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FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas
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FIU Case Study on Miami Versus Panama as a Distribution Hub for the Americas

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Florida International University (FIU) graduate students take a look at Miami versus Panama as a distribution hub to the Americas. …

Florida International University (FIU) graduate students take a look at Miami versus Panama as a distribution hub to the Americas.

Based on the findings and following an iterative analysis, the team drew conclusions, identified the strengths and weaknesses of each distribution hub, and made strategic recommendations to the client according to which key drivers are important to their customers, and depending on the type of shipment needing to be transported.

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  • 1. Running head: LILLY AND ASSOCIATES 1 Lilly and Associates Robert Brown, Yasmina Lazrak, Kuo Li, Nicolas Lopez Segura, and Yao Lu Florida International University
  • 2. LILLY AND ASSOCIATES 2 Lilly & Associates Executive Summary In the light of all the big projects being conducted in the region, would the Panama Canal be a more suitable distribution hub to Latin America than the historic PortMiami? The increasing need for viable shipping routes in the Americas is of upmost importance, and Lilly & Associates has been at the cusp of multinational shipping and logistics service specializing primarily in ocean shipping for the almost two decades. As defined by the North American Industry Classification System, Lilly and Associates International falls under the category of 488510 - Freight Transportation Arrangement which states, “This industry comprises establishments primarily engaged in arranging transportation of freight between shippers and carriers. These establishments are usually known as freight forwarders, marine shipping agents, or customs brokers and offer a combination of services spanning transportation modes” (census.gov). Through a research-based comparative analysis, the team investigated each port’s infrastructure, international freight rates, multiple costs, the characteristics of typical industries, and the socio- political and economic trends of each distribution hub. A brief analysis of the market share, vis- à-vis the competitors was also conducted. The cost of doing business in both hubs as well as the cost of real estate, including renting/leasing property for storage, was also considered. Overhead costs, including the cost to rent or purchase equipment and the number of cranes currently operating in each hub were also included in the comparative analysis. This analytical phase resulted in a matrix that includes these key drivers in tabular format. This matrix serves as the proposed strategic framework requested by the client. Our secondary research consisted of dividing the main categories of infrastructure, shipping costs and costs of doing business into subcategories from which we could find quantitative data for each and perform analysis. From our extensive quantitative data search, we used a balanced scorecard to ultimately construct a framework to draw conclusions and make recommendations as to which port should be used as a distribution hub to Latin America; PortMiami or the Panama Canal. Based on the findings and following an iterative analysis, the team drew conclusions, identified the strengths and weaknesses of each distribution hub, and made strategic recommendations to the client according to which key drivers are important to their customers, and depending on the type of shipment needing to be transported. Although these recommendations seem feasible, it is worth noting that two limitations were identified in this inquiry. First, due to time constraints, the team was not able to survey the workforce in PortMiami and in the Panama Canal as it had initially intended. Survey results could have corroborated the social, political, and economic forces influencing operations in both hubs. Second, when comparing data between a country and a city the data may have inconsistencies. Further studies regarding this research problem should consider such limitations. Keywords: distribution hub, shipping routes, international freight rates, strategic framework
  • 3. LILLY AND ASSOCIATES 3 Table of Contents Executive Summary................................................................................................................Page 2 Introduction.............................................................................................................................Page 4 The Research Problem ............................................................................................................Page 7 Research Design......................................................................................................................Page 7 Findings...................................................................................................................................Page 9 Limitations............................................................................................................................Page 13 Recommendations.................................................................................................................Page 13 Conclusions...........................................................................................................................Page 15 References.............................................................................................................................Page 16 Appendixes ...........................................................................................................................Page 21
  • 4. LILLY AND ASSOCIATES 4 Introduction Lilly and Associates International was founded in 1996 as a multinational shipping and logistics services company specializing in ocean shipping primarily to Latin America (Boroski, 2013). Currently, Lilly and Associates International has wholly-owned offices in Colombia, Venezuela, Panama, China, and Guatemala with over 40 domestic and 150 international employees. As defined by the North American Industry Classification System, Lilly and Associates International falls under the category of 488510 - Freight Transportation Arrangement which states, “This industry comprises establishments primarily engaged in arranging transportation of freight between shippers and carriers. These establishments are usually known as freight forwarders, marine shipping agents, or customs brokers and offer a combination of services spanning transportation modes” (census.gov). Lilly’s value to its customers is created by several conditions. The company provides global scope and coverage through its multifaceted shipping methods. There is protection of shippers and consignee information, and that information is never breached. They allow for a hands-off approach where there is no need for the client’s staff to get involved with the logistics process. Lilly handles all transactions, including the clearing and facilitating of shipments. The company also affords the client more time to focus on their business purpose. The trust that Lilly fosters brings a sense that it is not just a service provider, but a business partner. They offer the best price possible and provide accurate information about price changes. Clients always receive documents 10 days before the shipment arrives, so they never have to be concerned about follow-ups. These attributes are its value proposition.
  • 5. LILLY AND ASSOCIATES 5 Table 1 shows research on the estimated size in dollars of the Freight Transportation industry and its related trends. Table 1 Industry Data According to IBISWorld Industry Report 48851, industry revenue will grow in line with improved international trade levels Based on the Porter’s Five Forces Analysis, the freight forwarding industry has a low attractiveness rating. SEE APPENDIX A few fundamental areas could completely change this image. Knowing the customers’ needs and adapting its services to their needs by further deepening relationships with suppliers will allow a company to master the buyer bargaining power as well as the supplier bargaining power, allowing ultimately that company to strengthen its position within the industry.
  • 6. LILLY AND ASSOCIATES 6 A strength of Lilly & Associates is the presence of close relationships with its customers and strong partnerships with suppliers. The company always positions itself close to the point of supply which is a fairly highly strength: China is becoming increasingly more important in the trade world and Lilly & Associates has positioned itself accordingly given this trend. One of the weaknesses the team identified is the existence of a fairly low market share in a very competitive industry. Thus, one of the threats is that while there is a clear opportunity for Lilly & Associates to capture the market potential companies who possess larger market share could expand faster. Furthermore, the turmoil surrounding Venezuela could negatively impact the business affairs of Lilly & Associates because they have clients and suppliers located within this region. Also, fluctuations in the price of crude oil can have an influence on Lilly & Associates’ costs and prices. On the opposite side, the investments occurring within the Latin American region have an evident impact on Lilly & Associates’ future business. The opportunity identified is the expansion of the Panama Canal and PortMiami. This expansion could potentially prove beneficial to Lilly and Associates if the opportunity is seized. The expansion of the Panama Canal and PortMiami will have an impact on Lilly and Associates’ business for years to come. The investment of 13.6 billion dollars at the Panama Canal and 2 billion dollars at PortMiami will change the landscape of ocean trade. Within the Panama Canal, 2 new locks, larger and deeper canal entrances, two new Panama Post-Panamax complexes, and the elevation of Gatun Lake will all provide the port with greater capacity. At PortMiami, improved truck connections, the construction of an underwater tunnel to improve the timing from the port to external areas and intermodal container rail service will support the larger ships allowed to transit the Panama Canal.
  • 7. LILLY AND ASSOCIATES 7 Research Problem Based on market share data drawn from IBISWorld.com, the biggest players in the industry are displayed in Figure 1. Direct competitors of Lilly & Associates International are CH Robinson, Palalpina, Clover Logistics (in Venezuela), and DAMCO. All, except for Clover, are extremely large. Given this information, it can be estimated Lilly & Associates does not share an overwhelming share of the market. The team’s estimates conclude that it shares approximately 1.8% of the market in which it operates. The purpose of this research is to assist Lilly and Associates International assess the advantages and disadvantages of utilizing either PortMiami or the Panama Canal as suitable distribution hubs into Latin America to ultimately increase their market share. The use of data from each port’s regional infrastructure, international ocean freight rates, the cost of doing business, political forces in or outside the region and various factors coupled with the types of shipments Lilly and Associates identified as significant, will form the foundation of our analysis. With data drawn from our initial analysis, a framework can be designed which will provide research-based metrics that can serve as a decision-making tool to satisfy the research problem. Research Design Our team scheduled a meeting with Lilly & Associates International’s Executive Director of Marketing, Ashley Boroski, and co-owner Nelson Cabrera. This meeting helped us define accurately the management problem and thus the research problem. It also allowed us to capture the key factors that the company examines when making a decision to use PortMiami or the Panama Canal as a distribution hub to Latin America. It was found that the key factors are Figure 1
  • 8. LILLY AND ASSOCIATES 8 political forces, infrastructure, shipping costs and costs of doing business. In order to be able to quantify these key factors, we divided the main categories of infrastructure, shipping costs and costs of doing business into subcategories from which we could find quantitative data for each and perform analysis. From our extensive quantitative data search, we used a balanced scorecard to ultimately construct a framework to draw conclusions and make recommendations as to which port should be used as a distribution hub to Latin America; PortMiami or the Panama Canal. The subcategories are shown in Appendix A as well as relevant quantitative data used to create the decision framework. The team first thought to use a Z-score Analysis however this kind of study is more appropriate when comparing and analyzing more than two elements. Further primary research gathered from Lilly & Associates revealed that all of the factors taken into consideration are usually classified according to their direct or indirect impact on the two key drivers which ultimately affect decision making: cost and time. Factors were then re- classified accordingly. Although both cost and time are nonetheless significant, they still have different importance or weight on decision making for Lilly & Associates depending on the type of goods being shipped. For example, when shipping textiles, cost is more important than time while when shipping animals and/or fresh produce time is determinant. For each activity the weight of cost and time are different. Knowing that these two elements are very important, however they have different levels of importance when analyzing the shipment of different types of goods. This inquiry led us to ascertain the main shipments which Lilly & Associates handles shown in appendix A. Subsequently a weight was assigned to cost and time per type of shipment for both PortMiami and the Panama Canal. After a weight was assigned to cost and time per type of shipment, the team assigned a score to each factor within the key drivers based on a Likert Scale from 1-10 where 10 is the best score
  • 9. LILLY AND ASSOCIATES 9 possible and 1 being the poorest score. see appendix These scores will help us determine if either PortMiami or the Panama Canal will be a better distribution hub based on the type of shipment given the main categories of infrastructure, shipping costs and costs of doing business and considering the drivers of cost and time. Findings Beginning at the broadest level, the team will compare the global attractiveness of the Panama Canal versus PortMiami which shows an over result. To narrow our focus a comparison of the Panama Canal to PortMiami in terms of cost attractiveness and time attractiveness will then be covered. The discussion will then move to a cross analysis of cost and time per port. Within this analysis the cost attractiveness and time attractiveness will be assessed for each type of shipment for each port. At the deepest level of our analysis the comparison of cost and time matrix will be presented which will help to determine the competitive advantage per port as it relates to each type of shipment.
  • 10. LILLY AND ASSOCIATES 10 Analysis of the data reveals that the Panama Canal seems to be more attractive than PortMiami overall. This data is drawn from the scorecard see appendix The team then determined the types of shipments that are above average in terms of cost and time in each port. This allows us to have a first idea about the type of shipments that would be good to route through PortMiami and/or the Panama Canal. The horizontal line displayed in the graphs included in the appendix section denotes the calculated average attractiveness in terms of cost and time for each port. The activities with numbers greater than the horizontal line are above average and should be given special attention by the given port. Analysis of the data reveals that textile and machinery are above average in PortMiami, minerals and machinery are above average in the Panama Canal in terms of cost. see appendix A&B. An important note is that machinery represents 17% of the total Panama Canal activities and 27% of PortMiami total activities. When it comes to time, chemicals and transportation are above average in PortMiami.
  • 11. LILLY AND ASSOCIATES 11 see appendix C. Within the Panama Canal it seems to be more attractive for plastics and metals see appendix D. For each of the ports we now graph each type of shipment crossing time and cost attractiveness scores where the results depend on the weight assigned to cost and time for each type of shipment. If the results fall within the upper right quadrant, there is high attractiveness in terms of cost and time, then we have a clear “winner”. If the results fall within the lower left quadrant, there is low attractiveness in terms of cost and time, which means that this cannot be an option. The result will be weighed according to the importance of time or cost for a given activity, if the results falls within the upper left quadrant, or the lower right quadrant. When it comes to PortMiami, the cross analysis confirms the positive trend for machinery, textiles, chemicals, and transportation. See appendix F. For the Panama Canal there is machinery, minerals, plastic, and metals. See appendix G. This analysis confirms the results of the previous analysis. Which of the ports should we choose when it comes to each of the activities? The following analysis will compare the Panama Canal and PortMiami for each activity resulting into the competitive advantage for each of the activities. When it comes to textiles, remember cost was much more important than time; 80% vs 20% respectively. Our recommendation is PortMiami
  • 12. LILLY AND ASSOCIATES 12 for textiles. Then as it relates to transportation, PortMiami and the Panama Canal are at almost the same level. It is more attractive to go through PortMiami because it has almost the same cost attractiveness as the Panama Canal however, it also has a higher time attractiveness. In reference to raw hides, skins, and leather, PortMiami has a low cost and time attractiveness therefore the recommendation is the Panama Canal. For Plastics, the Panama Canal has a clear cost and time advantage. For Metal, the recommendation is the Panama Canal. Cost is more important than time when it comes to metals and the Panama Canal has a higher a cost attractiveness than PortMiami. For minerals, stone & glass, and wood, the Panama Canal has a much higher cost attractiveness. For machinery, cost and time have exactly the same importance. In PortMiami machinery represents 27% of the total activities. Within the Panama Canal machinery represents 17% of total activities. Consequently it is important to keep metals in both ports for distribution. For chemicals, PortMiami is the recommendation. For food stuff and animals & vegetables, PortMiami has a low cost and time attractiveness while the Panama Canal has higher time attractiveness. For Miscellaneous goods, the cost is much more important than time, hence even if PortMiami has a low cost and time attractiveness, the recommendation is to choose PortMiami because unlike the activities where they are at the same level of cost, PortMiami has a clear higher cost attractiveness than the Panama Canal. The chart Type of Shipment Recommendation Appendix # Textile PortMiami H Transportation PortMiami I Raw Hide, Skins & Leather The Panama Canal J Plastics The Panama Canal K Metal The Panama Canal L Minerals The Panama Canal M Stone & Glass The Panama Canal N Wood The Panama Canal O Machinery Both P Chemicals PortMiami Q Food Stuff The Panama Canal R Animals & Vegetables The Panama Canal S Miscellaneous PortMiami T Competitive Advantage Summary
  • 13. LILLY AND ASSOCIATES 13 above is a summary of the competitive advantage for each type of shipment and where its subsequent graph results can be found in the Appendix section. Limitations The timeframe allotted to conduct research had an impact on this study. While conducting the research analysis it was found that one of the key elements which is the workforce in each region proved to be more complex in nature. A research study dedicated to the workforce surrounding each region might provide additional insights. Not only do the costs of the labor force have an impact on deciding which port to use as a distribution hub however, the quality of the workforce and how the cultural background of workers can impact the productivity at each port necessitates more understanding. Taking the time to deeper understand these interactions in both regions can provide more comprehensive decision making. Recommendations Based on the research analysis the team’s recommendation is to reinforce Lilly & Associates’ presence in Panama. There is a clear opportunity where the Panama Canal is concerned. Investments should be made based on the recommended types of shipments in each port. In addition to that, Lilly and associates holds 1.8% market share with a clear and strong strategy of understanding its customers. We clearly identified when analyzing the industry that proximity with both clients and suppliers are the key success drivers in this industry. One way Lilly and Associates could strengthen its strategy and offer a more competitive service is through specialization per port in their key activities. If Lilly & Associates specializes in miscellaneous
  • 14. LILLY AND ASSOCIATES 14 goods, textiles, machinery, transportation, and chemicals in PortMiami, the company would be covering 70% of the total activities in this port. Within the Panama Canal, if Lilly and Associates specializes in machinery, minerals, metals, animals & vegetables, and food stuff, the company would be covering 60% of the activities handled at this port. A continued reinforced partnership with China will be extremely beneficial. Most of the items that circulate within the Americas come from China, which makes China a key supplier to the region. Finally, while conducting our research, we found a lot of information about The Nicaragua Canal project and how this new project could impact distribution and change the rules as it relates to Latin America. The Nicaragua canal project could potentially change the face of trade in Latin America. Lilly & Associates could be pioneers in taking
  • 15. LILLY AND ASSOCIATES 15 advantage of this new information through a deeper understanding of the project and the key drivers. Conclusion At the present time the maximum size container ship that can pass through the Panama Canal is 5000 TEUs. Upon completion of the expansion project, vessels that will be able to pass through can have a maximum size of 13000 TEUs. The usage of these larger ships could ultimately reduce total delivery costs. This reduction results from lowering ocean transportation costs. Also high-capacity container management systems can be used due to the increase volume of containers that will pass through the Canal. There is a high probability that the expansion will have an impact on international trade flows and alter the demands on transportation networks and related operations. Lilly & Associates International will see an increase in market share should it strategically align itself with this approaching opportunity.
  • 16. LILLY AND ASSOCIATES 16 References Average energy prices, miami-fort lauderdale. Bureau of Labor Statistics, US Department of Labor. Boroski, A. L. (2013, January). Multinational logistics company, Lilly & Associates International, moves into new Miami headquarters location. Business Wire n.pag. Retrieved from NewsBank on-line database (Access World News) Brown, R. (2013). Monthly salaries in panama. The Retirement Detectives. Retrieved from http://www.retirementdetectives.com/latest-news/1-latest-news/1176-monthly-salaries-in- pana.html Bureau of Labor Statistics. (2014). Economy at a glance - miami, fort lauderdale, pompano beach. United States Department of Labor. Retrieved from http://www.bls.gov/eag/eag.fl_miami_msa.htm Cargo gateway of the americas. PortMiami. Retrieved from http://www.miamidade.gov/portmiami/cargo-main.asp Chapple, R. Starting a business in Miami. Miami: About.com Miami. Retrieved from http://miami.about.com/cs/business/a/aa041302a.htm Colon free trade zone. Panama City: BusinessPanama Group. Retrieved from http://www.businesspanama.com/investing/opportunities/cfz.php Connecting florida to the world.. Florida East Coast Railway. Retrieved from http://www.fecrwy.com/about Conway, K. C. (2012). North american port analysis - preparing for the first post-panamax decade. Colliers International.
  • 17. LILLY AND ASSOCIATES 17 Corruption by country. Transparency International. Retrieved from http://www.transparency.org/ Crane data. Port Of Miami, Crane Management Inc. Retrieved from http://www.cranemgt.com/crane-data/ Crime rates for miami. Location Inc Neighborhood Scout. Retrieved from http://www.neighborhoodscout.com/fl/miami/crime/ Current freight rail system and services in florida . Retrieved from http://www.dot.state.fl.us/rail/PlanDevel/Documents/FinalInvestmentElement/G- Chapter2 FreightRail.pdf Economic research - per capita personal income in miami-fort lauderdale-pompano beach, fl. FederalReserve Bank of Saint Louis. Retrieved from http://research.stlouisfed.org/fred2/graph/?s[1][id]=MIAM112PCPI Foreign commerce & aid: Foreign investment. United States Census Bureau. Retrieved from http://www.census.gov/compendia/statab/cats/foreign_commerce_aid/foreign_investment .html Foreign direct investment, net inflows (% of gdp). The World Bank. Retrieved from http://data.worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS Florida state highway lane miles. Florida Department of Transportation - Office of Policy Planning. Retrieved from http://www.floridatransportationindicators.org/index.php?chart=13a Gimenez, C. A. (2013). Miami international airport cargo hub. Miami Dade County. House prices decrease in panama, but investment booming. (2011) Global Property Guide. Retrieved from http://www.globalpropertyguide.com/Latin-America/Panama Industry at a glance. (2014, January). Retrieved from
  • 18. LILLY AND ASSOCIATES 18 http://clients1.ibisworld.com.ezproxy.fiu.edu/reports/us/industry/ataglance.aspx?entid=12 09 Labor force & salaries. Business Panama - Turning your project into Business. Retrieved from http://www.businesspanama.com/about_panama/investment/labor_salaries.php Mann A. J. (2012, April). Lilly & Associates International on the move - Logistics firm Lilly & Associates International is planning a Latin America expansion. The Miami Herald. Retrieved from NewsBank on-line database (Access World News). Miami free trade zone. (2014) Doral: FTZ World Services. Retrieved from http://www.ftzworld.com/CaseStudies/OurClients/MiamiFreeZone.aspx Miami free zone. Miami: Retrieved from http://www.miamifreezone.com/ Miami market trends, real estate in miami. Trulia. Retrieved from http://www.trulia.com/real_estate/Miami-Florida/market-trends/ Navigational areas. Port Authority of Manzanillo - Secretaria de Comunicaciones y Transportes. Retrieved from http://www.puertomanzanillo.com.mx/engs/0020302/navigational- areas North American industry classification system. (2012). Retrieved from http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=488510&search=2012 NAICS Search Panama crime stats. Nation Master. Retrieved from http://www.nationmaster.com/countryinfo/profiles/Panama/Crime Panama, doing business project (2014). The World Bank Group. Retrieved from http://www.doingbusiness.org/data/exploreeconomies/panama/paying-taxes/
  • 19. LILLY AND ASSOCIATES 19 Panama Energy. Business Panama - Turning your project into Business. Retrieved from http://www.businesspanama.com/investing/opportunities/energy.php Panama energy report. (2013) Enerdata. Retrieved from https://estore.enerdata.net/energy- market/panama-energy-report-and-data.html Panama: Inflation, consumer prices (annual %) (2014). Fact Fish. Retrieved from http://www.factfish.com/statistic-country/panama/inflation rate Panama gdp - per capita (ppp). Index Mundi. Retrieved from http://www.indexmundi.com/panama/gdp_per_capita_(ppp).html Panama the world fact book. Central Intelligence Agency. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/pm.html Panama transport stats. Nation Master. Retrieved from http://www.nationmaster.com/country info/profiles/Panama/Transport Port of balboa. World Port Source. Retrieved from http://www.worldportsource.com/ports/commerce/PAN_Port_of_Balboa_1602.php Seaports side-by-side comparison. Gerogia Tech Logistics Innovation and Research Center. Retrieved from http://logistics.gatech.pa/en/assets/seaports/side-by-side Spear, C. Miami’s 3rd quarter industrial report. Miami Warehouse Hub. Retrieved from http://www.miamiwarehousehub.com/category/blog/ Talley, W. K. (2009). Port economics. Routledge. The colon free trade zone, panama republic of panama. (2014) Colon Free Trade Zone. Retrieved from http://www.colonfreetradezone.com/freezone-colon.html
  • 20. LILLY AND ASSOCIATES 20 Trade agreements. Office of the United States Trade Representative, Executive Office of the President. Retrieved from http://www.ustr.gov/trade-agreements Trade & investment agreement about panama. Business Panama - Turning your project into Business. Retrieved from http://www.businesspanama.com/about_panama/fundamentals/trade_agreements.ph p United States, doing business project (2014). The World Bank Group. Retrieved from http://www.doingbusiness.org/data/exploreeconomies/united-states Wage and hour division (whd). (2014) United States Department of Labor. Retrieved from http://www.dol.gov/whd/minwage/america.htm
  • 21. LILLY AND ASSOCIATES 21 Appendix A Research Agenda To address the research problem, the team would like to understand the environment of both ports and what customers expect from an efficient and effective logistics management for their shipments. Secondary Research When it comes to handling shipments and the logistic tasks of a company, there are several things that would determine the competitiveness of a route over another. To understand this concept, the team would like first to have a clear overview of all the key elements of each transit port. That is why the team plans to gather the following information about both Port of Miami and Port of Panama: Volume potential. First of all, the team would like to understand, based on industry statistics, what the total volumes/shipments handled by both ports are and how they have evolved over time. Freight rates and restrictions. As Lilly & Associates is dealing with different kinds of companies, the team would like to understand how the import-export tariffs, the freight rates (from the main trade areas of the world to Panama and Miami) and the customs restrictions can be different from one activity to the other in both ports. Infrastructure. The team plans to identify the levels of infrastructure and the environment development of both ports. To do so, the researchers would like to know how developed are the transport networks, including current enhancement projects (port on itself,
  • 22. LILLY AND ASSOCIATES 22 roads and highways, airports, rails and canal); the access to technology and telecommunication network development, especially that more and more suppliers are located in China and new technologies have a big impact on time productivity; electric and water access; and health and hospitals development. In addition, identifying the school and education levels of the potential work force will help understand the man/hour productivity. Cost of doing business. The team would like to determine the direct costs of each port (e.g., real estate for warehouses costs, human resources and more specifically their productivity, equipment, energy, etc.), as well as indirect costs (e.g., labor qualification and quality). Political forces. In this section, the team is going to identify different elements that could impact the quality of the process, including political stability and social factors. For example, Based on past trends it is anticipated that Panama could face a political turmoil once a new president is elected. Other factors include corruption that could have an impact on both timing and costs. International Trade Agreements and how each port could benefit from some of them for different activities, government trade regulations, tax policy, labor and environmental laws, and safety and crimes. Primary Research To be able to complete this overview, the team would also want to know what the most important elements are for both the customers and the logistic consultant companies and what could impact their decision regarding the choice of a route over another. Logistics companies. To understand main concerns when choosing a port over another. Customers. To understand their main concerns regarding their shipments. Are they more sensitive to time or costs? The team would also want to determine
  • 23. LILLY AND ASSOCIATES 23 what would be the perfect shipment for them and what elements trigger the externalization of their shipments to Latin America. Design of Research For the Port of Miami and the Panama Canal, the team plans to collect the following data on each region:  International Freight rates and restrictions  Infrastructure  Cost of doing business  Political Forces Average freight rates from different places around the world to Panama and average cost of warehousing goods directly influence the total cost of using a specific port for shipping. Proper analysis of these rates are needed in order determine whether the Port of Miami or the Panama Canal would be a suitable distribution hub. Transport networks have a great influence on a harbor city. The amount of airports can decide how fast products can be transported to and from destinations around the world. In addition, the width of the streets and the amount of traffic surrounding a port are significant factors in determining the usefulness of a port. Political forces are a crucial element within the analysis of the Port of Miami and the Panama Canal as viable shipping hubs. Political stability directly influences commercial activities. With this in mind, safety and crime rates will also be examined. The level of corruption around each port is also critical. Tax policies, labor laws, and environmental law will be addressed in this section in order to provide a legal foundation.
  • 24. LILLY AND ASSOCIATES 24 Another stake of the comparison between the Port of Miami and the Port of Panama is to realize the cost of doing business for each seaport. To do so, many elements must be taken into account. The first one is the cost linked to the real estate, especially warehousing. Companies that want to ship their products through those ports or want to implant themselves in those areas have to know the price per square foot when renting property, when storing goods in a private warehouse, or when buying personal real estate property. Their choice will depend on the volume of their shipments, their frequency, and the zone where they want to stock their products. The second element is a cost directly linked to the real estate cost; namely the equipment price. Depending on the surface of the warehouse, the needs in equipment will be more or less obvious. Also, the price of energy such as water, gas or electricity will be very crucial to understand and evaluate. Additionally, the cost of insurance is an essential component when doing business. It is even more essential when handling the shipment of merchandise. For administrative purposes, the costs linked to the opening of a business and related bureaucratic loopholes are also necessary when comparing the two ports. The team will take into account the time value and the monetary value of opening business. To this end, the team will try to determine how many days and how much money is necessary to open a business in Miami or in Panama. The cost of doing business is not only the expenses, but also the potential revenues if goods are sold directly in the country or in neighboring countries from Central America and the Caribbean. A variable, such as the purchasing power parity or the Bic Mac Index will show in which port the company is susceptible to sell its goods at a higher price.
  • 25. LILLY AND ASSOCIATES 25 Finally, the cost of human resources and also their skills and professional qualifications in Miami and Panama will be another focus of this study. The team plans to discover whether companies pay higher wages in Miami or Panama, and to what degree the levels of compensation could be detrimental to quality. Research & Analysis With industry data drawn from IBISWorld and various databases that relate to each agenda item extracted from the libguides.com website, the team can construct a framework (flowchart, Venn diagram, etc.) to provide the metrics Lilly and Associates International is requesting. The team will review additional databases, including: GlobalEdge, DataBank, and LexisNexis, among others.
  • 26. LILLY AND ASSOCIATES 26 APPENDIX Appendix A
  • 27. LILLY AND ASSOCIATES 27 The horizontal line displayed in the graph below denotes the calculated average attractiveness in terms of cost and time. The activities with numbers greater than the horizontal line are above average in terms of cost. These have a higher score that seem to be more attractive in terms of cost. Appendix B
  • 28. LILLY AND ASSOCIATES 28 Appendix C
  • 29. LILLY AND ASSOCIATES 29 Appendix D.
  • 30. LILLY AND ASSOCIATES 30 Appendix E. Appendix F
  • 31. LILLY AND ASSOCIATES 31 Appendix G
  • 32. LILLY AND ASSOCIATES 32
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  • 42. LILLY AND ASSOCIATES 42 Research : Elements ELEMENTS CODE WHY? MAIN IMPACT (Time or Cost) Infrastructures (tangible and intangible) Number of loading goods (in million dollars ) or Export in 2012 LOADING The value of the loading is important in a way that it shows the importance of the port in exporting goods in general and the importance of the different kind of products in particular in the geographical region. This element will impact the cost because of the economy of scale. The more a port is used as a distribution hub for a certain kind of good , the more needed ressouces to manage it, the more abondant are the ressources to manage them, and then the cheaper they are. COST Number of unloading goods (in million dollars) or Import in 2012 UNLOADING The value of the unloading is important in a way that it shows the importance of the port in importing goods in general and the importance of the different kind of products in particular in the geographical region. This element will impact the cost because of the economy of scale.The more a port is used as a distribution hub for a certain kind of good , the more needed ressouces to manage it, the more abondant are the ressources to manage them, and then the cheaper they are. COST Number of docksides cranes CRANES The numbers of cranes gives an elment of the size, the capacity of unloading and loading and the time consuming of the ports. It is especially right for conteneurs and normal cargos.This element will impact the time because more there are cranes, faster will be to load TIME
  • 43. LILLY AND ASSOCIATES 43 and unload goods. Channel length (feet) C-LENGH The channel length gives an other element of the size, the capacity of unloading and loading and the time consuming of the ports. This element will impact the time because longer will be the docks, faster will be the loading and unloading. TIME Channel or port depth (feet) C-DEPTH The channel depth is another element of the size of the ports but it will be also useful to know if all the cargos are able to enter the ports. Deeper is the port, larger will be the cargos to get into it. The time will be then impacted. TIME Number of docks DOCKS The number of docks gives another element of the size, the capacity of unloading and loading and the time consuming of the ports. This is really important for the bulk cargo, dry bulk cargo and other cargo that do not need cranes to load and unload. This element will impact the time because more docks there are, faster will be the loading and unloading for all kind of goods but in particular liquid, vehicles, or dry goods. TIME Port Capacity of containers (in nb of TEU in 2012) CAP-CONT The port capacity of containers shows another element of the port size and the capacity of stocking the goods in the port before trucks or train pick up them . This element will impact the time because larger will be the port capacity, bigger will the warehousing capacity. Then, importers and exporters will not wait. TIME
  • 44. LILLY AND ASSOCIATES 44 Number of international airports handling good transfers (essential for the shipping) AIRPORT The number of airport is important for calculating the capacity of a port to be a distribution hub. Today, many goods are internally distributed by planes. More there are airports close to the port, faster will be the distribution in the region or more generally in the country. TIME Distance between main airport and port (in miles) D-AIR-PORT As the number of airports is important, the distance that rely them to the ports are also important and will impact the time. Further are the airports, slower will be the distribution. TIME Networt of railways around the port (km) RAIL The size of the railways network around the port will be important to evaluate the capacity to spread the goods as fast as possible. More there are railways, stronger will be the capacity to be a distribution hub. TIME Distance between main railways and port (in miles) D-RAIL-PORT As the network of railways is important, the distance that rely them to the ports are also important and will impact the time. Further are the train stations , slower will be the distribution. TIME Network of roads and highways (in miles) ROAD The network of roads and highways around the port is important because it will show the capacity to distribute goods through trucks or even cars. More there are miles of roads , faster and larger will be the distribution. TIME Infrastructure improvement project linked to the ports (in billion dollars) IMPROV The transactions are direclty impacted by the infrastructure development in the region of the ports. If they are many infrastructure projects, it will be certain that transactions will raise because the time consuming will be lower. TIME
  • 45. LILLY AND ASSOCIATES 45 Surface of Free Trade Zones (km2) FTZ The size of the FTZ are a crucial element of infrasctructure that will impact the cost. Larger are the FTZ areas, more goods will be stocked at free tariffs. The capacity to stock goods at free taxes will impact the capacity to cut costs. COST Ease of doing business (index 2014) EASEDOING This variable show us the ease of doing business in general.The ease of doing business index is a general indicator of the possibility to open a company. In general, easier is to open a company, faster will be to do it. Then, it can be assume than less costs will be attributed to the company opening. However, the most important element impacted is the time. TIME Nombre of day to open a company OPENCOMPA NY This element is really important in term of time. Companies will be more willing to open a distribution center where it will be faster and easier to open it. In other terms, companies try to avoid red tapes. Or at least it will be an element that they will take into account in their choice. TIME Labor force Quality LABOR FORCE QUALITY One of the most important element. The quality of the labor force vary from a country to another. Even if the cost of the labor force is the most important in a choice to invest abroad, the quality of this labor force will avoid time problems linked to formation and training, resolving human resource problems or thefts... TIME Political Forces Investments FDI (% of GDP in 2012) FDI The Foreign Direct Investment percentage show us the development of the region and the courtesy to welcome foreign companies. More they are FDI, faster will be to do the transactions TIME
  • 46. LILLY AND ASSOCIATES 46 because the administrations offices will be accustomed to it and the infrastructures will be developped. Corporate tax (% of profit) CORPOTAX PROFIT The corporate tax is a really important element of cost. Higher will be the taxes, lower will be the will to invest there. COST Inflation rate (in % 2012) INFLA It is obvious that the inflation rate is a drive in the choice to invest abroard or not. It will impact all your costs now and in the future according to its trend. COST GDP per capita (in dollar/year/capita in 2011) PPP When you want to implant a distribution hub for a specific kind of goods, you have to analyze the purchasing power of the region. Who will be willing to buy your products? Do they earn enough money to buy this specific product? The higher is the inflation rate, the lower people will be willing to buy expensive or compulsory goods. The lower is the inflation, the higher price will have the products. COST Number of Jobs offered (in millions) JOBS If many jobs are offered in the region, it will mean that available workforce can be found. Also, it means that qualified or experienced workers can be hired. It will avoid lost of time during the recruitment. TIME Recession or boom (in %) GROWTH As the FDI rate, the growth will show us the development of the region. The more developped is the region, the faster goods will transfer from a point to another within this area. TIME
  • 47. LILLY AND ASSOCIATES 47 Number of people connected to Internet (millions of connected people in 2012) INTERNET Nowadays, Internet is extermely important. After interviews with people investing abroad, the trend shows that some countries have shortcoming in term of access to Internet. Companies loose time when they have to deal without Internet due to interruption or just due to the slowness to open a new line. The most evident variable to integrate this element is the percentage of connected people. TIME Control Corruption rates (in %) CORRUP The more there is corruption, the lower companies will be willing to invest. In fact, this element will be a lost of time for companies. They will need more time to deal with the government and other institutions. TIME Rates of crimes ( crimes per 1000habts in 2012)) CRIME Contrary to the corruption that has a direct effect on time, the crimes affect the cost. Crimes include the homicides, robberies and other infractions. They won't have a direct effect on the time but mostly on the cost (replacement of the stolen goods, increasing of insurance costs, damages...) COST Number of international agreements for trade AGREEMENT The number of international agreements to trade is more and more important. With agreements as the WTO or regional agreements, countries facilitate their relationships between each other. The removal of tariffs, quotas and other trade limitations and restrictions will allow companies to gain time and to earn more money in avoiding extra costs. TIME and COST Cost of doing business (direct and indirect) Cost of warehousing goods (USD/ sqm/ month in average) C-WAREHOU Crucial! How can we deal with merchandises without taking into consideration the cost of warehousing. It is also more COST
  • 48. LILLY AND ASSOCIATES 48 evident for large and bulky goods or for goods that need refrigerated environment. Cost of real estate to buy (USD/ sqm/ month in average) C- REALESTATE The cost of real estate will normally impact once the company. When they will set up their company, they will need to buy or rent commercial offices, warehouses, and other buildings. COST Cost of human ressources (min/hour in 2013) C-WAGE Other crucial element! The cost of human resources is a key motor of the choice to invest or not in a foreign country. It is one of the first element that company evaluate. That's why we can see companies that relocate their distribution center in other country just because of the low wages. COST Cost of insurance average C- INSURANCE The cost of insurance will depend on the safety of the environment and the geographical environment (weather, possibility of natural disasters). The safer is the environment, the lower will be the cost of insurance. This element vary extremely according to the countries. COST Cost of equipment C- EQUIPMENT The cost of equipment allow us to see if the companies can get machinery to run the company in the country or if they have to import them. Not only it includes the direct price in the country but also the services that belong to it (maintenance, reparations). COST Cost of energy ($/Kwh) C-ENERGY The cost of energy is another cost to analyze. Warehouses, offices and all the other administrative departments need a large amount of energy. COST Cost to open a company (% of income/ capita) C- OPENCOMPA The cost to open a company is a cost that companies will take care once. It is not the more important cost however it is an element to COST
  • 49. LILLY AND ASSOCIATES 49 take into consideration at a lesser level. Freight Rates and Customs duties Cost of Custom Duties/ Tarriffs per category CUSTOM- DUTIES The customs duties are different all over the world and are imperative to analyze before to do business in a port or another. They will impact the cost factor. COST Average Freight Rates from or to Ecuador (Average price per containers of 20' and 40') FREIGHT ECUAD Even if we talk about the price of the containers and it could be not appropriate for some kind of merchandises transported in dry or liquid (raw minerals, liquids…), it represents an overview of the price of the transport in general. COST Average Freight Rates from or to Chile (Average price per containers of 20' and 40') FREIGHT CHILE Even if we talk about the price of the containers and it could be not appropriate for some kind of merchandises transported in dry or liquid (raw minerals, liquids…), it represents an overview of the price of the transport in general. COST Average Freight Rates from or to Brazil (Average price per containers of 20' and 40') FREIGHT BRAZ Even if we talk about the price of the containers and it could be not appropriate for some kind of merchandises transported in dry or liquid (raw minerals, liquids…), it represents an overview of the price of the transport in general. COST Average Freight Rates from or to Argentina (Average price per containers of 20' and 40') FREIGHT ARGENT Even if we talk about the price of the containers and it could be not appropriate for some kind of merchandises transported in dry or liquid (raw minerals, liquids…), it represents an overview of the price of the transport in general. COST Time to Ecuador (in days) TIME ECUAD The time that cargoes spend in transit between PortMiami or the Canal of Panama and the main port of South America are essential for management team in their choice to set up a distribution center. TIME
  • 50. LILLY AND ASSOCIATES 50 Time to Chile (in days) TIME CHILE The time that cargoes spend in transit between PortMiami or the Canal of Panama and the main port of South America are essential for management team in their choice to set up a distribution center. TIME Time to Brazil (in days) TIME BRAZ The time that cargoes spend in transit between PortMiami or the Canal of Panama and the main port of South America are essential for management team in their choice to set up a distribution center. TIME Time to Argentina (in days) TIME ARGENT The time that cargoes spend in transit between PortMiami or the Canal of Panama and the main port of South America are essential for management team in their choice to set up a distribution center. TIME
  • 51. LILLY AND ASSOCIATES 51 Data of both ports Data Sources Data Sources LOADING (Total) 13829 See table Import/Export 817.73 See table Import/Export UNLOADING (Total) 11871 See table Import/Export 12695 See table Import/Export FTZ (Km2) Miami Free Zone 47 acres = 0,19 km2 http://www.ftzworld.com/CaseStu dies/OurClients/MiamiFreeZone.asp x Colon Free Trade Zone = 2.4 km2 http://www.businesspanama.com/i nvesting/opportunities/cfz.php; http://www.colonfreetradezone.co m/freezone-colon.html CORPOTAX (% of profit) Total tax rate: 5.5 http://miami.about.com/cs/busines s/a/aa041302a.htm Total tax rate: 11.4 http://www.doingbusiness.org/dat a/exploreeconomies/panama/payin g-taxes/ INFLA ( % 2012) 2.1% http://www.bls.gov/eag/eag.fl_mi ami_msa.htm 5.7% http://www.factfish.com/statistic- country/panama/inflation%20rate PPP (in dollar/ year/capita in 2011) 45000 http://research.stlouisfed.org/fred2 /graph/?s[1][id]=MIAM112PCPI 14300 http://www.indexmundi.com/g/g.a spx?c=pm&v=67; http://www.indexmundi.com/pana ma/gdp_per_capita_(ppp).html CRIME (crimes per 1000 habitants 2012) 11.72 http://www.neighborhoodscout.co m/fl/miami/crime/ 8.3 http://www.nationmaster.com/cou ntry-info/profiles/Panama/Crime AGREE 20 http://www.ustr.gov/trade- agreements 30 http://www.businesspanama.com/ about_panama/fundamentals/trad e_agreements.php C-WAREHOU (USD/Sqm in 2012) $ 8.00 / sqf / month = $ 86,11 / sqm / month http://www.miamiwarehousehub.c om/category/blog/ $ 8.51 / sqm / month http://www.cbre.com.pa/panama- real- estate/reports/IndustrialReport1Hal f2012.pdf C-REALESTATE (USD/Sqm) to buy $168 per square feet or US$1,800 per square metre http://www.trulia.com/real_estate/ Miami-Florida/market-trends/ US$1,050 to US$1,200 per square metre http://www.globalpropertyguide.co m/Latin-America/Panama; C-WAGE (min/hour in 2013) 7,93$ http://www.dol.gov/whd/minwage /america.htm 4,33$ http://www.retirementdetectives.co m/latest-news/1-latest-news/1176- monthly-salaries-in-pana.html http://www.businesspanama.com/ about_panama/investment/labor_s alaries.php C-ENERGY ($/Kwh) US$11,4c/kWh for industry http://www.bls.gov/ro4/aepmia.pd f US$13.2c/kWh for industry https://estore.enerdata.net/energy- market/panama-energy-report-and- data.html; http://www.businesspanama.com/i nvesting/opportunities/energy.php Cost-OPENCOMPA (% of income / cap) 1.5 http://www.doingbusiness.org/dat a/exploreeconomies/united-states 7.2 http://www.doingbusiness.org/dat a/exploreeconomies/panama#starti ng-a-business FREIGHT ECUAD 3194.642857 See table Freight Rates Main South American Ports 1367 See table Freight Rates Main South American Ports FREIGHT CHILE 2420.5 See table Freight Rates Main South American Ports 1919.25 See table Freight Rates Main South American Ports FREIGHT BRAZ 1974 See table Freight Rates Main South American Ports 1764.75 See table Freight Rates Main South American Ports FREIGHT ARGENT 1974 See table Freight Rates Main South American Ports 2033.5 See table Freight Rates Main South American Ports C-EQUIPMENT 8 Give by the responsible of equipment at Lilly and Associates 4 Give by the responsible of equipment at Lilly and Associates CUSTOM-DUTIES See table Custom Duties - Tarriffs See table Custom Duties - Tarriffs See table Custom Duties - Tarriffs See table Custom Duties - Tarriffs C-INSURANCE 6 Give by the responsible of equipment at Lilly and Associates 2 Give by the responsible of equipment at Lilly and Associates CRANES 21 http://www.cranemgt.com/crane- data/ 57 (in total in the canal area) http://logistics.gatech.pa/en/assets /seaports/side-by-side C-LENGTH (feet) 6000 http://www.cranemgt.com/crane- data/ 310,310,310,310,400 (Manzanillo) 442,336,336,300,300 (Balbao) = 3354 m or 11000 feet appro http://www.puertomanzanillo.com. mx/engs/0020302/navigational- areas 55,8 (Balboa) ttp://www.worldportsource.com/p orts/commerce/PAN_Port_of_Balbo a_1602.php 46 (Manzanillo) http://www.puertomanzanillo.com. mx/engs/0020302/navigational- areas; Cost Time PortMiami The Canal of Panama (M: Manzanillo; B: Balboa; Colon) http://books.google.com/books?id =ZE2ZDIGkRr0C&pg=PT70&lpg=PT70 &dq=number+of+conveyors+in+port +miami&source=bl&ots=ogUezkvU8 Q&sig=2AmxcdyY3Yzu9bZkFg37oHV- Akc&hl=en&sa=X&ei=T0ASU4nxNob 51C-DEPTH (feet)
  • 52. LILLY AND ASSOCIATES 52 DOCKS 6 http://www.cranemgt.com/crane- data/ 14 http://logistics.gatech.pa/en/assets /seaports/side-by-side CAP-CONT (TEU in 2012) 950 000 TEUs per year http://www.miamidade.gov/portmi ami/cargo-main.asp http://www.colliers.com/- /media/Files/MarketResearch/Unite dStates/MARKETS/2012%20Q2/Colli ers_PortReport_2012q2_final.pdf?ca mpaign=Colliers_Port_Analysis_NA_ Aug-2012 6.5 million TEUs per year http://www.puertomanzanillo.com. mx/engs/0020303/terminals-and- installations; http://www.worldportsource.com/ ports/commerce/PAN_Port_of_Balb oa_1602.php AIRPORT 2 :Miami International Airport, Fort Lauderdale International Airport and many executive airports http://www.miami- airport.com/pdfdoc/MIA_Cargo_Br ochure.pdf; http://www.miami- airport.com/pdfdoc/FloridaTradean dLogisticsStudy_December2010.pdf 2:Tocumen International Airport; Marcos A. Gelabert International Airport http://logistics.gatech.pa/en/assets /airports Tocumen International Airport to M 91.5km ; Tocumen International Airport to B 28.6km Marcos A. Gelabert International Airport to M: 78.2km Marcos A. Gelabert International Airport to B: 4.0km. RAIL 2786miles or 4483 km http://www.dot.state.fl.us/rail/Pla nDevel/Documents/FinalInvestment Element/G-Chapter2-FreightRail.pdf 76km http://www.nationmaster.com/cou ntry- info/profiles/Panama/Transport#20 13 D-RAIL-PORT 0km (Which means the main railway go through the port) http://www.fecrwy.com/about 0km (Which means the main railway go through both ports) http://logistics.gatech.pa/en/assets /railroad ROAD 43210miles or 69539km http://www.floridatransportationin dicators.org/index.php?chart=13a 15137km http://www.nationmaster.com/cou ntry- info/profiles/Panama/Transport#20 13 IMPROV (B USD) 2 billions http://www.miamidade.gov/portmi ami/library/brochures/port- directory.pdf 13.6 billions USD http://www.meetpanama.com.pa/ meet-panama/infrastructure- investments.php FDI (% of GDP in 2012) 1.3 http://www.census.gov/compendia /statab/cats/foreign_commerce_ai d/foreign_investment.html 9.3 http://data.worldbank.org/indicato r/BX.KLT.DINV.WD.GD.ZS JOBS (M) 0.2 http://www.miamidade.gov/stateo fthecounty/economic- development.asp; http://www.miamidade.gov/portmi ami/about-main.asp 1.5 https://www.cia.gov/library/public ations/the-world- factbook/geos/pm.html LABOR FORCE QUALITY (/10) 7 According to the Responsible of the equipment team of Lilly Associates 3 According to the Responsible of the equipment team of Lilly Associates GROWTH 2.80% http://data.worldbank.org/indicato r/NY.GDP.MKTP.KD.ZG 10.70% http://data.worldbank.org/indicato r/NY.GDP.MKTP.KD.ZG INTERNET (Million of connected persons in 2012 and %) 75,6% of Miami Dade Population 2,5 millions = 1,87 million http://www.usa.com/miami-dade- county-fl-population-and- races.htm; http://www.census.gov/prod/2013 pubs/p20-569.pdf 45% of Panama Population 3,8 millions =1.69 million http://www.indexmundi.com/g/g.a spx?c=pm&v=118; http://mecometer.com/whats/pan ama/internet-users/ http://www.nationmaster.com/cou ntry-info/profiles/Panama/People CORRUP Percentile Control of corruption: 86% http://www.transparency.org/coun try#USA_DataResearch Percentile Control of corruption: 45% http://www.transparency.org/coun try#PAN AGREE 20 http://www.cbp.gov/xp/cgov/trad e/trade_programs/international_ag reements/free_trade/ 30 http://www.businesspanama.com/ about_panama/fundamentals/trad e_agreements.php http://www.businesspanama.com/ specials/trade.php; http://export.gov/fta/panama/; http://www.wto.org/english/thewt o_e/countries_e/panama_e.htm; OPENCOMPANY (nb of days) 5 http://www.doingbusiness.org/dat a/exploreeconomies/united-states 6 http://www.doingbusiness.org/dat a/exploreeconomies/panama/starti ng-a-business/ and http://www.doingbusiness.org/dat a/exploreeconomies/panama EASEDOING (Index 2014) 83.99% www.doingbusiness.org 66.7% www.doingbusiness.org TIME ECUAD (average nb days) 14.6 Lucio Chan, Responsible of Freight Rates at Lilly and Associates 5.5 Lucio Chan, Responsible of Freight Rates at Lilly and Associates TIME CHILE (average nb days) 20 Lucio Chan, Responsible of Freight Rates at Lilly and Associates 12 Lucio Chan, Responsible of Freight Rates at Lilly and Associates TIME BRAZ (average nb days) 18 Lucio Chan, Responsible of Freight Rates at Lilly and Associates 19 Lucio Chan, Responsible of Freight Rates at Lilly and Associates 7,4mi (11,9 km) between PortMiami and MIA; 25.3mi (40km) between PortMiami FLIA Google map Google Map D-AIR-PORT
  • 53. LILLY AND ASSOCIATES 53 TIME ARGENT (average nb days) 18 Lucio Chan, Responsible of Freight Rates at Lilly and Associates 26 Lucio Chan, Responsible of Freight Rates at Lilly and Associates Others Sources www.doingbusiness.org http://mecometer.com/whats/panama/internet-users/ http://data.worldbank.org/country/panama http://www.businesspanama.com/investing/doingbusiness.php http://www.nationmaster.com/country-info/profiles/Panama/Economy http://globaledge.msu.edu/countries/panama/resources http://data.worldbank.org/country/panama http://logistics.gatech.pa/en/assets/seaports/manzanillo-international-terminal Imports and exports from and to Panama and PortMiami by categories of products in 2012 Number of loading goods (in million dollars) LOADING Nmber of unloading goods (in million dollars) UNLOADING Number of loading goods (in million dollars ) LOADING Nmber of unloading goods (in million dollars) UNLOADING Textile 3706 1328 10.43 844 Machinery 3052 3985 0.5 2351 Miscallaneous 1394 1179 0.5 682 Food Stuffs 1565 675 102.7 837 Animals and vegetables products 1261 482 359 578 Chemichals 846 907 29.7 1078 Transportation 328 1237 0.5 1215 Plastics 423 631 4.3 605 Metals 341 779 106.4 960 Minerals 331 100 0.678 2903 Wood 242 343 52.7 325 Stone and glass 225 177 134.4 247 Raw Hides, Skins Leather 115 48 18.1 70 TOTAL 13829 11871 819.908 12695 Sources http://www.miamidade.gov/portmiami/cargo-facts.asp http://www.miamidade.gov/business/library/reports/trade-data/2012/10-oct-through-12-dec-and-2012-Year-End-Summary.pdf http://logistics.gatech.pa/en/trade/imports http://logistics.gatech.pa/en/trade/exports PORTMIAMI PANAMA Tariffs/ Customs duties in Miami and Panama Textile Machinery Miscallaneous Food Stuff Animals and vegetables products Chemichals Panama 5% 9% 10% 13% 11% 3% Miami 5% 1% 3% 26% 3% 2% Transportation Plastics Metals Minerals Wood Stone and glass Raw Hides, Skins Leather Panama 9% 3% 8% 8% 8% 7% 13% Miami 1% 2% 1% 1% 1% 2% 2% http://tariff.findthebest.com/l/99/Panama http://tariff.findthebest.com/l/137/United-States-of-America
  • 54. LILLY AND ASSOCIATES 54 Example of Freight Rates and Transit Time from Manzanillo and Miami to the four most important ports in South America ORIGIN DESTINATION 20FT 40 40HC CARRIER EXPIRATION MODE COMMODITY TRANSIT TIME Manzanillo - Panama Guayaquil, Ecuador 1165 1404 1404 Hamburgsud 31-Mar-14 Port to Port GDSM/ FAK 5 Manzanillo - Panama Guayaquil, Ecuador 1417 1482 1482 Hapag Lloyd 31-Mar-14 Port to Port GDSM/ FAK 6 Manzanillo - Panama San Antonio, Chile 1260 2115 2115 Hamburgsud 31-Mar-14 Port to Port GDSM/ FAK 11 Manzanillo - Panama San Antonio, Chile 2031 2271 2271 Hapag Lloyd 31-Mar-14 Port to Port GDSM/ FAK 13 Manzanillo - Panama Santos, Brasil 1494 2342 2342 Hamburgsud 31-Mar-14 Port to Port GDSM/ FAK 19 Manzanillo - Panama Santos, Brasil 1333 1890 1890 Hapag Lloyd 31-Mar-14 Port to Port GDSM/ FAK 19 Manzanillo - Panama Buenos Aires, Argentina 1794 2742 2742 Hamburgsud 31-Mar-14 Port to Port GDSM/ FAK 28 Manzanillo - Panama Buenos Aires, Argentina 1629 1969 1969 Hapag Lloyd 31-Mar-14 Port to Port GDSM/ FAK 24 Miami Fl. - USA Guayaquil - Ecuador 2457 3508 3508 CMA 31-Mar-14 Door to Port GDSM/ FAK 27 Miami Fl. - USA Guayaquil - Ecuador 2783 3163 3163 MOL 31-Mar-14 Door to Port GDSM/ FAK 12 Miami Fl. - USA Guayaquil - Ecuador 2500 3500 3500 CCNI 31-Mar-14 Door to Port GDSM/ FAK 10 Miami Fl. - USA Guayaquil - Ecuador 2206 2806 2806 EVERGREEN 31-Mar-14 Door to Port GDSM/ FAK 15 Miami Fl. - USA Guayaquil - Ecuador 3404 5105 5105 HAMBURG 31-Mar-14 Door to Port GDSM/ FAK 10 Miami Fl. - USA Guayaquil - Ecuador 2680 3545 3545 MAERSK 31-Mar-14 Door to Port GDSM/ FAK 16 Miami Fl. - USA Guayaquil - Ecuador 3029 4039 4039 MSC 31-Mar-14 Door to Port GDSM/ FAK 12 Miami Fl. - USA San Antonio - Chile 1956 2556 2556 EVERGREEN 31-Mar-14 Door to Port GDSM/ FAK 25 Miami Fl. - USA San Antonio - Chile 2195 2975 2975 MAERSK 31-Mar-14 Door to Port GDSM/ FAK 15 Miami Fl. - USA Santos - Brazil 1806 2006 2006 EVERGREEN 31-Mar-14 Door to Port GDSM/ FAK 17 Miami Fl. - USA Santos - Brazil 1807 2107 2107 HANJIN 31-Mar-14 Door to Port GDSM/ FAK 15 Miami Fl. - USA Santos - Brazil 1779 2339 2339 MSC 31-Mar-14 Door to Port GDSM/ FAK 22 Miami Fl. - USA Buenos Aires, Argentina 1806 2006 2006 EVERGREEN 31-Mar-14 Door to Port GDSM/ FAK 17 Miami Fl. - USA Buenos Aires, Argentina 1807 2107 2107 HANJIN 31-Mar-14 Door to Port GDSM/ FAK 15 Miami Fl. - USA Buenos Aires, Argentina 1779 2339 2339 MSC 31-Mar-14 Door to Port GDSM/ FAK 22 Sources According to Lucio Chang from Lilly Associates, responsible of freight rates From March 2014 Table 1. D. Average Freight Rates and Transit Time from Manzanillo and Miami to the four most important ports in South America ORIGIN DESTINATION Manzanillo - Panama Guayaquil, Ecuador Manzanillo - Panama San Antonio, Chile Manzanillo - Panama Santos, Brasil Manzanillo - Panama Buenos Aires, Argentina Miami Fl. - USA Guayaquil - Ecuador Miami Fl. - USA San Antonio - Chile Miami Fl. - USA Santos - Brazil Miami Fl. - USA Buenos Aires, Argentina Sources From the Lucio Chang data From March 2014 1974 18 5.5 12 19 26 14.6 2033.5 20 18 3194.642857 2420.5 1974 AVERAGE COST (20'/40') AVERAGE TIME 1367 1919.25 1764.75 Weight of both key drivers by activities CODE Multifonction Weight Textile Machinery Miscallaneous Food Stuff Animals and vegetables products Chemicals Transportation Plastics Metals Minerals Wood Stone and glass Raw Hides, Skins Leather Cost 60% 80% 50% 75% 30% 20% 40% 70% 60% 60% 60% 50% 60% 65% Time 40% 20% 50% 25% 70% 80% 60% 30% 40% 40% 40% 50% 40% 35%
  • 55. LILLY AND ASSOCIATES 55 Likert Scale by elements ELEMENTS LIKERT SCALE Number of loading goods (in million dollars ) or Export in 2012 10pts (>= 2500 millions); 9pts (<2500>=2250 millions); 8pts (<2250>=2000 millions); 7pts (<2000>=1750 millions); 6pts (<1750>=1500 millions); 5pts (<1500>=1250 millions); 4pts (<1250>=1000 milions); 3pts (<1000>=750 millions); 2pts (<750>=500 millions); 1pt (<500<=500 millions) Number of unloading goods (in million dollars) or Import in 2012 10pts (>= 2500 millions); 9pts (<2500>=2250 millions); 8pts (<2250>=2000 millions); 7pts (<2000>=1750 millions); 6pts (<1750>=1500 millions); 5pts (<1500>=1250 millions); 4pts (<1250>=1000 milions); 3pts (<1000>=750 millions); 2pts (<750>=500 millions); 1pt (<500<=500 millions) Number of docksides cranes 10pts (>=45 ); 9pts (<45>=40 cranes); 8pts (<40 >=35 cranes); 7pts (<35>=30 cranes); 6pts (<30 >=25cranes); 5pts (<25 >= 20 cranes); 4pts (<20 >= 15cranes); 3pts (<15 >= 10cranes); 2pts (<10 >= 5cranes); 1 pt (<5 cranes)
  • 56. LILLY AND ASSOCIATES 56 Channel length (feet) 10pts (9000 and > feet); 9pts (<9000>=8000 feet); 8pts (<8000 >=7000 feet); 7pts (<7000 >= 6000feet); 6pts (<6000 >=5000 feet); 5pts (<5000 >= 4000 feet); 4pts (<4000 >= 3000 feet); 3pts (<3000 >= 2000 feet); 2pts (<2000 >= 1000 feet); 1 pt (<1000 feet) Channel or port depth (feet) 10pts (>=56 feet); 9pts (<56 >= 54 feet); 8pts (<54 >= 52 feet); 7pts (<52 >=50 feet); 6pts (<50 >= 48 feet); 5pts (<48 >= 46 feet); 4pts (<46 >= 44 feet); 3pts (<44 >= 42 feet); 2pts (<42 >= 40 feet); 1 pt (<40 feet) Number of docks 10pts (18 docks & >); 9pts (<18 >=16 docks); 8pts (<16 >=14 docks); 7pts (<14 >= 12 docks); 6pts (<12 >= 10 docks); 5pts (<10 >= 8 docks); 4pts (<8 >= 6 docks); 3pts (<6 >= 4 docks); 2pts (<4 >= 2 docks); 1 pt (<2 docks) Port Capacity of containers (in nb of TEU in 2012) 10pts (>= 10 millions); 9pts (<10 >=9 millions); 8pts (<9 >=8 millions); 7pts (<8 >=7 millions); 6pts (<7 >= 6 millions); 5pts (<6 >=5 millions); 4pts (<5 >=4 milions); 3pts (<4 >=3 millions); 2pts (<3 >=2 millions); 1pt (<2 millions),
  • 57. LILLY AND ASSOCIATES 57 Number of international airports handling good transfers (essential for the shipping) 10pts ( >9 airports); 9pts (9 airports); 8pts (8 airports); 7pts (7 airports); 6pts (6 airports); 5pts (5 airports); 4pts (4 airports); 3pts (3 airports); 2pts (2 airports); 1 pt (1 airport) Distance between main airport and port (in miles) 10pts (<= 10 miles); 9pts (>10<= 20 miles); 8pts (>20<= 30 miles); 7pts (>30<= 40 miles); 6pts (>40<= 50 miles); 5pts (>50<= 60 miles); 4pts (>60<= 70 miles); 3pts (>70 <= 80 miles); 2pts (>80 <= 90 miles); 1 pt (>90 miles) Networt of railways around the port (km) 10pts (>= 5000 km); 9pts (< 5000>=4500 km); 8pts (<4500>=4000 km); 7pts (< 4000>3500 km); 6pts (< 3500 >=3000 km); 5pts (< 3000>=2500 km); 4pts (< 2500>=2000 km); 3pts (< 2000>=1500 km); 2pts (< 1500>=1000 km); 1 pt (< 1000 km) Distance between main railways and port (in miles) 10pts (<=10 miles); 9pts (>10<= 20 miles); 8pts (>20<= 30 miles); 7pts (>30<= 40 miles); 6pts (>40<= 50 miles); 5pts (>50<= 60 miles); 4pts (>60<= 70 miles); 3pts (>70<= 80 miles); 2pts (< 90 miles); 1 pt (>90 miles)
  • 58. LILLY AND ASSOCIATES 58 Network of roads and highways (in miles) 10pts (>= 90000 km); 9pts (< 90000>=80000 km); 8pts (<80000 >= 70000 km); 7pts (<70000 >= 60000km); 6pts (< 60000 >= 50000km); 5pts (< 50000 >= 40000km); 4pts (< 40000 >= 30000km); 3pts (< 30000 >= 20000km); 2pts (< 20000 >= 10000km); 1 pt (< 10000 km) Infrastructure improvement project linked to the ports (in billion dollars) 10pts (>=18billions $); 9pts (<18 >= 16 billions $); 8pts (<16 >= 14billions $); 7pts (<14 >= 12 billions $); 6pts (<12 >= 10 billions $); 5pts (<10 >= 8 billions $); 4pts (<8 >= 6 billions $); 3pts (<6 >= 4 billions $); 2pts (<4 >= 2 billions $); 1 pt (<2billions $) Surface of Free Trade Zones (km2) 10pts (>=2,25 km2); 9pts (< 2,25>= 2 km2); 8pts (< 2 >= 1,75km2); 7pts (<1,75 >= 1,5km2); 6pts (< 1,5 >= 1,25 km2); 5pts (< 1,25 >= 1 km2); 4pts (< 1 >= 0,75 km2); 3pts (< 0,75 >= 0,5 km2); 2pts (< 0,5 >= 0,25 km2); 1 pt (< 0,25 km2) Ease of doing business (index 2014) 10pts (100-90); 9pts (89-80); 8pts (79-70); 7pts (69-60); 6pts (59-50); 5pts (49-40); 4pts (39-30); 3pts (29-20); 2pts (19-10); 1 pt (9-0)
  • 59. LILLY AND ASSOCIATES 59 Nombre of day to open a company 10pts (10 and > days); 9pts (9days); 8pts (8days); 7pts (7days); 6pts (6days); 5pts (5days); 4pts (4days); 3pts (3days); 2pts (2days); 1 pt (1days) Labor force Quality 10pts (perfect quality); 9pts (very high quality); 8 pts (high quality); 7pts (medium high quality); 6pts (medium quality); 5pts (medium low quality); 4 pts (low quality); 3 pts (poor quality); 2 pts (very poor quality); 1pt (no labor force) Investments FDI (% of GDP in 2012) 10pts (more than 9%); 9pts (9% and less); 8 pts (8% and less); 7pts (7% and less); 6pts (6% and less); 5pts (5% and less); 4 pts (4% and less); 3 pts (3% and less); 2 pts (2% and less); 1pt (1% and less) Corporate tax (% of profit) 10pts (<= 2%); 9pts (>2 <= 4%); 8 pts (>4 <= 6%); 7pts (>6 <= 8%); 6pts (>8 <= 10%); 5pts (>10<= 12%); 4 pts (>12 <= 14%); 3 pts (>14 <= 16%); 2 pts (>16 <= 18%); 1pt (more than 18%)
  • 60. LILLY AND ASSOCIATES 60 Inflation rate (in % 2012) 10pts (<= 1%); 9pts (>1 <= 2%); 8 pts (>2<= 3%); 7pts (>3<= 4%); 6pts (>4<= 5%); 5pts (>5<= 6%); 4 pts (>6<=7%); 3 pts (>7<= 8%); 2 pts (>8<= 9%); 1pt (more than 9%) GDP per capita (in dollar/year/capita in 2011) 10pts (> than 50000); 9pts (45000-49999); 8 pts (40000-44999); 7pts (35000-39999); 6pts (30000-34999); 5pts (25000-29999); 4 pts (20000-24999); 3 pts (15000-19999); 2 pts (10000-14999); 1pt (>9999) Number of Jobs offered (in millions) 10pts (>=1,8); 9pts (<1,8>=1,6); 8 pts (<1,6>=1,4); 7pts (<1,4>=1,2); 6pts (<1,2>=1,0); 5pts (<1,0>=0,8); 4 pts (<0,8>=0,6); 3 pts (<0,6>=0,4); 2 pts (<0,4>=0,2); 1pt (<0,2) Recession or boom (in %) 10pts (>=20%) 9pts (<20 >=15%); 8 pts (<15 >=12%); 7pts (<12 >=10%); 6pts (<10 >=8%); 5pts (<8>=6%); 4 pts (<6>=4%); 3 pts (<4>=2%); 2 pts <2(=>0%); 1pt (Recession)
  • 61. LILLY AND ASSOCIATES 61 Number of people connected to Internet (millions of connected people in 2012) 10pts (>=90%); 9pts (<90>=80%); 8 pts (<80>=70%); 7pts (<70>=60%); 6pts (<60>=50%); 5pts (<50>=40%); 4 pts (<40>=30%); 3 pts (<30>=20%); 2 pts (<20>=10%); 1pt (<10%) Control Corruption rates (in %) 10pts (>=90%); 9pts (<90>=80%); 8 pts (<80>=70%); 7pts (<70>=60%); 6pts (<60>=50%); 5pts (<50>=40%); 4 pts (<40>=30%); 3 pts (<30>=20%); 2 pts (<20>=10%); 1pt (<10%) Rates of crimes ( crimes per 1000habts in 2012)) 10pts (<=2); 9pts (>2<= 4); 8 pts (>4<= 6); 7pts (>6<= 8); 6pts (>8<= 10); 5pts (>10<= 12); 4 pts (>12<= 14); 3 pts (>14l<= 16); 2 pts (>16<= 18); 1pt (more than 18) Number of international agreements for trade 10pts (>=40); 9pts (bet. 35 and 39); 8 pts (bet. 30 and 34); 7pts (bet. 25 and 29); 6pts (bet. 20 and 24); 5pts (bet. 15 and 19); 4 pts (bet. 10 and 14); 3 pts (bet. 5 and 9); 2 pts (bet. 1 and 4); 1pt (no agreement)
  • 62. LILLY AND ASSOCIATES 62 Cost of warehousing goods (USD/ sqm/ month in average) 10pts (<= 10 USD/sqm); 9pts (>10<= 20 USD/sqm); 8 pts (>20<= 30 USD/sqm); 7pts (>30<= 40 USD/sqm); 6pts (>40<= 50 USD/sqm); 5pts (>50<= 60 USD/sqm); 4 pts (>60<= 70 USD/sqm); 3 pts (>70<= 80 USD/sqm); 2 pts (>80<= 90 USD/sqm); 1pt (> 90 USD/sqm) Cost of real estate to buy (USD/ sqm/ month in average) 10pts (<=1000 USD/sqm); 9pts (>1000<= 1200 USD/sqm); 8 pts (>1200<=1400 USD/sqm); 7pts (>1400<=1600 USD/sqm); 6pts (>1600<= 1800 USD/sqm); 5pts (>1800<= 2000 USD/sqm); 4 pts (>2000<=2200 USD/sqm); 3 pts (>2200<=2400 USD/sqm); 2 pts (>2400<=2600 USD/sqm); 1pt (>2600 USD/sqm) Cost of human ressources (min/hour in 2013) 10pts (<=1 USD/h) 9pts (>1<=2 USD/h); 8 pts (>2<=3USD/h); 7pts (>3<=4USD/h); 6pts (>4<=5 USD/h); 5pts (>5<=6 USD/h); 4 pts (>6<=7USD/h); 3 pts (>7<=8USD/h); 2 pts (>8<=9 USD/h); 1pt (>1 0 USD/h)
  • 63. LILLY AND ASSOCIATES 63 Cost of insurance average 10pts (Perfectly secure warehouse environment ); 9pts (Excellent security in warehouse environment); 8 pts (Very good security in warehouse environment); 7pts (Good security in warehouse environment); 6pts (Above average security in warehouse environment); 5pts (Average security in warehouse environment); 4 pts (Below average security in warehouse environment); 3 pts (Fair security in warehouse environment); 2 pts (Not good security in warehouse environment); 1pt (Poor security in warehouse environment) Cost of equipment 10pts (Perfect equipment offer + best service); 9pts (Excellent equipment offer + best service); 8 pts (Very good equipment offer + best service); 7pts (Good equipment offer + best service); 6pts (Above average equipment offer + best service); 5pts (Average equipment offer + best service); 4 pts (Below average equipment offer + best service); 3 pts (Fair equipment offer + best service); 2 pts (Not good offer + best service); 1pt (Poor equipment offer + best service)
  • 64. LILLY AND ASSOCIATES 64 Cost of energy ($/Kwh) 10pts (<=5c/Kwh); 9pts (>5 <=6c/Kwh); 8 pts (>6 <=7c/Kwh); 7pts (>7<=8c/Kwh); 6pts (>8<=9c/Kwh); 5pts (>9<=10c/Kwh); 4 pts (>10<=11c/Kwh); 3 pts (>11<=12c/Kwh); 2 pts (>12<=13c/Kwh); 1pt (>1 3c/Kwh) Cost to open a company (% of income/ capita) 10pts (<=1); 9pts (>1<=2); 8 pts (>2<=3); 7pts (>3<=4); 6pts (>4<=5 ); 5pts (>5<=6); 4 pts (>6<=7); 3 pts (>7<=8); 2 pts (>8<=9); 1pt (>1 0) Cost of Custom Duties/ Tarriffs per category 10pts (<=2%); 9pts (>2 <= 4%); 8 pts (>4 <= 6%); 7pts (>6 <= 8%); 6pts (>8 <= 10%); 5pts (>10 <= 12%); 4 pts (>12 <= 14%); 3 pts (>14 <= 16%); 2 pts (>16 <= 18%); 1pt (>18 %) Average Freight Rates from or to Ecuador (Average price per containers of 20' and 40') 10pts (<=1000 USD); 9pts (>1000 <= 1200 USD); 8 pts (>1200 <=1400 USD); 7pts (>1400 <=1600 USD); 6pts (>1600 <= 1800 USD); 5pts (>1800 <= 2000 USD); 4 pts (>2000 <=2200 USD); 3 pts (>2200 <=2400 USD); 2 pts (>2400 <=2600 USD); 1pt (>2600 USD)
  • 65. LILLY AND ASSOCIATES 65 Average Freight Rates from or to Chile (Average price per containers of 20' and 40') 10pts (<=1000 USD) 9pts (>1000 <= 1200 USD); 8 pts (>1200 <=1400 USD); 7pts (>1400 <=1600 USD); 6pts (>1600 <= 1800 USD); 5pts (>1800 <= 2000 USD); 4 pts (>2000 <=2200 USD); 3 pts (>2200 <=2400 USD); 2 pts (>2400 <=2600 USD); 1pt (>2600 USD) Average Freight Rates from or to Brazil (Average price per containers of 20' and 40') 10pts (<=1000 USD); 9pts (>1000 <= 1200 USD); 8 pts (>1200 <=1400 USD); 7pts (>1400 <=1600 USD); 6pts (>1600 <= 1800 USD); 5pts (>1800 <= 2000 USD); 4 pts (>2000 <=2200 USD); 3 pts (>2200 <=2400 USD); 2 pts (>2400 <=2600 USD); 1pt (>2600 USD) Average Freight Rates from or to Argentina (Average price per containers of 20' and 40') 10pts (<=1000 USD); 9pts (>1000 <= 1200 USD); 8 pts (>1200 <=1400 USD); 7pts (>1400 <=1600 USD); 6pts (>1600 <= 1800 USD); 5pts (>1800 <= 2000 USD); 4 pts (>2000 <=2200 USD); 3 pts (>2200 <=2400 USD); 2 pts (>2400 <=2600 USD); 1pt (>2600 USD) Time to Ecuador (in days) 10pts (<=4days); 9pts (>4 <=7days); 8 pts (>7<=10days); 7pts (>10<=13days); 6pts (>13<=16days); 5pts (>16<=19days); 4 pts (>19<=22days); 3 pts (>22<=25days); 2 pts (>25<=28days); 1pt (>28days)
  • 66. LILLY AND ASSOCIATES 66 Time to Chile (in days) 10pts (<=4days); 9pts (>4 <=7days); 8 pts (>7<=10days); 7pts (>10<=13days); 6pts (>13<=16days); 5pts (>16<=19days); 4 pts (>19<=22days); 3 pts (>22<=25days); 2 pts (>25<=28days); 1pt (>28days); Time to Brazil (in days) 10pts (<=4days); 9pts (>4 <=7days); 8 pts (>7<=10days); 7pts (>10<=13days); 6pts (>13<=16days); 5pts (>16<=19days); 4 pts (>19<=22days); 3 pts (>22<=25days); 2 pts (>25<=28days); 1pt (>28days) Time to Argentina (in days) 10pts (<=4days); 9pts (>4 <=7days); 8 pts (>7<=10days); 7pts (>10<=13days); 6pts (>13<=16days); 5pts (>16<=19days); 4 pts (>19<=22days); 3 pts (>22<=25days); 2 pts (>25<=28days); 1pt (>28days)
  • 67. LILLY AND ASSOCIATES 67 Weightofeachcomponentsbycategories CODEMultifonctionWeightTextileMachineryMiscallaneousFoodStuff Animalsandvegetables products ChemichalsTransportationPlasticsMetalsMineralsWoodStoneandglass RawHides,Skins Leather Cost60%80%50%75%30%20%40%70%60%60%60%50%60%65% LOADING5%7%4%6%2%2%3%5%5%5%5%4%5%5% UNLOADING5%7%4%6%2%2%3%5%5%5%5%4%5%5% FTZ(Km2)1%1%1%1%1%0%1%1%1%1%1%1%1%1% CORPOTAXPROFIT2%3%1%3%1%1%1%2%2%2%2%2%2%2% INFLA1%1%0%1%1%0%1%1%1%1%1%1%1%1% PPP1%1%0%1%1%0%1%2%1%1%1%1%1%1% CRIME1%1%1%1%1%0%1%1%1%1%1%1%1%1% AGREEMENT2%3%2%3%1%1%1%2%2%2%2%2%2%2% C-WAREHOU(USD/Sqmin2012)3%3%3%3%2%2%1%6%4%4%4%3%4%2% C-REALESTATE(USD/Sqm)1%1%1%1%1%0%1%1%1%1%1%1%1%1% C-WAGE(min/monthin2013)3%4%3%4%2%1%2%3%3%3%3%3%3%3% C-ENERGY(/Kwh)3%1%2%1%2%2%1%3%1%1%1%1%1%1% C-OPENCOMPA(%ofincome/cap)1%1%1%1%1%0%1%1%1%1%1%1%1%1% FREIGHTECUAD6%8%5%8%2%1%4%6%6%6%6%5%6%7% FREIGHTCHILE6%8%5%8%2%1%4%6%6%6%6%5%6%7% FREIGHTBRAZ6%8%5%8%2%1%4%6%6%6%6%5%6%7% FREIGHTARGENT6%8%5%8%2%1%4%6%6%6%6%5%6%7% C-EQUIPMENT1%1%1%1%1%0%1%1%1%1%1%1%1%1% CUSTOM-DUTIES5%8%4%8%3%2%3%5%5%5%5%4%5%7% C-INSURANCE3%4%3%4%2%1%2%3%2%2%2%2%2%3% Time40%20%50%25%70%80%60%30%40%40%40%50%40%35% CRANES0.5%0.3%0.6%0.3%1.4%1.6%0.4%0.2%0.5%0.5%0.3%0.3%0.3%0.4% C-LENGTH1.5%0.8%1.9%0.9%2.1%2.4%2.3%0.9%1.5%1.5%1.5%1.9%1.5%1.3% 0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% 0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% DOCKS1.0%0.5%1.3%0.6%2.1%2.4%1.5%0.6%1.3%1.3%1.5%1.9%1.5%0.9% CAP-CONT(TEUin2010)1.0%0.5%1.3%0.6%0.7%0.8%0.8%0.2%0.8%0.8%0.8%0.9%0.8%0.9% AIRPORT0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% 0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% 0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% 0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% 0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% RAIL0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.6%0.5%0.5%0.5%0.6%0.5%0.4% D-RAIL-PORT0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% ROAD1.0%0.5%1.3%0.6%2.8%3.2%1.5%1.3%1.0%1.0%1.0%1.3%1.0%0.9% IMPROV(BUSD)2.0%1.0%2.5%1.3%2.8%3.2%3.0%1.7%2.0%2.0%2.0%2.5%2.0%1.8% FDI(%ofGDP)0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% JOBS(M)0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% LABORFORCEQUALITY3.0%1.5%3.8%1.9%4.2%4.8%5.3%2.6%3.0%3.0%3.0%3.8%3.0%2.6% GROWTH0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% INTERNET(M)0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% CORRUP1.0%0.5%1.3%0.6%1.4%1.6%1.5%0.9%1.0%1.0%1.0%1.3%1.0%0.9% AGREEMENT1.0%0.5%1.3%0.6%2.1%2.4%1.9%0.9%1.0%1.0%1.0%1.3%1.0%0.9% NbrdayOPENCOMPA0.5%0.3%0.6%0.3%0.7%0.8%0.8%0.4%0.5%0.5%0.5%0.6%0.5%0.4% EASEDOING(Index)1.0%0.5%1.3%0.6%1.4%1.6%1.5%0.9%1.0%1.0%1.0%1.3%1.0%0.9% TIMEECUAD5.0%2.5%6.3%3.1%9.8%11.2%7.5%3.4%5.0%5.0%5.0%6.3%5.0%4.4% TIMECHILE5.0%2.5%6.3%3.1%9.8%11.2%7.5%3.4%5.0%5.0%5.0%6.3%5.0%4.4% TIMEBRAZ5.0%2.5%6.3%3.1%9.8%11.2%7.5%3.4%5.0%5.0%5.0%6.3%5.0%4.4% TIMEARGENT5.0%2.5%6.3%3.1%9.8%11.2%7.5%3.4%5.0%5.0%5.0%6.3%5.0%4.4% 100%100%100%100%100%100%100%100%100%100%100%100%100%100% www.doingbusiness.org http://mecometer.com/whats/panama/internet-users/ http://data.worldbank.org/country/panama http://www.businesspanama.com/investing/doingbusiness.php http://www.nationmaster.com/country-info/profiles/Panama/Economy http://globaledge.msu.edu/countries/panama/resources http://data.worldbank.org/country/panama http://logistics.gatech.pa/en/assets/seaports/manzanillo-international-terminal C-DEPTH D-AIR-PORT
  • 68. LILLY AND ASSOCIATES 68 Miami Panama Total Attractiveness Multi (/100) 51 56 Attractiveness Cost Multi (/100) 48 54 Attractiveness Time Multi (/100) 55 59 Miami Textile Machinery Miscallaneo us Food Stuff Animals and vegetables products Chemichals Transportati on Plastics Metals Minerals Wood Stone and glass Raw Hides, Skins Leather Activity share 20% 27% 10% 9% 7% 7% 6% 4% 4% 2% 2% 2% 1% Total Attractiveness / Act 52 55 49 50 53 51 47 47 47 46 48 46 47 Attractiveness Cost / Act (100%) 52 54 48 39 46 45 43 42 42 41 41 41 43 Attractiveness Time / Act (100%) 55 55 55 55 55 56 57 55 55 55 55 55 55 Attractiveness Cost / Act 41 27 36 12 9 18 30 25 25 24 20 24 28 Attractiveness Time / Act 11 27 14 38 44 33 17 22 22 22 28 22 19 Total Attractiveness / Act 10 15 5 4 4 4 3 2 2 1 1 1 0 Attractiveness Cost / Act 10 15 5 3 3 3 3 2 2 1 1 1 0 Attractiveness Time / Act 11 15 5 5 4 4 3 2 2 1 1 1 0 Panama Textile Machinery Miscallaneo us Food Stuff Animals and vegetables products Chemichals Transportati on Plastics Metals Minerals Wood Stone and glass Raw Hides, Skins Leather Activity share 6% 17% 5% 7% 7% 8% 9% 5% 8% 21% 3% 3% 1% Total Attractiveness / Act 54 58 52 56 57 56 54 56 56 59 55 55 51 Attractiveness Cost / Act (100%) 53 57 50 48 48 53 52 54 54 59 52 52 47 Attractiveness Time / Act (100%) 59 59 59 59 59 59 57 59 59 59 59 59 59 Attractiveness Cost / Act 42 28 37 14 10 21 37 33 32 36 26 31 31 Attractiveness Time / Act 12 30 15 41 47 35 17 24 24 24 30 24 21 Total Attractiveness / Act 3 10 3 4 4 5 5 3 4 13 2 2 0 Attractiveness Cost / Act 3 10 3 3 3 4 5 2 4 13 1 1 0 Attractiveness Time / Act 4 10 3 4 4 5 5 3 5 13 2 2 0 General Attractiveness Total Port Textile Machinery Miscallaneo us Food Stuff Animals and vegetables products Chemichals Transportati on Plastics Metals Minerals Wood Stone and glass Raw Hides, Skins Leather Total attractiveness Miami 51 52 55 49 50 53 51 47 47 47 46 48 46 47 Total attractiveness Panama 56 54 58 52 56 57 56 54 56 56 59 55 55 51 Cost Attractiveness Total Port Textile Machinery Miscallaneo us Food Stuff Animals and vegetables products Chemichals Transportati on Plastics Metals Minerals Wood Stone and glass Raw Hides, Skins Leather Attractiveness Cost / Act Miami 48 52 54 48 39 46 45 43 42 42 41 41 41 43 Attractiveness Cost / Act Panama 54 53 57 50 48 48 53 52 54 54 59 52 52 47 Time Attractiveness Total Port Textile Machinery Miscallaneo us Food Stuff Animals and vegetables products Chemichals Transportati on Plastics Metals Minerals Wood Stone and glass Raw Hides, Skins Leather Attractiveness Time / Act Miami 55 55 55 55 55 55 56 57 55 55 55 55 55 55 Attractiveness Time / Act Panama 59 59 59 59 59 59 59 57 59 59 59 59 59 59
  • 69. LILLY AND ASSOCIATES 69 TEXTILE Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 80% LOADING 10 1 7% 6.67 0.67 UNLOADING 5 3 7% 3.33 2.00 FTZ (Km2) 1 10 1% 0.13 1.33 1 - CORPOTAX (% of profit) 8 5 3% 2.13 1.33 1 - INFLA 8 5 1% 1.07 0.67 PPP 9 2 1% 1.20 0.27 1000 - CRIME 5 6 1% 0.67 0.80 AGREEMENT 6 8 3% 1.60 2.13 C-WAREHOU (USD/Sqm in 2012) 2 10 3% 0.53 2.67 C-REALESTATE (USD/Sqm) 6 9 1% 0.80 1.20 C-WAGE (min/hour in 2013) 3 6 4% 1.20 2.40 C-ENERGY (/Kwh) 3 1 1% 0.40 0.13 Cost-OPENCOMPA (% of income / cap) 9 3 1% 1.20 0.40 FR - Ecuador (Price/container) 1 8 8% 0.80 6.40 FR - Chile (Price/container) 2 5 8% 1.60 4.00 FR - Brazil (Price/container) 5 6 8% 4.00 4.80 FR - Argentina (Price/container) 5 4 8% 4.00 3.20 C-EQUIPMENT 8 4 1% 1.07 0.53 CUSTOM-DUTIES 8 8 8% 6.40 6.40 C-INSURANCE 6 2 4% 2.40 0.80 Time 20% CRANES 5 10 0.3% 0.13 0.25 C-LENGTH (feet) 7 10 0.8% 0.53 0.75 7 5 0.3% 0.18 0.13 7 9 0.3% 0.18 0.23 DOCKS 4 8 0.5% 0.20 0.40 CAP-CONT (millions TEU in 2010) 1 6 0.5% 0.05 0.30 AIRPORT 2 2 0.3% 0.05 0.05 10 10 0.3% 0.25 0.25 8 3 0.3% 0.20 0.08 10 8 0.3% 0.25 0.20 8 1 0.3% 0.20 0.03 RAIL 9 1 0.3% 0.23 0.03 D-RAIL-PORT 10 10 0.3% 0.25 0.25 ROAD (kms) 7 2 0.5% 0.35 0.10 IMPROV (B USD) 2 7 1.0% 0.20 0.70 FDI (% of GDP) 2 10 0.3% 0.05 0.25 JOBS (Millions) 2 8 0.3% 0.05 0.20 LABOR FORCE QUALITY (/10) 7 3 1.5% 1.05 0.45 GROWTH 3 7 0.3% 0.08 0.18 INTERNET (M) 8 5 0.3% 0.20 0.13 1 - CORRUP (/100) 9 5 0.5% 0.45 0.25 AGREE 6 8 0.5% 0.30 0.40 Nbr day OPENCOMPA 5 6 0.3% 0.13 0.15 EASEDOING (Index) 9 7 0.5% 0.45 0.35 FR - Ecuador (nb days) 6 9 2.5% 1.50 2.25 FR - Chile (nb days) 4 7 2.5% 1.00 1.75 FR - Brazil (nb days) 5 5 2.5% 1.25 1.25 FR - Argentina (nb days) 5 2 2.5% 1.25 0.50 100% ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Textile (/100) 52 54 Attractiveness Cost Textile (/100) 52 53 Attractiveness Time Textile (/100) 55 59 Attractiveness Cost Textile (/80) 41 42 Attractiveness Time Textile (/20) 11 12 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 70. LILLY AND ASSOCIATES 70 MACHINERY Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 50% LOADING 10 1 4% 4.17 0.42 UNLOADING 10 9 4% 4.17 3.75 FTZ (Km2) 1 10 1% 0.08 0.83 1 - CORPOTAX (% of profit) 8 5 0.8% 0.67 0.42 1 - INFLA 8 5 0.4% 0.33 0.21 PPP 9 2 0.4% 0.38 0.08 1000 - CRIME 5 6 1% 0.42 0.50 AGREEMENT 6 8 2% 1.00 1.33 C-WAREHOU (USD/Sqm in 2012) 2 10 3% 0.67 3.33 C-REALESTATE (USD/Sqm) 6 9 1% 0.50 0.75 C-WAGE (min/hour in 2013) 3 6 3% 0.75 1.50 C-ENERGY (/Kwh) 3 1 2% 0.50 0.17 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.75 0.25 FR - Ecuador (Price/container) 1 8 5% 0.50 4.00 FR - Chile (Price/container) 2 5 5% 1.00 2.50 FR - Brazil (Price/container) 5 6 5% 2.50 3.00 FR - Argentina (Price/container) 5 4 5% 2.50 2.00 C-EQUIPMENT 8 4 1% 0.67 0.33 CUSTOM-DUTIES 10 6 4% 4.17 2.50 C-INSURANCE 6 2 3% 1.50 0.50 Time 50% CRANES 5 10 0.6% 0.31 0.63 C-LENGTH (feet) 7 10 1.9% 1.31 1.88 7 5 0.6% 0.44 0.31 7 9 0.6% 0.44 0.56 DOCKS 4 8 1.3% 0.50 1.00 CAP-CONT (millions TEU in 2010) 1 6 1.3% 0.13 0.75 AIRPORT* 2 2 0.6% 0.13 0.13 10 10 0.6% 0.63 0.63 8 3 0.6% 0.50 0.19 10 8 0.6% 0.63 0.50 8 1 0.6% 0.50 0.06 RAIL 9 1 0.6% 0.56 0.06 D-RAIL-PORT 10 10 0.6% 0.63 0.63 ROAD (kms) 7 2 1.3% 0.88 0.25 IMPROV (B USD) 2 7 2.5% 0.50 1.75 FDI (% of GDP) 2 10 0.6% 0.13 0.63 JOBS (Millions) 2 8 0.6% 0.13 0.50 LABOR FORCE QUALITY (/10) 7 3 3.8% 2.63 1.13 GROWTH 3 7 0.6% 0.19 0.44 INTERNET (M) 8 5 0.6% 0.50 0.31 1 - CORRUP (/100) 9 5 1.3% 1.13 0.63 AGREE 6 8 1.3% 0.75 1.00 Nbr day OPENCOMPA 5 6 0.6% 0.31 0.38 EASEDOING (Index) 9 7 1.3% 1.13 0.88 FR - Ecuador (nb days) 6 9 6.3% 3.75 5.63 FR - Chile (nb days) 4 7 6.3% 2.50 4.38 FR - Brazil (nb days) 5 5 6.3% 3.13 3.13 FR - Argentina (nb days) 5 2 6.3% 3.13 1.25 100% ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Machinery (/100) 55 58 Attractiveness Cost Machinery (/100) 54 57 Attractiveness Time Machinery (/100) 55 59 Attractiveness Cost Machinery (50) 27 28 Attractiveness Time Machinery (/50) 27 30 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 71. LILLY AND ASSOCIATES 71 Miscellaneous Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 75% LOADING 5 1 6% 3.13 0.63 UNLOADING 4 2 6% 2.50 1.25 FTZ (Km2) 1 10 1% 0.13 1.25 1 - CORPOTAX (% of profit) 8 5 3% 2.00 1.25 1 - INFLA 8 5 1% 1.00 0.63 PPP 9 2 1% 1.13 0.25 1000 - CRIME 5 6 1% 0.63 0.75 AGREEMENT 6 8 3% 1.50 2.00 C-WAREHOU (USD/Sqm in 2012) 2 10 3% 0.50 2.50 C-REALESTATE (USD/Sqm) 6 9 1% 0.75 1.13 C-WAGE (min/hour in 2013) 3 6 4% 1.13 2.25 C-ENERGY (/Kwh) 3 1 1% 0.38 0.13 Cost-OPENCOMPA (% of income / cap) 9 3 1% 1.13 0.38 FR - Ecuador (Price/container) 1 8 8% 0.75 6.00 FR - Chile (Price/container) 2 5 8% 1.50 3.75 FR - Brazil (Price/container) 5 6 8% 3.75 4.50 FR - Argentina (Price/container) 5 4 8% 3.75 3.00 C-EQUIPMENT 8 4 1% 1.00 0.50 CUSTOM-DUTIES 9 6 8% 6.75 4.50 C-INSURANCE 6 2 4% 2.25 0.75 Time 25% CRANES 5 10 0.3% 0.16 0.31 C-LENGTH (feet) 7 10 0.9% 0.66 0.94 7 5 0.3% 0.22 0.16 7 9 0.3% 0.22 0.28 DOCKS 4 8 0.6% 0.25 0.50 CAP-CONT (millions TEU in 2010) 1 6 0.6% 0.06 0.38 AIRPORT* 2 2 0.3% 0.06 0.06 10 10 0.3% 0.31 0.31 8 3 0.3% 0.25 0.09 10 8 0.3% 0.31 0.25 8 1 0.3% 0.25 0.03 RAIL 9 1 0.3% 0.28 0.03 D-RAIL-PORT 10 10 0.3% 0.31 0.31 ROAD (kms) 7 2 0.6% 0.44 0.13 IMPROV (B USD) 2 7 1.3% 0.25 0.88 FDI (% of GDP) 2 10 0.3% 0.06 0.31 JOBS (Millions) 2 8 0.3% 0.06 0.25 LABOR FORCE QUALITY (/10) 7 3 1.9% 1.31 0.56 GROWTH 3 7 0.3% 0.09 0.22 INTERNET (M) 8 5 0.3% 0.25 0.16 1 - CORRUP (/100) 9 5 0.6% 0.56 0.31 AGREE 6 8 0.6% 0.38 0.50 Nbr day OPENCOMPA 5 6 0.3% 0.16 0.19 EASEDOING (Index) 9 7 0.6% 0.56 0.44 FR - Ecuador (nb days) 6 9 3.1% 1.88 2.81 FR - Chile (nb days) 4 7 3.1% 1.25 2.19 FR - Brazil (nb days) 5 5 3.1% 1.56 1.56 FR - Argentina (nb days) 5 2 3.1% 1.56 0.63 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Miscallaneous (/100) 49 52 Attractiveness Cost Miscallaneous (/100) 48 50 Attractiveness Time Miscallaneous (/100) 55 59 Attractiveness Cost Miscallaneous (/75) 36 37 Attractiveness Time Miscallaneous (/25) 14 15 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 72. LILLY AND ASSOCIATES 72 FOOD STUFF Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 30% LOADING 6 1 2% 1.44 0.24 UNLOADING 2 3 2% 0.48 0.72 FTZ (Km2) 1 10 1% 0.06 0.60 1 - CORPOTAX (% of profit) 8 5 1% 0.96 0.60 1 - INFLA 8 5 1% 0.48 0.30 PPP 9 2 1% 0.54 0.12 1000 - CRIME 5 6 1% 0.30 0.36 AGREEMENT 6 8 1% 0.72 0.96 C-WAREHOU (USD/Sqm in 2012) 2 10 2% 0.48 2.40 C-REALESTATE (USD/Sqm) 6 9 1% 0.36 0.54 C-WAGE (min/hour in 2013) 3 6 2% 0.54 1.08 C-ENERGY (/Kwh) 3 1 2% 0.72 0.24 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.54 0.18 FR - Ecuador (Price/container) 1 8 2% 0.18 1.44 FR - Chile (Price/container) 2 5 2% 0.36 0.90 FR - Brazil (Price/container) 5 6 2% 0.90 1.08 FR - Argentina (Price/container) 5 4 2% 0.90 0.72 C-EQUIPMENT 8 4 1% 0.48 0.24 CUSTOM-DUTIES 1 4 3% 0.30 1.20 C-INSURANCE 6 2 2% 1.08 0.36 Time 70% CRANES 5 10 1.4% 0.70 1.40 C-LENGTH (feet) 7 10 2.1% 1.47 2.10 7 5 0.7% 0.49 0.35 7 9 0.7% 0.49 0.63 DOCKS 4 8 2.1% 0.84 1.68 CAP-CONT (millions TEU in 2010) 1 6 0.7% 0.07 0.42 AIRPORT* 2 2 0.7% 0.14 0.14 10 10 0.7% 0.70 0.70 8 3 0.7% 0.56 0.21 10 8 0.7% 0.70 0.56 8 1 0.7% 0.56 0.07 RAIL 9 1 0.7% 0.63 0.07 D-RAIL-PORT 10 10 0.7% 0.70 0.70 ROAD (kms) 7 2 2.8% 1.96 0.56 IMPROV (B USD) 2 7 2.8% 0.56 1.96 FDI (% of GDP) 2 10 0.7% 0.14 0.70 JOBS (Millions) 2 8 0.7% 0.14 0.56 LABOR FORCE QUALITY (/10) 7 3 4.2% 2.94 1.26 GROWTH 3 7 0.7% 0.21 0.49 INTERNET (M) 8 5 0.7% 0.56 0.35 1 - CORRUP (/100) 9 5 1.4% 1.26 0.70 AGREE 6 8 2.1% 1.26 1.68 Nbr day OPENCOMPA 5 6 0.7% 0.35 0.42 EASEDOING (Index) 9 7 1.4% 1.26 0.98 FR - Ecuador (nb days) 6 9 9.8% 5.88 8.82 FR - Chile (nb days) 4 7 9.8% 3.92 6.86 FR - Brazil (nb days) 5 5 9.8% 4.90 4.90 FR - Argentina (nb days) 5 2 9.8% 4.90 1.96 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Food stuff (/100) 50 56 Attractiveness Cost Food stuff (/100) 39 48 Attractiveness Time Food stuff (/100) 55 59 Attractiveness Cost Food stuff (/30) 12 14 Attractiveness Time Food stuff (/70) 38 41 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 73. LILLY AND ASSOCIATES 73 Animals & Vegetables Products Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 20% LOADING 5 1 2% 0.80 0.16 UNLOADING 1 2 2% 0.16 0.32 FTZ (Km2) 1 10 0% 0.04 0.40 1 - CORPOTAX (% of profit) 8 5 1% 0.64 0.40 1 - INFLA 8 5 0% 0.32 0.20 PPP 9 2 0% 0.36 0.08 1000 - CRIME 5 6 0% 0.20 0.24 AGREEMENT 6 8 1% 0.48 0.64 C-WAREHOU (USD/Sqm in 2012) 2 10 2% 0.32 1.60 C-REALESTATE (USD/Sqm) 6 9 0% 0.24 0.36 C-WAGE (min/hour in 2013) 3 6 1% 0.36 0.72 C-ENERGY (/Kwh) 3 1 2% 0.48 0.16 Cost-OPENCOMPA (% of income / cap) 9 3 0% 0.36 0.12 FR - Ecuador (Price/container) 1 8 1% 0.12 0.96 FR - Chile (Price/container) 2 5 1% 0.24 0.60 FR - Brazil (Price/container) 5 6 1% 0.60 0.72 FR - Argentina (Price/container) 5 4 1% 0.60 0.48 C-EQUIPMENT 8 4 0% 0.32 0.16 CUSTOM-DUTIES 9 5 2% 1.80 1.00 C-INSURANCE 6 2 1% 0.72 0.24 Time 80% CRANES 5 10 1.6% 0.80 1.60 C-LENGTH (feet) 7 10 2.4% 1.68 2.40 7 5 0.8% 0.56 0.40 7 9 0.8% 0.56 0.72 DOCKS 4 8 2.4% 0.96 1.92 CAP-CONT (millions TEU in 2010) 1 6 0.8% 0.08 0.48 AIRPORT* 2 2 0.8% 0.16 0.16 10 10 0.8% 0.80 0.80 8 3 0.8% 0.64 0.24 10 8 0.8% 0.80 0.64 8 1 0.8% 0.64 0.08 RAIL 9 1 0.8% 0.72 0.08 D-RAIL-PORT 10 10 0.8% 0.80 0.80 ROAD (kms) 7 2 3.2% 2.24 0.64 IMPROV (B USD) 2 7 3.2% 0.64 2.24 FDI (% of GDP) 2 10 0.8% 0.16 0.80 JOBS (Millions) 2 8 0.8% 0.16 0.64 LABOR FORCE QUALITY (/10) 7 3 4.8% 3.36 1.44 GROWTH 3 7 0.8% 0.24 0.56 INTERNET (M) 8 5 0.8% 0.64 0.40 1 - CORRUP (/100) 9 5 1.6% 1.44 0.80 AGREE 6 8 2.4% 1.44 1.92 Nbr day OPENCOMPA 5 6 0.8% 0.40 0.48 EASEDOING (Index) 9 7 1.6% 1.44 1.12 FR - Ecuador (nb days) 6 9 11.2% 6.72 10.08 FR - Chile (nb days) 4 7 11.2% 4.48 7.84 FR - Brazil (nb days) 5 5 11.2% 5.60 5.60 FR - Argentina (nb days) 5 2 11.2% 5.60 2.24 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Animal & Vegetables (/100) 53 57 Attractiveness Cost Animal & Vegetables (/100) 46 48 Attractiveness Time Animal & Vegetables (/100) 55 59 Attractiveness Cost Animal & Vegetables (/20) 9 10 Attractiveness Time Animal & Vegetables (/80) 44 47 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 74. LILLY AND ASSOCIATES 74 Chemicals Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 40% LOADING 3 1 3% 1.00 0.33 UNLOADING 3 4 3% 1.00 1.33 FTZ (Km2) 1 10 1% 0.07 0.67 1 - CORPOTAX (% of profit) 8 5 1% 1.07 0.67 1 - INFLA 8 5 1% 0.53 0.33 PPP 9 2 1% 0.60 0.13 1000 - CRIME 5 6 1% 0.33 0.40 AGREEMENT 6 8 1% 0.80 1.07 C-WAREHOU (USD/Sqm in 2012) 2 10 1% 0.27 1.33 C-REALESTATE (USD/Sqm) 6 9 1% 0.40 0.60 C-WAGE (min/hour in 2013) 3 6 2% 0.60 1.20 C-ENERGY (/Kwh) 3 1 1% 0.40 0.13 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.60 0.20 FR - Ecuador (Price/container) 1 8 4% 0.40 3.20 FR - Chile (Price/container) 2 5 4% 0.80 2.00 FR - Brazil (Price/container) 5 6 4% 2.00 2.40 FR - Argentina (Price/container) 5 4 4% 2.00 1.60 C-EQUIPMENT 8 4 1% 0.53 0.27 CUSTOM-DUTIES 10 9 3% 3.33 3.00 C-INSURANCE 6 2 2% 1.20 0.40 Time 60% CRANES 5 10 0.4% 0.19 0.38 C-LENGTH (feet) 7 10 2.3% 1.58 2.25 7 5 0.8% 0.53 0.38 7 9 0.8% 0.53 0.68 DOCKS 4 8 1.5% 0.60 1.20 CAP-CONT (millions TEU in 2010) 1 6 0.8% 0.08 0.45 AIRPORT* 2 2 0.8% 0.15 0.15 10 10 0.8% 0.75 0.75 8 3 0.8% 0.60 0.23 10 8 0.8% 0.75 0.60 8 1 0.8% 0.60 0.08 RAIL 9 1 0.8% 0.68 0.08 D-RAIL-PORT 10 10 0.8% 0.75 0.75 ROAD (kms) 7 2 1.5% 1.05 0.30 IMPROV (B USD) 2 7 3.0% 0.60 2.10 FDI (% of GDP) 2 10 0.8% 0.15 0.75 JOBS (Millions) 2 8 0.8% 0.15 0.60 LABOR FORCE QUALITY (/10) 7 3 5.3% 3.68 1.58 GROWTH 3 7 0.8% 0.23 0.53 INTERNET (M) 8 5 0.8% 0.60 0.38 1 - CORRUP (/100) 9 5 1.5% 1.35 0.75 AGREE 6 8 1.9% 1.13 1.50 Nbr day OPENCOMPA 5 6 0.8% 0.38 0.45 EASEDOING (Index) 9 7 1.5% 1.35 1.05 FR - Ecuador (nb days) 6 9 7.5% 4.50 6.75 FR - Chile (nb days) 4 7 7.5% 3.00 5.25 FR - Brazil (nb days) 5 5 7.5% 3.75 3.75 FR - Argentina (nb days) 5 2 7.5% 3.75 1.50 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Chemicals (/100) 51 56 Attractiveness Cost Chemicals (/100) 45 53 Attractiveness Time Chemicals (/100) 56 59 Attractiveness Cost Chemicals (/40) 18 21 Attractiveness Time Chemicals (/60) 33 35 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 75. LILLY AND ASSOCIATES 75 Transportation Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 70% LOADING 1 1 5% 0.54 0.54 UNLOADING 4 4 5% 2.15 2.15 FTZ (Km2) 1 10 1% 0.11 1.08 1 - CORPOTAX (% of profit) 8 5 2% 1.72 1.08 1 - INFLA 8 5 1% 0.86 0.54 PPP 9 2 2% 1.45 0.32 1000 - CRIME 5 6 1% 0.54 0.65 AGREEMENT 6 8 2% 1.29 1.72 C-WAREHOU (USD/Sqm in 2012) 2 10 6% 1.18 5.92 C-REALESTATE (USD/Sqm) 6 9 1% 0.65 0.97 C-WAGE (min/hour in 2013) 3 6 3% 0.97 1.94 C-ENERGY (/Kwh) 3 1 3% 0.97 0.32 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.97 0.32 FR - Ecuador (Price/container) 1 8 6% 0.65 5.17 FR - Chile (Price/container) 2 5 6% 1.29 3.23 FR - Brazil (Price/container) 5 6 6% 3.23 3.88 FR - Argentina (Price/container) 5 4 6% 3.23 2.58 C-EQUIPMENT 8 4 1% 0.86 0.43 CUSTOM-DUTIES 10 6 5% 5.38 3.23 C-INSURANCE 6 2 3% 1.94 0.65 Time 30% CRANES 5 10 0.2% 0.11 0.21 C-LENGTH (feet) 7 10 0.9% 0.60 0.86 7 5 0.4% 0.30 0.21 7 9 0.4% 0.30 0.39 DOCKS 4 8 0.6% 0.26 0.51 CAP-CONT (millions TEU in 2010) 1 6 0.2% 0.02 0.13 AIRPORT* 2 2 0.4% 0.09 0.09 10 10 0.4% 0.43 0.43 8 3 0.4% 0.34 0.13 10 8 0.4% 0.43 0.34 8 1 0.4% 0.34 0.04 RAIL 9 1 0.6% 0.58 0.06 D-RAIL-PORT 10 10 0.4% 0.43 0.43 ROAD (kms) 7 2 1.3% 0.90 0.26 IMPROV (B USD) 2 7 1.7% 0.34 1.20 FDI (% of GDP) 2 10 0.4% 0.09 0.43 JOBS (Millions) 2 8 0.4% 0.09 0.34 LABOR FORCE QUALITY (/10) 7 3 2.6% 1.80 0.77 GROWTH 3 7 0.4% 0.13 0.30 INTERNET (M) 8 5 0.4% 0.34 0.21 1 - CORRUP (/100) 9 5 0.9% 0.77 0.43 AGREE 6 8 0.9% 0.51 0.69 Nbr day OPENCOMPA 5 6 0.4% 0.21 0.26 EASEDOING (Index) 9 7 0.9% 0.77 0.60 FR - Ecuador (nb days) 6 9 3.4% 2.06 3.09 FR - Chile (nb days) 4 7 3.4% 1.37 2.40 FR - Brazil (nb days) 5 5 3.4% 1.71 1.71 FR - Argentina (nb days) 5 2 3.4% 1.71 0.69 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Transportation (/100) 47 54 Attractiveness Cost Transportation (/100) 43 52 Attractiveness Time Transportation (/100) 57 57 Attractiveness Cost Transportation (/70) 30 37 Attractiveness Time Transportation (/30) 17 17 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 76. LILLY AND ASSOCIATES 76 Plastics Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 60% LOADING 1 1 5% 0.50 0.50 UNLOADING 2 2 5% 1.00 1.00 FTZ (Km2) 1 10 1% 0.10 1.00 1 - CORPOTAX (% of profit) 8 5 2% 1.60 1.00 1 - INFLA 8 5 1% 0.80 0.50 PPP 9 2 1% 0.90 0.20 1000 - CRIME 5 6 1% 0.50 0.60 AGREEMENT 6 8 2% 1.20 1.60 C-WAREHOU (USD/Sqm in 2012) 2 10 4% 0.80 4.00 C-REALESTATE (USD/Sqm) 6 9 1% 0.60 0.90 C-WAGE (min/hour in 2013) 3 6 3% 0.90 1.80 C-ENERGY (/Kwh) 3 1 1% 0.30 0.10 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.90 0.30 FR - Ecuador (Price/container) 1 8 6% 0.60 4.80 FR - Chile (Price/container) 2 5 6% 1.20 3.00 FR - Brazil (Price/container) 5 6 6% 3.00 3.60 FR - Argentina (Price/container) 5 4 6% 3.00 2.40 C-EQUIPMENT 8 4 1% 0.80 0.40 CUSTOM-DUTIES 10 9 5% 5.00 4.50 C-INSURANCE 6 2 2% 1.20 0.40 Time 40% CRANES 5 10 0.5% 0.25 0.50 C-LENGTH (feet) 7 10 1.5% 1.05 1.50 7 5 0.5% 0.35 0.25 7 9 0.5% 0.35 0.45 DOCKS 4 8 1.3% 0.50 1.00 CAP-CONT (millions TEU in 2010) 1 6 0.8% 0.08 0.45 AIRPORT* 2 2 0.5% 0.10 0.10 10 10 0.5% 0.50 0.50 8 3 0.5% 0.40 0.15 10 8 0.5% 0.50 0.40 8 1 0.5% 0.40 0.05 RAIL 9 1 0.5% 0.45 0.05 D-RAIL-PORT 10 10 0.5% 0.50 0.50 ROAD (kms) 7 2 1.0% 0.70 0.20 IMPROV (B USD) 2 7 2.0% 0.40 1.40 FDI (% of GDP) 2 10 0.5% 0.10 0.50 JOBS (Millions) 2 8 0.5% 0.10 0.40 LABOR FORCE QUALITY (/10) 7 3 3.0% 2.10 0.90 GROWTH 3 7 0.5% 0.15 0.35 INTERNET (M) 8 5 0.5% 0.40 0.25 1 - CORRUP (/100) 9 5 1.0% 0.90 0.50 AGREE 6 8 1.0% 0.60 0.80 Nbr day OPENCOMPA 5 6 0.5% 0.25 0.30 EASEDOING (Index) 9 7 1.0% 0.90 0.70 FR - Ecuador (nb days) 6 9 5.0% 3.00 4.50 FR - Chile (nb days) 4 7 5.0% 2.00 3.50 FR - Brazil (nb days) 5 5 5.0% 2.50 2.50 FR - Argentina (nb days) 5 2 5.0% 2.50 1.00 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Plastics (/100) 47 56 Attractiveness Cost Plastics (/100) 42 54 Attractiveness Time Plastics (/100) 55 59 Attractiveness Cost Plastics (/60) 25 33 Attractiveness Time Plastics (/40) 22 24 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 77. LILLY AND ASSOCIATES 77 Metals Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 60% LOADING 1 1 5% 0.50 0.50 UNLOADING 3 3 5% 1.50 1.50 FTZ (Km2) 1 10 1% 0.10 1.00 1 - CORPOTAX (% of profit) 8 5 2% 1.60 1.00 1 - INFLA 8 5 1% 0.80 0.50 PPP 9 2 1% 0.90 0.20 1000 - CRIME 5 6 1% 0.50 0.60 AGREEMENT 6 8 2% 1.20 1.60 C-WAREHOU (USD/Sqm in 2012) 2 10 4% 0.80 4.00 C-REALESTATE (USD/Sqm) 6 9 1% 0.60 0.90 C-WAGE (min/hour in 2013) 3 6 3% 0.90 1.80 C-ENERGY (/Kwh) 3 1 1% 0.30 0.10 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.90 0.30 FR - Ecuador (Price/container) 1 8 6% 0.60 4.80 FR - Chile (Price/container) 2 5 6% 1.20 3.00 FR - Brazil (Price/container) 5 6 6% 3.00 3.60 FR - Argentina (Price/container) 5 4 6% 3.00 2.40 C-EQUIPMENT 8 4 1% 0.80 0.40 CUSTOM-DUTIES 10 7 5% 5.00 3.50 C-INSURANCE 6 2 2% 1.20 0.40 Time 40% CRANES 5 10 0.5% 0.25 0.50 C-LENGTH (feet) 7 10 1.5% 1.05 1.50 7 5 0.5% 0.35 0.25 7 9 0.5% 0.35 0.45 DOCKS 4 8 1.3% 0.50 1.00 CAP-CONT (millions TEU in 2010) 1 6 0.8% 0.08 0.45 AIRPORT* 2 2 0.5% 0.10 0.10 10 10 0.5% 0.50 0.50 8 3 0.5% 0.40 0.15 10 8 0.5% 0.50 0.40 8 1 0.5% 0.40 0.05 RAIL 9 1 0.5% 0.45 0.05 D-RAIL-PORT 10 10 0.5% 0.50 0.50 ROAD (kms) 7 2 1.0% 0.70 0.20 IMPROV (B USD) 2 7 2.0% 0.40 1.40 FDI (% of GDP) 2 10 0.5% 0.10 0.50 JOBS (Millions) 2 8 0.5% 0.10 0.40 LABOR FORCE QUALITY (/10) 7 3 3.0% 2.10 0.90 GROWTH 3 7 0.5% 0.15 0.35 INTERNET (M) 8 5 0.5% 0.40 0.25 1 - CORRUP (/100) 9 5 1.0% 0.90 0.50 AGREE 6 8 1.0% 0.60 0.80 Nbr day OPENCOMPA 5 6 0.5% 0.25 0.30 EASEDOING (Index) 9 7 1.0% 0.90 0.70 FR - Ecuador (nb days) 6 9 5.0% 3.00 4.50 FR - Chile (nb days) 4 7 5.0% 2.00 3.50 FR - Brazil (nb days) 5 5 5.0% 2.50 2.50 FR - Argentina (nb days) 5 2 5.0% 2.50 1.00 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Metals (/100) 47 56 Attractiveness Cost Metals (/100) 42 54 Attractiveness Time Metals (/100) 55 59 Attractiveness Cost Metals (/60) 25 32 Attractiveness Time Metals (/40) 22 24 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 78. LILLY AND ASSOCIATES 78 Minerals Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 60% LOADING 1 1 5% 0.50 0.50 UNLOADING 1 10 5% 0.50 5.00 FTZ (Km2) 1 10 1% 0.10 1.00 1 - CORPOTAX (% of profit) 8 5 2% 1.60 1.00 1 - INFLA 8 5 1% 0.80 0.50 PPP 9 2 1% 0.90 0.20 1000 - CRIME 5 6 1% 0.50 0.60 AGREEMENT 6 8 2% 1.20 1.60 C-WAREHOU (USD/Sqm in 2012) 2 10 4% 0.80 4.00 C-REALESTATE (USD/Sqm) 6 9 1% 0.60 0.90 C-WAGE (min/hour in 2013) 3 6 3% 0.90 1.80 C-ENERGY (/Kwh) 3 1 1% 0.30 0.10 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.90 0.30 FR - Ecuador (Price/container) 1 8 6% 0.60 4.80 FR - Chile (Price/container) 2 5 6% 1.20 3.00 FR - Brazil (Price/container) 5 6 6% 3.00 3.60 FR - Argentina (Price/container) 5 4 6% 3.00 2.40 C-EQUIPMENT 8 4 1% 0.80 0.40 CUSTOM-DUTIES 10 7 5% 5.00 3.50 C-INSURANCE 6 2 2% 1.20 0.40 Time 40% CRANES 5 10 0.3% 0.13 0.25 C-LENGTH (feet) 7 10 1.5% 1.05 1.50 7 5 0.5% 0.35 0.25 7 9 0.5% 0.35 0.45 DOCKS 4 8 1.5% 0.60 1.20 CAP-CONT (millions TEU in 2010) 1 6 0.8% 0.08 0.45 AIRPORT* 2 2 0.5% 0.10 0.10 10 10 0.5% 0.50 0.50 8 3 0.5% 0.40 0.15 10 8 0.5% 0.50 0.40 8 1 0.5% 0.40 0.05 RAIL 9 1 0.5% 0.45 0.05 D-RAIL-PORT 10 10 0.5% 0.50 0.50 ROAD (kms) 7 2 1.0% 0.70 0.20 IMPROV (B USD) 2 7 2.0% 0.40 1.40 FDI (% of GDP) 2 10 0.5% 0.10 0.50 JOBS (Millions) 2 8 0.5% 0.10 0.40 LABOR FORCE QUALITY (/10) 7 3 3.0% 2.10 0.90 GROWTH 3 7 0.5% 0.15 0.35 INTERNET (M) 8 5 0.5% 0.40 0.25 1 - CORRUP (/100) 9 5 1.0% 0.90 0.50 AGREE 6 8 1.0% 0.60 0.80 Nbr day OPENCOMPA 5 6 0.5% 0.25 0.30 EASEDOING (Index) 9 7 1.0% 0.90 0.70 FR - Ecuador (nb days) 6 9 5.0% 3.00 4.50 FR - Chile (nb days) 4 7 5.0% 2.00 3.50 FR - Brazil (nb days) 5 5 5.0% 2.50 2.50 FR - Argentina (nb days) 5 2 5.0% 2.50 1.00 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Minerals (/100) 46 59 Attractiveness Cost Minerals (/100) 41 59 Attractiveness Time Minerals (/100) 55 59 Attractiveness Cost Minerals (/60) 24 36 Attractiveness Time Minerals (/40) 22 24 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 79. LILLY AND ASSOCIATES 79 Wood Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 50% LOADING 1 1 4% 0.42 0.42 UNLOADING 1 1 4% 0.42 0.42 FTZ (Km2) 1 10 1% 0.08 0.83 1 - CORPOTAX (% of profit) 8 5 2% 1.33 0.83 1 - INFLA 8 5 1% 0.67 0.42 PPP 9 2 1% 0.75 0.17 1000 - CRIME 5 6 1% 0.42 0.50 AGREEMENT 6 8 2% 1.00 1.33 C-WAREHOU (USD/Sqm in 2012) 2 10 3% 0.67 3.33 C-REALESTATE (USD/Sqm) 6 9 1% 0.50 0.75 C-WAGE (min/hour in 2013) 3 6 3% 0.75 1.50 C-ENERGY (/Kwh) 3 1 1% 0.25 0.08 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.75 0.25 FR - Ecuador (Price/container) 1 8 5% 0.50 4.00 FR - Chile (Price/container) 2 5 5% 1.00 2.50 FR - Brazil (Price/container) 5 6 5% 2.50 3.00 FR - Argentina (Price/container) 5 4 5% 2.50 2.00 C-EQUIPMENT 8 4 1% 0.67 0.33 CUSTOM-DUTIES 10 7 4% 4.17 2.92 C-INSURANCE 6 2 2% 1.00 0.33 Time 50% CRANES 5 10 0.3% 0.16 0.31 C-LENGTH (feet) 7 10 1.9% 1.31 1.88 7 5 0.6% 0.44 0.31 7 9 0.6% 0.44 0.56 DOCKS 4 8 1.9% 0.75 1.50 CAP-CONT (millions TEU in 2010) 1 6 0.9% 0.09 0.56 AIRPORT* 2 2 0.6% 0.13 0.13 10 10 0.6% 0.63 0.63 8 3 0.6% 0.50 0.19 10 8 0.6% 0.63 0.50 8 1 0.6% 0.50 0.06 RAIL 9 1 0.6% 0.56 0.06 D-RAIL-PORT 10 10 0.6% 0.63 0.63 ROAD (kms) 7 2 1.3% 0.88 0.25 IMPROV (B USD) 2 7 2.5% 0.50 1.75 FDI (% of GDP) 2 10 0.6% 0.13 0.63 JOBS (Millions) 2 8 0.6% 0.13 0.50 LABOR FORCE QUALITY (/10) 7 3 3.8% 2.63 1.13 GROWTH 3 7 0.6% 0.19 0.44 INTERNET (M) 8 5 0.6% 0.50 0.31 1 - CORRUP (/100) 9 5 1.3% 1.13 0.63 AGREE 6 8 1.3% 0.75 1.00 Nbr day OPENCOMPA 5 6 0.6% 0.31 0.38 EASEDOING (Index) 9 7 1.3% 1.13 0.88 FR - Ecuador (nb days) 6 9 6.3% 3.75 5.63 FR - Chile (nb days) 4 7 6.3% 2.50 4.38 FR - Brazil (nb days) 5 5 6.3% 3.13 3.13 FR - Argentina (nb days) 5 2 6.3% 3.13 1.25 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Wood (/100) 48 55 Attractiveness Cost Wood (/100) 41 52 Attractiveness Time Wood (/100) 55 59 Attractiveness Cost Wood (/50) 20 26 Attractiveness Time Wood (/50) 28 30 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 80. LILLY AND ASSOCIATES 80 Stone & Glass Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 60% LOADING 1 1 5% 0.50 0.50 UNLOADING 1 1 5% 0.50 0.50 FTZ (Km2) 1 10 1% 0.10 1.00 1 - CORPOTAX (% of profit) 8 5 2% 1.60 1.00 1 - INFLA 8 5 1% 0.80 0.50 PPP 9 2 1% 0.90 0.20 1000 - CRIME 5 6 1% 0.50 0.60 AGREEMENT 6 8 2% 1.20 1.60 C-WAREHOU (USD/Sqm in 2012) 2 10 4% 0.80 4.00 C-REALESTATE (USD/Sqm) 6 9 1% 0.60 0.90 C-WAGE (min/hour in 2013) 3 6 3% 0.90 1.80 C-ENERGY (/Kwh) 3 1 1% 0.30 0.10 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.90 0.30 FR - Ecuador (Price/container) 1 8 6% 0.60 4.80 FR - Chile (Price/container) 2 5 6% 1.20 3.00 FR - Brazil (Price/container) 5 6 6% 3.00 3.60 FR - Argentina (Price/container) 5 4 6% 3.00 2.40 C-EQUIPMENT 8 4 1% 0.80 0.40 CUSTOM-DUTIES 10 7 5% 5.00 3.50 C-INSURANCE 6 2 2% 1.20 0.40 Time 40% CRANES 5 10 0.3% 0.13 0.25 C-LENGTH (feet) 7 10 1.5% 1.05 1.50 7 5 0.5% 0.35 0.25 7 9 0.5% 0.35 0.45 DOCKS 4 8 1.5% 0.60 1.20 CAP-CONT (millions TEU in 2010) 1 6 0.8% 0.08 0.45 AIRPORT* 2 2 0.5% 0.10 0.10 10 10 0.5% 0.50 0.50 8 3 0.5% 0.40 0.15 10 8 0.5% 0.50 0.40 8 1 0.5% 0.40 0.05 RAIL 9 1 0.5% 0.45 0.05 D-RAIL-PORT 10 10 0.5% 0.50 0.50 ROAD (kms) 7 2 1.0% 0.70 0.20 IMPROV (B USD) 2 7 2.0% 0.40 1.40 FDI (% of GDP) 2 10 0.5% 0.10 0.50 JOBS (Millions) 2 8 0.5% 0.10 0.40 LABOR FORCE QUALITY (/10) 7 3 3.0% 2.10 0.90 GROWTH 3 7 0.5% 0.15 0.35 INTERNET (M) 8 5 0.5% 0.40 0.25 1 - CORRUP (/100) 9 5 1.0% 0.90 0.50 AGREE 6 8 1.0% 0.60 0.80 Nbr day OPENCOMPA 5 6 0.5% 0.25 0.30 EASEDOING (Index) 9 7 1.0% 0.90 0.70 FR - Ecuador (nb days) 6 9 5.0% 3.00 4.50 FR - Chile (nb days) 4 7 5.0% 2.00 3.50 FR - Brazil (nb days) 5 5 5.0% 2.50 2.50 FR - Argentina (nb days) 5 2 5.0% 2.50 1.00 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Stone and glass (/100) 46 55 Attractiveness Cost Stone and glass (/100) 41 52 Attractiveness Time Stone and glass (/100) 55 59 Attractiveness Cost Stone and glass (/60) 24 31 Attractiveness Time Stone and glass (/40) 22 24 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )
  • 81. LILLY AND ASSOCIATES 81 Raw Hides, Skins, & Leather Miami Score Panama Score Weight Miami Weighted Panama Weighted Cost 65% LOADING 1 1 5% 0.54 0.54 UNLOADING 1 1 5% 0.54 0.54 FTZ (Km2) 1 10 1% 0.11 1.08 1 - CORPOTAX (% of profit) 8 5 2% 1.73 1.08 1 - INFLA 8 5 1% 0.87 0.54 PPP 9 2 1% 0.98 0.22 1000 - CRIME 5 6 1% 0.54 0.65 AGREEMENT 6 8 2% 1.30 1.73 C-WAREHOU (USD/Sqm in 2012) 2 10 2% 0.43 2.17 C-REALESTATE (USD/Sqm) 6 9 1% 0.65 0.98 C-WAGE (min/hour in 2013) 3 6 3% 0.98 1.95 C-ENERGY (/Kwh) 3 1 1% 0.33 0.11 Cost-OPENCOMPA (% of income / cap) 9 3 1% 0.98 0.33 FR - Ecuador (Price/container) 1 8 7% 0.65 5.20 FR - Chile (Price/container) 2 5 7% 1.30 3.25 FR - Brazil (Price/container) 5 6 7% 3.25 3.90 FR - Argentina (Price/container) 5 4 7% 3.25 2.60 C-EQUIPMENT 8 4 1% 0.87 0.43 CUSTOM-DUTIES 10 4 7% 6.50 2.60 C-INSURANCE 6 2 3% 1.95 0.65 Time 35% CRANES 5 10 0.4% 0.22 0.44 C-LENGTH (feet) 7 10 1.3% 0.92 1.31 7 5 0.4% 0.31 0.22 7 9 0.4% 0.31 0.39 DOCKS 4 8 0.9% 0.35 0.70 CAP-CONT (millions TEU in 2010) 1 6 0.9% 0.09 0.53 AIRPORT* 2 2 0.4% 0.09 0.09 10 10 0.4% 0.44 0.44 8 3 0.4% 0.35 0.13 10 8 0.4% 0.44 0.35 8 1 0.4% 0.35 0.04 RAIL 9 1 0.4% 0.39 0.04 D-RAIL-PORT 10 10 0.4% 0.44 0.44 ROAD (kms) 7 2 0.9% 0.61 0.18 IMPROV (B USD) 2 7 1.8% 0.35 1.23 FDI (% of GDP) 2 10 0.4% 0.09 0.44 JOBS (Millions) 2 8 0.4% 0.09 0.35 LABOR FORCE QUALITY (/10) 7 3 2.6% 1.84 0.79 GROWTH 3 7 0.4% 0.13 0.31 INTERNET (M) 8 5 0.4% 0.35 0.22 1 - CORRUP (/100) 9 5 0.9% 0.79 0.44 AGREE 6 8 0.9% 0.53 0.70 Nbr day OPENCOMPA 5 6 0.4% 0.22 0.26 EASEDOING (Index) 9 7 0.9% 0.79 0.61 FR - Ecuador (nb days) 6 9 4.4% 2.63 3.94 FR - Chile (nb days) 4 7 4.4% 1.75 3.06 FR - Brazil (nb days) 5 5 4.4% 2.19 2.19 FR - Argentina (nb days) 5 2 4.4% 2.19 0.88 100% * ** 3 airports in Miami due to the fact that Miami has more secondary airports and transport facilities than Panama Miami Panama Total Attractiveness Raw Hides (/100) 47 51 Attractiveness Cost Raw Hides (/100) 43 47 Attractiveness Time Raw Hides (/100) 55 59 Attractiveness Cost Raw Hides (/65) 28 31 Attractiveness Time Raw Hides (/35) 19 21 C-DEPTH (feet) D-AIR-PORT (from 2 main airports to main port(s) )

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