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Investor Presentaiton

8 How to INVEST in São Paulo STATES 9 Development Index (HDI) of 0.82. In the past years, significant improvements in longevity and in education in the State's cities have been observed. This is due to, respectively, the reduction of child and young adult mortality rates and to the increase in early childhood education coverage, as well as in the completion rate of elementary school and high school. The state network of public and private health institutions is large, hosting centers that are benchmark nationwide and worldwide. São Paulo also has excellent educational institutions, from elementary school to higher education, contributing to the formation of a labor market distinguished for its outstanding qualification. Immigration São Paulo is the most cosmopolitan state in South America, having received approximately three million immigrants from 70 different nationalities through the 19th and 20th centuries. The largest Italian, Portuguese and Japanese communities outside their countries are here. There has also been a strong presence of other communities in São Paulo, such as the Arab, the German, the Korean, the Chinese, the Spanish and the Dutch. Infrastructure and Logistics São Paulo has the best highway network in the country with 33 thousand km of roads, as well as the largest cargo airport in Latin America and the second largest in the Southern Hemisphere in international flights. The largest helicopter fleet in the world is also here. Another highlight of São Paulo is the largest port in Latin America in transported cargo, the Port of Santos, where 96 million tons are loaded annually. Such transportation network is complemented by waterways (2.4 thousand km) and railways (4.7 thousand km) and by the pipeline network. Airports São Paulo State has 36 airports, five of which (Congonhas, Guarulhos, Campo de Marte, Viracopos and São José dos Campos) are managed by Infraero, a company owned by the Federal Government, and 31 are operated by the Airport Department of São Paulo - Daesp, located in some of the major cities in the state. The growing business of regional flights will stimulate improvements in the state's airports. Two of the airports with the largest volume of passengers in the country are in São Paulo: Congonhas Airport, located in the capital; and São Paulo International Airport, in Guarulhos. In 2010, over 42 million passengers travelled using these airports, which is 27% of the total traffic recorded in the airports operated by Infraero throughout the country. São Paulo International Airport, in Guarulhos, is also important in cargo transport, together with Viracopos International Airport, in Campinas. In 2010, these airports accounted, together, for 52% of all cargo transported in the country's airports (384.6 thousand and 263.8 thousand tons, respectively). Congonhas Airport, located in the south of the city of São Paulo. ENERGY São Paulo State's economic potential is supported by a consolidated energy matrix with renewable sources, such as sugarcane, which accounts for 29% of the total supply of energy produced in the State, and hydropower, which accounts for 8%. Petroleum and its by-products, natural gas, coal, wood and other sources take part with 46%, 5%, 2%, 1% and 1%, respectively. São Paulo accounts for 22% of the hydroelectric power production in Brazil and for 61% of the country's ethanol production. This consolidates São Paulo as a leader in renewable energy. The energy matrix of São Paulo (with a share of 54.7% of renewables) is cleaner than the Brazilian average (45.9%) and considerably cleaner than the world average (12.9%). São Paulo has also the hydrocarbon reserve of the Santos Basin, which stretches across the entire coast of São Paulo and constitutes the most promising exploitation area in the Brazilian coast. HIGHWAYS São Paulo State's highways are among the best and most modern in Latin America. The highway network in São Paulo connects the states of the North, Northeast and Center-West to the South and Southeast and it transports goods from the Port of Santos to all over Brazil and to several countries in South America. The Mário Covas Beltway, an important asset for the state's and the country's logistics, aims at relieving the capital's traffic and enabling the connection among the various state highways, deviating the passing traffic flow to the vicinity of São Paulo's metropolitan area. With a total length of 176 km and connecting the ten highways that lead to São Paulo, the beltway constitutes a fundamental link between the state's countryside, other regions in the country and the Port of Santos. Aerial view of a section of the Mario Covas Beltway.
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