Initiative for Regional Infrastructure Integration in South America MERCOSUR: Rising Opportunities to Japan Infrastructure Investment Opportunities Ing. Roberto Salinas National Coordinator of IIRSA - PARAGUAY Tokio, June 2007
Index Mercosur within a South America context, Dificulties and infrastructure demand IIRSA, New territorial planning concept The Hinterland of the Mercosur Final remarks
Index Mercosur within a South America context, Dificulties and infrastructure demand IIRSA, New territorial planning concept The Hinterland of the Mercosur Final remarks
SOUTH AMERICA a continent with great opportunities Important source for mineral and energy Great potential for consumer market growth and new market developments Regional integration processes (MERCOSUR y CAN) Young entrepreneurial population Dynamic, creative cultures blended with ancestral cultures Biodiversity and geographic diversity
IIRSA Connecting isolated spaces 1 4 1. Caribean platform 2. Andean platform 2 5 3. Atlantic platform 3 4. Amazonan platform 5. South Amazonan platform
IIRSA INTEGRATION AND DEVELOPMENT HUBS Geo-economic benchmark for land planning and sustainable development management (1) MERCOSUR Chile Hub (2) Andean Hub (3) Central interoceanic Hub (4) Amazon Hub (5) Guyanese Shield Hub (6) Perú Brasil Bolivia Hub (7) Capricorn Hub (8) Southern Hub (9) Paraguay-Paraná Waterway Hub (10) Southern Andean Hub
10 Hubs 335 projects Transport: 289 Energy: 40 Telecomunication: 6 40 groups of projects Total Investment: USD 37,4 billion Main Portfolio: 31 projects; USD 5,83 billion Expected Investment: USD 11,1 billion Public sector USD 6 billion Private sector USD 20,3 billion PPP
MERCOSUR Economic bloc of South America Mercosur is an emerged political and economic bloc in South America under a high rate of growth, but within a region with a high deficit on transport infrastructure. The growth of Mercosur depends of the economic growth of Sud America, and the growth of Sud America depends to the physical integration of his nations.
IIRSA -Main Infrastructure Projects Total: 5,83 billion USD Mercosur: 3,79 billion USD
Index Mercosur within a South America context, Dificulties and infrastructure demand IIRSA, New territorial planning concept The Hinterland of the Mercosur Final remarks
IIRSA - Territorial Planning New Concept (2005) Production Chains Logistics Chains Infrastructure (projects) Environmental Impacts (EAE) Territory
IIRSA HUBS LOGISTIC CHAINS EVALUATED 2006 HUB: Andean CORRIDOR: Lima-La Paz-StaCruz GOODS: Textil, Soybean, Woods, Sugar HUB: Central Interoceanic CORRIDOR: Asunción-Paranaguá GOODS: Soybean, Corn, Chicken HUB: Mercosur+Chile CORRIDOR: Porto Alegre-B. Aires GOODS: Automotor industries HUB: Mercosur+Chile CORRIDOR: B. Aires-Antofagasta GOODS: Wine, Corn, Soybean
Territorial Planning- IIRSA Evaluating logistics Chains Lima-La La Paz-Santa Cruz COLOMBIA Trujillo Lima PERÚ Juliaca BOLIVIA Matarani Puno Arequipa Moquegua Ilo Tacna Arica La Paz Cochabamba Oruro Sucre Santa Cruz Pto. Suarez CHILE Rosario / VENEZUELA Nueva Palmira / COLOMBIA
Territorial Planning- IIRSA Structure of the Soybean and Sugar logistic family in Santa Cruz ORÍGEN Norte Integrado (150 km. de Santa Cruz) Centros de Acopio Soya y Girasol (Limpios y secos) Hexáno de Argentina Suministro Producción Distribución Ventas Caña de Azúcar cortada y limpia SANTA CRUZ (Bolivia) Productores Industria Oleaginosa GUABIRÁ SAN AURELIO UNAGRO LA BÉLGICA Productores Industria Azucarera Ferrovía (1d) 75% Puerto Suárez Puerto ADM SAO CARGILL 15% Agricultores Proveedores GRAVETAL Ferrovía (1d) (Soya Girasol - Caña) Paraguay-Paraná IASA Waterway IOL Tierras Bajas del Este (250 km. de Santa Cruz) Centros de Acopio Agricultores Proveedores (Soya Girasol - Caña) Carretera (1d) 10% Carretera (2d) Carretera (5d) Carretera (6d) 20% Harinas Soya y Girasol Aceite Refinado Aceite Desgomado Goma de Soya Azúcar Refinada Alcohol (Etanol) Arica Hidrovía (20d) Puerto Matarani Puerto Carretera (4d) Rosario Puerto Nueva Palmira Puerto Mar (2d) Mar (1.5d) Mar (12d) Mar (15d) Transp. GBusch Transp.Salvatierra Cotrainco RansaBol Transp. Porvenir DESTINO VENEZUELA Consumo COLOMBIA Consumo Lima Mar (5d) Consumo Trujillo Consumo Arequipa Consumo
Index Mercosur within a South America context, Dificulties and infrastructure demand IIRSA, New territorial planning concept The Hinterland of the Mercosur Final remarks
THE HINTERLAND OF THE MERCOSUR (1) MERCOSUR Chile Hub (2) Andean Hub (3) Central interoceanic Hub (4) Amazon Hub (5) Guyanese Shield Hub (6) Perú Brasil Bolivia Hub (7) Capricorn Hub (8) Southern Hub (9) Paraguay-Paraná Waterway Hub (10) Southern Andean Hub
The Hinterland of the Mercosur Economic Potential Mines Agrobusiness Mejillones Natural Gas Sepetiva Heavy Industries Hydroelectricity
The Hinterland of the Mercosur Economic Potential Soybean production 11.7 Soybean production 1.27 3.26 10 1.38 1.18 4.2 8.35 5.56 0.656 9.66 2003 1990
The Hinterland of the Mercosur Economic Potential Corn production 0.346 2.31 1.318 10 0.252 0.369 1.055 3 2.083 3 5.66 2003 1990
The Hinterland of the Mercosur Economic Potential Export through Atlantic ports Santos = 7,7 mill tn Paranaguá = 10,7 mill tn San Francisco so Sul = 1,8 mill tn Río Grande = 3,9 mill tn Rosario = 2,32 mill tn Nueva Palmira = 1,36 mill tn
The Hinterland of the Mercosur Economic Potential Export through Atlantic ports 75% Railway Waterway Railway Highway 11,61% Santos Waterway Paranaguá Railway 87,67% 0,72% Rosario Nueva Palmira Río Grande
Line of trucks, more than 100 km for accessing to Paranagua Port
High intensity trade flows will foster demands on logistic infrastructure in the Hinterland most favorable scenario 2010 More than 10 billion per year US$ 4 to US$ 10 billion per year US$ 2to US$ 4 billion per year US$ 1 to US$2 billion per year S$ 500 million to US$1 billion per year
The Hinterland of the Mercosur Logistic infrastructure towards Pacific ports Central-Sud Bolivian Corridor Projected 878 km. Projected Road PY (265 km) Projected Road AR-PY (380 km.) Projected Bridge PY-BR Railway under rehabilitation Road in in Construction Railway network Trocha 1 m. Trocha 1.435 m. Vínculo faltante Puertos PANAMAX Puertos Post-PANAMAX
The Hinterland of the Mercosur Logistic infrastructure towards Atlantic ports Itaipú Dam Bottle neck Railway Missing link Watrway dredged Bottle neck High-priority Logistic Node RAILWAY NETWORK Trail 1 m. Trail 1.435 m. Missing link PANAMAX ports Post-PANAMAX ports
high-priority Logistic Node Itaipú Dam Bypass Itaipú Dam De la Amistad Bridge PARAGUAY New Bridge BRASIL Tancredo Neves Bridge ARGENTINA
Index Mercosur within a South America context, Dificulties and infrastructure demand IIRSA, New territorial planning concept The Hinterland of the Mercosur Final remarks
Brasil Expected Infrastructure Investment 2007-2010 Modal 2007 2008-2010 Total Road 8.086 25.352 33.437 Railway 1.666 6.197 7.863 Ports 684 1.979 2.663 Airports 878 2.123 3.001 Waterway 280 455 735 Merchant Marine 1.779 8.802 10.581 Total 13.373 44.907 58.280 Publics Resources (O.G.U.): R$ 33.980 Mill Private Resources and Financing: : R$ 24.300 Mill Public Financing (BNDES): R$ 17.000 Mill (70% of the Private Investment) In million of R$
IIRSA - Agenda 2007 Reviewing projects and verifying consistency Evaluating logistic chains Evaluating environmental impacts Implementing anchor projects Improving Institutional framework Promoting logistic corridors
Logistic investment needed Storage and Chain of cold Railway rehabilitation Ports extension Waterway dredged Information Technology Improve roads and bridges capacity Development of Airport Hubs
Business Opportunities Feasibility studies Environmental studies Engineering studies Design Construction Operation Financing Technical advise
For further information For general information about IIRSA: visit IIRSA Web site at www.iirsa.org For specific information about Paraguay: Contact with National Coordination at info@iirsa.gov.py www.iirsa.gov.py For information about another country please contact with local Coordinators (find address at www.iirsa.org)
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