Bahia Investments Opportunities presentation

2. Challenges & Opportunities

5. BRICS - a new growth engine

6. Commodities leads the way

7. ! "#$ $ %

8. & '

9. '
Petrobras Investments Plan R$ billion
2011-14 After 2014 TOTAL
Exploration and Productions 153.6 401 554.6
RTC and Petrochemical 79.0 58 137.0
Natural Gas and Fertilizers 17.0 3 20.0
Biofuel 0.216 -- 0.216
TOTAL 249.8 462 711.8

10. Bahia Iron Ore Reserves

11. (
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- *
. +
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12. ( *

13. Bahia East-west Railroad
Bahia Port / Caetité
Extension: 505 km
Caetité / Luis Eduardo Magalhães
Extension: 470 km
Total Value: R$ 2,8 billions
Term: 2011

14. Intermodal Transport System
Ferrovia Porto e Aeroporto

15. Free Tax Areas
ZPE Zonas de Processamento de Exportação

16. FIOL Railway (Ferrovia da Integração Oeste-Leste)
GENERAL DESCRIPTION OF PROJECT
(Physical and technological description; demand and capacity, strategic value of project)
Main Bahia infrastructure project is now under progress, a 1.543 Km railway connecting the
Bahia south port to dynamic Brazil central area, where agriculture production and mineral
reserves demand a competitive logistic of transport to become more profitable and tradable
the commodities.
PROJECT PHASE
(Concept, Feasibility Study, Tender, Finance Closure, Construction. (If tender process, mention pre-qualification time, open/due of tender). (If construction, mention main EPC
company leading the work)
After studies of economic and environment feasibility the VALEC, a federal railway state
company open the Bahia railway tender in 26/03/2010.
TYPE OF PROJECT
Public Procurement, Design/Turnkey, Private Operation/Concession
VALEC public procurement open a auction for the first 14 parts of the railway.
EXPECTED IMPACT
Bahia trade costs play an important role in attracting FDI. The availability of infrastructure,
such as railway lines, Ports, and roads is positively correlated with investments foreign entry.

17. Economic Development Axles
Rótula PAC
Rótula Atual
New PAC II

18. Brazil Economic Development Axles
Macroeconomics
Ferrovia
Transnordestina
Macro Projects
Rodovia
Northeast Belém-Brasília
Ferrovia Norte Sul
Integration Area Hidrovia
São Francisco
Ferrovia da Integração
Oeste Leste Complexo
Portuário da
Baía de Todos
os Santos
Porto Sul
Southeast
Sub rótula de Integração
Ferrovia Oeste Leste
Ferrovia Norte Sul
Ferrovia FCA
Ferrovia Transnordestina
Ferrovia Carajás
Rod. Belém - Brasília

19. Bahia Economic Prospects
Brazil is a strong source of economic growth. In effect, it is
a new growth engine. The driver for its growth is a large
domestic market. But in addition, the discovery of huge new
oil reserves of 8 billion barrels of light crude will further
develop infrastructure projects.
Brazil’s financial system stability have allowed investment
to proceed with a low level of risk to investors. The largest
share of investment is going into the commodity sector
because the worldwide boom in commodities this decade
has made such investment very profitable.
Bahia has been expanding at a strong pace, and the IMF
forecasts that Brazil’s overall economy will grow at the rate
of 5% in 2010.

20. Why Invest in Bahia?
• The World Bank predicts that if Brazil continues on the path it is on
now, it will move from being the tenth largest economy in the world
today to the fifth largest by 2016.
• The sense of urgency created by the advent of the World Cup in 2014
and the Olympics in 2016 can be very positive for Brazil as this stirs
the public and private sectors to carry out badly needed infrastructure
investments.
The choice of industrial leaders:
• Ford Motors Complex: U$ 1,9 Billion investment. Production capacity for
250.000 vehicles / year.
• Paper and Pulp Industry : us $1,5 billion Investments over the last 5 years
• Oil and Gas Industry: New oil discoveries raising Brazilian reserves from 14th
place to 4th place in the world.

21. Bahia Economic Prospects
The infrastructure, such
as railway lines, Ports,
and roads is positively
correlated with Oeste Baiano
investments foreign
entry.
Bahia costs play an
important role in
attracting FDI.
Porto Sul
! " #
$% & ' (

22. Bahia Economic Data
Agro business areas Juazeiro
West (soybean, cotton)
Northeast (Frut, sugar)
South (Pulp,cocoa)
Oeste
Economic Sectors:
petrochemical, auto,
services, commodities
Extremo Sul

23. Atraction of foreign direct investment (FDI)
Industrial Tax Incentives
Market and supplier access are the main factors affecting
investments entry. Also the access to customers and suppliers of
inputs are key determinants of FDI inflows.
Our Governments spend large sums of money to entice foreign
direct investment (FDI), offering generous tax incentives. We
believe that foreign firms will generate positive externalities on
domestic firms.
The Bahia State Programs: Desenvolve and Probahia support
with tax isention the atraction of foreign direct investment (FDI) .

24. Porto Juazeiro ( **0 1 '
) * + -.
#, & (- &2
/ Paulo Afonso
Juazeiro
Ferrovia
Oeste-Leste Sento Sé () * * 5 '
- 6 ' 2 7
() + 8
Formosa do Rio Preto Barra 1 5 : 3 %
! 5
Feira de
Ibotirama
Santana
Barreiras São Félix 3 %
Seabra
Camaçari
1 ' 4-
& ' Bom Jesus Salvador 1 %$ #
da Lapa
() *+ , & (- . /
Jequié 1 %
Cocos 9 : 1
Malhada
Vitória da
. ; 1
' . Conquista < 5 & =% <
() 8 1 1 ' & 5 #
1- & - &&& () **0 + 8
Porto Sul
1 '
! " # 3 2 :5 & %
$ % & ! "

25. () + , 2 (- & Porto Juazeiro ( **0 1 '
0 ) *# & (- &2
Paulo Afonso
Juazeiro
Ferrovia
Oeste-Leste Sento Sé () * * 5 '
- 6 ' 2 7
() + 8
Formosa do Rio Preto Barra 1 5 : 3 %
! 5
Feira de
Ibotirama
Santana
Barreiras São Félix 3 %
Seabra
Camaçari
1 ' 4-
& ' Bom Jesus Salvador 1 %$ #
da Lapa
() *+ , & (- . /
Jequié 1 %
Cocos 9 : 1
Malhada
Vitória da
. ; 1
' . Conquista < 5 & =% <
() 8 1 1 ' & 5 #
1- & - &&& () **0 + 8
Porto Sul
1 '
! " # 3 2 :5 & %
$ % & ! "
() +
. 1

26. Bahia Logistic Systems
SISTEMA CARINHANHA
24
SISTEMA 10
25
17
RMS/FEIRA 16
04
11
01
18
14 15 19
SISTEMA PORTO SUL
26
12 03 21
09
02 06
22
23 13
SISTEMA OESTE 20
08
05
SISTEMA 07
JUAZEIRO - PETROLINA

27. Bahia Logistic Systems
BR 235
1 - '- 23 4 /
5# 6
37 4 "
BR 242
# 658 39 9 .4
Luís Eduardo
37 4 " Magalhães
: 1 < =.
; ! >
?@ A ;
% . BR 116
BR 324
?B&
(. % . 6
. (B 9 # /
(1 5 . ) ?=
?6 &> ) > ?<
C &D4 9 & 9@E 9 ?6
. BR 030
# D4 9 @ ?6 2
.
37 4 " BR 415
?@ A ;
% .
BR 251
BR 418

28. State Roads
BR
-23
5
BR-135
BR 415
251
BR-

29. ZPE
Ferrovia

30. INVESTIMENTOS NA ÁREA DE INFLUENCIA DA FERROVIA OESTE LESTE
Seguimento / Empresa Localização Atividade / Produto Empregos Investimento
EMPRESAS EM FASE DE IMPLANTAÇÃO 2008 4.792 R$ 4.696.000.000
Bahia Mineração Caetité Mineração de ferro 1.000 R$ 3.680.000.000
Mirabela Mineração Itagibá / Ipiaú Concentrado de Níquel 3.450 R$ 900.000.000
Vanádio de Maracás Maracás Ferro Vanádio e Gusa 200 R$ 216.000.000
Fianco Agrícola ltda. LEM Biodiesel 142 R$ 130.000.000
Outros 199 R$ 4.040.000
PROTOCOLOS DE INTENÇÃO ASSINADOS EM 2008 970 R$ 680.000.000
Multigrain S.A. São Desidério Alcool e Energia elétrica 250 R$ 500.000.000
Bioclean Energy LEM Oleos,farelos,glicerina,tortas 220 R$ 120.000.000
Valmesa-Valadares Metalurgia Jequié Ferro Gusa 500 R$ 60.000.000
Outros 821 R$ 12.054.000
TOTAL 5.762 6.506.000.000

31. BAHIA
Oil & Gás
Petróleo e Gás Natural
04. Refinaria Landulpho Alves Mataripe -
RLAM 1.800.000.000,00 Petrobrás SEI: R$ 3.555 bilhões
Campo de Manati
Já foram realizadas 99% das obras. O
total estimado é de R$ 210 mi. Estão
40.000.000,00 PPP 2007 previstos p/ 2007 R$ 40 milhões.
Gasene Invest. Realizado até abril de 2007 R$
400 milhões e estão previstos para
2007 mais R$1,95 bi. Segundo a SEI
este valor é de R$ 2,9 Bilhões.
Segundo o site:w w w .gasnet.com.br
PARA A BAHIA U$$ 882 milhões,
1.600.000.000,00 Petrobrás Ba-ES 2009 cerca de R$ 1,6 bilhão.
Usina de biodiesel em Candeias
Valor fornecido pela SEI. Segundo site
da Rede Baiana de Biocombustíveis o
valor é de U$$ 20 mi (em reais cerca
de 36 milhões).w w w .rbb.ba.gov.br
78.000.000,00 Petrobrás Bahia 2007 em 29/9/06
Subtotal 3.518.000.000,00
Sub total 3.518.000.000,00

32. ! "#$
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33. Bahia Basics facts
Predictability, good regulation and respect for contracts.

34. Bahia Area and Population
Bahia
• Area: 567,000 sq. km
• Coastline: 1,188 km
• Districts: 417
• Population: 14 million
• Urban population: 66%
• Main cities : Salvador (2.714.018), Feira de Santana (535.820), Vitória
da Conquista (290.042 ), Ilhéus (220.932) e Itabuna (205.070)
(/ 2

35. * 7 +
@ * + - "* + * 2 "3 '
, -" . + - 4 " * ( 5& 6

37. + +

38. Largest petrochemical complex in the southern hemisphere

39. * + * + -
- " 8 9 "

40. Infrastructure of Aratu Port
TGL
Ampliação
TGS
Píer 3
Aterros e píers

41. Oil new discovery demands 250 Ships

42. Structural logistic Axles
&
-
#: #
) $ BR 242
6 A $ 5 A B Luís Eduardo
Magalhães
(- *0 1 -
BR 116 BR 324
8 ; <:=
8 #$ $ % *. (
> (- B
(- 8 0
8 ; ==$
8 #$ $ % *. (
> #: ? ==@
) ) 5 $ **0
A $ 5 A
$ $$ # 4
8 #$ $ %

43. Metropolitan Area Axles
- 5 ' 5 '
1 5 : & %
( F
& - #
33 22 :5
:5 &&
&- 11 #
&- #
)C *D E
)C *D E

44. Itaparica Bridge

45. * -
Contêiner
Terminal 2
Contêiner
Ampliação Tecon atual
Carga Solta
Berços Públicos
Estação de Passageiros e
outros empreendimentos
( ' G
- 8 #A$ $$ - 8 #% B A$ $ $ # .
& 8 > A$ $ $ & 8 B C < A$ $ $ #

46. Port of Salvador
New Container Terminal
nvestiments
Container and mobile crane
165 m
73.000 m2 total área
us $38 Milions

47. *
. ' 7
#$ $ % ?== - # ?
> #$
@ D :$< E
@ D =$ $ A$ $ $ # F
@ D B A$ $ $ # /
@ ; BC G

48. . & .
) 7 #$ =:

51. ) 7 #$ =:
• The project is under progress as Private Public Partnership
(PPP) to build and operate a new World Cup 2014 stadium.
• The stadium will feature seating for 50,000.
• Transportation, energy, sanitation, and other infrastructures
of the project will be developed to meet international
standards.
• Hosting of the World Football Cup in 2014 and the
Olympic games in 2016 will stimulate much response, the
construction of roads, airports, and stadiums.

52. *
H * F I

53. Bahia South Port
Hube with railway, roads and airport

54. New Port on South of Bahia
PONTA DA TULHA
Logistic Hube with railway,
federal roads and airport

55. Bahia South Port

56. Off-shore Terminals

57. ( H

58. I ( H
7
24
25
10 17
16
04
11
2 . - ).
01
* 18
14 15 19
26
12 03 21
09
02 06
22
23 13
20
08
05
J *
07

59. K
- - $ %> 5=% : "< N 6
- I $%> SISTEMA BA 093 (194,8 KM)
- I B =# 5- 7 L 6
- I B #: 57 F+ 6
- I B #@ 57 - - 6
- I B>=
- I B > B 5M * + 6
- I B =% 5- 3 3 42 6
- I B #<
- I B ## 5- / 7 6
- I B #>
- LE * 7 -
- LE * -
& 7 -
K

60. Logistic Multimodal Transport Plataform
7
7 *
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@ O I
@ & I *
@ P I
@ - E I
@ I
@ ? I - 5* 6
3 *
•& I *
@ 7 I *
@ 3 I
E

61. São Francisco River Port
Maranhão
HIDROVIA
&
-$
! "
()
9
** 0
H 6 H 6
Tocantins
< 2 .
2 5
#:# -
Mato Grosso (
Do Sul ( 6
*
( !
*
1 < 5
7. '
3 I ! 6 9 COMPLEXO PORTUÁRIO
Goiás 1 9
SALVADOR - ARATU
(
E OUTROS
@
/
==
3 I Porto Sul
1 6
Ilh/us
7 *
PORTO SUL
F9 @
2 %5
FERROVIA &
OESTE LESTE
* *
%
()
G H 5
*
?& " 9 @ + G H 5#/
I*
FERROVIA
Complexo Portuário Salvador – Aratu e Outros EXISTENTE - FCA

62. Juazeiro Logistic Plataform
• Juazeiro has a privileged geographical location in the center
of brazilian northeast, and the radial connection around
Juazeiro in addition to its network, facilitate the transport of
merchandise and favors the intermodal infrastructure.
• Nearby Petrolina has a good intermodal infrastructure and
facilities that connect with those of Juazeiro. Together, the
two interact synergistically to create a logistic platform.
• Platforma Logística do São Francisco is a PPPI project to
convert Juazeiro into the largest logistic platform in the
Brazilian Northeast.

63. Logistic Multimodal Transport Plataform
Investiment: us $ 50 milions. TIR around 18% aa.

64. Juazeiro: Logístic Platform of São Francisco river
*
co
cis
Fran
o&
J
ESa
ío
R
7
( H
J
*O ( H *
* +
( H
J
*O
3
J

66. Why Invest in Bahia?
• The World Bank predicts that if Brazil continues on the
path it is on now, it will move from being the tenth
largest economy in the world today to the fifth largest by
2016.
• The sense of urgency created by the advent of the World
Cup in 2014 and the Olympics in 2016 can be very
positive for Brazil as this stirs the public and private
sectors to carry out badly needed infrastructure
investments.

67. This presentation summarizes Bahia' economic prospects.
s
The state' future looks bright; but it will require lots of hard work and
s
leadership to bring the less fortunate people out of poverty.
www.seplan.ba.gov.br
Thank you
romeu.temporal@gmail.com