Page 37 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

C. Grain Storage and Container Operation

Grain will be delivered to the facility. Trucks full of grain is weighted at the
station and samples tested at the lab. From there the truck goes to the
unloading station where the grain is unloaded and conveyed to the silo.
From the silo grain is loaded into the container which are trucked to the
ANNP port facility for shipment to a port facility in Argentina or Uruguay to
be transferred to ocean-going vessels.

D. Meat Cold/ Freezer Storage and Reefers Operation

Meat is delivered to the cold storage facility located at the logistics
center. The cold storage facility will be a modern installation to be built
specifically for that operation. The plant will be designed in such a way
that the customer can also monitor its products from its office.

From the storage meat and meat products will be loaded into reefers and
trucked to the ANNP port facility to be transferred to a container carrier
vessel.

E. Vehicles and Machinery Operation

Vehicles such as heavy trucks, trucks and cars are imported in large
numbers. The number of cars has increased considerably. Also, heavy
construction equipment, such as loaders and excavators as well as
agricultural machinery such as tractors and harvesters have been
imported continuously.

11. Business Projection Analysis

The business projection analysis was based on historical facts, the past and
present conditions of the country, forecasted growth by local and international
institutions, as well as the experience of the local consultants.

The following are some conclusions:

• The country’s GDP has increased at the rate of 4.8% in the last 12 years
and is forecasted to increase at a 3.8% in the following years.

• Ports located north of the city are increasingly constrained due to the
city’s population growth. Please see map “Ports of Grand Asuncion.”

• An important container service company already moved its operation
south of the city. Another important container corporation is considering
to do the same.

• According to the mentioned IDB report, present port capacities will be
having a deficit of 12 million tons in 15 years.

• The same report states that it is imperative to build a road encircling the
city of Asuncion with the traffic heading toward Villeta for all exported
cargoes. Imported goods will also enter the country via Villeta.

• Due to the continuous increase in agriculture and cattle production as

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