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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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Running head: LILLY AND ASSOCIATES 1
Lilly and Associates
Robert Brown, Yasmina Lazrak, Kuo Li, Nicolas Lopez Segura, and Yao Lu
Florida International University
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
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
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.
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.
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.
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
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
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.
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.
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
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
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
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
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.
LILLY AND ASSOCIATES 16
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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
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Chapter2 FreightRail.pdf
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Gimenez, C. A. (2013). Miami international airport cargo hub. Miami Dade County.
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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,
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
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.
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.
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.
LILLY AND ASSOCIATES 26
APPENDIX
Appendix A
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
LILLY AND ASSOCIATES 28
Appendix C
LILLY AND ASSOCIATES 29
Appendix D.
LILLY AND ASSOCIATES 30
Appendix E.
Appendix F
LILLY AND ASSOCIATES 31
Appendix G
LILLY AND ASSOCIATES 32
LILLY AND ASSOCIATES 33
LILLY AND ASSOCIATES 34
LILLY AND ASSOCIATES 35
LILLY AND ASSOCIATES 36
LILLY AND ASSOCIATES 37
LILLY AND ASSOCIATES 38
LILLY AND ASSOCIATES 39
LILLY AND ASSOCIATES 40
LILLY AND ASSOCIATES 41
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
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
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
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
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
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
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
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
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
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
xColon 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.htm5.7%
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]=MIAM112PCPI14300
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) 1.5http://www.doingbusiness.org/dat
a/exploreeconomies/united-states7.2
http://www.doingbusiness.org/dat
a/exploreeconomies/panama#starti
ng-a-business
FREIGHT ECUAD 3194.642857See table Freight Rates Main South
American Ports1367
See table Freight Rates Main South
American Ports
FREIGHT CHILE 2420.5See table Freight Rates Main South
American Ports1919.25
See table Freight Rates Main South
American Ports
FREIGHT BRAZ 1974See table Freight Rates Main South
American Ports1764.75
See table Freight Rates Main South
American Ports
FREIGHT ARGENT 1974See table Freight Rates Main South
American Ports2033.5
See table Freight Rates Main South
American Ports
C-EQUIPMENT 8Give by the responsible of
equipment at Lilly and Associates4
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 6Give by the responsible of
equipment at Lilly and Associates2
Give by the responsible of
equipment at Lilly and Associates
CRANES 21http://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
PortMiamiThe 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)
LILLY AND ASSOCIATES 52
DOCKS 6http://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.pdf76km
http://www.nationmaster.com/cou
ntry-
info/profiles/Panama/Transport#20
13
D-RAIL-PORT0km (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=13a15137km
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) 7According to the Responsible of the
equipment team of Lilly Associates3
According to the Responsible of the
equipment team of Lilly Associates
GROWTH 2.80%http://data.worldbank.org/indicato
r/NY.GDP.MKTP.KD.ZG10.70%
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
CORRUPPercentile 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) 14.6Lucio Chan, Responsible of Freight
Rates at Lilly and Associates5.5
Lucio Chan, Responsible of Freight
Rates at Lilly and Associates
TIME CHILE (average nb days) 20Lucio Chan, Responsible of Freight
Rates at Lilly and Associates12
Lucio Chan, Responsible of Freight
Rates at Lilly and Associates
TIME BRAZ (average nb days) 18Lucio Chan, Responsible of Freight
Rates at Lilly and Associates19
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
LILLY AND ASSOCIATES 53
TIME ARGENT (average nb days) 18Lucio Chan, Responsible of Freight
Rates at Lilly and Associates26
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 WoodStone 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
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 glassRaw 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%
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)
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),
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)
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)
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%)
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)
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)
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)
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)
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)
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)
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)
LILLY AND ASSOCIATES 67
We
igh
t o
f e
ach
co
mp
on
en
ts b
y ca
tego
rie
s
CO
DE
Mu
ltif
on
ctio
n W
eig
ht
Text
ile
Mac
hin
ery
Mis
call
ane
ou
sFo
od
Stu
ffA
nim
als
and
ve
geta
ble
s
pro
du
cts
Ch
em
ich
als
Tran
spo
rtat
ion
Pla
stic
sM
eta
lsM
ine
rals
Wo
od
Sto
ne
an
d g
lass
Raw
Hid
es,
Ski
ns
Leat
he
r
Co
st60
%80
%50
%75
%30
%20
%40
%70
%60
%60
%60
%50
%60
%65
%
LOA
DIN
G5%
7%4%
6%2%
2%3%
5%5%
5%5%
4%5%
5%
UN
LOA
DIN
G5%
7%4%
6%2%
2%3%
5%5%
5%5%
4%5%
5%
FTZ
(Km
2)1%
1%1%
1%1%
0%1%
1%1%
1%1%
1%1%
1%
CO
RP
OTA
X P
RO
FIT
2%3%
1%3%
1%1%
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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 MachineryMiscallaneo
usFood Stuff
Animals
and
vegetables
products
ChemichalsTransportati
onPlastics 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 MachineryMiscallaneo
usFood Stuff
Animals
and
vegetables
products
ChemichalsTransportati
onPlastics 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
AttractivenessTotal Port Textile Machinery
Miscallaneo
usFood Stuff
Animals
and
vegetables
products
ChemichalsTransportati
onPlastics 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
AttractivenessTotal Port Textile Machinery
Miscallaneo
usFood Stuff
Animals
and
vegetables
products
ChemichalsTransportati
onPlastics 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
AttractivenessTotal Port Textile Machinery
Miscallaneo
usFood Stuff
Animals
and
vegetables
products
ChemichalsTransportati
onPlastics 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
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) )
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) )
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) )
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) )
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) )
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) )
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) )
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) )
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) )
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) )
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) )
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) )
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) )