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YOUR IDEAL PLATFORM FOR BUSINESS

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  1. YOUR IDEAL PLATFORM FOR BUSINESS

  2. SINALOA: NATURAL RESOURCES & PRIVILEGED LOCATION Located in Northwestern Mexico, Sinaloa is strategically positioned to do business with the US, Canada and Asia.

  3. SINALOA: NATURAL RESOURCES & PRIVILEGED LOCATION • Multiple microclimates and an abundance of water make Sinaloa one of the most fertile and versatile locations in the world for food production. • 11 rivers • 2 million hectares of agricultural land • +650 Km of Coastline

  4. SINALOA: NATURAL RESOURCES & PRIVILEGED LOCATION • The natural access to the Sierra Madre and the World’s Aquarium: The Sea of Cortes, • contribute to making Sinaloa an attractive Tourism destination. • Historical landmarks • Variety of landscapes: Mountains, valleys, sea. - Copper Canyon - Tropic of Cancer - Estuarine Region, etc.

  5. SINALOA: SKILLED & EFFICIENT HUMAN RESOURCES • Export oriented culture • Advanced technical education • Hard working people • High Productivity • Low turnover • Excellent Labor Environment • Success stories: • Sumitomo, Delphi & Walbro, in the automotive industry. • 3.7% of domestic employment with 21% of population & 2.0% of GDP

  6. Los Mochis Topolobampo Culiacán Mazatlán SINALOA: EVOLUTION IN INFRASTRUCTURE • 2 Ports on the Pacific Ocean • 3 International Airports • +600 direct flights per week

  7. SINALOA: EVOLUTION IN INFRASTRUCTURE To East & Central USA To West USA • Linked to NAFTA by 650 Km of 4 lanes highways and a railroad system. • The closest route from the Pacific Ocean to the Eastern USA market by train. Los Mochis Topolobampo Culiacán To East Mexico Mazatlán To Central& South Mexico

  8. SINALOA: EFFICIENT PRODUCTION Sinaloa: The food leader in Mexico • 37% of tomato • 43% of cucumber • 61% of tuna • 51% of chick pea • 13% of sardine • 30% of shrimp • 21% of potato • 21% of corn • 10% on mango • 4% of meat • 2% of wheat • +10 M Ton in 2 M Hectares • +US $750 M exports of produce

  9. BUSINESS ENVIRONMENT OUTLOOK

  10. A CLEAR MAP FOR GROWTH Activities to Incubate Value Biotechnology Nutraceutics Automotive Activities to Promote Electronic Eq. Tourism Tools & Mach. Food Processing Chemical Ind. Auto parts VA Logistics Serv. Foundation Activities Software Energy Mining Healthcare Food production Entertainment Time

  11. Current strengths Leadership in bioeconomy & clean energy New Information Technology Value Chain Regional development triggers Touristic Development of the Sea of Cortes Logistic & commercial corridors Automotive & manufacturing industry Other industries MAIN DRIVERS FOR GROWTH

  12. MORE FOOD… MORE VALUE • An ever increasing platform for agriculture technology & food biotechnology through: • 7 research centers • 7 universities • 27 academic programs • 120 researchers • 241 projects • 13 international operators • +250 companies oriented toward supplying Agribusiness. • 35% of domestic sheltered agriculture is based at Sinaloa. Sinaloa: The largest food Tech Park & the most productive & profitable investment in the Mexican Food sector.

  13. INNOVATION IN BIOFUELS & CLEAN ENERGY • - Pioneering the biofuels industry in Mexico • 2 corn ethanol plants under construction & 2 more in project • Biodiesel plant on evaluation • - Clean Energy Potential(Minihydroelectric, Eolic y LNG) • 13 points with hydroelectric potential, identified by CFE • 6 eolic antennas to determine actual potential • Strategic port in Topolobampo for supplying • NW Mexico with natural gas High energy production potential as a product of available biomass, dams in hydrological basins, sea air currents in the shore, and an entry port for Natural Gas from the Pacific.

  14. SINALOA: A MODEL FOR SUSTAINABLE DEVELOPMENT • Positioning Sinaloa as the first EcoRegionin America, we seek to produce and live under strong principles, criteria, and certified sustainability processes. • Goals such as sustainability will place us in a leading position concerning global macrotrends. • This allows us to differentiate and add value to our entire offer with: • Flavorful and clean food. • Biodiversity • Tourism potential in the Sea of Cortes • and the Sierra Madre. • Actions in development, such as the Sustainable Shore Development Program, Sinaloa- BID Means… Clean crops Clean cities Clean products Sustainability Education Clean water

  15. LOGISTICS DEVELOPMENT To East & Central USA To West USA • New Logistics Platform to be developed • connecting East USA market with Asia: • Multimodal Platform in Topolobampo • Cold Storage & Transfer Center in Guasave • Multimodal Dry Port in Culiacan • Intermodal MultiPort in Mazatlan Los Mochis Topolobampo Guasave Culiacán To East Mexico Mazatlán To Central& South Mexico

  16. NORTHERN LOGISTICS CORRIDOR (TOPOLOBAMPO – TEXAS) Project includes: • Draft to 48 ft • Free Trade Zone • Logistics Platform • Manufacturing Industrial Park • Exhibition Center for Oriental Products (Chinamex Mart) • New Freeway: Topolobampo - Chihuahua - Texas • Railroad service revamping

  17. NORTHERN LOGISTICS CORRIDOR (TOPOLOBAMPO – TEXAS) Development, through Mexico, of the most efficient logistical, industrial and commercial link between the Asian and the Central and Eastern U.S. Markets. Common Vision for Regional Development, Sinaloa- Sonora-Chihuahua-Texas The shortest route from the Pacific Ocean to the great Eastern USA Market

  18. TRANSVERSAL CORRIDOR (MAZATLAN - MATAMOROS) • A new project in infrastructure, ensuring an efficient route to the Pacific Ocean, for northern and central states. • Completion with Federal Government support of Durango – Mazatlan highway. • Mazatlan Port development. • Port expansion. • Construction of new roads.

  19. SINALOA: NEW SOFTWARE AND INFORMATION TECHNOLOGY CHAIN • Coordination between the Ministry of Economy • and the academic sector: • International Certification for businesses and graduates • Business Incubators • Technology-Education parks • Software exportation Sinaloa has: 2.6 % of National population 5.0 % of IT Students IT graduates emigration in Sinaloa: 2004: 32 % 2006: 3 %

  20. CPTM SINALOA: TOURISM SPACE, OFFER AND EXPERIENCE Sinaloa’s Integral Tourism Plan: SECTURInstitutional Structure PLAN AVANTEDevelopment Strategy FONATUR & CPTMInfrastructure & Promotion

  21. 397 210 110 44 ‘04 ‘05 ‘06 ‘07 SINALOA: TOURISM SPACE, OFFER AND EXPERIENCE Tourism Investment (MM USD)

  22. SINALOA: TOURISM SPACE, OFFER AND EXPERIENCE Clearly defined development poles: • Integral renewal of Mazatlan, historical city of sun and beaches. • Golf Coast, taking advantage of availability, and land and water cost. • Copper Canyon corridor, integrating with the gateway to Chihuahua’s development. • Benefiting from certain strengths and icons: • Sea of Cortes, Sierra Madre, Copper Canyon, Tropic of Cancer • Hospitality and relaxation • Excellent Food and a rich cultural-historical heritage.

  23. SINALOA: IN THE GREAT PROJECT OF THE SEA OF CORTES - A trigger for developing sustainable tourism to the world’s aquarium, integrated with the Sierra Madre - Creation in Mazatlan of the first Home Port in the Mexican Pacific • Sinaloa represents in the Sea of Cortes: • 14% of its coast • 45% of its insular territory • 49% of available sweet water in the river basins • 62% of its population is located closer than 40Kmto the coast • Two of its 4 largest ports • Three of its 8 large international airports.

  24. BUSINESS CONSISTENCY • Sinaloa has a healthy business environment, supported by organizations such as the Council for Sinaloa’s Development. • A Private and Government backed, decentralized, non profit organization. • It helps coordinate the efforts to define Sinaloa’s Long Term Economic Development Strategies. • The state’s Governor acts as Council President with a representative from the Business sector acting as Executive President. This gives a structure that transcends the government’s administrative period.

  25. BUSINESS CONSISTENCY Sinaloa provides competitiveincentives to attract foreign investment. • - Preferential treatment on acquisitions of industrial land & warehouses. • - Substantial tax reductions: • Public Registry of Property tax • State payroll tax. • Real State acquisition • Use of Land tax • Water supply and sewer rights • Construction permits • Used motor vehicles tax - Custom tailored incentives packages. • - Permanent support from CIT’s key-account executives.

  26. YOUR IDEAL PLATFORM FOR BUSINESS Business Platform Stability Profitability Consistency Permanence Benefits People Productivity Tourism Business–Gov relationship Infrastructure Logistic Demographic Academic Industrial Attributes Geographic Location Natural Resources

  27. SOME AVAILABLE SUPPLY PICKLE CUCUMBER (Estimation 2007-2008) Pickle cucumbers are grown in fertile lands of the State of Sinaloa, México under the most stricts security standars.

  28. SOME AVAILABLE SUPPLY TOMATO (Estimation 2007-2008) Sinaloa is a national leader in tomato production, which is grown in open field or green houses.

  29. SOME AVAILABLE SUPPLY ROME TOMATO (Estimation 2007-2008) The fields and packing shed are certified and approved by USDA.

  30. SOME AVAILABLE SUPPLY CHERRY TOMATO (Estimation 2007-2008) The fertile fields and hydro agricultural infraestructure of Sinaloa is incomparable to any other state in México. In order to provide to our customers fresh produce of the highest quality we have green houses production

  31. SOME AVAILABLE SUPPLY HOT PEPPERS (Estimation 2007-2008)

  32. FOR ALL THESE…SINALOA IS YOUR IDEAL BUSINESS PLATFORM