Los Angeles

Kingston

Freeport

New York

Manzanillo

Manta

Manzanillo

Veracruz

La Unión

Balboa

a

NORTH –SOUTH Americas Route (Pacific)

Trans- Pacific Route

Global hub

Maritime space: Maritime space: Opportunity for cargo managementOpportunity for cargo management

Global HUB : Logistics center for concentration, processing, and distribution of cargo and information, in East- West

Regional HUB : Redistribution of cargo in areas of centralized routes , East-West with North-South routes.

Cargo feeder ports.

Manta

Callao

Mejillones

Guayaquil(Pacific)

NORTH –SOUTH

Americas Route

(Atlantic)

Routes and Terminal networks

Regional hub

Feeder

GrowthGrowth of of maritimemaritime tradetrade……

GrowthGrowth raterate of of worldworldtradetrade isis twicetwice thethe raterateof of worldworld GDPGDP

MaritimeMaritime tradetrade in in TEUsTEUsgrewgrew almostalmost threethree

11%World traffic -TEUs

7.7% World Trade

Growth rate

grewgrew almostalmost threethreetimes times thethe raterate of of worldworldGDPGDP

World Trade

4.2%World GDP

2008P2008P200020001992199219841984

Case 1: LaborCase 1: Labor--intensive firmsintensive firms(ARNECOM) ZAL: 73 acres x 500 jobs =(ARNECOM) ZAL: 73 acres x 500 jobs = 36,500 jobs36,500 jobs

Case 2: Logistics firms (RANSA)Case 2: Logistics firms (RANSA)ZAL: 73 acres x 50 jobs = ZAL: 73 acres x 50 jobs = 3,650 jobs3,650 jobs

Case 3: Firms adding value to cargo (Uruguay)Case 3: Firms adding value to cargo (Uruguay)

EmploymentEmployment creationcreation at La at La UnionUnion

Case 3: Firms adding value to cargo (Uruguay)Case 3: Firms adding value to cargo (Uruguay)

4,500 jobs could be created.4,500 jobs could be created.

Descripction of ports of La Union y Acajutla

Case 4: Firms already installed at Port’s adjacent Case 4: Firms already installed at Port’s adjacent areas (e.g. Cutuco Energy, AES Fonseca, Calvo)areas (e.g. Cutuco Energy, AES Fonseca, Calvo)

Case 5: Port operationsCase 5: Port operations-- 1,500 jobs1,500 jobs

Case 6: Nearby areas to Port: Case 6: Nearby areas to Port:

Employment generation at La UniónEmployment generation at La Unión

47,250 new jobs in those 5 industrial parks47,250 new jobs in those 5 industrial parks

Case 7: By small and medium firms (SMEs) in: Case 7: By small and medium firms (SMEs) in: construction, repair shops, food preparation construction, repair shops, food preparation services, etc.services, etc.

Case 8: Case 8: By public servicesBy public services: security, health, : security, health, education, etc. education, etc.

Employment generation at La UniónEmployment generation at La Unión

education, etc. education, etc.

Case 9: Related to the naval activities related to Case 9: Related to the naval activities related to maritime law enforcement maritime law enforcement

Case 10: Jobs to be created in tourism related Case 10: Jobs to be created in tourism related activities activities

CaseCase 1111:: CompaniesCompanies offeringoffering complementarycomplementary servicesservices::Telecommunications,Telecommunications, financialfinancial andand insuranceinsurance;; maritimemaritimeandand landland transportationtransportation;; professionalprofessional services,services, suchsuch asasaccountingaccounting andand auditing,auditing, etcetc..

Case 12: Vessels’ maintenance and repair Case 12: Vessels’ maintenance and repair

Employment generation at La UnionEmployment generation at La Union

Case 12: Vessels’ maintenance and repair Case 12: Vessels’ maintenance and repair

Case 13: Various services to shipsCase 13: Various services to ships

According to UNCTAD: It is estimated that 1 direct According to UNCTAD: It is estimated that 1 direct job creates 2 indirect jobs.job creates 2 indirect jobs.

At present, El Salvador is a country with little presence At present, El Salvador is a country with little presence in the maritime regional businessin the maritime regional business

AcajutlaAcajutla is the only port offering limited service to local is the only port offering limited service to local marketsmarkets

AcajutlaAcajutla has very low productivity in relation to has very low productivity in relation to AcajutlaAcajutla has very low productivity in relation to has very low productivity in relation to movements of TEU/hour/vessel:movements of TEU/hour/vessel:

2001: 82001: 8

2008: 25, 2008: 25, using ships’ cranes onlyusing ships’ cranes only

Investments at the Port of Acajutla

Cargo Cargo volumevolume estimatedestimated in in 2033 (2033 (AcajutlaAcajutla and La and La UnionUnion))

8811348,016348,0161111446,415446,415TEUTEU MTMT

OtherOther differentdifferent toto TEUsTEUsIn In TEUsTEUs

TEUTEU MTMT

PresentPresent cargo cargo volumevolume: : 2008 (2008 (AcajutlaAcajutla))

3311229,000229,000158,500158,500 TEUTEU MTMT

Goal: becoming a REGIONAL HUB ports, thus need to Goal: becoming a REGIONAL HUB ports, thus need to be operated under:be operated under:

Excellent managementExcellent management

“Know“Know--how” of maritime business and 3how” of maritime business and 3rdrd. . generation portsgeneration ports

Capacity of business “creation” through Capacity of business “creation” through Capacity of business “creation” through Capacity of business “creation” through networking and powerful negotiations power networking and powerful negotiations power with shipping lineswith shipping lines

Heavy and timely investmentHeavy and timely investment

Present owner Present owner -- operator, CEPA, does not have these operator, CEPA, does not have these capabilities.capabilities.

AdditionalAdditional investmentinvestment: $655.9 : $655.9 millionmillion

Port La Unión:Port La Unión:EndedEnded:: ConstructionConstruction Fase IFase IToTo do’sdo’s:: EquipmentEquipment Fase IFase I

ConstructionConstruction Fase II, andFase II, andBusiness Business developmentdevelopmentBusiness Business developmentdevelopment

Port of Port of AcajutlaAcajutla::ToTo do’sdo’s: : InvestmentInvestment toto cope cope withwith

infrastructureinfrastructure deteriorationdeteriorationand and improvementsimprovementsBusiness Business expansionexpansion

Loan Loan forfor thethe constructionconstructionof Port La Unión of Port La Unión

JBIC: $102.1JBIC: $102.1

Total: $179.5 Total: $179.5 millionmillion

JBIC: $102.1JBIC: $102.1

CEPA’sCEPA’s share: share: $ 77.4$ 77.4

HistoricalHistoricalInvestmentInvestmentat Port of at Port of AcajutlaAcajutla

In 46 In 46 yearsyears ((sincesince1961) CEPA 1961) CEPA investedinvested $30.8 $30.8 millionmillion in in

year land infrastructure equipment total

1961-1989 10,414,413.23$ 2,090,427.33$ 12,504,840.56$

1990 11,073.95$ 188,610.63$ 199,684.58$

1991 2,242.74$ 5,422,710.80$ 5,424,953.54$

1992 525,692.15$ 525,692.15$

1993 71,947.91$ 71,947.91$

1994 107,211.85$ 107,211.85$

1995 379,306.87$ 379,306.87$

1996 42,149.14$ 3,723,283.28$ 3,765,432.42$

1997 5,306,870.87$ 925,837.46$ 6,232,708.33$

1998 4,461,109.40$ 4,461,109.40$

Operatorwill investin 25 years, $104.2 million

More than3 times CEPA’s investment in half the time.

millionmillion in in equipmentequipment

1998 4,461,109.40$ 4,461,109.40$

1999 3,203,640.48$ 3,203,640.48$

2000 444,822.16$ 340,711.57$ 785,533.73$

2001 15,242,949.96$ 1,852,222.95$ 443,114.40$ 17,538,287.31$

2002 270,192.52$ 3,882,338.36$ 4152,530.88$

2003 7,601,088.86$ 3,555,999.14$ 11,157,088.00$

2004 224,697.74$ 99,069.77$ 323,767.51$

2005 1,191,053.69$ 1,191,053.69$

2006 1,593,466.72$ 186,840.77$ 1,780,307.49$

2007 68,958.50$ 68,958.50$

15,242,949.96$ 27,763,240.88$ 30,867,864.36$ 73,874,055.20$

…in …in needneed of of anan strategicstrategic partnerpartnerthatthat::

MakesMakes possiblepossible thetheadditionallyadditionally requiredrequiredinvestmentinvestment in timein timeinvestmentinvestment in timein time

Uses Uses itsits expertiseexpertise in in businessbusiness developmentdevelopment

TransfersTransfers technologytechnology totoportport operationoperation

Concession of both ports: Acajutla and La Union, Concession of both ports: Acajutla and La Union, according to natural inclination of each portaccording to natural inclination of each port

PublicPublic--private contract : 10% government and private contract : 10% government and 90% strategic partner90% strategic partner

Future development of 80.6 Acres (48.6 in La Future development of 80.6 Acres (48.6 in La

ConcessionConcession ProposalProposal

Future development of 80.6 Acres (48.6 in La Future development of 80.6 Acres (48.6 in La Unión and 32 in Acajutla) for logistic purposes Unión and 32 in Acajutla) for logistic purposes now under CEPA’s administration and controlnow under CEPA’s administration and control

Period of concession: 25 years with possibility of Period of concession: 25 years with possibility of another 10 another 10

Similar cases in Latin AmericaConcessions in Latin America

PORT OF SINGAPORE AUTHORITYPORT OF SINGAPORE AUTHORITYSINGAPURSINGAPUR

22HUTCHINSON PORTS HUTCHINSON PORTS HOLDING , CHINAHOLDING , CHINA

11

1616

HHaveave notnot yetyet visitedvisited

33

SSA MARINESSA MARINEUSAUSA

99

2020

HaveHave alreadyalready visitedvisited

PotentialPotential worldworld--classclass firmsfirms interestedinterested in in ourourportsports

MEDITERRANEAN SHIPPING MEDITERRANEAN SHIPPING CO. , CO. , SwitzerlandSwitzerland

88

NIPPON YUSEIN KAISHANIPPON YUSEIN KAISHAJAPANJAPAN

1616

PORTSAMERICAPORTSAMERICAUSAUSA

--

APM TERMINALSAPM TERMINALSHOLANDAHOLANDA

33 ICTSI Y MARUBENIICTSI Y MARUBENIPHILLIPINES/JAPANPHILLIPINES/JAPAN

2020

KATOEN NATIEKATOEN NATIEBelgiumBelgium

--DUBAI PORTSDUBAI PORTSDUBAI DUBAI -- UAEUAE

44

SUDAMERICANA AGENCIAS SUDAMERICANA AGENCIAS AÉREAS Y MARÍTIMAS, CHILEAÉREAS Y MARÍTIMAS, CHILE

--CONSORCIO MARÍTIMO CONSORCIO MARÍTIMO

SALVADOREÑO, EL SALVADORSALVADOREÑO, EL SALVADOR--

OtherOther firmsfirms interestedinterested

::

GovernmentGovernmentRevenueRevenue(25 (25 yearsyears)) ACAJUTLAACAJUTLA LA UNIÓNLA UNIÓN TOTALTOTAL

$2,255.6$2,255.6$2,255.6$2,255.6$2,255.6$2,255.6$2,255.6$2,255.6

DividendsDividends $81.1

DownpaymentDownpayment(min amount for concession)

$60.0

$517.9375.5142.4 32%

4%

millionmillion

(Payment to governement% of income per port services)RoyaltyRoyalty

$1,599.7$1,599.7

TaxesTaxes(VAT and Income Tax) $940.7823.5117.2

DividendsDividends(per 10% of share participation)

$81.1 5%

59%

INVESTMENTSINVESTMENTS$2,255.6$2,255.6

$655.9$655.9

Local Local taxestaxes

Investment required

KnowKnow--howhow fromfrom operatoroperator

ShareholderShareholder 10% 10% participationparticipation : : paidpaid--up and up and sustainedsustained byby strategicstrategic parterparter thruthru entireentirecontractcontract

GovernmentGovernment benefitsbenefits

sustainedsustained byby strategicstrategic parterparter thruthru entireentirecontractcontract

DownpaymentDownpayment $60.0 $60.0 millionmillion

Royalties : $517.9 Royalties : $517.9 millionmillion

VAT and VAT and IncomeIncome taxestaxes: $940.7 : $940.7 millionmillion

DividendsDividends forfor $81.1 $81.1 millionmillion

RiskRisk of of investmentinvestment isis transferedtransfered toto strategicstrategicpartnerpartner

GovernmentGovernment maintainsmaintains strategicstrategic interestsinterests byby

GovernmentGovernment benefitsbenefits

GovernmentGovernment maintainsmaintains strategicstrategic interestsinterests bybyholding a place at holding a place at BoardBoard of of DirectorsDirectors

GovernmentGovernment willwill receivereceive anan ongoingongoing businessbusinessat at thethe endend of of thethe 25th 25th yearyear..

HumanHuman capital capital developmentdevelopment

Territorial and local Territorial and local developmentdevelopment in in thethe regionregionof La Unión of La Unión

EnpowermentEnpowerment of of geopoliticalgeopolitical leadershipleadership of El of El

AdditionalAdditional benefitsbenefits

EnpowermentEnpowerment of of geopoliticalgeopolitical leadershipleadership of El of El Salvador in Salvador in thethe GulfGulf of Fonsecaof Fonseca

DevelopmentDevelopment of of maritimemaritime cultureculture

Improvement of local infrastructure at sub Improvement of local infrastructure at sub regions of La Union and Acajutlaregions of La Union and Acajutla

Naval Force strengtheningNaval Force strengthening

Institutional supports from:Institutional supports from:

WhatWhat isis leftleft toto bebe done?done?

Institutional supports from:Institutional supports from:

Territorial law and creation of areas Territorial law and creation of areas under special regime (under special regime (ABREABRE-- areas areas bajobajoregimen especial).regimen especial).

•• MunicipalityMunicipality•• CEPA (CEPA (PortsPorts ComissionComission))•• AMP (AMP (PortsPorts--MaritimeMaritime AuthorityAuthority))

DevelopDevelop a a nationalnational strategystrategy toto promotepromotelogisticlogistic areasareas (in (in chargecharge of of governmentgovernment))

DevelopDevelop a municipal a municipal policypolicy toto promotepromoteinvestmentinvestment and and employmentemployment

DevelopDevelop a a nationalnational logisticlogistic policypolicy as as

WhatWhat isis leftleft toto bebe done?done?

DevelopDevelop a a nationalnational logisticlogistic policypolicy as as indicatedindicated byby thethe MinistryMinistry of of EconomicsEconomics

CalvoCORSAIN

89 89 MzMz

AES Fonseca

Cutuco Energy

TROPIGAS Adjacentarea

95 Acres95 Acres

Area of port activities:Area of port activities: Area of logistic Area of logistic

activities: activities:

89 89 MzMz

611 m611 m

580 m580 m

603 m603 m

Total Total dockingdockingyardyard lenghtlenght::1,794 m1,794 m

FASE IFASE I124 Acres124 Acres

FASE IIIFASE III78 Acres78 Acres

FASE IIFASE II66 Acres66 Acres

54 Acres54 Acres

AdjacentAdjacent areaarea

95 Acres95 Acres

57 Acres57 Acres

7 Acres watertreatment plantfinanced by AES

Area of logistic Area of logistic

activities: activities: AreeaAreea of port of port activities:activities:

•• Cars Cars YardYard: 36,000 m: 36,000 m22

•• ContainerContainer YardYard: : 50,000 50,000 mm22

•• WarehousesWarehouses (4): 30,000 m(4): 30,000 m22

•• SolidSolid BulkBulk WarehouseWarehouse: 30,000 TM: 30,000 TM

•• Docks: 9 AcresDocks: 9 Acres

Dock Dock lengthlength: 270 : 270 DepthDepth: : --12 12

Dock Dock lengthlength: 313: 313DepthDepth: : --8 a 8 a --12 12 WideWide: : 37 37

Dock Dock lengthlength::North dock: 360North dock: 360South dock: 336South dock: 336

DepthDepth: : --8 a 8 a --1212WideWide: 28: 28

metersmeters

Dock Dock lengthlength: 270 : 270 DepthDepth: : --12 12 WideWide: 19: 19

Total dock Total dock lengthlength: 943: 943

InvestmentInvestment bybyOperatorOperator (25 (25 yearsyears))

ACAJUTLAACAJUTLA LA UNIONLA UNION TOTALTOTAL

$655.9$655.9$655.9$655.9$655.9$655.9$655.9$655.9$313.9 million (present value)

InfrastructureInfrastructure

EquipmentEquipment $383.3336.546.8 58%

millionmillion

$655.9$655.9$551.6$104.2

TechnologyTechnology $29.116.212.9

InfrastructureInfrastructure $243.4198.944.5 37%

5%

16% 84%

ConstructionConstruction (up (up toto changechange 8)8) $161.3$161.3

CounterpartCounterpart officeoffice $7.0$7.0

InterestsInterests paidpaid toto JBICJBIC $4.8$4.8

LandLand acquisitionacquisition $5.1$5.1

FencesFences $0.7$0.7

Note: Local taxes are notincluded (pending of definitiion by SupremeCourt).

US$179.5 m.US$179.5 m.

FencesFences $0.7$0.7

DesignDesign modificationmodification $0.6$0.6

• All government shares paid by HPH

• Operator commited to make all investments

• If equity is increased , government holds its 10% 10%

TerminalsTerminals of Cristóbal and Balboa: PPPof Cristóbal and Balboa: PPP10% 10% GovernmentGovernment of of PanamaPanama90% Hutchinson 90% Hutchinson PortsPorts Holding (HPH)Holding (HPH)

PublicPublic--PrivatePrivate PartnershipPartnership (PPP): (PPP): SomeSomeexamplesexamples

Cristóbal

• Government invest according to its share participation

• Government receives incomes due to royalties and share participation.

Terminal of Montevideo: PPPTerminal of Montevideo: PPP20% 20% GovernmentGovernment of Uruguayof Uruguay80% 80% KatoenKatoen NatieNatie

• If equity is increased , government holds its 10% 10%

• Government receives incomes as a share holder and royalties over salesBalboa

Cuenca del Plata

OperatorOperator of of worldworldclassclass..

GovernmentGovernment• The government receives the know how fromoperator to become a regional hub.

• Receives a share participation which is paid by theoperator.

• It is not committed to make any investmentduring the time of the concession.

• It is entitled to share dividends as a stockholder• The government does not take the risk of investment

• It is entitled to receive a royalty over gross sales of

SomeSome pointspoints aboutaboutthethe proposalproposal

classclass.. • It is entitled to receive a royalty over gross sales of port business

• The government receives income due to, income tax, VAT and municipal taxesbecause the operator has to comply withthese payments.

• Has command on strategic topics through its share participation

• The governmet will receive an ongoingbusiness in 25 years.

• Sound legal system providessafeguards for a 25 year investment

• Has flexibility to manage the business

• An attractive rate of return overinvestment

• The ports of El Salvador complement theregional chain of ports of operator.

SANTA FE, ROSARIO

CARTAGENA, BARRANQUILLA, STA. MARTA, BUENAVENTURA

ARICA, SAN VICENTE

ESMERALDAS, MANTA, GUAYAQUIL

VERACRUZ, ENSENADA, L. CARDENAS, MANZANILLO, GUAYMAS, ALTAMIRA, MAZATLÁN

ARGENTINAARGENTINA

COLOMBIACOLOMBIA

ECUADORECUADOR

MEXICOMEXICO

CHILECHILE

MasterMaster ConcessionConcession: 28: 28

GUAYMAS, ALTAMIRA, MAZATLÁN

BALBOA, CRISTOBAL, MANZANILLO, EVERGREEN

MATARANI

CAUSEDO, HAINA

KINGSTON

SANTOS

BARRIOS

MEXICOMEXICO

PANAMAPANAMA

PERUPERU

DOMINICAN REPDOMINICAN REP

JAMAICAJAMAICA

BRAZIL BRAZIL

GUATEMALAGUATEMALA

COQUIMBO, TALCAHUANO, PTO. MONTT, PUNTARENAS

PUERTO CORTES

MONKEY POINT

PAITA, PISCO, ILO, CHIMBOTE, SALAVERRY, IQUITOS, PUCALLPA, YURIMAGUAS

PUERTO PLATA

Concesiones maestras in Concesiones maestras in processprocess: 15: 15

CHILECHILE

NICARAGUANICARAGUA

PERUPERU

DOMINICAN REPDOMINICAN REP

HONDURASHONDURAS

PUERTO PLATADOMINICAN REPDOMINICAN REP

BUENOS AIRES (7 TERMINALES)

VALPARAÍSO, SAN ANTONIO, IQUIQUE, ANTOFAGASTA

CALLAO

Terminal Terminal concessionsconcessions: 12: 12ARGENTINAARGENTINA

CHILECHILE

PERUPERU

ANTOFAGASTA, COQUIMBO, VALPARAÍSO, SAN ANTONIO, PTO. MONTT, PUNTARENAS

QUETZAL

CORINTO

Terminal Terminal concessionsconcessions in in processprocess: 8: 8

CHILECHILE

NICARAGUANICARAGUA

GUATEMALAGUATEMALA

LA HABANA (GOBIERNO + SOCIEDAD ESPAÑOLA)

ROATAN (EMPRESA NACIONAL PORTUARIA + ROYAL CARIBBEAN)

TERMINAL DE MONTEVIDEO (AUTORIDAD PORTUARIA + KATOEN NATIE)

TERMINAL BALBOA (ESTADO + HUTCHINSON)

TERMINAL COLON (ESTADO + HUTCHINSON)

PublicPublic PrivatePrivate PartnershipPartnership (PPP): 5(PPP): 5CUBACUBA

URUGUAYURUGUAY

HONDURASHONDURAS

PANAMAPANAMA

FORTALEZA, RECIFE, SALVADOR, RIO DE JANEIRO

MARACAIBO, PTO. LA CRUZ

STO. TOMAS DE CASTILLA,

LIMON-MOIN

ACAJUTLA

StateState: 9: 9BRAZILBRAZIL

VENEZUELAVENEZUELA

GUATEMALAGUATEMALA

EL SALVADOREL SALVADOR

COSTA RICACOSTA RICA

MasterMaster ConcessionConcession:: 6363PPPPPP 55GovernmentGovernment as as operatoroperator:: 99

19921992--2008: Management of 2008: Management of portsportsin in LatinLatin AmericaAmerica

12% 12%

82%82%MasterMaster ConcessionConcession

12% 12% GovernmentGovernment6%6%

PPPPPP

92,857103,483

119,133

144,458

158,500158,500158,500158,500180,000

160,000

140,000120,000

100,000

AcajutlaAcajutla: : ContainersContainers cargocargo

TEUTEU

*Using ship cranes

17,721

41,840

65,576

92,857

2008P200620042002 2007200520032001

YearsYears

100,00080,000

60,00040,000

20,0000

AcajutlaAcajutla: : OtherOther typetype of cargo of cargo differentdifferent fromfrom containerscontainers

SolidSolid BulkBulk56%56%

LiquidLiquid BulkBulk36%36%

GeneralGeneral8%8%

MT MT thousandsthousands

2,4472,447 2,5082,5082,8132,813

3,4543,4543,1913,191 3,2293,229

4,0003,500

3,0002,3432,343 2,2342,234 2,4472,447 2,5082,508

2,8132,813

2008P200620042002 2007200520032001YearsYears

3,0002,500

2,0001,500

1,000500

0

OriginOrigin of of estimatedestimated cargocargo

Port La UniónPort La Unión:•Freight in containers: 1.38 milllion TEUs (Graph representsestimated freight in Port La Unión)

•Cargo not in containers: 800,000 Metric tons (imports for project of Energy using coal).

44% % % % % % % % drydrydrydrydrydrydrydry canalcanalcanalcanalcanalcanalcanalcanal

50,000 TEU,

11% 11% transtrans--shippingshippingand and valuevalue addedadded

160,000 TEU

Energy using coal).

Port of Port of AcajutlaAcajutla::• Cargo not in containers: 7.5 million Tons (Local cargo increasedwith regional cargo throughoperator )

• Cargo in containers: 0.07 millionsTEU (Generated by local cargo through feeder port)

880 mil TEU,

64% 64% domesticdomesticcargocargo

290 ,000 TEU,

21% regional 21% regional cargocargo

2001:2001:•• OpinionOpinion surveysurvey ECLAC 2001: ECLAC 2001: AcajutlaAcajutla isis thethemostmost inefficientinefficient portport in in

LatinLatin AmericaAmerica•• Cargo in Cargo in containerscontainers: 17,000 TEU: 17,000 TEU•• 1,200 1,200 employeesemployees totomanagemanage 2.5 2.5 millionmillion TMTM

ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 yearsyearsyearsyearsyearsyearsyearsyears operationoperationoperationoperationoperationoperationoperationoperation

•• 1,200 1,200 employeesemployees totomanagemanage 2.5 2.5 millionmillion TMTM•• AccumulatedAccumulated lossloss up up toto 2001: $20 2001: $20 millionmillion•• 8 8 movementsmovements //hourhour per per shipship

2006:2006:•• 35% of 35% of requestsrequests forfor proposalproposal deserteddeserted

20082008•• PoorPoor additionaladditional investmentinvestment: (: (1 single 1 single bulkbulk cranecrane fromfrom1961; 1961; obsoleteobsolete

yardyard cranescranes))•• No No operatingoperating profitsprofits•• PoorPoor commercialcommercialmanagementmanagement

ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 ACAJUTLA: 50 yearsyearsyearsyearsyearsyearsyearsyears operationoperationoperationoperationoperationoperationoperationoperation

•• PoorPoor commercialcommercialmanagementmanagement•• VeryVery littlelittle investmentinvestment in in humanhuman capital ( capital ( onlyonly 2 2 practicespractices))•• LimitedLimited developmentdevelopment of of additionaladditional areasareas toto portport sectionsection ((OpsalOpsal, ,

Diana, Diana, IminsaIminsa y y CenérgicaCenérgica): 14% in 50 ): 14% in 50 yearsyears•• FirmsFirms suchsuch as Rasa, as Rasa, AlcasaAlcasa, , AlmapacAlmapac, , FerticaFertica, Puma, , Puma, DukeDuke EnergyEnergy, ,

ARFS and ARFS and TermopuertosTermopuertos: : allall of of themthem in in privateprivate landland outout of of portport areaarea..•• 80 80 familiesfamilies invadedinvaded portport landland. .

6060708080

$ million

AnnualAnnual dividendsdividends(10% (10% GovernmentGovernment))

$80.9$80.9$80.9$80.9$80.9$80.9$80.9$80.9

$24.9 million (Present Value)

millionmillion

TheyThey willwill varyvary accordingaccording totobusinessbusiness developmentdevelopment

In 25 In 25 yearsyears::

-

0

10202030404050

6060

YearsYears2 3 4

556 7 8 9

101011 12 13 14

151516 17 18 19

202021 22 23 24

252511