Investor Presentaiton slide image

Investor Presentaiton

10 How to INVEST in São Paulo STATES 11 PIPELINES São Paulo State has the largest and most important pipeline network in Brazil, which transports a substantial amount of oil, ethanol and natural gas. Responding to the strategic position of the state in the sugarcane sector, Petrobras is implementing the Ethanol Logistics Multimodal System, which consists of enlarging the pipeline and waterway infrastructure to transport ethanol from the producing areas in São Paulo and in the Center-West to the domestic and export markets. This System, which involves investments of nearly USD 4 billion, contemplates, in addition to adaptations and improvements in existing facilities, the construction of new pipelines, terminals, collection centers and intermediate pumping stations. Starting in 2011, the transport of ethanol through the pipeline system will interconnect Paulínia, São Paulo's metropolitan area and Rio de Janeiro. Natural gas from the Brazil-Bolivia Gas Pipeline and from the Campos and the Santos Basins is distributed by three concessionaires. PORTS The Port of Santos, the largest in South America, is located in São Paulo State. In 2010, the turnover of exports and imports in Santos totaled USD 95.8 billion -25% of the Brazilian trade flow of which 37% was of general cargo, 47% of bulk solid cargo and 16% of bulk liquid cargo. Located in an area of 7.8 million m², 13 km of quay and 62 berths, 11 of which are private, the Port of Santos has specialized terminals for grains, fertilizers, bulk liquids, vehicles and containers. The latter is the largest in Latin America, with 550 thousand m². Also in São Paulo State is the Port of São Sebastião, which has the third largest natural draft in the world and ambitious expansion plans. RAILWAYS The railway network in São Paulo reaches all regions in the State and enables the intra-regional transport, connecting the producing regions in the states of São Paulo, Minas Gerais, Bahia, Sergipe, Goiás, Mato Grosso, and Mato Grosso do Sul to the Tietê-Paraná Waterway and to the ports of Santos, Rio de Janeiro, Itaguaí and Guaíba. There is also the interconnection between the Port of Santos and Paraguay and Bolivia, with the prospect of, in the near future, operating as a connection between the Atlantic and the Pacific. TELECOMMUNICATIONS The broad structure of telecommunications services integrates the State to the rest of the world, with excellent quality and speed. São Paulo hosts four of the 10 largest telecommunications companies in Brazil. There is availability of a wide range of telecommunications services, including mobile telephony, fixed telephony and broadband.Regarding the mobile telephone network, the GSM and CDMA coverages reach the entire State. Highlights: * 25% of the access to mobile telephony in the country takes place in São Paulo State; • São Paulo accounts for 63% of the revenues of call center companies in Brazil; • Brazilian state with the largest production of cell phones; ⚫99.8% of São Paulo's population is served by the mobile telephony system. WATERWAYS Being 2.4 thousand km long, the Tietê-Paraná Waterway has 10 reservoirs, 10 dams, 10 sluices, 23 bridges and 30 intermodal cargo terminals. The main products transported by the waterway are: soybean, soybean meal, corn and its by-products, sand, limestone and fertilizers. The total cargo loaded in river ports in São Paulo State amounts to approximately 4 million tons. Politics The Brazilian political system is presidential, with three branches: the Executive, the Legislative and the Judiciary, which are represented, respectively, by the President, the Parliament (the National Congress of Brazil is divided in the House of Representatives and the Federal Senate) and the Supreme Federal Court. In the Federal Parliament, São Paulo is represented by 3 senators and 70 federal congressmen. In São Paulo, every four years, 94 state congressmen and one Governor are elected. Geraldo Alckmin is the current Governor of São Paulo. Population and Territory São Paulo is the most populated state in Brazil, with 22% of the Brazilian population. The urbanization rate is approximately 96%, with three Metropolitan Areas: The São Paulo Metropolitan Area comprises 39 municipalities and São Paulo City is its regional hub; The Santos Metropolitan Area comprises 9 municipalities and Santos is its regional hub; ⚫The Campinas Metropolitan Area comprises 19 municipalities and Campinas is its regional hub. The extended metropolitan area of São Paulo is comprised of the metropolitan areas above; the urban agglomerations of São José dos Campos, Jundiaí, Sorocaba and Piracicaba; and the microregions of Bragantina and São Roque. Professional Qualification The State has a highly qualified workforce, with 1,465 higher education institutions, which represent approximately 32% of the Brazilian total, and 7.3 thousand undergraduate courses, which concentrate over 1.1 million vacancies or 37% of the national total. The Government of São Paulo manages three of the most important universities in the country, among which is USP (Universidade de São Paulo), having
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