Aruba is exploring the development of modern free zone facilities near its main cargo port in Barcadera following a cooperation agreement signed on October 22, 2026. The initiative aims to reduce unnecessary cargo movements, address warehouse capacity constraints and support the expansion of logistics and international trade activities on the Caribbean island.
The Memorandum of Understanding (MOU) brings together FreeZone Aruba N.V. (FZA) and Aruba Ports Authority N.V. (APA), with the participation of three government ministries. The agreement establishes a framework to assess the potential relocation and modernization of FreeZone activities currently based in Bushiri, near Oranjestad.
The proposed development would place additional free zone operations next to Aruba’s principal cargo terminal, bringing storage, distribution and port-related services into closer proximity. The agreement marks an exploratory stage, with feasibility assessments and operational arrangements still to be determined.
Relocation Plan Targets Redundant Cargo Movements
Aruba‘s current logistics arrangements require certain imported goods to be transported from Barcadera’s cargo port to the FreeZone facilities in Bushiri before returning to Barcadera for export. The government identifies these additional journeys as an operational inefficiency that could be addressed by locating free zone activities closer to the port.
Moving operations to Barcadera could reduce inland cargo transfers and associated handling requirements for businesses engaged in import, storage and re-export activities. However, the government has not quantified the potential transport savings or provided estimates of future cargo volumes.
Capacity constraints at Bushiri provide another reason for considering the relocation. According to the October 22 government announcement, FreeZone Aruba’s existing facilities are fully occupied, with additional businesses on a waiting list.
The Bushiri Free Zone covers 9.2 hectares and includes approximately 7,000 square meters of warehouse space, alongside offices and showrooms. Demand for additional facilities comes as Aruba has expanded the range of activities permitted within its free zone framework, with the changes taking effect on January 1, 2026.
“The signing of this MOU is an important step toward creating the space required for more businesses to establish themselves and grow in Aruba,” said Geoffrey Wever, Aruba’s Minister of Finance, Economic Affairs and Primary Sector.
Barcadera Offers Existing Port and Logistics Infrastructure
Barcadera already accommodates Aruba’s main cargo terminal and an established logistics and industrial area. The Barcadera Business Park, managed by Aruba Ports Authority, is located alongside the multicargo terminal and provides access to the island’s road network and nearby Queen Beatrix International Airport.
The cargo terminal, operated by ASTEC N.V., handles containers, general cargo, vehicles, construction equipment and bulk commodities. According to Aruba Ports Authority, the facility includes a 440-meter quay, an indicated water depth of 11 meters and 40 refrigerated-container connections.
FreeZone Aruba has also identified a 45-hectare designated free zone area at Barcadera for industrial, commercial and service activities. The October 2026 agreement therefore concerns the potential development and modernization of facilities within an area already designated for free zone operations, rather than the creation of Aruba’s first free zone at the port.
Aruba Ports Authority is separately promoting land within Barcadera Business Park for warehousing, distribution, cargo handling and small-scale manufacturing. The port authority describes approximately 15 potential development parcels, although the government has not indicated whether these plots would form part of the proposed FreeZone relocation.
Feasibility Studies to Determine Next Steps
The agreement signed on October 22 establishes a basis for FreeZone Aruba and Aruba Ports Authority to assess how their infrastructure, operational responsibilities and regulatory functions could support future development at Barcadera.
The cooperation involves Aruba’s Minister of Finance, Economic Affairs and Primary Sector Geoffrey Wever, Minister of Tourism, Transport and Labor Wendrick Cicilia, and Minister of Infrastructure and Telecommunications René Herde. FreeZone Aruba Director Walter Mosher and Aruba Ports Authority Director Marc Figaroa also signed the agreement.
According to the government, FreeZone Aruba has recorded two consecutive years of positive financial results following organizational and administrative restructuring. The authorities see the proposed Barcadera development as a potential next stage in expanding the organization’s commercial activities.
The next phase will focus on development feasibility, operational conditions and coordination among the participating institutions. No investment budget, construction timetable or confirmed relocation date has been announced.
FAQ
What is the FreeZone Aruba–Aruba Ports Authority agreement about?
The agreement aims to explore the development of modern free zone facilities near Barcadera Port, improving logistics efficiency and supporting future commercial activities.
Why is Aruba considering relocating FreeZone operations to Barcadera?
The relocation could reduce unnecessary cargo movements between Barcadera and Bushiri while addressing warehouse shortages at FreeZone Aruba’s existing facilities.
Does Barcadera already have a designated free zone?
Yes. FreeZone Aruba has identified 45 hectares at Barcadera for industrial, commercial and service activities. The agreement focuses on developing and modernizing facilities in this area.
When will the Barcadera FreeZone project begin?
No construction date has been announced. FreeZone Aruba and Aruba Ports Authority must first assess the project’s feasibility and define operational requirements before proceeding.
