Page 15 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

4. Market Analysis

A. Current Situation

The country’s rapid economic development makes possible its fast
growing pace in trade and logistics. The following table provides a
comparison of some pertinent statistics that validate the analysis of the
present opportunities. Table 3 comes from the Central Bank of Paraguay.

Table 3: Development Indicators

Development
Indicators 2005 2010 2014 2016
GDP
US$ billion 8.772 30.759 27.400
Per-capita
US$ 1,518 4,605 3,995
Imports
US$ billion 3.700 12.079 9,789
Exports
US$ billion 3.153 13.117 11,148
Imported
Cars - units 56,451 80,941

The above shows a country with a dynamic economy. All main indicators
have increased considerably in the last decade. Imported cars grew 44%
in 5 years showing the rise of the middle class. Housing is also expanding
which demands a higher volume of appliances all of which are imported.
There are 100,000 houses built annually in Grand Asuncion alone.
Soybean production, which increased three-fold in 10 years, also caused
an increase in the demand for chemicals, fertilizers as well as in
machinery. The “America Economia International” magazine, stated that
Paraguay and the Ukraine are the two countries with significant
agricultural growth potential.

B. Competition

There are 10 port facilities that service most the imports and exports of
containers and general products in the country. They are the following:

The Asuncion ANNP, located downtown by the bay, and the Villeta ANNP
located in the City of Villeta are government owned ports. Both are well
equipped facilities, but the importers are reluctant to use their services.
Importers and exporters prefer privately owned ports.

Ceregral S.A, not a competitor, owns two facilities, one is located within
the Gran Asuncion and the other is in Villeta. The latter is not an active
port. This company is authorized by the Central Bank to issue a Storage
Certificate as well as Warrants. Ceregral also has a relationship with the
Customs House.

Gical S.A. is located north - within the Asuncion city limits. It operates as a
general warehouse, but its main business is grain storage and exports.

Fenix S.A. is an efficient facility. However, it is located north - within the
city limits.

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