Logistics and new challenges for Exports

Promotion

May, 2013

Carlos PosadaVice Minister of Commerce

Macroeconomic Peruvian Framework

Outstanding Economic Performance

• Thirteen years with positive GDP.

• Growth led by private investment, domestic consumption and recovery of public investment.

• 2013 Estimated GDP: 6.3% (BCRP)

Source: BCRP Source: MEF

• Peru has been liberalizing external trade through tariff reductions in recent years

• Enhanced market access through new bilateral agreements with strategic trade partners.

Real GDP Growth (%)

-0.7

0.9

3.0

0.2

4.05.0

6.87.7

8.99.8

0.9

8.8

6.9 6.3

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

1998 1999 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

1.3

Peru: Average Tariff %

Peru will continue leading regional growth

LA Economic ForecastReal GDP Growth (2013-2015)

Source : IMF, CEPAL, World BankSource: Banco Central de Reserva del Perú, Ministerio de Economía y Finanzas y Fondo Monetario Internacional.

Venezuela

México

Argentina

Brasil

Colombia

Chile

Peru

3.2

3.4

3.6

4.1

4.5

4.5

6.0

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

8.4 9.210.512.315.1

19.5

27.3

22.4

29.5

34.6

44.3

Private Investment 2002-2012(Billion U.S. $)

Improving Business Indicators to boost Exports

DB2008 DB2009 DB2010 DB2011 DB2012 DB2013

5862

46

3643 43

66

53

37 3944

45

3640

53

43

33 37

Peru: Doing Business Evolution

PERU COLOMBIA CHILE

Chile

Perú

Colombia

México

Panamá

Argentina

Brasil

0 20 40 60 80 100 120 140

37

43

45

48

61

124

130

Source: Doing Business Source: Doing Business

LA Doing Business 2013

And improving Investment grade ratings

to give the best investment environmentLatin America

Investment grade rating

Source: Standard & Poor `s, Fitch Ratings and Moody's. UNCTAD (WIR 2012)

País S&P Fitch Moody´s

Chile AA- A+ Aa3México BBB BBB Baa1Brasil BBB BBB Baa2Perú BBB BBB Baa2Colombia BBB- BBB- Baa3Venezuela n.d. B+ B2Argentina B- CC B3Ecuador B B- Caa1

Countries as a priority destinationFor FDI 2011-2013

(World Ranking 21 countries))

4Brazil(Baa2) 3

Perú (Baa3)16

21

Chile (Aa3)18

2011 2010

18

New Investment Experiences and Results

Gateway to South America, Exit door to the world!

PERÚ: HUB OF BUSINESS IN SOUTH AMERICAN PACIFIC

INVESTMENT SUMMARY CHART TO 2016(MILLIONS OF US$)

CONCEPT PUBLIC INVESTMENT

CONCESSIONSTOTAL

PPA ROAD INFRASTRUCTURE 8,225 3,309 11,534

WATERWAY INFRASTRUCTURE - 87 87

AIRPORT INFRASTRUCTURE - 500 500

PORT INFRASTRUCTURE - 548 548

TOTAL (/1) 8,225 4,444 12,669

SOURCE: MTC-Ministry of Transport and CommunicationsNot including committed investments in existing concessions and Private Initiatives (IP) to be granted.

Infrastructure ConcessionRoad Infrastructure

Before

After

Port Concessionaire Investment by contract

USD Millions

Works Started in year

Matarani Port terminal TISUR 6 1999New Container Terminal

Callao DPWDPW 704 2008

Paita Port Terminal TPE 269 2012

MINERAL shipping terminal TP Callao -

Consorcio Transportadora Callao S.A.

120 2012

Multipurpose North Terminal

APM Terminals 883 2012

Yurimaguas Port Terminal - Nueva Reforma

Puerto Amazonas SA 43 2013

Source: Supervisory Agency of investment in transport infrastructure for public use - OSITRAN

CONCESSION OF PORTS IN PERU (1999 – 2013)

MAJOR INVESTMENT COMMITMENTS

Phase one (complete) Phase two (in progress) Land reclaimed from the ocean

Construction of a container dock, Dredging of 13 meters.Additional port equipment and reinforcement of existing piers.

Paita Port Terminal

New Container Terminal Callao DPW

Five Stages of execution Construction Optimization of new docks and procurement of equipmentModernization of other docks and container yard to have a first-class multipurpose terminal

Terminal North Multipurpose

CONCESSIONS PROCESSES IN EVALUATION

Investments 2013 - 201613

CONCESSIONS INVESTMENT ACTUAL STATE

M USDTerminal Portuario General San Martín (Pisco) 110 In Process 2013Terminal Portuario San Juan de Marcona 149 Private Iniciative

Terminal Portuario de Salaverry 129 Private Iniciative

Terminal Portuario de Ilo 100 In Evaluation

Terminal Portuario Pucallpa (Fluvial) 35 Private Initiative

Terminal Portuario de Iquitos (Fluvial) 25 In Formulation

T O T A L E S 548Source: Ministry of Transports and Comunications.

SALAVERRY

MARCONA

SAN MARTIN

IQUITOS

ILO

PUCALLPA

Progress:In 2012 Transport and Comunicating Minister, acted as a facilitator of investment in 113 Mill USD in the concessions.Remaining investment by executing: 1,527 Mill USD.

Jorge Chavez International Airport.

Airport InfrastructureNew Terminal

- Concession in 2001 for a period of 30 years.- Investment: $ 1 061 millions in the long term.

- Construction, improvement and operating of the AIJCH

- In 2013 has been chosen for fifth time in a row as the Best Airport in South America.

February 2001

May 2013

NEW INTERNATIONAL AIRPORTOF CHINCHERO-CUSCO

• Location: about 29 km. the road Cusco (province of Urubamba, department of Cusco).Airport Elevation: 3,720 mEstimated users: 4.7 million passengers (to 2030)Investment: 500 million U.S. $

General

Progress:Pre-investment studies in preparationGrant Awarding Concession: Dec-2013

AIRPORT INFRASTRUCTURENew Terminal

Government Role and Strategic Development Policy

Challenges

2011 – 2016Objectives and strategies

Duplicate total exports (USD 86,000 million).

Triplicate Non – Traditional exports (USD 7,600 to USD 21,000 million).

Duplicate the number of exporters (+ 15,600 companies).

Utilisation with Social Inclusion

SME Export

Internationalization of Peruvian companies

Trade Facilitation

Building Trade Capacity

OBJECTIVES.

Strategies to increase exports

Promote Peruvian non traditional exports to markets with FTA.

Promote and support SME- participation at PROMPERU’s activities.

Market Diversification for products prioritized.

Promote export development of valued-added products.

Distribute specialized information: to exporters and different stakeholders.

Promote decentralized activities in Peru.

Mainly increase non traditional exports in markets with FTA

US$ 11,194 millions exported 9.8% Growth 12/11 7,890 exporters

15 +147%Singapur

49 +68%Thailand

93 -1%South Korea

330 -2%China

105 +9%Canada

43 +60%EFTA

2,615 +12%United States

243 +11%Mexico

584 +13%MERCOSUR

705 +16%Chile

3,197 +15%Andean

Community131 -2%

Japan124 +36%

Panama10 -3%

Cuba

1,897 -4%European

Union

6,570 SME

Actively participate in the regional groupAlianza del Pacifico

Built a free trade area for goods, services and persons.

Boost growth, development and competitiveness among members.

Be the platform for trade and policy integration to the world, and specifically to Asian-Pacific markets

Members ChileColombia

Objetives

PerúMéxico

Importance 8th economy of the world.5th major market at the world (213 million people).4.1% average exports growth.

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dos

Uni

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02,0004,0006,0008,000

10,00012,00014,00016,00018,000

2,016

GDP2012

Bil

lion

s U

S$

Source: Euromonitor, IMF DataElaboration Promperú(1) PBI Chile: 268, Colombia: 370, México:

1,178, Perú: 200(2) Var. % del PBI Real, crecimientos

individuales: Chile, 5.6%; Colombia, 4%; México, 3.9%; Perú: 6.3%

Source: SUNAT. Elaboration: PROMPERÚ

Development of Peruvian Exports 2003 – 2012

(Millions US$)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

9,04112,563

17,301

23,561

28,11031,009

27,074

35,806

46,338

(-0.7%)

46,008

World Leader: Traditional and Non Traditional Products

Traditional . Non Traditional .

Challenges Ahead

Strength and Develop Peruvian commercial offices in relevant markets

• Consolidate Trade Promotion of Peruvian Products

• http://www.youtube.com/watch?v=CJmygV1054U

Challenges Ahead

LOGISTIC CITIES MAY, 2013