REPUBLIC OF Market Report:

March 2020

OceanX - Version 1.9 / April 2020 Market Report: REPUBLIC OF PERU March 2020

Country ProÞle:

Capital: Lima Population: 31,989,256 Area: 1,285,216 km2 Official Language: Spanish Currency Unit: Sol (PEN) 1USD: 3.46SOL

GDP (Current, 2018, Thousands): 222,044,970.49 GDP per capita (2018): 6,941.2 GDP Growth Rate (2018): 4% Inßation Rate (2018): 2.1% Unemployment Rate(2018): 2.9% Tax Revenue (2017): 13.2% Imports of Goods and services ( % of GDP): 23.5 Exports of Goods and services ( % of GDP): 25.4

* (Source World Bank Data)

General Facts:

Located on the shore of the Paci0ic Ocean, Peru is the third largest country in South America in terms of surface area. Peru is ranked 68th among 190 countries and 5th in the Region in the World Bank 2019 Ease of Doing Business Report.

There are signi0icant sources of silver, copper, tin, mercury, lithium and gold in the country. Mining products constitute 65% of total exports. The agricultural sector, which employs 7.6% of the workforce, has an important share in the exports of the country.

The country's main agricultural export items are seafood, 0ish oil, cotton, sugarcane, coffee and soybeans. Tourism constitutes 6.8% of the total workforce in the country and 7.7% of GDP.

The most important problems of the economy are injustice in income distribution and consequently poverty and unemployment.

The growth rate, which was 2.5% in 2017, was 3.99% in 2018. It is expected to grow by 3.93% in 2019. This growth is expected to continue in the coming years thanks to important investment projects and strong domestic consumption, especially in mining and construction. The unemployment rate in the country is still avarage (2.9%), in0lation was 2.1% in 2018.

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Corporate tax: Standard 29.5% Income Tax: 8 to 30% Standard VAT rate: 18% (16% VAT + 2% Municipal Promotion Tax)

National Volumes per mode of Transport

Import and Export Transport Modes

According to Yearly Trade Pro0ile report made by the world trade organization. Peruvian exports are mainly made by air 77% of net exported value in USD while only 23% is exported by Sea. In the other hand the imports are mainly by sea 61% and only 39% by air.

Sea 23% Imports Air Exports 40% Value by Value by mode of Sea mode of transport 61% transport Air 77%

Air Sea Air Sea

* Source: WTO Trade ProÞle Report 2019

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland EXPORT MARKET

Export Trade Volume (2018 milliones US$): 47,894

Top Commodities: Copper ores and concentrates,Gold in unwrought forms non- monetary,Petroleum oils, etc, (excl. crude); preparation,Zinc, ores and concentrates,Copper cathodes and sections of cathodes unwire, 0ish meal, 0ish oil, natural gas, woods, crude oil.

Top Destination Countries: China 27.6%, United States (16.16%), India (5.28%), South Korea (5.1%), Japan ( 4.6%)

IMPORT MARKET

Import Trade Volume (2018 millions US$): 43,123

Top Commodities:Petroleum oils, etc, (excl. crude); preparation,Petroleum oils and oils obtained from bituminous, Transmission apparatus, for radio teleph incorpo, Automobiles with reciprocating piston engine di, Maize (excl. seed), household appliance, clothing, consumer goods, furniture, construction materials.

Top Origin Countries: China 23.3%, United States (21.2%), Brazil (5.6%) , Mexico (4.5%) and Ecuador (4.5%)

*Source: SUNAT & World Bank

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Main Ports:

Here’s an overview on the top 5 ports in Peru.

Market Size in TEUs: 2,646,597

Main Ports Volume (TEUs) 2018

El 2,340,657

Paita TPE 274,151

Ilo 27,717

Matarani 22,192

Pisco 3,217

* Source:CEPAL

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland 1. Port of Callao Port

Callao is the largest port in Peru and sixth largest in Latin America and the Caribbean, located 15 km from Lima, north of the port is a terminal multipurpose shipping. Infrastructure: • Total area of the port terminal: 473,080 m2 • 8 docks and 18 berths • Length of berths area: 3,646.64 meters • Dock water depth: up to 36 feet • Terminals: 3 • Centro Downtown area terminal: Loading of mineral concentrated. • Multi-bucket terminals north zone: General cargo, containerized, project, fractional, rolling, solid and liquid bulks, it is also designated to serve tourist cruises and passenger reception. • Terminal south zone: container traf0ic, last and next ships generation, high operating density capacity. • This port during 2017, mobilized 2.25 million TEUs. more info: https://www.apmterminalscallao.com.pe/

2. Port of Paita Port The port of Paita is the second in the Peruvian region, located in the north of the country 56 km from the city of Piura, gathering containers mainly of hydrobiological, agricultural, 0ishing and mineral products both of import as export in addition to general cargo. It consists of a jetty pier 365 m long by 36 m wide with 4 moorings with depths of up to 32 ’to contemplate ships of up to 25,000 DWT. more info: http://www.puertopaita.com/detalle_nota.php?id=560

3. Port of Ilo

Ilo is located in southern Peru in the Moquegua region, city, district and province of Ilo; Its Geographic location is latitude 17º 38 ′ S and longitude 71º 21 ′ West. It has a multipurpose episgon type dock for direct docking for high-board ships, with a capacity to serve ships of up to 35,000 DWT, roo0less storage areas of 38,360 m2, a roofed area of 8,540 m2, and a roofed warehouse of 1,634 m2, with a free period of storage according to the tariff of the national company of ports of Peru of 365 days. more info: http://www.enapu.com.pe/web/index.php

4. Port of Matarani

Matarani Port Terminal has a strategic location on the West coast of South America, where cargoes reach their destination via a modern highway adecuate for heavy-load vehicles. This track is fast and secure and is part of the inter-oceanic route linking Brazil. An additional advantage is transportation by rail, which offers an excellent service of cargo transport inland of Peru, speci0ically to the cities of Arequipa, Puno and Cuzco, close to the borders with Bolivia and Brazil..

More info: http://www.tisur.com.pe

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland 5. Port of Terminal Portuario General San Martı́n - Pisco The General San Martı́n Port Terminal is located in the , , and Punta Pejerrey locality, 280 kilometers south of Puerto del Callao. One of the direct bene0iciaries of the modernization and repowering of the Port of Pisco are the agro-exporters of the Department of Ica and the southern region of the country. Investment commitments amount to about US $ 215.25 million. The Port of Pisco has a 700-meter marginal dock with four berths (moorings 1, 2, 3 and 4). This building dates from 1969, it has a natural shelter against the waves and good weather almost 365 days a year. So after the works carried out by the concessionaire, Peru will have a better logistics - port infrastructure in the country. Due to its geographical location in the south of the country, it would be a natural competitor to the port of Callao, so it will play a fundamental role in ensuring the country's competitiveness. It de0initely plays an important role in logistics integration given its proximity to the airport and the Panamericana Sur highway. Likewise, the length and depth of the dock are outstanding characteristics since they allow docking of large ships. more info: https://portal.mtc.gob.pe/transportes/concesiones/ infraestructura_portuaria/portuario_san_martin.html

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland References

Ministerio de Transportes y Comunicaciones https://www.gob.pe/mtc

SUTRAN http://www.sutran.gob.pe/estadisticas/

WORLD BANK https://www.worldbank.org/

CEPAL https://www.cepal.org/es

APM Terminals https://www.apmterminalscallao.com.pe/

Port of Paita http://www.puertopaita.com/detalle_nota.php?id=560

Port Ilo http://www.enapu.com.pe/web/index.php

Port Matarani http://www.tisur.com.pe

Port Pisco https://portal.mtc.gob.pe/transportes/concesiones/infraestructura_portuaria/ portuario_san_martin.html

WTO: World Trade Organization Trade Pro0ile report 2019 https://www.wto.org/

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Market Report: REPUBLIC OF PERU Version 1.9 / April 2020 Proprietary and Confidential - OceanX Members Only