Investment Opportunities
in the State of São Paulo
Sergio Costa
Director
Investe São Paulo
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
Investment Promotion Agency
Our Customers
Investments Announced:
US$ 6.4 billion
Direct Jobs:
20.840
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.
DABO
Exchange rate: US$ 1 = R$ 1.80
Brazil on the World Stage
Brazil, the 7th economy of the planet
GDP - US$ billions
4th Germany
2,250
10th Canada
3,286
11th Russia
6th UK
1,480
1,577
2,055
12thSpain
1,410
14,527
2,563
8th Italy
5,459
5th France
5,878
3rd Japan
9th India
1st USA
1,632
2,090
7th Brazil
2nd China
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
Source: IMF - year 2010
Selected Countries:
Territory, Population and Economy
Population > 100 million
Territory > 3 million
km2
Russia
Canada
India
Netherlands
Italy
Indonesia
Nigeria
Brazil
Japan
United Kingdom Germany
Bangladesh
China
Australia
United States
Pakistan
Mexico
France
South Korea
Spain
Economy (GPD) > US$ 750 billion
Investment Promotion Agency
Source: IMF, World Bank - 2010
Brazilian Age Structure
2010
2020
2050
80
50
30
0
Opportunity
Larger contingent of working-age
population = possibility of increasing
productivity
Challenges
Increase on health and social security
expenditures
Investment Promotion Agency
Source: IBGE / Revista Veja, December 2010.
Social Mobility
AeB
C
D
E
Year
2014
31
113
40
16
projection
2009
20
2003
95
13
0
44
66
20
40
47
60
80
100
29
49
120
140
160
180
200
Millions of Inhabitants
Investment Promotion Agency
Source: Banco Central do Brasil/ FGV
State of São Paulo
Competitive Advantages
Brazil and São Paulo State
Brazil
8,515
Population (millions)
191
Nominal GDP (US$ bln) 2,143
GDP per capita (US$)
11,093
Territory (1,000 km²)
São Paulo
Territory (1,000 km²)
Population (millions)
Nominal GDP (US$ bln)
GDP per capita (US$)
248
41
690
16,757
21% of the population
32% of Nominal GDP
1.5X of GDP per capita
Investment Promotion Agency
Sources: IBGE, Brazilian Central Bank and SEADE – Exchange Rate US$ 1 = R$ 1.76
São Paulo Highlights
•
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 production
Sugar – 23 million tons/year
Beef – US$ 2.18 billion in exports
Investment Promotion Agency
Index of Municipal Development
The best ranked Brazilian municipalities are in the State of São Paulo
IFDM Ranking
Ranking
IFDM
UF
UF
Ranking
IFDM
IFDM Ranking
BRAZILIAN MUNICIPALITIES
MUNICÍPIOS
BRASILEIROS- -YEAR
Ano2009
2009
IFDM
IFDM
Emprego &&
Employment
Income
Renda
Educação
Education
Saúde
Health
National
Nacional
State
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 José 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
39 out of the 50 best ranked
Brazilian municipalities are in the State of São Paulo
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
Largest Consumer
Market in LATAM
Environmental
Responsibility
Skilled
Workforce
São Paulo
Competitive
Advantages
Social
Development
World-class
Infrastructure
Largest Brazilian
Investor in R&D
Investment Promotion Agency
R&D / Innovation
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.
Fundação de Amparo
à Pesquisa Científica e
Tecnológica (Fapesp)
US$ 512 million
annual budget
3 universities among
the ones that most
develop scientific
research in Brazil
USP, Unicamp
and Unesp
19 research institutes
IPT
international
recognition
30 initiatives of
Technology Parks
All over
the state
Investment Promotion Agency
Technological and Technical Schools
Largest program of technical education in Brazil
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
Investment Promotion Agency
Higher Education
521 college level institutions all over the State
24% of Brazil’s total
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
Source: USP, Unicamp. Unesp
Investment Promotion Agency
High Quality Infrastructure
•
•
•
•
•
•
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
Investment Promotion Agency
High Quality Infrastructure
Highway
Railway
Pipeline
Waterway
Airport
Port
Source: Transportation Secretariat of State of São Paulo
Investment Promotion Agency
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 Promoção
de Investimentos e Competividade
São Sebastião Harbour
• 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
Source: Porto de São Sebastião – US$ 1 = R$ 1,8
Agência Paulista de Promoção
de Investimentos e Competividade
Expansion and Modernization
of the Airports
LOT 2 - SÃO JOSÉ DO RIO PRETO
LOT 5 - PRESIDENTE PRUDENTE
LOT 4 - RIBEIRÃO PRETO
LOT 3 - BAURU - MARÍLIA
Fonte: Secretaria de Planejamento e Desenvolvimento Regional
LOT 1 - JUNDIAÍ
Agência Paulista de Promoção
de Investimentos e Competividade
Environmental Responsibility
•
•
•
•
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
Source: Energy Secretariat of State of Sao Paulo, Forest Foundation
Investment Promotion Agency
Energy Matrix of São Paulo
Renewable Energy: 54,7% of the Matrix
Mineral coal;
Natural 2,3% Firewood and
Coal; 1,7%
Gas; 7,2%
Oil and e
Derivatives;
35,7%
Cane
Products;
32,7%
Hydraulic and
Electricity;
17,9%
Others
Renewables;
2,5%
Fonte: Departamento de Energia do Estado de São Paulo
Agência Paulista de Promoção
de 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
Agência Paulista de Promoção
de Investimentos e Competividade
Brazil: 2nd Producer and
1st Exporter worldwide
Ethanol production (billion liters)
Investment Promotion Agency
Source: ICONE, FIESP
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 Promoção
de Investimentos e Competividade
Ethanol Logistics Multimodal
Integrated System
Agência Paulista de Promoção
de Investimentos e Competividade
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
5 research divisions
Division of
Biomass to
Bioenergy
(focus in sugar
cane)
Fonte:fapesp
Division of
Research about
socio-economic
impacts,
environmental,
and use of the
soil.
Division of
Biorefinary and
Alcohol
Chemistry
Division of
Process of
Biofuel
Manufacturing
Division of
Ethanol
Aplications for
Automotive
Motors.
Fapesp Evolution of Revenues
(U$ milhões)
616
488
419
367
324
273
242
143
151
2002
2003
Fonte: Fapesp
177
2004
2005
2006
2007
2008
2009
2010
2011
Agência Paulista de Promoção
de Investimentos e Competividade
Thank You!
Sergio Costa
Director
Tel. + 55 11 3218-5311
[email protected]
www.investe.sp.gov.br
SECRETARIA DE DESENVOLVIMENTO
ECONÔMICO, CIÊNCIA E TECNOLOGIA