OFFICE OF THE SECRETARY OF ECONOMIC DEVELOPMENT

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1 OFFICE OF THE SECRETARY OF ECONOMIC DEVELOPMENT Colima, Mexico Tel: +52 (312) Fax: +52 (312) Infrastructure Colima's modern and well-developed infrastructure has contributed to providing residents with a standard of living that surpasses the national average. Not only is Colima an attractive investment option, but it offers a pleasant lifestyle for company personnel and families relocating here. Electricity The State of Colima 's main generating plant is located in the municipality of Manzanillo, and has a 1,900 megawatt capacity. The power network consists of 3 transmission stations and 11 distribution sub-stations providing service to 97.2% of the residential population and 100% of industries in the state. Even so, there is a substantial energy surplus, with 92% of the electrical energy generated within the state distributed to the rest of Mexico through a national electricity network. 1

2 Water Three main river systems provide a hydraulic potential of approximately 3,000 million cubic meters of water. There are also 3 important dams and reservoirs (Vadillo, Trojes and Laguna Amela) that allow for the storage of more than 328 million cubic meters of water to supply local industries. Approximately 98.3% of residences in the state have running water, and 96.6% have basic sewage services. Education Colima's educational system is one of its main strengths. There are four public and four private universities offering students a wide range of studies and providing industry with a pool of highly qualified and adaptable personnel. Finance In Colima, there are 57* branches representing the 7 main banks that operate in Mexico, as well as other financial institutions such as The Commercial Bank, The Development Bank, FIRA and NAFIN. Colima's modern, high-quality transportation infrastructure is designed to facilitate the rapid movement of passengers and cargo from various points within the state to the main consumption and distribution centers in the Mexican Republic. Up-to-date telecommunications technology is a top priority of the state government. Highways The State has an extensive road and highway network, with more than 1,300 miles (2,119 kilometers) of highways connecting all ten municipalities to the rest of the country. The NAFTA route begins at the Port of Colima, with a four-lane highway that crosses the State, linking the coast with the cities of Tecoman and Colima, and continues on to the State of Jalisco, where it joins up with the Guadalajara-Mexico City Freeway. This route leads to the most important consumer and distribution centers in the republic, and to the United States and Canada. Railroads There are almost 150 miles (237 kilometers) of rail lines between the main cities of Colima and connecting with the rest of the country. Ferromex, a private company, offers efficient rail connections to Mexico 's main industrial corridor where more 89,000 companies generate more than 80% of the republic's industrial output. The Port of Manzanillo is presently the only port in Mexico with double-loading capability, providing significant advantages in terms of fast, efficient movement of containers out of the port. 2

3 Distance Colima to By highway By railroad Manzanillo 60 miles 64 miles Guadalajara Mexico City Querétaro San Luis Potosí Monterrey Nuevo Laredo Ciudad Juarez 1,004 1,302 Veracruz Houston 1,312 Laredo 825 Dallas 1,428 Saint Luis 2,062 New York 3,187 Winnipeg 2,627 Air Transportation There are two airports in the State of Colima : an airport in Manzanillo, and in the municipality of Cuauhtemoc, providing regularly scheduled international and domestic flights through eight airlines. Additionally, The Miguel Hidalgo International Airport in the city of Guadalajara is considered part of the regional air transportation infrastructure. Located only 215 km from Colima, it is the second largest commercial airport in Mexico, both in terms of volume of cargo handled and number of international destinations. Telecommunications The state is completely blanketed with mail, telegraph and telephone services. A modern fiber - optic network allows for reliable and fast telecommunications. There are 19 local radio stations (17 commercial, 2 cultural), 4 local TV channels, 11 national retransmission TV stations and cable service in the main cities. Sea Port The sea port of Manzanillo is the most important of the Mexican Pacific. The Port of Manzanillo, Mexico 's largest Pacific-coast port, is the pride of the State of Colima. This commercial seaport has dock warehouse and loading facilities covering more than 438 hectares, and an average water depth of ft (14 meters). The port provides hi-tech navigational and cargohandling services. Modern facilities are operated by private-sector companies under conditions of competitiveness and efficiency that assure world-class standards in the handling, storage and transportation of all kinds of merchandise. 3

4 Manzanillo,s port is located on Mexico s west coast, mid-way along the pacific coastline in the State of Colima. The geographical coordinated are: latitude " north and longitude " west. RANGE OF INFLUENCE (National) 4 Manzanillo is the main link between the pacific and the country s most important industrial and commercial corridor, comprising the northern, western and central regions of the country, these regions cover 15 States of Mexico. The Port has specialized facilities for the handling of containers, grain, vegetable and animal liquids, cement and raw materials, refrigerated facilities for the handling, movement and warehousing of perishable products, multiple-use facilities for the handling and storage of general and container cargo, spacious patios for vehicle storage and a terminal designated specifically for fishing vessels. Since 1994, when port terminals, facilities and services were privatized, there has been a substantial increase in investment and job-creation in the Port. This has given the Port of

5 Manzanillo a modern infrastructure and up-to-date technology that have converted it into the main commercial seaport on Mexico 's Pacific Coast. DYNAMIC GROWTH Ships using Port facilities 1,077 1,129 1,256 1,369 Containers handled ( inteu s) 426, , , ,209 Cargo handled (units) 9,329 9,432 11,401 12,303 Automobiles handled 17,540 25,503 34,147 36,839 Shipping lines Customs agencies Global destinations Service companies Shipping agencies Companies with Port concessions Loading companies Mooring positions RANGE OF INFLUENCE (International) IMPORTANCE OF THE CORRIDOR Being a commercial union between North America and Asia, creating greater transactions of goods and services throughout this region. The support of this objective will be in the operational improvements, better communicational and transportation systems and higher standards of the human quality in the capital. Creation and strengthening of the PYMES in the zone of the Corridor. Generation of direct and indirect employments - Commercial and operational continuous improvement based in terms of loyal competence. Rise in the amount and quality of the products and services originated in the APEC region. Availability of high skilled human labor. Increase in business opportunities with countries of APEC. Acquisition of different international commercial forms and styles. Improvement in the standard of life of the people in the influence area of the Corridor. Benefits in: 5

6 Shorter distances to arrange products in smaller periods of time. Commercial security. Legal Stability. Great infrastructure of communications and transportation. Abundance of natural resources. High skilled human labor. COMMERCIAL TREATIES OF MEXICO, AN INCENTIVE TO INTERNATIONAL COMMERCE North American Free Trade Agreement, (NAFTA) > United States, Canada and Mexico Free Trade Agreement Mexico - Bolivia Free Trade Agreement Mexico - Costa Rica. Group of the Three Free Trade Agreement > Colombia, Venezuela and Mexico. Integration of Latin-American Association Agreement (ALADI) > Colombia, Venezuela, Bolivia, Costa Rica, Brazil, Argentina, Uruguay, Paraguay, Peru and Ecuador. Economic Complement Agreement Mexico - Chile North Triangle Free Trade Agreement Guatemala, Honduras, El Salvador. Free Trade Agreement Mexico - Nicaragua. Free Trade Agreement Mexico - Israel Free Trade Agreement Mexico - European Union > Germany, Austria, Belgium, Denmark, Spain, Finland, France, Greece, Holland, England, Ireland, Italy, Luxembourg, Portugal and Sweden. Free Trade Agreement Mexico - AFLC Countries > Switzerland, Norway, Iceland and Liechtenstein. 6

7 LOCATION AND POPULATION Colima it is located in the center west region of Mexico. It limits to the north, east and west with the State of Jalisco, in the southeastern with the State of Michoacán and to the south with the Pacific Ocean. 5 thousand of 455 km2 of continental surface. 157 km 2 of coast line. 2 thousand 133 km 2 of territorial sea Population of 585, 949 (2000) inhabitants distributed in 10 municipalities. The average age is 23 years. QUALITY OF LIFE: (National place of Colima) 1 Quality of life (2003) 3 Life expectancy rate (2000) 10 First in quality development rate (2000) 2 Coverage of population with drain service 96.6% (2001) 3 Coverage of population with drinking water service 98.3% (2001) 4 Doctors /100,000 inhabitants (2001) 4 Doctor's offices / 100,000 inhabitants (2001) 3 School absorption secondary ( ) Average school grade 8.9, domestic 7.6 (2000) Population 15 age and older literate 92.7%, domestic 90.5% (2002) (iv) 1 Corruption and good government rate (2001) (v) 1 Ponerated average of impunity 69.9%(2000) (vi) 1 Fulfillment of the judicial system (2000) (vi) National average of housing Prize 2003 (Republic presidency) 7

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