B-400 MULTIMODAL LOGISTICS PLATFORM

OF CHILE

AND THE BIOCEANIC CORRIDOR

This document aims to promote and offer an overview of the Project B-400 MULTIMODAL LOGISTICS PLATFORM of Chile, recently made official by the Government of Chile in Antofagasta.

We had the opportunity to be presented to the Project on a trip to Antofagasta in April. We demonstrated interest in collaborating with the Project based on the importance that it represents for Chile and especially regarding the future Bioceanic Corridor, as it is described in the letter down under that was granted by the Regional Government of Antofagasta.

Translation of the Letter

 

The agronomist Ulf Walter Palme was in visit to the Region of Antofagasta and this Administration during the month of April 2018, accompanied by Mr. Fernando Labarca and Mr. Cristian Aracena. In this opportunity we present the

 

Regional Strategic Project

 

B-400 MULTIMODAL LOGISTICS PLATFORM

 

Public-Private Alliance

 

Oriented to address the challenges of the Sustainable Economy, with post-mining vision.

 

At the Service of the Economic Diversification, of the quality of life of the city of Antofagasta, of the Development of the Ports and of the future Bioceanic Corridor.

 

The Agronomist Ulf Walter Palme (www.ulfwalter.com), showed interest and understanding of the dimension and importance of the Project, especially in the component of the future Bioceanic Corridor and its Sustainable Development, for being a Brazilian Agronomist with knowledge of the rural structure of the Agribusiness of Brazil, Paraguay, Bolivia and Argentina, his international experience in Mapping the Agribusiness Chain, his network of contacts and the strategic importance for South America, and especially Asia, of the Bioceanic Corridor in the food security scenario.

He offered free help to this Administration with his technical experience in Territorial Management with Sustainable Development at the municipal and regional level, Design and Valuation of Business Plans, for being a member of the Global Mentorship Program of the Nottingham University Business School (NUBS) Ningbo - China, and Technical Cooperation Program Consultant between FAO and the IAEA on food security. And also, in the search for Investors and Plans for the Development of the B-400 Project, through its extensive network of contacts.

We understand that the help offered is well come and of real interest of this Regional Government.

We authorize Mr. Ulf Walter Palme and his team to promote the Project and its official materials to help develop the B-400 Project, as well as to generate materials and plans, always with the knowledge and in accordance with the strategy established by the Regional Intendancy of Antofagasta, Government of Chile.

 

Sincerely

 

signature

Emil Ugarte S.

Architect

Projects Manager

The Government of Chile has decided to diversify and strengthen the economic activities of the Country and has created the

REGIONAL STRATEGIC PROJECT

B-400 MULTIMODAL LOGISTICS PLATFORM

 

PUBLIC-PRIVATE ALLIANCE.

 

ORIENTED TO ADDRESS THE CHALLENGES OF THE SUSTAINABLE ECONOMY, WITH POST-MINING VISION

 

At the service of economic diversification, the quality of life of the city of Antofagasta, the development of ports and the future Bioceanic Corridor.

 

This Project is described in the corresponding document (in annex) and covers the main issues related to the needs and reasons for implementing the multimodal logistics platform, its characteristics and the consequences and benefits of its existence in the near future for Chile, and especially the Region of Antofagasta.

THE MAIN CHARACTERISTICS OF A PLATFORM:

1- STRATEGIC LOCATION (Site Selection)

  • Access and direct proximity to ports and other cargo transfer points.

  • Expedited access conditions to access the main production inputs and the main consumption centers.

  • Excellent environment for investment and to do business.

The B-400 Platform is located in Chiles 2nd Region - Antofagasta and has very unique conditions of advantages.

Localization of the B-400 Multimodal Logistics Platform.

2- EXTENSIVE AVAILABILITY OF PHYSICAL SPACE FOR DEVELOPMENT.

  • Success depends on the ability to plan over time, having to have large areas of support, which guarantee the potential to move large cargo areas and the growth of industrial activity.

3- INFRASTRUCTURE OF LOGISTICS AND INDUSTRIAL SERVICES OF FIRST LEVEL.

  • High standard of road space design, access, infrastructure that is developed in common, such as food casinos, security, gardens, recreation, banking infrastructure, customs, etc. that can interact with the mining machinery industry, food industry and retail industry.

  • Logistics operators specialized in cargo handling activities, value aggregation and services.

4- MUST BE INTEGRATED BY THE PUBLIC AND PRIVATE SECTOR, WITH A SINGLE OPERATOR, TO ACHIEVE EXTERNAL AND INTERNAL COORDINATION AND THE GENERATION OF SYNERGIES.

5- DO NOT GENERATE EXPENSES TO THE STATE (MAINTENANCE OF STREETS, GREEN AREAS, SECURITY, SEWERAGE, DRINKING WATER, TREATMENT OF INDUSTRIAL WATER).

B-400 MULTIMODAL LOGISTIC PLATFORM EQUIPMENT:

The services required for the B-400 MULTIMODAL LOGISTICS PLATFORM must be carried out by a single operator in one place, as to provide for the integration of industrial activity with the logistics chain.

  • station and operational patio of the Antofagasta railroad to Bolivia

  • inter port services center Antofagasta -Mejillones

  • distribution center and logistic support

  • logistics area for mining companies

  • urban logistics area: sheds

  • railway intermodal logistics area

  • different sectors of industrial activities according to their functions, sizes, type of activity, etc.

  • commercial area

  • hotel service

  • integrated business center

  • office areas

  • customs tax offices and agricultural and livestock service

  • casino of meals and recreational sectors

  • financial services

  • sub-station conditioned for industrial use

  • desalination plant for drinking and industrial water

  • sewage treatment plant

  • road for large trucks

  • green areas

  • station for buses transfer of personnel

  • closed perimeter with permanent surveillance

  • vehicle access

  • access to heavy load

  • road network and parking lots

  • fuel station

 

  • In order to deliver these services in an efficient and quality way, the platform must be in charge of a single operator, in partnership with the public sector.

 

To carry out the Project initially the Government of Antofagasta seeks a "partner" of the private initiative for a Public - Private Partnership to develop the real estate development of the B-400. There is already an initial conception of the B-400 Platform illustrated below (attached file):

B-400 Multimodal Logistics Platform - concepts

THE B-400 MULTIMODAL LOGISTICS PLATFORM AND THE BIOCEANIC CORRIDOR.

This text is intended to provide a general overview of the subject and to point out the business opportunities that will arise in the coming years and that are in fact already present. Especially focusing on the theme Bioceanic Corridor, object of this text, I consider important the following aspects:

THE LOCATION / SITE AND INFRASTRUCTURE.

 ​

Actually, the location is strategic with excellent basic infrastructure - two ports, an international airport, road network and railways.

Chile's geography is also very favorable, as Bernardo Latorre states in his article "Phytopathology: the science of protecting the health heritage. Part of the phytosanitary strengths of Chile are associated with the geographical isolation of the Chilean territory, which transforms this country into a true phytosanitary island. Chile is geographically protected by the Atacama Desert to the north, by the Cordillera de los Andes to the east, the Pacific Ocean to the west and the Antarctic continent to the south. These geographical barriers have limited or delayed the entry of important pests and diseases. However, they are geographical barriers that are increasingly vulnerable due to the growing transport of tourists, the trade of products of agricultural origin and the international transport of new germplasm, of interest for the development of Chilean agriculture.

THE ROADS TO ARRIVE TO THE MARITIME BRIDGE FOR THE ASIA MARKET.

Important to mention that at the moment there are different initiatives and alternatives about which road and which means of transport to use to reach the Pacific coast. in terms of bringing agricultural products especially from Brazil, Bolivia, Paraguay, Uruguay and Argentina to the Pacific coast and from there to the Asian market. There are road, waterways and rail projects that are under development and others still in planning stages, especially in Paraguay.

The figure below presents a general map of possibilities especially of roads and railways to get from Brazil, Bolivia, Paraguay, Uruguay and Argentina to Antofagasta / Mejillones. The main highway road from Brazil with entry into Paraguay through the cities of Porto Murtinho (Brazil) and Carmelo Peralta (Paraguay) to Loma Plata / Filadelfia (Paraguay), is in the process of starting its works. The "alternative" at that time would be the entry into Paraguay through the city of Ponta Porã. Still the Concepción a Pozo Colorado section, and the Pozo Colorado to Mariscal Estigarribia stretches and up to Pozo Hondo (Picada 500) and with more than 25 km in Argentine territory to later reach Tartagal on National Route 34 in Argentina, need recovery paving, paving and other works.

Geography of the main area of the Bioceanic Corridor

THE COMMERCIAL AGREEMENTS OF CHILE THAT VIABILIZE TRADE.

The 22 commercial agreements of Chile with 60 countries reach more than 4,200 million people, distributed in the five continents, equivalent to 62% of the world's population; around 4,300 million consumers and 85.7% of the World GDP. In other words, the products and supplies that arrive in Chile, converted into Chilean value-added products, have the possibility of entering the Asian market, through the Trade Agreements and Free Trade Agreements that Chile has signed.

 

DEVELOPMENT OF THE BIOCEANIC CORRIDOR - ITS MEANING AND THE EXPECTATIONS OF BUSINESS.

Some important associated topics:

  • For many years it has been considered that countries in the southern region of South America could sell their agricultural products to Asia by an exit / several exits through the Pacific Ocean;

  • The "Corridor" is not a single road, but a region with a set of infrastructures represented by roads, roads, railroads and waterways to move products and develop businesses;

  • The development of the "Bioceanic Corridor" will result in businesses directly related to the Agribusiness Chain as well as correlated businesses, especially infrastructure and services along the "Corridor";

  • The issue of Food Security is always associated with the concept of the "Corridor" and is present in many places. And in truth, the production of food is the natural vocation of the Central - South Region of South America. We have, among others, space, fertile lands that surpass 1/3 of the world's fertile lands, potable water, and the geographical opportunity of being able to take the products of the agribusiness chain to a significant part of the world population; especially considering that the lack or shortage of food (including water) is the most critical crisis that can exist. In Asia there are no alternatives to provide food for the entire population.

  • It is intended, through the "Corridor", to give added value to inputs coming from neighboring countries of Chile through productive linkage, with the best connectivity conditions and the facilities provided by the 22 trade agreements with 60 countries, especially with the Asian countries;

  • Most of the ships that arrive from Asia to Chile with manufactured products, and especially cars and machinery, return nowadays empty. In other words, there is a need to develop a return trip. With time, the trip to Asia will be the main directional axis of business;

  • In terms of turnover in the Agribusiness Chain (here understood in its broadest aspects, the supply of food to the daily meals) the numbers can reach highly significant figures and positively move the GDPs of the countries of the Region;

  • Also, surely the loss & waste of food is a subject that needs urgent attention from everyone. The methodologies, the habits, the logistics management need to be revised and tuned so that the numbers of losses and wastes in the Agribusiness Chain, in its phases of, agriculture (field), post-harvest, processing, distribution and consumption, demonstrated by the study of FAO are taken to minimum figures. We have to innovate. The very negative current situation, is presented below:

Global losses & wastes in the Agribusiness Chain (FAO)

  • Sustainable Local Development should be the central theme of sustainability of the "Corridor", in environmental, economic and social terms;

  • Thus, I believe that business expectations are very promising and point to a new era in the South Central region of South America.

 

​THE ALREADY EXISTING BUSINESS OPPORTUNITY.

  • The implementation of the B-400 Multimodal Logistics Platform will for sure happen in the next 3-5 years;

  • While the Platform B-400 is being developed, it is still possible that companies from the countries producing food and products of the Agribusiness Chain can already be installed in Chile and start their commercial operations;

  • Our purpose is to help companies of the Agribusiness Chain of the Region to settle in Chile. And especially, due to the growing demand that will surely occur, Brazilian companies and groups that want to distribute their products in Asia through this path. Brazil is the country that has enough rural territory to sustainably meet the demands that will certainly exist;

We are also contacting interested parties in Asia for the purchase of products from the Bioceanic Corridor.

If this topic really interests you, as an investor, producer, entrepreneur, industrial, technician, get in touch with us. We already have a team ready to guide and help you.

We await you !!!

Greetings…

Agronomist & Entrepeneur

+595 986 964 221

ulfwalter@ulfwalter.com

www.ulfwalter.com