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Analysis of the Potential of IIRSA Projects for Production Integration and Development of Value-Added Logistics Services (Iprlg)

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Analysis of the Potential of IIRSA Projects for Production Integration and Development of Value-Added Logistics Services (Iprlg) November 2009 Interoceanic Hub Application toGroup of Projects5– Central Services (IPrLg) Logistics Value-Added Production Integrationand Development of Projects for Analysis ofthePotentialIIRSA D E V R E S E R S T H G I R L L A - A S R I I www. iirsa .org D E V R E S E R S T H G I R L L A - A S R I I D E V R E S E R S T H G I R Analysis of the Potential for L L A Production Integration and - A Development of Value-Added Logistics S R I Services I Project Group 5 Central Interoceanic Hub November 2009 CENTRAL INTEROCEANIC HUB – PROJECT GROUP 5 ANALYSIS OF THE POTENTIAL FOR PRODUCTION INTEGRATION AND DEVELOPMENT OF VALUE-ADDED LOGISTICS SERVICES Table of Contents Table of Contents ........................................................................................................... 2 Introduction ..................................................................................................................... 3 List of the Persons Participating in the Application ......................................................... 4 Definitions ....................................................................................................................... 6 1. The Central Interoceanic Hub Project Group 5 Area of Influence ........................... 8 1.1 Current Status of the Projects in the Group ............................................... 8 1.2 Criteria Used to Delimit the Area of Influence .......................................... 10 1.3 The Area of Influence .............................................................................. 11 1.3.1 Bolivia ...................................................................................................... 12 1.3.2 Chile ......................................................................................................... 13 1.3.3 Peru ......................................................................................................... 13 2. General Characterization of the Area of Influence ................................................. 15 2.1 Socio-demographic Characteristics ......................................................... 15 2.1.1 Socio-demographic Data of the Bolivian Portion of the Area of Influence 17 D 2.1.2 Socio-demographic Data of the Chilean Portion of the Area of Influence 18 E 2.1.3 Socio-demographic Data of the Peruvian Portion of the Area of Influence V R ................................................................................................................. 18 E 2.2 Indicators of Economic Activity ................................................................ 20 S 2.2.1 Bolivian Portion of the Area of Influence .................................................. 20 E R 2.2.2 Chilean Portion of the Area of Influence .................................................. 41 2.2.3 Peruvian Portion of the Area of Influence ................................................ 58 S 2.3 Infrastructure in the Area of Influence ...................................................... 69 T H 2.3.1 Bolivian Road Infrastructure..................................................................... 71 G 2.3.2 Chilean Road Infrastructure ..................................................................... 71 I 2.3.3 Peruvian Road Infrastructure ................................................................... 72 R L 2.3.4 Bolivian Railway Infrastructure................................................................. 73 L 2.3.5 Chilean Railway Infrastructure ................................................................. 74 A - 2.3.6 Peruvian Railway Infrastructure ............................................................... 74 2.3.7 Bolivian Waterways ................................................................................. 76 A 2.3.8 Maritime Ports in the Area of Influence .................................................... 78 S R 2.3.9 Airports in the Area of Influence............................................................... 81 I I 2.3.10 Free Trade Zones and Export, Transformation, Industry, Trade and Services Centers (CETICOS, in Spanish) ............................................... 81 2.3.11 Logistics Platform Projects ....................................................................... 83 3. Economic Sectors Considered in the Analysis ...................................................... 87 3.1 Providers of Mining Services and Supplies .............................................. 88 3.2 Logistics and Services Platform for International Trade .......................... 88 3.3 Sugar (Bolivia) – Biscuits (Peru) .............................................................. 88 3.4 Cotton (Bolivia) – Yarn (Peru) .................................................................. 89 3.5 Scrap (Bolivia) – Wire (Peru) ................................................................... 92 3.6 Soybean Cake (Bolivia) – Balanced Animal Feed (Peru) ........................ 97 3.7 Leather (Bolivia) – Handicrafts and Manufactures (Peru) ...................... 102 3.8 Milk (Bolivia) – Dairy Products (Peru) .................................................... 103 3.9 Wood (Bolivia) – Furniture (Peru) .......................................................... 105 3.10 Spices and Olives (Chile-Peru) .............................................................. 108 3.11 Other Sectors Analyzed ......................................................................... 111 4. Impact of the Group of Projects, Recommendations and Indicative Action Plan . 113 4.1 Production Integration ............................................................................ 113 4.2 Development of Value-Added Logistics Services .................................. 116 2 / 117 CENTRAL INTEROCEANIC HUB – PROJECT GROUP 5 ANALYSIS OF THE POTENTIAL FOR PRODUCTION INTEGRATION AND DEVELOPMENT OF VALUE-ADDED LOGISTICS SERVICES Introduction Within the framework of the training in and application of the methodology for the analysis of the potential for production integration (IPr) and for development of value- added logistics services (SLVAs), developed by the Initiative for the Integration of Regional Infrastructure in South America (IIRSA), experts from the Governments of Bolivia, Chile and Peru were asked to carry out a pilot application of such methodology to Project Group 5 (GP-5) of the Central Interoceanic Hub (Figure 1). Based on a first workshop held in Lima in December 2008, expert teams prepared reports on the characteristics of the Area of Influence (AI) that is positively impacted by IIRSA projects in each one of the countries involved. Following the methodology guidelines, these reports provide the criteria used in delimiting the area of influence, describe this area in terms of its socioeconomic, production and infrastructure features, and gather relevant information about the sectors with potential for production integration, as selected for analysis during the workshop in Lima. The preliminary results of the characterization were presented and D analyzed in a second workshop held in Arica in April 2009, on the basis of which the E fieldwork was prepared. V R E In June 2009, in Santa Cruz de la Sierra, upon completing the fieldwork, which S consisted in interviewing key actors of the selected sectors, the national teams of the E three countries wrote their conclusions about the potential for IPr and development of R SLVAs in this project group. S T This document, which joins together the work undertaken by each national team and H G the results of the workshop in Santa Cruz de la Sierra, is intended to offer a unified I view of the total area of influence, present the conclusions regarding the potential for R IPr and development of SLVAs, and make recommendations for an action plan aimed L at promoting the development of IPr and SLVAs. L A - It should be mentioned that the reports and presentations prepared by the national A teams go into greater detail on these topics and other country-specific aspects. Such S R documents are available at www.iirsa.org/iprlg.asp. I I 3 / 117 CENTRAL INTEROCEANIC HUB – PROJECT GROUP 5 ANALYSIS OF THE POTENTIAL FOR PRODUCTION INTEGRATION AND DEVELOPMENT OF VALUE-ADDED LOGISTICS SERVICES List of the Persons Participating in the Application Bolivia National Team Team Coordinator – Head of Transport Policies, Ministry of Alfredo Calasich Canaviri Public Works, Services and Housing William Torres Montano Expert in Production Processes General Director of Land, River and Lake Transport, Ministry Emilio Rodas of Public Works, Services and Housing Expert in Rural Development, Representative of the Planning Ciro Rodriguez Lozano Unit, National Institute for Innovation in Agriculture and Forestry (INIAF) Daniela Pilar Zambrana Responsible for the Transport Sector, Ministry of Chavarria Development Planning Infrastructure Expert, Ministry of Public Works, Services and Guillermo Rubin de Celis Telleria Housing Alberto Luis Aguilar Calle Governor of the Department of Oruro Technical Expert responsible for the “Oruro Puerto Seco” Walter Apaza D Project E Technical Supervisor of the “Oruro Puerto Seco” Project V José María Arancibia Maldonado Study R María Esther Hinojosa Garcia Research Assistant E S Chile National Team E R Christian López Gárnica Team Coordinator, Head of the Studies Department – S National Planning Directorate, Ministry of Public Works T Jaime Román Castillo Logistics Expert, Ministry of Transport and H Telecommunications G I María Francisca Zapata Olivares Expert in Production Chains, General Directorate
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