The Epicenter of Transatlantic Routes

Puerto Rico: At the Nexus of Opportunities

Air Transshipment Hub

Accelerate life-critical manufacturing given the Island’s rich history of pharmaceutical and medical device manufacturing.

Strategic location, expansive and readily available FTZ designations, and regional cost-reducing supply chain options.

Perfect mix of U.S. protections and Island government policy, with unique international banking expertise and flexibility.

COVID-19 and airline industry contraction entail restructuring passenger routes to maximize high-value belly cargo.

• International Access • Cost-effective Supply Lines • Top Logistics Expertise

Priority to Reshore Industry Restructuring

Foreign Trade Zone U.S. Jurisdiction

Luis Muñoz Marín International Airport (SJU) - San Juan, Puerto Rico, Rafael Hernández Intl. Airport (BQN) - Aguadilla, Puerto Rico - © F&N Airphoto, LLC

Puerto Rico is a global logistics leader, serving as the highest volume port system in the Caribbean. In 2020, Puerto Rico became the first and only location in the U.S. to receive a waiver for an international cargo and passenger transfer hub. This positions the Island to leverage its logistics expertise, establish new international travel and commercial routes, and help companies cut costs, reduce shipping times, and ensure top quality handling of any product. This new status helps companies and individuals from all industries navigate the post-COVID landscape.

Puerto Rico as a transshipment hub maximizes the great local airport infrastructure and logistics industry expertise to make international shipping more cost effective for businesses. This new status strengthens the local economy by giving companies in Puerto Rico a front-row seat to international markets; it encourages more travel and tourism by attracting new airlines; and it complements the effort to re-shore critical pharmaceuticals and supplies by connecting local BioScience excellence with the mainland and global markets.

An ideal technical stop for international flights between the Americas, Europe, and the Middle East

1% increase in air cargo capacity is associated with a 6.3% increase in total trade (Source: IATA)

Refueling stations save airlines money and allow them to carry more cargo

1,730

90%

Expected contribution to economic activity (direct)

Expected contribution to economic activity (indirect)

New $100 million construction of state- of-the-art runway at Aguadilla airport (BQN)

Companies rely on air cargo, equal to 57% of the Island's GDP

Of all air cargo that passes through Puerto Rico are BioScience products

SJUSJU

NRRNRR

BQNBQN

PSEPSE

SJU: Luis Muñoz Marín Intl. Airport - Carolina, PR • BQN: Rafael Hernández Intl. Airport - Aguadilla, PR • PSE: Mercedita Intl. Airport - Ponce, PRNRR: José Aponte de la Torre Airport, located within former U.S. Air Force Strategic Command Base - Ceiba, PR

JOSÉ APONTE DE LA TORRE AIRPORT

$614 million

$515.7 million

New air transshipment regulations mean:

Luis González, Business Development Associate | lgonzalez@investpr.org | 787.421.8008 | investpr.org

The largest noncontiguous Foreign Trade Zone in the U.S.

Airport Profiles

Passengers

Inbound (lbs.)

Outbound (lbs.)

SJU:

BQN:

NRR:

Talent & Workforce

Nearly 2x the national concentration of aircraft cargo handling supervisors (LQ=1.75)

Recognized intermodal expertise related to cold chain

Advanced Academic Community

6x the concentration of STEM graduates over the next highest states

Specialized logistics curricula at multiple colleges and universities

Puerto Rico Shipping Association (PRSA)

Aerospace & Aeronautic Institute of Puerto Rico (AAIPR)

Organizational Support

LocationBenefits

“Made in the U.S.A.” designation capability

Tax free refueling stations in a FTZ

Real Estate & Opportunties

1.1M sq ft of land adjacent to SJU and over 1,500 acres available at BQN for industrial expansion and enhanced capabilities

PSE supports the Port of Ponce, one of Puerto Rico's maritime hubs

SOUTHAMERICA

NORTHAMERICA

AFRICA

EUROPE

NEW YORK

MIAMI2HRS

4HRS

6HRS

MEXICO

PUERTORICO

MADRID

RIO DE JANEIRO

Puerto Rico Foreign Trade Zone; managed by Puerto Rico Industrial Development Company. It is the largest non-contiguous FTZ in the U.S., having 4,554 acres, 714 buildings with a total of 19.5 million square feet, located all around the Island.

San Juan Foreign Trade Zone; managed by the Department of Economic Development and Commerce. The zone is located in the Guaynabo area, on the northern coast of Puerto Rico.

Managed by Zona Libre del Sur; The zone is located in the city of Ponce, on the southern coast of Puerto Rico.

Foreign Trade Zones (FTZs) allow companies to obtain significant financial savings, since raw material, components, and finished goods could be stored or processed within a zone while differing or eliminating the custom duty rate of such merchandise. If items are shipped to non-U.S. destinations, the payment of duties is exempted.

Among the Most Competitive Incentives in the United States

4% Corporate Tax Rate

Incentives for Hard to Recruit Workforce

R&D Tax Advantages

Tax Exemptions for Export Services

Multi-Phase Clinical Trial Exemptions

Multiple Manufacturing Incentives Available

Load factor of 87.14, higher than the national average of 86.42 (passenger-miles as proportion of available seat-miles in percent).

Advanced (MRO) facility in operation, infrastructure built on former U.S. Air Force Strategic Command Base, is the longest runway in the Caribbean. Refueling station is in a FTZ, meaning the fuel isn't taxed, leading to the lowest jet-fuel prices in the hemisphere.

The former Roosevelt Roads U.S. Naval Station, offers scheduled passenger service to the island municipalities of Vieques and Culebra. Airport grounds include an aviation maintenance school, various aerospace testing sites, and an 11,000 ft. runway. This airport offers development opportunity, but is not yet fully operational.

SJU BQN PSE8.4 million > 472,000 > 168,000

301.5 million 69.4 million 342,700

170.9 million 58.3 million 2,720

Luis Muñoz Marín Intl. Airport - Carolina, PR

Rafael Hernández Intl. Airport - Aguadilla, PR

Mercedita Intl. Airport - Ponce, PR