The Transport Operating License (LOT) has become a key element in organizing passenger and cargo transportation in Cuba. This document is required not only by state-owned companies but also by self-employed workers and those who provide auxiliary services such as workshops, parking lots, or freight forwarding.
The central objective is to guarantee safety, legality, and a degree of order in a sector that has operated with many loopholes for decades. The LOT also seeks to address the so-called "social mandate": routes benefiting the population, differentiated fares, and the obligation to cover routes that, while not always profitable, are necessary.
Figures showing the magnitude of the system
As of July, 6,964 LOTs were registered in the hands of companies and 73,347 receipts were issued to media and facilities, mostly motor vehicles.
In the case of individuals, the figure rose to 32,436 active LOTs, in addition to 6,887 additional receipts for contracted workers. This formal universe contrasts with the persistence of illegal transportation, which continues to operate outside the law.
How is it processed?
Legal entities must apply for licenses at the provincial transportation departments, while self-employed workers do so in their municipality of residence. The process relies on computer systems, but the platform for individuals has become obsolete, causing delays.
A new application is currently being tested on the Isle of Youth, which will digitize procedures and replace the paper version, with the promise of expanding it to the rest of the country.
Recent changes in the LOT
Resolution 140/2024 of the Ministry of Transportation introduced significant modifications to the LOT regulations. It now applies not only to Cuban residents, but also to foreigners with permanent residence and to national and foreign legal entities authorized in Cuba.
Another new feature is that the license is no longer personal, although it remains non-transferable. Furthermore, new validity periods have been established: one year for motoring assistance and instruction services, and three years for certificates for legal entities and contracted workers.
In the case of nationwide licenses, buses, trucks, and vans intended for passengers are also required to have a designated luggage space, provided the vehicle's structure allows it.
For legal entities, a bank statement confirming no outstanding debts is required. For high-comfort or classic services linked to Taxis Cuba, only one additional driver is authorized.
Obligations of the holders
The new requirements include direct deposit of payrolls for bank payments, maintaining an active tax account, accepting electronic payments, reporting operating results to the transportation authority, and strictly complying with the social mandate.
Failure to comply may lead to temporary suspension of the LOT for irregularities such as employing more people than permitted, violating hygiene and health regulations, or failing to comply with salary banking. It may even be permanently revoked if there is repeated noncompliance with the social mandate or discriminatory or violent behavior in the workplace.
challenges ahead
The biggest challenge remains confronting those who operate without licenses, without technical or legal security, which leads to tax evasion, price violations, and service disruption.
Another challenge is improving the organization of those who do have LOTs: routes, schedules, service quality, and compliance with social obligations. Irregular access to fuel and parts also limits the stability of legal transporters.
An overview
The Ministry of Transportation assures that in the last quarter of the year, organizational measures will be implemented in conjunction with local governments to strengthen control and formality. The LOT is not a simple bureaucratic procedure: it is the tool that can make the difference between more orderly and safer transportation, or the continued chaos and illegality that has prevailed on the streets for years.