VALLE DEL CAUCA:LOGISTICS AND
EXPORTS PLATFORM
Alejandro Ossa Cárdenas
Executive Director
September 9 - 2021

Photo: Municipality of Cali.

AN OVERVIEW OFINVEST PACIFICABOUT US

Valle del Cauca’s investment
promotion agency. Public private
non-profit organization.
We work together with the public
and private sector of the region.

We connect foreign investors with adiverse network of contributors
and allies, offering services andproducts tailored to the needs oftheir operations.

We offer soft-landing services topotential and installed investors,
free of charge and confidentially.
Problem-solving services
for established investors.

We support investment frommainly three sectors:• Agribusiness ,Logistics, andRenewable Energies.
• Manufacturing.
• Global services.

ABOUT US
Until now, Invest Pacific has supported the establishment of 138 investment projects in the region:
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

3

6

10

11

13

16

18

19

16

16

10

Projects

Jobs

Investment
Capital138

17,482

1,256

Million of US
Dollars

Cities19

COLOMBIA AND
VALLE DEL CAUCA

United States

COLOMBIA IN LATAM
MexicoColombia is the 43rd largesteconomy in the world and the 4th in
Latin America (World Bank).
Colombia will grow 7.6% in 2021
above the expected growth for Latin
America and the Caribbean (5.2%)(OECD, 2021).

Colombia has FTA with +60
countries: U.S.A., European Union,
Pacific Alliance, Mercosur, CARICOM.

+50 million inhabitants.
3rd most populated country in Latin
America (IMF).

Colombia is the 2nd best country in
the policy continuity index for SouthAmerica (STPRI, Fitch Solutions).

Best country in South America fordoing business(Doing Business 2020, World Bank).

#1 in Latin America in investorprotection and obtaining credit(Doing Business 2020, World Bank).

BrazilMember countries ofthe Pacific AllianceArgentina

VALLE DEL CAUCA AT A GLANCE
It accounts for 10% of Colombian
GDP, with an average growth of
3.2% in the last five years¹.

VALLE DEL CAUCA

With only 1.9% of the national territory,
it concentrates 18% of the national
industry and 21% of the agroindustry3.

Colombia’s main port in the Pacific
Ocean accounts for 41% of national
foreign trade4.

The region has a network of 7intermediatecities
withpopulations between 100,000
and 400,000 inhabitants2.

It has the most diversified export
basket in Colombia. Exporting 12% of
the country’s non-mining goods5.

It has a population of 4.6 million. Cali,its capital, is the 3rd most importantcity in the country (3.1 million)2.

1. DANE (National Accounts, 2019).
2. DANE (Census projections, 2018-2035).
3. DANE (Annual Manufacturing Survey, 2019).

4. Excluding mining-energy goods.
(Port and Transportation Superintendency, 2020).
5. Legis(Legiscomex, 2020) & Private Competitiveness Council, 2021

CALI, CAPITAL CITY – QUALITY OF LIFE
Cali has the lowest cost of living amongst the largest cities in LatAm1
Cost of Living
Index 20201

Cali has the secondbest air quality inColombia3.

The average costof living in Cali is
51% lower thanin Panama andCosta Rica.

It hosts two of
the best top 10
hospitals inLatin America2.

+110 Km. ofbike-lanes
across the city.

#4#9Public transportation system
has +35 electric buses.

Photo: Diego Sinisterra

Sports capital of America
17 sports facilities,
4 golf courses.

(Aces Europa - 2019)

Source: 1. Numbeo (Living Cost Index, 2019).

Best cultural destinationof South America

Colombia BirdFair:
International Fair ofbirdwatching.

(World Travel Awards, 2019).

2. América Economía Magazine (2020).

3. World Health Organization (Outdoors Air Quality, 2018).

World capital of salsa+15 international festivals(Fair of Cali, World Salsa Festival, etc.)

CURRENT SCENARIO OF ASIAN EXPORTS TO THE U.S. MARKET

Photo: Zona Franca del Pacífico.

VALLE DELCAUCA’S VALUEPROPOSITIONSTRATEGIC EXPORT LOCATION

Valle del Cauca is the best location forserving the countries of The PacificAlliance, Andean Market, Central
America and the U.S. West Coast.

••The Pacific Alliance &The Andean Community:+264 million consumers.
GDP per capita (ppp.) USD $17,572.

From Buenaventura toDays

Long Beach, California
Miami, Florida
Valparaíso, ChileCallao, Peru
Manzanillo, Mexico
From Asia- Pacific to Buenaventura
Shanghai, ChinaBusan, Korea
Yokohama, Japan

105846Days
292826Source: World Freight Rates (April 2021) & Sea Rates ( Distance & Time, 2021) ;FMI (Economic Outlook, April 2021).

Trade Agreements
Pacific AllianceAndean Community
Northern Triangle
Bilateral FTAs

STRATEGIC NATIONAL DISTRIBUTION CENTERLogistical advantage to serve
the national territory from:Valle del Cauca is
the best location
to attend thelocal market.

The privileged area served from the region
represents:• 75% of the domestic market.
• 66% of the population.

CityPopulation 2021

Cali (MA)
Pereira (MA)Medellín (MA)
Bogotá D.C
Bucaramanga (MA)Barranquilla (MA)
Cartagena (MA)3,073,335
706,357
4,119,008
7,834,167
1,284,495
2,239,103
1,429,080

Total cost (USD)*
Buenaventura

Cartagena

Saving

$ 205
$ 353
$ 736
$ 797
$ 1,193$ 1,653$ 1,529$ 1,496$ 1,203$ 924$ 1,215
$ 775
$ 177
-86%
71%
20%
34%
-54%-817%-Exchange rate: 1 USD = COP$3,570.
Source: Ministry of Transport (SiceTac, 2021). DANE (National Accounts, 2020; Census Projections, 2018-2030). *It does not include waiting times.

Port of Cartagena
Port of Buenaventura

EXPORT PLATFORM

Road network
Level one freeways thatconnect Buenaventura withthe entire country• +830 km of primary roads.

The Port of Buenaventura
Moves 41% of Colombia’sInternational Trade(excluding the mining-energy sector).
Photo: Sociedad Puerto Industrial Aguadulce.

Closestseaportto Bogotá(506 km).

Foto: Juan Carlos Mosquera.

Cali’s International Airport

3 port terminals specialized in container transport that move 15.2
million tons of cargo per year.

Collective Space Architects - Image © Santiago Robayo.

2 port terminals specialized in bulk and general cargo transportationthat move 2.2 million tons of cargo per year.

+30 daily flights
Cali – Bogotá.
and 90 weekly
flights to
11 international
destinations

International direct flights to:• Miami• Fort Lauderdale• San José, CR • New York• Lima• Madrid• Panama• Orlando• Guayaquil• Santiago de• Mexico City
Chile

Source: Superintendency of Transport (Statistical Bulletin of Port Traffic in Colombia, 2020). Ministry of Transport (2020). Aerocali (February 2020)

FREE TRADE ZONES– IDEAL LOCATION FOR INDUSTRY
7 Free Trade Zones
They generate 40%of the total exports
from Free TradeZones in Colombia.

Free Trade Zone

Municipality

Size (Ha)Distance toSeaport1

Zona Franca del Pacífico

Palmira70 Ha

136 km2

Zona Franca Palmaseca

Palmira

55 Ha

138 Km3

Zona Franca Parque Sur

Villa Rica

93 Ha

156 Km4

Zona Franca del Cauca

Puerto Tejada131 Ha149 Km

5

Zona Franca CELPA

Buenaventura

35 Ha7 Km

6Zona Franca CLIP

Yotoco

31 Ha

103 Km7Zonamérica

Cali38 Ha-Tax and Tariff Benefits• 20% of income tax in the Free

• Purchases made outside of the FTZ

Trade Zone, compared to 32%nationwide.

framed within corporate purpose of theFTZ companies are exempt from VAT.

• No tariffs or VAT are caused on• The goods produced in the FTZ acquire

goods and infrastructure while
they remain in the free zone.

Colombian origin for Free
Agreements benefits purpose.

Trade• Possibility of nationalizing raw materials or the final product when the goods aregoing to be sold in the rest of the country.
Source: DANE (Free Trade Zone Exports in Colombia, 2019).

OPERATING COSTS– REAL ESTATE•Warehouse average lease price ($USD/m2) in the main cities of Latin America (4Q 2020)
Cali offers the morecompetitive costs, inaverage 20% cheaper
than the major industrial
nodes in Latin America.

$ 3,8

$ 4,0

$ 4,4

Cali

Bogotá

Medellín

$ 4,5

$ 4,8

$ 5,5

$ 6,5

BuenosAiresSantiagoMexico CityLima*

Source: Colliers International (2020).

•Warehouse and land average sale price ($USD/m2) in Cali Metropolitan Area (4Q 2020)

Average cost per
square meter m2 of
warehouse for sale inindustrial parks
USD$630

Average cost per
square meter m2 ofland for sale inindustrial parks
USD$117

Source: Colliers International ( Industrial Market Report 4Q for each city, 2020).

*Data corresponding to the first semester of 2020.

Exchange rate: 1 USD= $3.661COP.

OPERATING COSTS– WAGES
Colombia$ 1,7$ 1,9Peru$ 2,6

Hourly average wage
in the manufacturingsector (USD/hour)$ 2,6

Mexico$ 2,7$ 2,7

The manufacturing hourly wage inColombia is 37% lower than in
Mexico and 41% lower than in
Brazil, the main industrial locationsin Latin America.

$ 3,3

Costa Rica

$ 3,4Brazil

$ 2,9
$ 3,7
$ 4,6

Chile

$ 5,020202019

Source: Euromonitor International (Manufacturing wage per hour, several countries, 2021).

Packaging
Assistant

Production
Operator$ 1.406$ 1.296$ 1.185$ 1.029

$ 948

$ 867

$ 1.015$ 935

Monthly Average Salaries ($USD) in themain cities of Colombia for key positionsof the industrial sector in 2021:• Cali has salaries at least 16% morecompetitive than in other main cities inColombia for production operators.

$ 514

$ 473

$ 432

$ 305

$ 283

$ 272

$ 856

OPERATING COSTS– SALARIES FOR INDUSTRY KEY POSITIONSManagement
Control Analyst
Cali

Medellín

Exchange rate: 1 USD= $3.693 COP.
Source: Human Capital (Total Rewards, 2020).

ProductionEngineerBogotá

Plant Manager

The surcharge payment over the basic
salary is 38.4% in average for salaries up to
10 minimum monthly wages*.
Minimum Monthly Wage (SMMLV) : USD $246

* In salaries up to 2 SMMLV, some additional fixed costs are considered, such as transportation assistance and provision of clothing.

HUMAN TALENT AVAILABILITY
Outflow of graduates in industry-related areas, 201933 Higher Education
Institutions in the region.
• 18 Universities.

+38,800 graduates in 2019•••38% associate graduates(operative roles).
43% profesionals (bachelorgraduates).
7,150 master graduates.

National Service of Training in Technicaland Technological Professions•Graduates +8,560 students inthe Region in fields related tothe industry (operators).

Source: Ministry of Education (SNIES, 2019).

Knowledge areaGraduates

Share

Industrial Engineering and related

2,253

38%

Mechanical Engineering

954

16%

Sanitary and Environmental Engineering

91415%

Electronic Engineering

576

10%

Electric Engineering

3856%

Chemistry and Chemical Engineering

329

5%

Biology and Biomedical Engineering

319

5%

Food Engineering

2013%

Metallurgy and Mining Engineering

651%

Total industry related

5,996

100%

The region has +180.000 people proficient in English language
And it counts with several
initiatives to continue
improving it.

WORLD-CLASS BUSINESS NETWORK+200 foreign companies from diverse sectors are established in the region. They contribute with nearly 36% of
the Region exports and 12% of its domestic GDP.
Source: Comisión Regional de Competitividad, 2020.

EuropeUnited States

Latin America

Asia-PacificBUSINESS SUCCESS CASES FROM ASIA-PACIFIC
Main Success Stories
Hero MotoCorp established its first out-sideof-India motorcycle assembly plant in theregion in 2014 with the purpose of supplying
the domestic market and exporting to theAndean region.

LG established a logistics complex anddistribution center in Palmira, Valle del Cauca
in 2017, from where they distribute electronicequipment & household appliances to themain cities in Colombia.

Furukawa Group has a fiber optic cableproduction plant in Valle del Cauca which
supplies the Andean region, Central Americaand Mexico.

Sumitomo Chemical entered the region withthe acquisition of Nufarm subsidiaries in all
South America in 2020 from where they
continue to grow in the fertilizers sector.

Essel Group, global leader in the productionof collapsible packaging and containers has
a manufacturing plant in the region from
where they supply the pharmaceutical,
cosmetic, and food industries and export toall Latin American countries.

World leader in the production of rigid
packaging, Amcor has a history of +15 years in
the region from where they have expanded
their production facilities continuously tomeet the growing demand for packaging inColombia.

A WIDE AND DIVERSE BUSINESS ECOSYSTEM
The region has 9 cluster initiatives and diverse
business opportunities.
USD Sales in 2019 (G.R. 2018-2019)

USD $2,560 million (+5.9%)

USD $1,585 million (+5.6%)

USD $3,627 million (+7.5%)

USD $2,408 million (+8.8%)

USD $4,297 million (+13.4%)

USD $884 million (+9.6%)

USD $2,926 million (+8.8%)

USD $1,067 million (+7.6%)

USD $579 million (+12.1%)

Exchange rate: COP $3,281 x 1 USD.
Source: Cali Chamber of Commerce (Cluster Initiative Program, 2020).

Thank you!
Alejandro Ossa Cárdenas
Executive Director
aossa@investpacific.org

Investpacificagency
investpacific@investpacificinvestpacificwww.investpacific.org