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PROFIL PROJECT

HUB PORT (MEGA - PORT) IN SAN LORENZO ISLAND CALLAO

PERU SOUTH MERICA

BY: Peruvian Enterprises

- CODESU SAC

- Corporación MEGAMAR SAC

I. - SUMMARY OF THE STRATEGIC CONCEPTION TO ESTABLISH A HUB PORT

1.- Peruvian Geo-political considerations, interrelated with the countries of South America, Pacific Basin and the Atlantic through the Bi-Oceanic corridors (Pacific Ocean-Peruvian and South Americans roads-Amazon rivers-Atlantic Ocean).

Peru is located in the western central part of South America in a privileged position facing the Pacific basin, from whose ports, with scale economic concepts, the South American countries cargo can be concentrated and to re-distribute from there towards the Atlantic Ocean through the Bi-Oceanic corridors in both directions West-East and East-West within an integrated South American region

The integration of South America countries, is becoming a reality with the “Initiative of Integration from South American Regional Infrastructure”- IIRSA agreed in Brasilia – Brazil by the State Heads and Governments in 2,000, whose objective is to generate an meaningful impulse to the regional integration around the Amazon axis, this initiative continues advancing with the Inter-oceanic communication corridors constructions and with the birth of the “South American Community Nations” agreed by twelve States represented by Heads of Governments and State Ministers present in the city of the Cuzco - Peru December 8 2004, that it is the culmination of a convergence process between the “Andean Community Nations” and “MERCOSUR”, that is an integrated space with 17 million of square kilometers, an PBI of US dollars $ 971 thousand millions, a population of 361 million of inhabitants, exports that surpass US dollars 180 thousand millions and more than 120 thousand millions in importations.

2.- The interrelationship market of the Pacific Basin - Peru – South America - Atlantic

There is an immense market that generates huge maritime cargo traffic in both directions between the countries of the Pacific Basin, South America and Atlantic Sea, that is necessary to attend with scaled economic concepts, using large ships to concentrate traffic cargo in a Peruvian Hub Port to be redistributed from there in multi-modal form.

According to the statistics of the Economic Commission for Latin America ECLAC, the cargo registered in 1,988 is more than 866 million of tons in import and export, estimating for a future Peruvian Hub Port by 2,012, that cargo movement considering an annual rate growth average of 3.33% will be more than 1,316 millions of tons, of which 15% would be captured for the Peruvian Hub Port that means more than 197 million tons.

See WEB Page Stadistic ECLAC Statistics of import - export trade in Latin America, in cargo tons.

See Web Page Statistic ECLAC SUMMARY with total and projection of import - export trade in Latin America, in cargo tons.

3.- The ship fleets at the end of the present decade

Lloyd’s Register of Shipping, world leader in ships classification since year 1,760, are reporting on the evolution of ships that with scaled economic concept, became every time bigger, appearing the Ultra Large Container Ships ULCS or Super Post Panamax that at the end of this decade ships will reach dimensions of 381 mts.length, 57 mts.beam, and 29 mts.draft, those which require very ample and deep ports, like the future Peruvian Hub Port in San Lorenzo – Callao island.

See Present time news of Lloyd’s Register of Shipping. Lloyd´s Register of Shipping.

See E-mail del Business Manager – Container Ships Lloyd´s Register of Shipping.27 Oct. 2004 17:05

4.- San Lorenzo island – Callao –Peru Geo-strategic advantages

San Lorenzo Island is located in the central part of the Peruvian coast, very near to Lima city the Capital, which is the country economic and communications pole, especially in roads infrastructure to be developed according to the requirements of a Hub Port. The island is rocky structure special to build docks and breakwaters, length 8 kilometers, 2.2 kilometers broad, 396 mts. of maximum height, an area 1,760 hectares and 3.8 kilometers of land distance nearby “La Punta” - Callao, with quite deep waters more than 50 mts. Up to 70 mts., feasible to be interconnect with the Atlantic through the central Bi-oceanic corridor by the main road - Ucayali river – Amazon river – Belem (Brazil), workable route to develop according to the requirements of the San Lorenzo Island – Callao Hub Port. This corridor is articulated with the north and south planned Bi-oceanic Peruvian corridors, through a coastal highway calling “Panamericana” and the ports of the zone, equally feasible to develop according to the requirements of the planned Peruvian Hub Port.

San Lorenzo Island has large advantages to establish a Hub Port, the great depth of its waters and spacious bay that allows to operate safety future large ships, furthermore it can be considered the future developing projects such as a mega multi - modal terminal of land transportation, a project mega airport, a mega shipyard – mega arsenal for ship building and ships repairs ULCS or Super Post Panamax, as well as a financial – commercial sanctuary, for Peru, Latin America and countries of the Pacific Basin, beside other projects.

San Lorenzo Island – Callao Hub Port project, in addition to the previous advantages, has a privileged geo–strategic position, to serve the cargo fleet traffic of larges ships ULCS or Super Post Panamax with the requirements as an scaled economic, where most part of total Latin American import and export cargo, of more than 1,316 million tons, that flows between the Pacific Basin and Atlantic could be concentrated and redistribute in and from this future Hub Port.

5.- Peruvian Hub Port Project summarize Stages

San Lorenzo Island Callao Hub Port, considers large collateral benefits in construction of each stages, also diverse economic spaces and new opportunities of profitable business that would be in increment of the benefits foreseen by the Hub Port operation and other stages exploitation, during a long term that assures fully the recovery and profit of capital invested; in summary, the project is composed of four stages that will be executed simultaneously by one or several investors and operators, in a 7 years estimated time:

1st. Stage

The infrastructure construction and works of Hub Port, Mega-Airport and Cars and Trucks Terminal, of San Lorenzo Island, winning lands from sea 14.6 Km2. = 14'600,000 M2 and their equipment.

Breakwater construction 3 Km. long x 300 m wide in Punta La Chira” south Lima, that improves sea behavior in the bays north and south Callao and Lima, obtaining sea land tourist and recreation development projects.

To gain sea lands at least 10 million squares meters with the land material and rocks of underground freeways taken out, from “Punta La Chira”, “Punta Pancha” and San Lorenzo Island, obtained for tourist, recreation and commercial development projects.

It is considered the construction of a Navy Base that will give security to the Mega Facilities, the construction of a Shipyard for the construction and repairs of big ships; the construction of a financial Sanctuary, an area for tourist infrastructure, a Maritime Museum and a telematic center of communications mainly for educational purposes

2nd. Stage

Construction of a system of freeways and roads, parking and other services to vehicles in San Lorenzo and Fronton Islands and in the sea lands obtained from “Punta La Chira”, “Punta Pancha”, 50 Km. of longitude

3trd. Stage

Construction of systems tunnels, bridges, freeways and high speed trans-continental railroads, implemented of services passengers, cargo and vehicles, starting from the bi-oceanic corridor from San Lorenzo Island toward the fluvial ports of Pucallpa at 600 Km.

Pipelines construction, for gas and aqueducts through the Andes Mountain, taking advantage of tunnels and bridges freeways and transcontinental railroads, 600 Km.

4th. Stage

Construction systems of water, drainage, treatment of served waters and pressurized watering-fertilizer in urban zones of Bi-oceanic Corridor and cities adjacent to.

Construction of energy systems, illumination, communications and telematic in the urban zones and Central Bi-oceanic Corridor villages in routes.

Construction systems of prevention, decontamination and maintenance of the environment and of sea ecosystems, rivers, lakes and riversides bordering to Central Bi-oceanic Corridor.

Construction of river transportation systems: channels, floodgates, buoys in Amazon rivers zones related Bi-oceanic Central Corridor adjacent to Pucallpa.

International standard habilitation, construction and implementation of Beaches Tourist programs in Coast, high lands and Amazonian bordering to the Central Bi-oceanic Corridor.

Decentralized system of preparation and training personnel implementation for their operational, logistical and administrative activities, for application of pertinent technologies to the execute works and operation, maintenance and machinery and equipments services and other elements to use.

6. Diagrammatical Peruvian Hub Port profile project description

San Lorenzo Island – Callao Hub Port, is a project planned to have large collateral benefits derived from each stage of construction, to generate new economic spaces and profitable business opportunities in addition to the benefits of the Hub Port operation and the other stages exploitation, during a long time period that assure fully the recovery and profit of capital invested. The project is composed of four stages that will be executed simultaneously with only one or several investors and operators, in a 7 years estimated time:

a.- Mega Terminal Port

The principal part of the project, that will be the lever that impel the other stages and develop the other related projects countrywide, mainly those which contribute to the Hub Port.

The Island Hub Port, consists basically of a port terminal with docks depth greater to 50 mts. in the Northwest part where fill will be made with the rocks of the same island, communication means, temporary parking and transit areas for cargo in the surface and underground, that allows a rapid way out cargo terminal, toward continental land through the tunnels.

b.- Interconnections Tunnels

From South of the island, a tunnel southward of “La Punta” will be build, articulated with two large tunnels in two axis West to East and South to North, will flow the cargo transportation by highways and/or railroads, the passengers massive intercity communication from Lima metropolitan Capital of Peru, the nets of electricity, telecommunication, water and sewer, besides other functions, this operation services will generate large economic benefits for the investors, operators and Peruvian State.

c.- Generation of new seaside lands

For an appropriate oceanic adaptation of the terminal in San Lorenzo Island Hub Port, a breakwater in “Punta La Chira” to the South of this Island has to be built. This will calm the waters of the seaside up to “Punta La Pancha”, to the North of the Island, gainning more than 50 kilometers of seaside new land by landfill of extracted material from the tunnels, generating approximately 10 million square meters of new lands, usable in programs, as tourists, residences building, commercial and industrial, besides other programs, with immense economic benefits for the constructors, investors, operators and the Peruvian State.

d.- Fourth stage development, Highway of Bi–oceanic corridor to Ucayali and Amazonas rivers

The tunnel of the West - East axis will be connected in "Chosica" town, about 40 kilometers from Callao to a highway to be developed on the base of the current road "Carretera Central", which will have to be reformulated modify and be widened to sustain the requirements of cargo traffic from the San Lorenzo Island Hub Port, a highway that will shorten distances, using tunnels and bridges, between Callao and Pucallpa city in the Ucayali river, generating new farm lands and taking advantage of aqueducts, lagoons and adjacent rivers for commercial and tourist business opportunities. In Pucallpa city, it will be necessary - with no significant budget - to develop an adequate river port to be articulated with the Hub Port, and from this port, with large Barges, the cargo follows the river rout until the Amazon river, going through the cities of Iquitos (Peru), Manaos and Blem (Brasil). The exploitation of new businesses and this rout will yield large economic benefits for the constructors, investors, operators and the Peruvian State.

Also it will be considered a freeway from Pucallpa to Cruzeiro Do Sul (Brazil) in order to joint the Atlantic through the Brazilian road net

7.- Investment contracts modality, to finance, execute and operate the Project

San Lorenzo Island - Callao Hub Port Project, is profitable and is considered between other modalities that could be designed, is the “Concession” by a term that guarantee the retrieve of the capital, plus the interest and profits that business will generate, term of years and conditions must be agreed between Investor and Peruvian State, with possibility to widen its renovation contract at the end of the term.

8.- Reason to the investors, executioners and operators, be interested in Hub Port Island San Lorenzo Callao Project

The Entities that subscribe this project profile, have the intellectual property of this project, they are promoting it in order to achieve investors, manufacturers and operators, they are analyzed in the world the possibilities in many countries, with executioners, operators of Mega Terminals and investors of great experience in this type of projects and others of great span, as well as the employment of top technology, especially that they come operating Port Terminals in, Asia, America and Europe mainly, as well as with great financial standing to take this project ahead maintaining an appropriate cash flow in a term of execution of the project that is considered in 7 years.

The San Lorenzo Callao Island Hub Port Project, will be the one who concentrate and redistribute the South American cargo, from 2,012 year where could be completed the construction of this Hub Port, great part of South American cargo (more than 1,316 millions of tons/year of import and export cargo of Latin America) with its interrelation between the Pacific Basin and the Atlantic, through the Bi-oceanic Peruvian Corridors, making that immense cargo potential very attractive to the investors for this project, besides the related business that are detailed in the Executive Summary.

In addition that we expressed, we point out that a Hub Port doesn't exist in this part of South America and we consider that having it in San Lorenzo Island, will fill this empty space for the global marine transport that will consolidate the globalization strategy, installing a Hub Port in the center of South America, in order to articulate better with other terminals that they operate mainly among the Pacific basin, South America and Europe countries.

As well we should emphasize that the Peruvian State policy promotes and encourages the international investment.

II. - OUTLINE STEP BY STEP OF THE PROJECT CONTRUCTION

1. - The geo-strategic and geo-political privileged advantages that has the San Lorenzo Island, is to project the Peru to the new necessities of the World Market, especially the markets of the countries of the Pacific and Atlantic basin, the transport of scale economy that it will be made in ships of great draft and the equal distance of the big cities, ports and airports of South America from the island, added to the advantage of having the materials of rocks that are on foot of Work, to have very near the north of the Island depths bigger than 40 meters, capable of depth up to 70 meters, it constitutes the suitable place to make a Hub for Peru and South America.
2. - The profile of the coast of Metropolitan Lima and Callao, also constitute an advantage. Since to carry out the project it is necessary to build an breakwater of 3,000 meters, in Punta La Chira, to attenuate the sea conditions of San Lorenzo Island, and the beaches among Punta La Chira and Punta Pancha to the north of Callao, This will improve the conditions for the ships operations in the Hub Port and the conditions of the new beaches for tourist ends mainly, deviat the resultant of the existent currents, so that instead of hitting in "La Mar Brava", it will hit in the cliffs to the north of the "Punta Pancha".
3. - At present the current resultant, as it is observed in the figure, hits with a considerable surf in "La Mar Brava" in "La Perla", District that belongs to the Callao city, whose force causes an erosion on the roads annually in the mentioned area, that demands from the authorities a constant maintenance.
4. - It is necessary the deviation of the average resultant, in this respect the Peruvian Navy made the corresponding studies whiting the denominated LORENA plan, where the construction of an breakwater is foreseen in "Punta La Chira" to the South of the Lima city, place that has the materials of rocks and the appropriate position. This breakwater will have a longitude of 3,000 meters by 300 meters wide, generating an area of 900,000 square meters with two sea fronts, of high commercial value for tourist, residential and commercial ends that financed the works thoroughly. This breakwater would deviate the currents as it is observed in the figure, giving as new resultant a current that would hit the cliffs of "Ventanilla".
5. - Carried out the fourth step, it proceeds to remove and to displace the material that exists in the "Cabezo Norte" of the Island, building a sub-aquatic structural wall, that dredged later, constituting in several floors the immense warehouses necessary underground for the Hub Port, as well as on the enclosure the roof that will be the base of the hints of the Mega - Airport in the western side, and in the oriental side the jetties will be built for the Super Ships.
6. - Like one can observe in the structure projection, these warehouses will have several floors, inside them, load elevators that they would lower the load in different underground points, where the trucks would be waiting their placement, these mechanisms of hooks, floodgates and elevators, are of common industrial use what would optimize the load and discharges process of the Hub Port. Also is contemplated the traffic of trains. The internal illumination will be possible by means of optic fibers what will provide natural light to the different floors.
7. - Once loaded, the trucks and/or trains, begin their underground displacement, below the San Lorenzo Island always in descent until continuing the underground route below the Callao city.
8. - It is more viable an underground tunnel that a bridge to connect the island with continental earth, the distance of less than 4 kilometers that separate the Island to the outlet point, the depth of the water doesn't exceed 8 meters. In the case of the bridges, the structural bases that would support it would generate for the "venturi" effect, currents that would alter the sea behavior in the suburbs and could be present in the bay a sandy area in abnormal form, with the tunnels there would not be negative ecological impact in the bay, these tunnels will also be illuminated via optic fiber.
9. - The whole project contemplates in principle the habilitation of 4 going rails and 4 return rails, in this part of the project it is considered, three tunnels like observes in the outline, two of 2 rails for side and one exclusively for railroad; all separate and not connected, to maintain their operation permanently in the event of contingencies. All the tunnels will have in places appropriate registration entrances for maintenance and attention to the contingency plans
10. - This structures will be possible to carry out, thanks to the machines TBM (drill machines of tunnels that thanks to the land of the sea bottom of stone rolled in Callao, it will be possible to carry out this excavation in smaller time that in other lands. The mechanical components of the TBM can be manufactured in Peru. The tunnel details contemplate ventilation ducts, gas, electricity, optic fiber, communications, and water, among others. Contributing this way to their maintenance by means of a toll of the elements to transfer for those ducts. The tunnels will also have access to cellular telephony and Internet. Each certain distance will have emergency intercoms, sensors of integral security and video finders, as well as in each exit a central station of emergencies.
11. - As the tunnel of the island advances toward continental land toward "La Perla" District, near the Haya de la Torre avenue with a cliff 69 meters high, enough for not altering the activities of the metropolitan city. Other TBM, will begin to drill in that place building the base of the submarine exit. The extracted material of the tunnels West - East and North - South, will be deposited in the costs among "Punta La Chira" and "Punta Pancha", generating 10 million square meters of new lands gaining from the sea, of great tourist, residential, commercial and industrial value with big and well projected avenues. In the artistic outline, the future exchange entrance vial is observed to the internal tunnel of the city.
12. - Why the tunnel under city? It is necessary to understand that the business of a Hub Port is the transfer of the super ship cargo in the shortest possible time. Lima is a city with an intense and disordered traffic of vehicles, difficultly that would support the transport of the trucks from the San Lorenzo Island Mega Terminal in both way, when the Hub Port is in its good operative capacity. Tunnel of the axis West - East is considered that goes to the vicinity of Chosica city, to solve the cargo and passengers transport for that area of regular populations density and industries, and in accordance with the definitive studies of engineering, would be determined the convenience of beginning an alternative of more direct route. A more direct route would be a tunnel that ends in San Juan of Lurigancho in the deep pass of "Huaycoloro", where there is a suitable place for the cargo central station, first stop to receive or discharge merchandises of other origins. This deep pass is suitable since this constituted in its majority of nitrous sand, not very appropriate for the agriculture, but good to build highways, this corridor would go parallel to the corridor of Lima - Canta. As it is observed in the figure, the segment from San Lorenzo Island to "La Perla" outlet is sub - aquatic, from there until the deep pass of "Huaycoloro" it would be in an underground way.
13. - And from there? the route continuous for parallel places to the Pan-American south highway, entering toward the mountain for the towns of Oyon, Churin that doesn't overcome the 2500 meters sea level, with slope of the freeway that allows an attenuated profile that the transport of the heavy cargo make feasible. This route would be crossing the Andes Mountain with bridges and tunnels using the TBM that shoud be equipped with tungsten carbide in their teeth to perforate the granitic terrain in its majority part. These tunnels will cellular telephony, Internet and illumination by fiber similar as in step 10. This alternative opens a range of facilities for the Peruvian exploration mining, when constituting a new mining class, for the generation of new cultivation lands and new sources of water would give the implementation of many corridors transandinos as a result.
14. - This figure represents approximately the longitude to be diged form a very close place to "Churin", until the town of "Jiganton" in Pasco that has an approximate height 3,000 meters sea level.
15. - Finally, when leaving the other side of the mountain, we are very near the Huanuco city. The route moves with a light descending slope toward the forest until arriving to the City of Pucallpa, where a fluvial port will be built for big barges of cargo transport to continue for the river Ucayali until Iquitos in the river Amazons, Manaos and Belem in Brazil. From Pucallpa a terrestrial route is considered until the Ocean Atlantic, making a freeway that connect Pucallpa with the city of Cruzeiro Do Sul Brazil and from there to use the highways of that country until the Atlantic Ocean. It has been calculated that maintaining an average speed of 80 kilometers per hour in an uninterrupted way will be able to arrive to the frontier with Brazil in not less than 8 hours, what constitutes a remarkable saving of time. This Project of Hub Port for Peru and South America is a convenient economic alternative of trade for the world of the XXI century that will generate 2 million work positions between direct and indirect, and it will contribute to improve the economy of Latin America.