Page 61 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

2. Introduction

Paraguay is one of the countries with the highest economic
development in the region, Paraguay's gross domestic product
(GDP) grew by 4% in 2016, up from 3% in 2015. For 2017, GDP
growth is estimated to be slightly lower than last year (3.8%).

This situation is generating that logistics services such as
transport and port terminals require an urgent expansion to meet
the growing demand for services, taking into account that it is
estimated for the next decade a growth in agricultural and
livestock production of more than 50%.

The main export items are still grains and meat which is why there
is a strong demand for consolidated grain container, refrigerated
containers for meat exports and a higher storage capacity.

For these reasons we consider as a great business opportunity the
installation of a terminal, with the appropriate equipment for the
handling of both dry and refrigerated containers, including the
construction of cold chambers for storage of refrigerated cargoes,
silos for storage of grains and a warehouse for storage of goods in
general.

The strategic location for the installation of the terminal in the city
of Villeta, on a 32 hectare site, left side of the Paraguay River (Km
1,592 Paraguay / Paraná Waterway) with access facilities by river
and land to the north, east and south region of the country with
paved routes.

The terminal will be able to operate with the main ports of Villeta
which are the national port ANNP located 1.5 Km of the property
and private ports like Terport and Puerto Seguro Fluvial located
approximately at 15 km where they have dock and cranes up to
120 tons of capacity to receive the cargo and then transfer it by
land to the terminal.

Our study, which will be developed below, will demonstrate the
economic, financial and logistic feasibility for the operation of the
multipurpose container terminal.

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