Chile Platform for Investment

Chile Platform for Investment

This is the slogan that forms parts of a worldwide campaign that positions Chile as the best alternative for foreign companies to invest and seek to expand their commercial borders across the South American market.

Positive macroeconomic numbers, high technology, qualified human resources and a consolidated private sector, and a business-friendly environment which is a characteristic of developed nations, places Chile as one of the most stable and modern country in Latin America. These elements are fundamental at the moment of making decisions about where to invest.

The development of policies favoring exports has greatly contributed to this positive outcome. For instance, as a result of ruling monetary policies, the average rate of inflation over the last 5 years has been kept at about 3%. There is also an average of 2.4% in the country annual development during the same period, which allows to think in an annual development of 3,5% and 4,5% for the years to come. This figure gives calmness and allows our country to be catalogued as a low risk country among international investors. All, thanks to an economic activity based on a general stability, therefore fomenting a permanent openness towards new markets.

In effect, the application of free market policies together with internal growth boosted by the international commerce, places Chile as a highly competitive economy.  As a proof of this, the Annual Report of Competitiveness 2002 published by the International Institute for Management Development (IMD) placed Chile in the Nº 20position in the general classification among 49 world economies.

Another element that shows the good status of the Chilean economy are the international agreements signed by our country, which are divided into Agreements of Economic Complementation (ACE its Spanish acronym), signed with Bolivia, Colombia, Cuba, Ecuador, MERCOSUR, Peru and Venezuela, and free – trade agreements (TLC its Spanish acronym), signed with Canada, Central America, South Korea, EFTA (European Free Trade Association), the United States of America, Mexico, the European Union and Korea.         

According to the estimations of the General Direction of International Economic Relations, as a result of these agreements, Chile will cover nearly 90% of the entire foreign trade before 2010.

System Benefits

-Main business and distribution center for national and international merchandise highly recognized worldwide.

-Privileged geographical location to access more than 300 million potential clients.

-Fast connection channels with multiple market buyers.

-Great business opportunities with more than 1,650 companies.

-Annual average turnover of  MMU$4,700.

-150 foreign trade service companies (banks, customs agencies, insurer companies, transport, port companies, forwarders and others).

-30 years experience delivering a complete foreign trade service.

-Tax and customs exemptions.

-The merchandise can remain in the area for unlimited periods of time without paying taxes or rights.

-Fast customs document processing, product import and export operating procedures, done in minutes by means of an automated processing system that includes a control over the users inventory.

-Zofri is a showcase to access neighboring country markets, which are our main buyers such as Bolivia, Peru, Paraguay, Ecuador, Argentina, Brazil, among others.

Wholesale and Retail Sale

Free Zone's customs system established the wholesale and retail sale terms. Wholesales: they are done through the warehouse. Retail: they are done from the exhibition and sales stores that are specially designed.

The city of Iquique

Iquique is a quiet city which has a rainless spring climate, excellent beaches, good education establishments and interesting cultural activities which allow a healthy way of life. These are some of the reasons that a great number of entrepreneurs have settled permanently in the city. The economic activities of Iquique, capital of Tarapaca I region, is mainly based on the international business that goes through Iquique's Free Zone (ZOFRI), copper mines, tourism and fishing industries. When Free Zone first began in 1975, the city had approximately 73.000 inhabitants. Today it has more than 200.000. This means that in a period of 29 years it has doubled its population. For roadway transport, Iquique offers passenger and freight service. The Pan-American Highway connects the city with Peru and the rest of Chile. Other roadways lead to Bolivia and Argentina. There have been ocean corridor projects in which Iquique will have in medium term, excellent access to the rest of the Mesoamerican countries. The international airport has suitable runways for large capacity plane landings and it is placed in second place in number of passengers. There are various shipping companies in Iquique that offer maritime transport services to any place in the world. The region has its three ports in Arica, Patillos and Iquique. The latest has an average influx of 50 ships and transports around 90.000 tons a month. The electricity supply comes from thermoelectric plants that form part of an intertwined system in the northern part of Chile. Household energy is delivered in 220-380 volts and 50 Hertz. Drinking water comes from underground  sources located 77 km east of Iquique. Iquique has great health, education, sports and recreational areas. Other activities that contribute to the economy is the foreign trade done through Zofri and the exploitation of the mining resources like copper, gold, sodium chloride, Iodine, boron among others. Northern Chile is the setting of some of the main mining projects being developed worldwide. As an example we have Doña Ines de Collahuassi Inc, Cerro Colorado, Quebrada Blanca among others. Tourism has also had an important development shown in the great quantity of hotels and recreational facilities.

Zofri?s infrastructure

Zofri’s Logistic Center:

Warehouses destined for merchandise storage (15.000 square meters).

Vehicle Courtyards:

Outdoor areas for vehicle and heavy machinery storage (35.000 square meters)

Warehouses:

These facilities are located within both the walled precinct and the industrial area. They are used for merchandise storage and exhibition of a broad range of products. Within the walled precinct is the 365 square meters three floored warehouse equipped with showrooms, offices, storage rooms, builder’s hoist and hygiene services. On the other hand, warehouses that are located in the industrial area have an area of 600 square meters and only have one floor in an open facility.

ZofriParts:

This commercial area has 40 store locations and a service area divided in two phases. The first phase is used for selling vehicle parts and accessories, and the second phase is destined for marketing miscellaneous areas and service companies. These stores have an area of 66 square meters in two floors. They have an exhibition and sales area, offices and storage facilities.

Shopping Mall:

Exhibition building where products are sold at retail level.

Financial Area:

In the first floor of the Conventions Building are located 14 of the main banks in the region.

Service Area:

A building with 16 stores where independent companies provide various services such as communication, custom processing, money exchange, mail and warrant services, among others.

Conventions Building:

This is where Iquique?s Free Trade Zone administration is located. It is equipped with a conference room for conventions and seminars with a 500 people capacity. It also has 4 additional rooms with a 50 people capacity per room.

Walled Precinct:

This area is used for wholesale trading. It is strategically located next to the port assuring easy access. In this Area (22 hectares) there are more than 400 companies importing and exporting products, mainly of Asian origin, to neighboring countries such as Bolivia, Peru, Paraguay, Argentina, Brazil, Ecuador, among others.

Industrial Area:

An area of 56 hectares where companies carry out commercial (wholesale and retail) and industrial activities. This area has all the necessary conditions so that companies can produce, store, market and distribute their products.

Alto Hospicio`s Industrial Park:

Zofri Inc. owns an area in Alto Hospicio (130 hectares) available to be used for the development of new real estate projects, one of which is the creation of an industrial park under the Free Trade Zone's System. This project would have an extension of 30 hectares approximately.

Chacalluta`s Industrial park:

Located in the city of Arica, has a surface area of approximately 130 hectares. This park is restricted only to the development of industrial activities. It is characterized by its proximity to neighboring countries such as Bolivia and Peru.