MAGDALENA RIVER MULTIMODAL PORT Permanent Free Zone

Puerto Salgar, Colombia

PROJECT OBJECTIVE

The project is strategically positioned as a solution to lower transportation cost of goods to the Atlantic coast from inside the country, allowing the approach of all types of businesses to export their products to the world. The project consists of a free tax zone for production processing and transforming raw materials into final products, as well as oil port, coal and multimodal ports, is intended to be sold both within the country and abroad

SPECIFIC OBJECTIVES 1 - Oil Companies like Pacific Rubiales have the need to transport up to 8 million tons of crude oil per year. Coal mines operators of Boyacá and Cundinamarca , require a low cost transportation to the Atlantic coast. (year 2012- 3 millions tons, year 2017- 10 millions tons and by the year 2032-30 millions tons). 2 – Import raw materials from Asia (low-cost) to enter the country through Buenaventura port, without going through the Panama Canal. Placing the raw materials in to the tax free zone and producing high quality final products at low cost. The final products will be transport thru the Magdalena River, to the selected port on the Atlantic coast, to be export anywhere in the world. 3 - The project becomes a focus point of export and import of raw materials and final products for domestic and foreign factories, lowering production and transportation costs, improving market competitiveness worldwide.

STRATEGIC LOCATION The port is strategically placed in the country, for raw material manufacturing. It is surrounded by four major cities. It becomes the main collection center of the country for imports & exports. With 2 miles of frontage road on the Ruta del Sol (highway), this will decrease about 40 or 50% the ground transportation time, from the port to Cundinamarca state. The Central Railway system is located 200 meters from the port. The port offers 1.0 mile of water front in the Magdalena River. Comparative Costs Ton / Km in USD - Ground transportation 12 to 14 cents - Rail road system 3 to 4 cents - Fluvial 1 cent

FACILITIES Logistic Areas Coal, Oil and Cargo Ports Crane Operation Load Transfer Platform Weighing Area Storage Warehouse Container Patio Warehouses River Transport Tugs Barges Complementary Hotels Offices Parking Area

PROJECT AREA TAX FREE ZONE AREA 900,000 M2 MULTIMODAL TRANSFER AREA 300,000 M2 OIL PORT AREA 100,000 M2 COAL PORT AREA 100,000 M2 Food production projects adjacent to the port, guarantees between 40 and 50% occupancy of the free tax zone area, for processing plants of raw materials.

PROJECT DATA Projected Investment: USD $ 1,885,000,000 Projected Sales (10 yrs): USD $ 4,600,000,000 Constructed warehouse area : 1,200,000 M2 Infrastructure area: 1,150,000 M2 Total area: 7,500,000 M2 Estimated construction time: 5 years Estimated direct employment: 8,000 to 15,000 Estimated Indirect jobs: 50,000.

MAGDALENA RIVER MULTIMODAL PORTCash Flow

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12Beginning Cash Balance $ 96,39 $ 98,22 $ 144,80 $ 215,32 $ 156,40 $ 50,69 -$ 0,16 $ 17,98 $ 69,98 $ 120,93 $ 241,83Cash Inflows (Income)

Credits and Loan $ 500,00 $ 500,00 $ 400,00 $ 300,00 $ 100,00 $ 1.800,00Sales Income $ 107,29 $ 164,41 $ 232,43 $ 304,68 $ 371,77 $ 460,60 $ 495,38 $ 476,47 $ 566,77 $ 576,52 $ 3.756,32Other

Total Cash Inflows $ 500,00 $ 500,00 $ 507,29 $ 464,41 $ 332,43 $ 304,68 $ 371,77 $ 460,60 $ 495,38 $ 476,47 $ 566,77 $ 576,52 $ 5.556,32Available Cash Balance $ 500,00 $ 596,39 $ 605,52 $ 609,21 $ 547,75 $ 461,08 $ 422,46 $ 460,44 $ 513,36 $ 546,45 $ 687,70 $ 818,35 $ 6.768,70Cash Outflows (expenses)

Start Up costs $ 10,00 $ 10,00Studies and Enginnering $ 20,45 $ 20,45Legal/Licences $ 6,82 $ 6,82 $ 6,82 $ 20,45Equipment/Materials $ 329,60 $ 429,60 $ 329,60 $ 229,60 $ 1.318,39Enginnering Contracts $ 25,56 $ 25,56 $ 25,56 $ 25,56 $ 102,24Operating Costs $ 37,55 $ 57,54 $ 81,35 $ 106,64 $ 130,12 $ 161,21 $ 173,38 $ 166,76 $ 198,37 $ 201,78 $ 1.314,71Other $ 11,19 $ 11,19 $ 11,19 $ 11,19 $ 44,77

Other Cash OutflowsLoan Principal $ 225,00 $ 225,00 $ 225,00 $ 225,00 $ 225,00 $ 225,00 $ 225,00 $ 225,00 $ 1.800,00Interest 5% $ 25,00 $ 50,00 $ 70,00 $ 85,00 $ 78,75 $ 67,50 $ 56,25 $ 45,00 $ 33,75 $ 22,50 $ 11,25 $ 545,00

Total Cash Outflows $ 403,61 $ 498,17 $ 460,72 $ 393,89 $ 391,35 $ 410,39 $ 422,62 $ 442,46 $ 443,38 $ 425,51 $ 445,87 $ 438,03 $ 5.176,01

Ending Cash Balance $ 96,39 $ 98,22 $ 144,80 $ 215,32 $ 156,40 $ 50,69 -$ 0,16 $ 17,98 $ 69,98 $ 120,93 $ 241,83 $ 380,32

Container Patio Rental, Load, Unload, Port Use, Productive Processes and Compensation Cargo not included in projected incomes