Meeting of the Working Group on South American Rail Integration

Radisson Victoria Plaza Montevideo, Uruguay July 13, 2017

1 Ferrovia Transamericana Connecting

- This presentation introduces the development plan for a strategic concept of a major logistics project integrating the existing corridor crossing South America coast to coast from the Atlantic to the Pacific oceans.

- The main target is to promote efficient regional and global logistics PROJECT connecting the largest producing regions of with the consumer markets through multimodal inland and port terminals using E-logistics OBJECTIVES concept.

- The main objective is to revamp the existing railway, Malha Oeste crossing the States of Sao Paulo and do Sul in Brazil, connecting with Ferroviaria Oriental in .

January 2017

Ferrovia Transamericana Connecting South America INTEGRATED STRUCTURING PROJECT CONNECTING ATLANTIC AND PACIFIC OCEANS THROUGH EXISTING RAILWAYS STRATEGIC OPPORTUNITY INCREASING COMPETITIVENESS DEVELOPING THE OUTFLOW OF COMMODITIES AND GOODS FROM SOUTH AMERICA

PERU BRAZIL

BOLIVIA

Pacific Ocean CHINA Atlantic Ocean

ARGENTINA

CHILE

MALHA OESTE FERROVIARIA ORIENTAL

Ferrovia Transamericana Connecting South America RAILWAYS ALREADY CONNECTED IN METRIC GAUGE METRIC GAUGE MALHA OESTE FERROVIARIA ORIENTAL OTHER EXISTING RAILWAYS

LA PAZ COCHABAMBA SANTA CRUZ DE LA SIERRA PARAGUAY RIVER

ARICA CORUMBA CAMPO GRANDE IQUIQUE

MARACAJU TRES LAGOAS PAULINIA P.PORA MAIRINQUE ANTOFAGASTA CONCEPCION SALTA SANTOS CONNECTING PARANAGUA SAO FRANCISCO DO SUL TWO OCEANS TUCUMAN LOWEST INVESTMENT AMONG EXISTING

ALTERNATIVES Ferrovia Transamericana BUENOS AIRES Connecting South America POTENTIAL STRATEGIC CONNECTIONS UNPRECEDENTED INTEGRATED VISION METRIC GAUGE SINOP MALHA OESTE SORRISO FERROVIARIA ORIENTAL OTHER EXISTING RAILWAYS LA PAZ ANAPOLIS COCHABAMBA SANTA CRUZ RONDONOPOLIS DE LA SIERRA CONNECTION PROJECT ILO

CORUMBA ARICA A. TABOADO LARGE GAUGE CAMPO GRANDE IQUIQUE

OTHER EXISTING RAILWAYS MARACAJU TRES LAGOAS PAULINIA BAURU CONNECTION PROJECT P.PORA MAIRINQUE ANTOFAGASTA CONCEPCION SALTA SANTOS

PARANAGUA SAO FRANCISCO DO SUL OPTIMIZATION TUCUMAN OF THE EXISTING INFRASTRUCTURE

Ferrovia Transamericana BUENOS AIRES Connecting South America MALHA OESTE THE HEART OF FERROVIA TRANSAMERICANA

HISTORY KEY FACTS

- CONSTRUCTION BEGAN IN 1915 AND COMPLETED IN 1952 - LARGE POTENTIAL TO CREATE VALUE BY ENHANCING - NO MAJOR INFRASTRUCTURE UPDATES SINCE ITS INCEPTION COMPETITIVENESS - LAST ACQUISITION OF ROLLING STOCK IN THE 1970’S - LOW INVESTMENT IN RELATION TO POTENTIAL OF REVENUE - 2015 RUMO ACQUIRED MALHA OESTE AND STARTED TO GENERATION* DEVELOP A LONG TERM INTEGRATED SOLUTION - MODERNIZATION PROCESS RAPIDLY ACHIEVABLE - EXISTING RAILWAY MEANS NO NEED OF ENVIRONMENT APPROVAL AND EXPROPRIATION PROCESSES*.

* PRE-FEASIBILITY STUDY PERFORMED BY / 2016 RONDONOPOLIS

CORUMBA

A. TABOADO CAMPO GRANDE MAIRINQUE -SANTOS OWNED BY RUMO TRACKAGE RIGHTS GUARANTEED BY BRAZILIAN FEDERAL REGULATORY AGENCY (ANTT) TRES LAGOAS

MARACAJU

PAULINIA BAURU P.PORA

CONCEPCION MAIRINQUE STRATEGICALLY SANTOS LOCATED PARANAGUA MALHA OESTE MALHA OESTE SAO FRANCISCO DO SUL

Ferrovia Transamericana Connecting South America PARTNERSHIP GATHERING COMPETENCES RUMO HAS IDENTIFIED A NEED FOR SYNERGISTIC PARTNERSHIPS ALIGNED WITH THE CONCEPT OF INTEGRATED STRUCTURING VIEW, JOINING COMPETENCES AND MOVING FORWARD WITH STUDIES AND PLANS.

FERROVIARIA ORIENTAL TRANSFESA HUB INTERMODAL TRES LAGOAS RUMO

- BOLIVIAN RAILWAY COMPANY - - WAS RESPONSIBLE FOR MANAGING MALHA - COMPANY WITH VAST EXPERIENCE IN - RECENTLY ACQUIRED AMERICA LATIN 100% PRIVATE CAPITAL AND OESTE BEFORE ITS CONCESSION IN 1996, INTEGRATED LOGISTICS OPERATIONS WITH LOGISTICS AND ITS RAILWAYS CONCESSIONS CONTROL INLAND AND PORT TERMINALS. - ACHIEVIEVED THE BEST PERFORMANCE IN - FIGURING AMONG RUMO’S CONCESSIONS - OWNER OF FERROVIARIA ORIENTAL NATIONAL STANDARDS FOR METRIC GAUGE - HAS HIGH VALUED ASSETS FOR THIS ARE THE MAIRINQUE SANTOS TRACK, AND FERROVIARIA ANDINA PROJECT. LOCATED IN TWO STRATEGIC SANTOS RONDONOPOLIS AND SOUTHERN - NATIONALLY RECOGNIZED EXPERTISE IN POINTS (SANTOS AND TRES LAGOAS) CONNECTIONS TO PARANAGUA AND - THE COMPANY HAS GOVERNMENT RAILWAY AND ROLLING STOCK S.FRANCISCO DO SUL PORTS SUPPORT FROM BOLIVIA, PERU AND MAINTENANCE - EXTENSIVE EXPERIENCE IN INBOUND AND PARAGUAY TO DEVELOP THIS PROJECT OUTBOUND LOGISTICS - GREAT EXPERTISE IN REGULATORY MARKS AND FEDERAL GOVERNMENT NEGOTIATIONS - DIRECT BUSINESS TIES TO THE LARGEST REGION OF SOYA PRODUCTION - MAJORITY OWNED SUBSIDIARY OF COSAN SINOP SORRISO GATHERING COMPETENCES

LA PAZ RONDONOPOLIS ANAPOLIS

ILO COCHABAMBA SANTA CRUZ CORUMBA ARICA DE LA SIERRA

IQUIQUE CAMPO GRANDE

BAURU PAULINIA P.PORA

CONCEPCION ANTOFAGASTA MAIRINQUE SALTA SANTOS

PARANAGUA

SAO FRANCISCO DO SUL TUCUMAN

Ferrovia Transamericana Connecting South America STRATEGICALLY LOCATED CONNECTING PRODUCING REGIONS CORUMBA REGION TRES LAGOAS REGION SAO PAULO STATE REGION

- AMONG WORLD’S LARGEST HIGH QUALITY - HIGHLY INDUSTRIALIZED REGION WITH GREAT - LARGEST SUGAR CANE PRODUCER REGION IN THE “LAMP” IRON ORE RESOURCES DEMAND FOR CONTAINER TRANSPORT WORLD - LOCATED IN THE BORDER WITH BOLIVIA AND - LARGEST CELLULOSE PRODUCING REGION IN THE - SANTOS PORT BIGGEST IN LATIN AMERICA, PARAGUAY RIVER WORLD NUMBER ONE IN GRAINS, SUGAR, CELLULOSE AND - PETROBRÁS NITROGENATED FERTILIZER PLANT 90% CONTAINER TRANSPORTATION CONCLUDED (UFN3) CREATING A NATIONAL - LATIN AMERICA’S HIGHEST GDP CAMPO GRANDE REGION FERTILIZER AND GRAINS HUB - BRASIL’S MOST DEVELOPED STATE - LARGEST DISTRIBUTION CENTER OF THE BIGGEST - LARGEST INDUSTRIAL COMPLEX IN LATIN AMERICA - GREAT POTENTIAL OF FUEL TRANSPORTATION ANIMAL PROTEIN COMPANY IN THE WORLD (JBS) FROM PAULINIA TO CAMPO GRANDE AND RETURNING ETHANOL AND BIODIESEL TO PAULINIA - MARACAJU REGION IS ONE OF THE LARGEST GRAIN PRODUCERS IN BRAZIL SINOP

SORRISO STRATEGICALLY LOCATED CONNECTING PRODUCING REGIONS RONDONOPOLIS ANAPOLIS

SANTA CRUZ DE LA SIERRA CELULOSE IRON ORE CORUMBA SOY BEAN A. TABOADO CAMPO GRANDE SUGAR CANE

TRES LAGOAS CORN MARACAJU PAULINIA FERTILIZER P.PORA BAURU BOVINE PROCESSING PLANT MAIRINQUE CONCEPCION CONTAINER SANTOS FUEL

PARANAGUA

SAO FRANCISCO DO SUL Ferrovia Transamericana Connecting South America SHORTENING DISTANCES INCREASING COMMERCE CHINA

PRODUCTS IMPORTED FROM BRAZIL BY CHINA/ 2016 MILL/TON PERU BRAZIL IRON ORE 212 BOLIVIA SOY BEAN 39 PARAGUAY Atlantic Ocean CELULOSE 4.4 Pacific Ocean ARGENTINA SUGAR CANE 2.4 CHILE

FONT: SECRETARIA DE COMERCIO EXTERIOR

MALHA OESTE FERROVIARIA ORIENTAL Ferrovia Transamericana Connecting South America STRATEGIC PARTNERSHIP OPPORTUNITY FOR CHINA STRATEGIC ASSET CHINACHINA WITH GUARANTEED ACCESS TO AGRICULTURAL AND MINERAL COMMODITIES

OPPORTUNITY TO CHINESE COMPANIES SERVICES - ROLING STOCK - TECHNOLOGY EPC - INVESTMENT - COMMODITIES MP TRADE PERU PARTNERSHIP BRAZIL

GATHERING COMPETENCENCES BOLIVIA - DIRECT ACESS TO CHINESE COMPANIES AND INVESTMENT PARAGUAY Atlantic Ocean - PROVEN TRACK RECORD IN INFRASTRUCTURE PROJECTS Pacific Ocean ARGENTINA - OVER 40 YEARS EXPERIENCE IN SINO BRAZILIAN RELATIONS CHILE

MALHA OESTE FERROVIARIA ORIENTAL Ferrovia Transamericana Connecting South America

Ferrovia Transamericana Connecting South America WORK IN PROGRESS

Ferrovia Transamericana Connecting South America

- Daniel Rossi [email protected]

- Jose Guilherme Sartori [email protected]

- Prof. Luiz Antonio Sola CONTACTS [email protected]

- Christian Sandke [email protected]

- Pete Moreira Leite [email protected]

Ferrovia Transamericana Connecting South America Ferrovia Transamericana Connecting South America