investment opportunities in the state of são paulo sergio costa director
TRANSCRIPT
Agência Paulista de Promoção de
Investimentos eCompetitividade
Investment Opportunities in the State of São Paulo
Sergio Costa
Director
Investe São Paulo
Investment Promotion Agency
Mission
Being the gateway to new investments or expansion of existing businesses,
generating innovation, employment and income,in addition to the continuous improvement
of the competitive environment and of the image of the State of São Paulo
Investment Promotion Agency
Areas of Activity
I – Investment Projects• Technical support and orientation to investors• Contact with public and private institutions aiming as investment facilitation
II – Business Prospection• Identification of sectors and companies with investment potential
III – Actions for the Promotion of Competitiveness• Labor training, Taxation, Innovation, Infrastructure and Licensing• Studying and proposing public policies
IV – Institutional Activities• Reception of foreign delegations and organization of international missions• Support and guidance for municipal governments
V – Promotion of the image of the State of Sao Paulo
Our Customers
Portfolio of projects
Number of projects: 65
Potential Investments: US$ 18.2 billion
Potential direct jobs: 59 thousand
Sectors: automotive, food, oil and gas, energy, solid waste and machinery and equipment.
Origin: United States, China, South Korea, Spain, Japan, Italy, England, France and Brazil.
Investments Announced:US$ 6.4 billion
Direct Jobs:20.840
Exchange rate: US$ 1 = R$ 1.80
DABO
Brazil on the World Stage
Investment Promotion Agency
Brazil, the 7th economy of the planet
14,527
5,878
5,459
3,286
2,563
1st USA
3rd Japan
2nd China
4th Germany
5th France
6th UK
8th Italy
7th Brazil
12thSpain
10th Canada
9th India
11th Russia
2,090
2,055
2,250
1,577
1,632
1,480
1,410
Source: IMF - year 2010
GDP - US$ billions
The Brazilian economy has overtaken the economy of the United Kingdom in 2011 to
become the world’s 6th largest, according to the Centre for Economics and Business
Research (CEBR), an economic research group.
Investment Promotion Agency
Selected Countries:Territory, Population and Economy
Territory > 3 million km2
Economy (GPD) > US$ 750 billion
Population > 100 million
Canada Australia
Russia India China
United States Brazil
Indonesia Nigeria
BangladeshPakistan
Japan Mexico
Spain
Germany FranceUnited Kingdom
Netherlands Italy South Korea
Source: IMF, World Bank - 2010
Investment Promotion Agency
Brazilian Age Structure
Source: IBGE / Revista Veja, December 2010.
0
30
50
8020202010 2050
OpportunityLarger contingent of working-age population = possibility of increasing productivity
ChallengesIncrease on health and social security expenditures
Investment Promotion Agency
Social Mobility
2003
2009
2014
0 20 40 60 80 100 120 140 160 180 200
13
20
31
66
95
113
47
44
40
49
29
16
A e B C D EYear
projection
Millions of Inhabitants
Source: Banco Central do Brasil/ FGV
State of São PauloCompetitive Advantages
Investment Promotion Agency
Brazil and São Paulo State
Sources: IBGE, Brazilian Central Bank and SEADE – Exchange Rate US$ 1 = R$ 1.76
Territory (1,000 km²) 8,515Population (millions) 191Nominal GDP (US$ bln) 2,143GDP per capita (US$) 11,093
Brazil
São PauloTerritory (1,000 km²) 248Population (millions) 41Nominal GDP (US$ bln) 690GDP per capita (US$) 16,757
21% of the population
32% of Nominal GDP
1.5X of GDP per capita
Investment Promotion Agency
• 1st largest cargo airport in Latin America
• 1st largest producer of sugar cane ethanol in
the world
• 4th largest stock exchange in the world
(BM&FBOVESPA)
• 3rd largest producer of aircraft in the world
• 48% of domestic production of vehicles
• Capital: third largest metropolis in the world
• Agribusiness:
Orange – 53% of juice world productionSugar – 23 million tons/yearBeef – US$ 2.18 billion in exports
São Paulo Highlights
Investment Promotion Agency
Nacional Estadual
1º 1º SP Barueri 0,9303 0,9184 0,9206 0,9518
2º 2º SP Paulínia 0,9290 0,8954 0,9675 0,9240
3º 3º SP Araraquara 0,9281 0,9035 0,9600 0,9207
4º 4º SP Ribeirão Preto 0,9239 0,9299 0,9213 0,9207
5º 5º SP São J osé do Rio Preto 0,9202 0,8704 0,9546 0,9356
6º 6º SP Indaiatuba 0,9164 0,8631 0,9393 0,9469
7º 7º SP Marília 0,9125 0,8463 0,9615 0,9297
8º 1º MT Lucas do Rio Verde 0,9046 0,8849 0,8650 0,9640
9º 8º SP Taubaté 0,8985 0,9013 0,8951 0,8992
10º 9º SP Itupeva 0,8942 0,8979 0,8921 0,8925
11º 10º SP São Paulo 0,8930 0,8799 0,9121 0,8870
12º 11º SP Santos 0,8924 0,8318 0,9312 0,9143
Emprego &
Renda Educação Saúde
Ranking IFDMUF
Ranking IFDM
MUNICÍPIOS BRASILEIROS - Ano 2009IFDM
Index of Municipal Development
The best ranked Brazilian municipalities are in the State of São Paulo
39 out of the 50 best ranked Brazilian municipalities are in the State of São Paulo
IFDM Ranking
UFIFDM Ranking
BRAZILIAN MUNICIPALITIES - YEAR 2009
IFDM Employment & Income Education Health
National State
Source: FIRJAN - Federation of Industries of the State of Rio de Janeiro Indices published in 2011 based on 2009 data
Investment Promotion Agency
São Paulo Competitive Advantages
Investment Promotion Agency
R&D / Innovation
USP, Unicamp and Unesp
IPT internationalrecognition
All over the state
US$ 512 million annual budget
Fundação de Amparo à Pesquisa Científica e Tecnológica (Fapesp)
3 universities among the ones that most develop scientificresearch in Brazil
19 research institutes
30 initiatives of Technology Parks
More than 13% of the São Paulo State revenue is used in high quality education, research and development.The State also hosts federal universities and research institutions.
Investment Promotion Agency
Technological and Technical Schools
Technological education - Fatecs • 55 thousand students• 51 technology colleges• 60 courses in the fields of industry, services and agriculture
Technical Schools - Etecs• 216 thousand students• 203 technical schools• 101 courses in the fields of industry, services and agriculture
Workforce Training• Centro Paula Souza’s structure may be used for workforce
training at no cost to companies
Source: Centro Paula Souza – 2nd semester 2011
Largest program of technical education in Brazil
Investment Promotion Agency
Higher Education
The State Government is responsible for three of the best universities in Brazil:
• USP - São Paulo University – 88,962 students
• UNICAMP – Campinas State University – 36,801 students
• UNESP – São Paulo State’s University – 46,634 students
521 college level institutions all over the State24% of Brazil’s total
Source: USP, Unicamp. Unesp
Investment Promotion Agency
• 19 out of the 20 best highways in Brazil• Largest port in Latin America (Santos)• 2,400 km of waterways• 5,400 km of railways• 6,000 km of gas pipeline• Around 50 million air passengers per year
And it is getting better...Investment in public transport (trains and subway)
São Paulo Highway Ring
Expansion of the ports of Santos and São Sebastião
Expansion and modernization of 30 regional airports
High Quality Infrastructure
Investment Promotion Agency
High Quality Infrastructure
Highway
Waterway
Pipeline
Railway
Airport
Port
Source: Transportation Secretariat of State of São Paulo
Agência Paulista de Promoçãode Investimentos e Competividade
Santos Harbour
Current capacity
• 97 million tons in 2011
• 25% of the internacional brazilian trade
• Area of 7.8 million m²
• 5.748 ships a year
• 2,7 million containers TEU
Expansion of the harbour:• Increase the capacity of the harbour to
200 million tons a year
• Increase the depth of the channel
Fonte: Porto de Santos
Agência Paulista de Promoçãode Investimentos e Competividade
São Sebastião Harbour
Current Areal
New Planned Area
Source: Porto de São Sebastião – US$ 1 = R$ 1,8
• Third biggest natural draught of the world
• 669 mil ton/year (2011)
• Build area 7.685 m²
• Total area 413.601 m²
Expansion project:• Receive and operate ships with 300 meters
long• Construction of 4 loading berths• Anchorages with 43 meters wide• Public granting to private companies operate
the terminals.
Estimated investments
US$ 342 million
Agência Paulista de Promoçãode Investimentos e Competividade
Expansion and Modernization of the Airports
LOT 2 - SÃO JOSÉ DO RIO PRETO
LOT 5 - PRESIDENTE PRUDENTE
LOT 3 - BAURU - MARÍLIALOT 1 - JUNDIAÍ
LOT 4 - RIBEIRÃO PRETO
Fonte: Secretaria de Planejamento e Desenvolvimento Regional
Investment Promotion Agency
• Energy matrix with 55% of renewables (2010)
• Competitive advantages for energy production from biomass
• New opportunities in environmental technology markets
• Brazil’s most advanced conservation system
• 17.5% of the State area is covered by native vegetation
• 10.8% of the State area is covered by rainforest
• 14.8% of the State area is covered by nature protection reserves (full protection and sustainable use)
• Total: 43% of the state area is preserved
Environmental Responsibility
Source: Energy Secretariat of State of Sao Paulo, Forest Foundation
Agência Paulista de Promoçãode Investimentos e Competividade
Energy Matrix of São Paulo
Fonte: Departamento de Energia do Estado de São Paulo
Cane Products;
32,7%
Hydraulic and Electric-
ity; 17,9%
Others Renewables; 2,5%
Oil and e De-rivatives;
35,7%
Natural Gas; 7,2%
Mineral coal; 2,3%Firewood and Coal; 1,7%
Renewable Energy: 54,7% of the Matrix
Agência Paulista de Promoçãode Investimentos e Competividade
Ethanol in Brazil
• World's largest producer and largest exporter of sugar cane and ethanol
• More than 400 plants produce ethanol, sugar and bioelectricity in Brazil
• 12 manufacturers offer over 90 models of flex-fuel cars
• Ethanol is already being used to produce green plastic
• Only country where alternative fuel consumption exceeds that of gasoline
• Only 1.5% of agricultural area occupied by sugarcane
Source: Unica
Investment Promotion Agency
Brazil: 2nd Producer and1st Exporter worldwide
Ethanol production (billion liters)
Source: ICONE, FIESP
Agência Paulista de Promoçãode Investimentos e Competividade
Ethanol Logistics Multimodal Integrated System
Features• Investment of over R$ 5 billion• 850 km long• 45 municipalities• Link between major states• Ethanol producers: SP, MG, GO and MT• Partnership between Petrobras and private companies
Goals• Reduce the cost of transporting ethanol• Facilitate the transportation of ethanol to Brazilian ports• Reduce heavy truck traffic on the roads• Reduce CO2 emissions
Source: Petrobras
Agência Paulista de Promoçãode Investimentos e Competividade
Ethanol Logistics Multimodal Integrated System
FAPESP Program of Research in Bioenergy (BIOEN)
Goals: • Stimulate and articulate research and development activities using academic and industrial
laboratories.
• Promote the advance of knowledge about the Bioenergy production and its aplication in related areas in Brazil
Division of Research about socio-economic
impacts, environmental, and use of the
soil.
Division of Biomass to Bioenergy
(focus in sugar cane)
Division of Process of
Biofuel Manufacturing
Division of Biorefinary and
Alcohol Chemistry
Division of Ethanol
Aplications for Automotive
Motors.
5 research divisions
Fonte:fapesp
Agência Paulista de Promoçãode Investimentos e Competividade
Fapesp Evolution of Revenues
Fonte: Fapesp
(U$ milhões)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
143 151177
242273
324
419
367
488
616
SECRETARIA DE DESENVOLVIMENTO ECONÔMICO, CIÊNCIA E TECNOLOGIA
Thank You!
Sergio Costa
Director
Tel. + 55 11 3218-5311
www.investe.sp.gov.br