Vuela - Board Update

1
México China SCT Infrastructure Projects V
Reunión del Grupo de Alto Nivel México - China
March 3, 2011
1
2
Infrastructure needs

• Mexicos trade with the US and Canada has
  increased over 400 in the last 15 years, while
  infrastructure investment has only grown less
  than 50.
• Therefore, greater efforts are required to
  improve the quality and quantity of
  infrastructure in order to enhance trade capacity.

Exports vs GDP (Growth Rate)
Trade between Mexico, the US and Canada (Billion
USD)
e / Estimated Source National Institute of
Statistics and Geography
2
3
ROAD PROJECTS (IN PROCESS) Conclusion of 3 bids
in process (365.2 km, total investment of 1.3
billion dollars)
PACÍFICO SUR (Asset utilization)
SALAMANCA-LEÓN(CONCESSION)
MICHOACÁN (Asset utilization)
3
4
ROAD PROJECTS MICHOACÁN PACKAGE (Asset utilizaton
BID IN PROCESS)
Package Package Existing Highways New Highways
Michoacán Pátzcuaro-Lázaro Cárdenas (273.2 km) Pátzcuaro-Lázaro Cárdenas (273.2 km) Morelia western bypass (58 km) Uruapan bypass (24.0 km) Pátzcuaro-Uruapan (56 km)
Uruapan bypass Lenght 24.0 km Investment 62.7
mdd
Western Morelia bypass Lenght 58.0
km Investment 141.2 mdd
Pátzcuaro Uruapan Lenght 56.0 km Investment
94.1 mdd
4
5
ROAD PROJECTS PACÍFICO SUR PACKAGE (Asset
utilizaton BID IN PROCESS)
Package Package Existing Highways New Highways
Pacífico Sur Guadalajara-Tepic (168.6 km) Guadalajara-Tepic (168.6 km) Guadalajara South bypass (111 km) Tepic bypass (33.5)
Tepic bypass Lenght 33.5 km Investment 115 mdd
Guadalajara South bypass Lenght 111
km Investment 414.3 mdd
5
6
ROAD PROJECTS SALAMANCA-LEÓN HIGHWAY (Concession
bid in process)
SALAMANCA LEÓN

• Lenght 85.0 km
• Description To build a four lane highway,
  alternative to the road that today comunicates
  Salamanca, Irapuato, Silao y León.
• Monto de Inversión 230 million dollars.

7
ROAD PROJECTS To be launched in 2011

• Some of the projects under preparation that will
  start their bidding processes during 2011 are
  the following

Project Length (km) Investment (Million USD)
Cuernavaca Bypass-Concession Building a four lane bypass at the northeast of the city of Cuernavaca to give continuity to the traffic towards destinations located at the south of the city. 51.9 305
Guanajuato-San Miguel de Allende Highway- Concession Construction of a two-lane highway, with five intersections and two toll plazas, that initiates at Aldea Silao interchange, between the Salamanca-Leon (to be constructed) and the Aldea bypass and finishes at the intersection with the 57 federal road. 70 195.6
Atizapán-Atlacomulco Highway-Concession Six and four lane highway in isolated stretches to give a new exit towards the west for the traffic of the Mexico City Metropolitan Area. 80 297.4
Cuapiaxtla Cuacnopalan Highway-Concession Construction of a two lane highway between Cuapiaxtla and Cuacnopalan, to connect the corridor of the High Plateau with the Puebla-Cordoba and Cuacnopalan-Oaxaca highways. 62 156.2
Hermosillo bypass Concession Construction of a two lane highway to avoid the long-range traffic through Hermosillo, Sonora 37 93.9
7
8
ROAD PROJECTS To be launched in 2011
Project Length (km) Investment (Million USD)
Ciudad Juárez Bypass and International Crossing Guadalupe Tornillo-Concession Construction of two lane access between the highways Chihuahua-Ciudad Juarez and Ciudad Juarez-El Porvenir, in order to improve the long range access to the MexicoU.S.A border. The project includes the construction of an access to the border port and the Mexican part of the Guadalupe-Tornillo bridge. 32 93.9
Apaseo-Palmillas-Concession with Assets Building a four lane highway for long journeys towards the west of the country. This new road would function as an alternate route to the Mexico-Queretaro highway in its Palmillas-Queretaro stretch. 80 250.4
Campeche Package Asset utilization Widening of the of the existing four-lane highway in the 18 km Champoton-Villa Madero section and building the Champoton bypass, with a total length of 17 km, in the Campeche-Ciudad del Carmen corridor, to foster touristic development in Playa Esmeralda. 17.0 km. Bypass 18.0 km. Champotón - Campeche 65.2
8
9
RAILWAY PROJECTS System 3 of the Mexico City
Metropolitan Area Suburban Railway (Chalco - La
Paz Santa Martha/Constitución de 1917)
Context

• Location Metropolitan Zone of the Valley of
  Mexico (State of Mexico)
• Description Massive railroad passenger
  transportation system, electrified and confined
  (using existing railway infrastructure). It
  includes the construction of stations, transfer
  centers, vehicular, pedestrian and railroad
  bridges, and complementary works.
• Length 73 km.
• Bidding process late 2011.

Benefits
Requirements

• It will reduce
• Journey time(1 hr 20 min)
• Road congestion in the Mexico-Puebla highway and
  federal road (between La Paz Subway station and
  the Valley of Chalco)
• Air pollution and fuel consumption.

• Expected traffic 110 million passengers per
  year.
• Financed with PPP model, concession public
  (Federal and State of Mexico) and private
  investment.
• Estimated Cost 1,305 million USD.
• Construction duration 24 months.

9
10
RAILWAY PROJECTS Celaya Railway Bypass
Context

• Location State of Guanajuato.
• Description Design and construction of a
  railroad bypass system around the urban area of
  Celaya a new exchange yard, a park for
  automobile industry suppliers and an intermodal
  terminal for the handling of fiscal cargo and
  domestic traffic.
• Length 23.4 km for Line A , 27.7 km for Line
  NB, Total 51 km.
• Bidding process 2nd half 2011.

Requirements
Benefits

• Financed with PPP model, Public investment
  Federal and local government, and private.
• Estimated Cost 190 million USD.
• Construction duration 2011-2013.

• Decrease time lost due to the traffic congestion
  and exchange of trains.
• Reduce the number of accidents (avoid more than
  18 dangerous rail crossings)
• Improve efficiency and competitiveness in the
  transportation of goods.

10
11
AIRPORT PROJECTS Riviera Maya airport
Context

• The Isla Mujeres-Cancun-Cozumel-Tulum corridor is
  the most important tourist destination in Mexico.
  It is visited by 9 million tourists a year and it
  is forecasted that 17.9 million visitors will
  visit the area by 2025.
• The bidding process for the Riviera Maya airport
  started in May 2010.
• Result of the bid April 2011

The Riviera Maya airport will be 102 km away from
Cancun airport and linked by a 120 km road.
Benefits

• The new airport will foster tourism, economic
  growth and will create thousand of new jobs in
  the region.

Requirements

• Capacity for 3 million passengers a year.
• Financed with private investment.
• Estimated Cost 280 million USD plus a 0.6
  million USD road access.

11
12
PORT PROJECTS Specialized container terminal II
at Lázaro Cárdenas
Context

• Construction, operation and exploitation of a
  Specialized Container. It will increase installed
  capacity from 2 to 4 million TEUs per year. The
  port has a strategic railroad connection for the
  intermodal links to North America.

Benefits

• This infrastructure will meet national and
  international demand for container activity. It
  will offer an operation with international
  standards and increase the operation of the
  logistic Asia-Pacific/North America corridor,
  transforming Mexico into a transcontinental
  logistics platform.

The Container terminal II at Lázaro Cárdenas
will have 102 hectares and 1,485 meters for
docking.
Nuevo Laredo
Requirements
Monterrey

• Capacity for 2 million TEUs per year.
• Private investment, a partial right and
  obligation cession contract
• Estimated Cost 440 million USD.

Lázaro Cárdenas
12
13
PORT PROJECTS Veracruz Port Expansion in the
North Zone
North Zone Project North Zone Project
Total of docks 37
(it includes container terminals) (it includes container terminals)
Total area (Ha) 532
Capacity Total project (Million tons) 124
2 Container Terminals 2 Container Terminals
Total of docks 8
Waterfront (m) 2,880
Total area (Ha) 250
Capacity (million TEUs) 4.1

• Private financing, with estimated investment of
  4,100 million dollars.
• 1,410 in public investment
• 2,690 in private investment
• Estimated job creation 18,000 jobs.
• Goals Meet demand for maritime transportation in
  the Gulf of Mexico / Atlantic Ocean shore, for
  international trade in Central Mexico.
• Develop Logistics Activities Zones.

14
PORT PROJECTS Mazatlán Multipurpose Terminal
Context

• Location State of Sinaloa.
• To operate and modernize the current multipurpose
  terminal, in an area of 15.2 ha, with 300m quay.
  Additional 1000m of public quays may also be
  used.
• Mazatlán-Durango highway will be the only direct
  connection between the north western and north
  eastern states of Mexico, an opportunity to get
  additional cargo (fully operational in 2012).
• It will handle containers, vehicles and general
  cargo.

Mazatlán Multipurpose Terminal with equipment
available for immediate operations
Benefits
Requirements

• The terminal will help Mazatlán increase its
  hinterland to the northeast part of Mexico.
• Competitive advantage based on smaller transit
  times, due to conclusion of Durango-Mazatlán
  highway.

• Financed with private investment.
• Estimated Cost 40 million USD in port equipment
  (cranes, reach stackers, fork lifters) and 180
  refurbishment of quay 1.
• Estimated date for bidding February 2011.
• Expected capacity 60 thousand TEUs per year

14
15
THANK YOU
15