to people or companies in another country. Tourism, for example.

The services sector has become one of the most significant catalysts for economic growth in terms of job creation, value-added inputs, and international trade. According to the Coalition of Services Industries, services account for 80 percent of U.S. GDP and employ eight out of every 10 Americans. So it’s no small thing, which makes one wonder why it’s too often excluded in the story about trade and trade deficits.

For data to help paint the picture a little better we’ll use pre-COVID data, since the pandemic disrupted travel, tourism, and education, all important components of services trade.

The U.S. is by far the largest services exporter in the world, maintaining a relatively consistent trade surplus in services since 1992. In 2019, U.S. exports of services totaled $875.8 billion, more than the entire GDP of Saudi Arabia.

Just think about some of the types of services the U.S. exports: movies and other digital entertainment, software, and aircraft maintenance are some examples. Also consider global infrastructure projects that depend on U.S. expertise in engineering, architecture, and design. You cannot export a product without a service. Consider all the value-added functions/services that went into the production of an exported product

(financial, legal, business services, real estate, etc.) as well as the services that go into sending that product to another country (transportation, logistics, etc.). The digital economy is dominated by services.

So, what about trade deficits? With certain trading partners, when you factor in services, trade deficits turn into surpluses. Let’s take one example: Canada, which happens to be a top trading partner for Florida, as well as 30-plus other states.

In 2019, U.S. “goods/product” exports to Canada totaled $292.8 billion. Imports from Canada totaled $318.5 billion, creating a supposed trade deficit of $25.7 billion. Now let’s add in services. U.S. services exports to Canada were $67.3 billion and U.S. services imports from Canada were $38.2 billion, giving us a surplus of $29.1 billion. When you factor services into our trade relationship, we have a $3.4 billion trade surplus with Canada.

With some other trading partners, services trade doesn’t wipe out the deficit, but it certainly makes a dent. In 2019, we had a $36 billion services trade surplus with China, an $18.9 billion services trade surplus with Japan, and a $16.7 billion services trade surplus with the UK – just to name a few.

Services trade is notoriously difficult to measure, so trade data on services is limited and definitely undercounted. It’s not hard to imagine that many people and companies have no idea the work they do is even considered a service export.

International trade and the benefit it offers are not always understood. Not all trade is tangible. In a world of expanding digitalization, where innovation and the knowledge economy increasingly dominate economic activity, services trade is an invisible yet vital engine for growth. l

Alice E. Ancona is COO and Senior Vice President of the World Trade Center Miami.

THE MISUNDERSTOOD GIANT OF INTERNATIONAL TRADE? THAT WOULD BE SERVICES