Page 16 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

Caacupemi S.A. is an efficient organization. However, it is located north -
within the city limits. This company is building a port south of Villeta.

San Jose S.A. is a 20 he. facility located north - within the city limits.

Puerto Seguro S.A. is located south of Villeta. It is a general warehouse
and a container terminal.

Terport S.A. has a small operation located north of Villeta.

San Jose, Caacupemi, Gical and Puerto Fenix are located north of
Asuncion but within the Gran Asuncion. During the years, the city has
expanded and surrounded them, thereby making it difficult to enter and
exit them. The city does not have the infrastructure nor the roads to serve
those port facilities. It is expected that they will be forced to find other
sites. To make the matter worse, Puerto Union, owned by Cargill, is
located on the same area. While the latter is not a container terminal but a
grain terminal, the traffic with oversized trucks only compounds the
problem within the heavily populated area. Please refer to the map
entitled “Ports of Grand Asuncion” in the appendix.

C. Advantages of the Projected Terminal

As stated, the planned logistics center will be located in Villeta, on the
banks of the Paraguay River, south of Asuncion. The site is one mile from
the government owned port facility ANNP and connects via highways with
Asuncion as well as to the rest of the country. Some of the advantages of
this facility are the following:

• It is close to a main highway.
• It has easy access, in and out.
• It is connected to all the main highways.
• The main government port facility is one mile away.
• Villeta is an industrial city located 35 km. south of Asuncion.
• Per the government plans, Villeta will be the destination of all imports
and exports to alleviate Asuncion city traffic.

This logistics center will provide a unique service: a combination of
terminal management and storage, meat cold storage and export, vehicle
import and storage, together with a customs house. Picture 2 shows the
government owned port facility ANNP (top) as well as the projected
logistics center site (lower).

The country is home of the third largest river transportation fleet in the
world, only behind the US and China. In October of 2016, the largest river
container vessel entered its service in Paraguay. It has a capacity to carry
720 containers and is reported to be the largest river vessel of its kind.
The Paraguay and the Parana Rivers serve Argentina, Brazil, Bolivia,
Paraguay and Uruguay. They are the access of the heart of South
American production with the Atlantic Ocean.

It is estimated that 75% of the exports and 90% of the imports come
through Asuncion.

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