The Forgotten History of Hershey’s Electric Railway in Cuba

2026-04-21 · Source: IEEE Spectrum · Field: Business & Management — Corporate Strategy & Leadership, Operations & Process Management, International Business & Trade · Depth: Fundamental Awareness, medium

Summary

Milton S. Hershey established an extensive sugar operation in Cuba, including the Hershey Electric Railway, starting in 1916 to secure a steady sugar supply for Hershey Chocolate Co. and bypass the "Sugar Trust" after World War I, driven by a strategy of vertical integration. His Cuban enterprise encompassed five plantations, modern mills, a refinery, an oil-fired power plant, and company towns like Central Hershey, with the railway efficiently transporting cane and becoming Cuba's first electrified train in 1920. Hershey replicated his "industrial utopian" model in Cuba, providing housing, amenities, and education for workers, though his paternalistic approach had flaws regarding labor practices. After Milton Hershey's death, the company sold its Cuban interests in 1946, and while passenger service on the Hershey Electric Railway continued sporadically into the 2010s, its operation is now severely hampered by Cuba's chronic electricity shortages and damaged infrastructure. A 2024 analysis explored reactivating the railway for its climate and geopolitical benefits but concluded that frequent power outages and infrastructure damage favor diesel engines over electrification for Cuba's current rail network.

Key takeaway

Hershey built Cuba's first electrified railway in 1920 to vertically integrate sugar production, ensuring efficient cane transport to mills and powering extensive company operations. This 56km system, initially steam-powered, became electric to overcome fuel costs, enabling 24/7 mill operation and supplying electricity to surrounding towns. Though a 2024 analysis suggests its potential as a climate-resilient transport solution, the railway is largely defunct today due to Cuba's chronic power outages and infrastructure challenges.

Topics

• Hershey Electric Railway
• Cuban Sugar Industry
• Vertical Integration
• Company Towns
• Platt Amendment

Best for: General Interest, Tech Journalist, Research Scientist

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Editorial summary, takeaway, and curation by AIssential. Original article published by IEEE Spectrum.