BAJA BORDER GLOBAL CITY:

Will include: SAN FELIPE, NEW COLONET, TJ, TECATE and Mexicali.
Mexicali Conference, 2008

By Dr. Olga Lazin, UCLA

(Globalización – México – Baja California)

QuickTimeª and a
TIFF (Uncompressed) decompressor
are needed to see this picture.

Baja California1
The new port Punta Colonet , a special economic zone, will open in 2014.

Punta Colonet, also known as Point Colnett, is the potential site of one the largest ports in the world.

Named after a British sea captain by the name of Captain James Colnett who had extensively explored that

region of the Pacific coast in the early eighteenth century, it is currently home to a cape and nearby town

1
Mexico plans huge Baja port for U.S. trade, By Marla Dickerson, Los Angeles,
Aug 28, 2008

www.latimes.com/business/la-fi-mexico28-2008aug28,0,844963.story

1
in the Mexican state of Northern Baja California. Due to its proximity to the Mexican Federal Highway 1 and the

fact that it less than 200 miles from the San Ysidro-Tijuana International Border, it has the potential for growth

and great investment.

Due to the success of other West Coast Mexican ports, interest in developing Point Colonet has been

expanded (Mireles, 2005). Manzanillo and Lazaro Cardenas which are about 1,000 miles away from the United

States border have shown great success. Closer proximity to the United States would further enhance success of a

port. There are several other factors that play a role in the interest of developing a large port in this area. The

proposed port would bear the name Puerto Colonet or Puerto Colnett. It will encompass Mexicali, San Felipe, TJ,

and Ensenada.

One of the primary factors that would allow Punta Colonet to be a major port center has to do with more

lenient environmental regulations in Mexico as compared to the large ports of Los Angeles and Long Beach

further north in California.

An extreme example of this poor regulation has occurred in Hermosillo at the so-called Integrated Waste

Management Center (Cegire). They have been operating a toxic industrial waste site since 2005 although they are

not equipped nor have the proper training to do so although they were issued a government permit (Nauman,

2007). Similarly, Mexico City, the largest and capital city of Mexico, suffers from horrific sewage problems as

sewage seeps all over the city uncontrolled as there is no general plan to treat or handle this waste water. In the

long run, this will be quite beneficial to American and Asian companies who wish to conduct large-scale

investments and maintain the greatest revenues by avoiding performing operations that are environmentally

sound.

The benefit to Mexico will also be quite significant. The proposed project calls for a port size covering

around 5,300 hectares which corresponds to approximately 13000 acres (Medina, 2004). Other estimates claim

that the project will comprise an area of about 27000 acres (Lindquist, 2005) about twice as much as the primary

estimate. As the ports of Los Angeles and Long Beach have handled 5.0 and 3.3 million containers last year,

respectively. However, the expected capacity for Puerto Colonet shall be 6 million containers a year. That would

make the port the third largest in the world following only those of Hong Kong and Singapore. This would divert

much of the port traffic in Los Angeles and Long Beach to the Mexican port. The sources offer conflicting reports

2
as some cite that it may handle 1 million containers a year by 2012 (Mireles, 2005). Regardless, the proposed port

would function as major player and divert much of the maritime commerce of the crowded Los Angeles, Long

Beach, and Oakland ports.

For such a large port city to be built it would require a drastic increase in manpower, facilities, resources,

energy, sanitation, and infrastructure at the very least. The current population of Punta Colonet has a population

of about 2500 people who are mostly subsistence farmers and fishermen. Many live without the basic facilities

that many in larger cities take for granted. The proposed population for the city would increase to at least 200,000

if the project were to move forward. This would greatly increase the economy of Baja California and bring new

jobs and commerce to Mexico.

Another positive aspect of this project is that it would be the largest investment in Mexico. The project is

estimated at 1 to 2 billion dollars but would need much more capital as time progresses and as more facilities will

be needed to maintain and expand the port. This high-end estimate has been placed at about 22 billion dollars. As

part of this project a two-way rail line is also proposed to be built linking the state capital of Mexicali to the port.

There may also be plans of expanding the highway that currently exists as many more trucks will carry goods to

the International Border.

The expansion of the port project will also yield a greater investment and expansion of real estate that is

virtually non existent in the vicinity of Punta Colonet. This will include housing, hotels, warehouses, and many

other industrial and civilian facilities. Estimates show that this will yield hundreds of billions of dollars to

investors like Slim.

The plan is quite feasible but the government would have to turn to private companies for the subsidies

and means of both building and operating the port. This method has proven successful in the past as the Mexican

government has used this technique to repair and maintain its infrastructure including the repair and maintenance

of roads and pre-existing ports. American analysts predict that this will be possible to attain as a well-maintained

port will be able to generate enough revenue for maintenance and even profit for investors as a system of taxation

will provide this.

A dire threat to this project is another project in the nearby Central American country of Panama. There is

a project currently ongoing in Panama to expand and modernize the Panama Canal. Many project that this will

3
make the proposed port at Punta Colonet will be made almost obsolete. In fact, many analysts such as Joseph P.

Ritzman, the project development manager of SSA Marine's terminal operations in Mexico, believe that this is

information that almost certainly destroys the potential benefits of the project. However, many of these pessimists

fail to point out that no matter how efficient the Panama Canal may be, Asian that border the Pacific have a more

direct route to North America by going directly to the proposed port at Punta Colonet than by circumventing

Mexico via the Panama Canal. Historically, the Manila Galleon which passed between the Spanish Philippines

and the Viceroyalty of New Spain can attest to this trans-Pacific maritime trade long before the existence of the

Panama Canal.

There are many key players in this project that have proposed and want to execute this plan. One of the

most important private companies in this process is Hutchinson Whampoa Limited. This company has branched

out to many sectors and in particular the branch of the company known as Hutchinson Port Holdings is vying for

primary control of the port. It is important to know the background behind this company to understand the

complex issues that shall be at hand if this proposed port were to be built.

This company was originally founded in the second half of the nineteenth century by the British as a

means of monopolizing the maritime trade in Hong Kong and nearby regions. In the 1960s, the company under

the guidance of Sir Douglas Crague helped acquired all stakes in Hong Kong and Whampoa Bay. This company

also acquired control of many of the major ports around the world remaining as one of the vestiges of power of

the former British Empire. The company clinched this monopoly in 1977 but the success was short-lived as the

company fell into financial trouble. Hong Kong Bank bought the company and eventually sold it to the powerful

Cheung Kong.

Hutchinson Whampoa Limited is now controlled by the Chinese billionaire Li Ka-Shing. It also controls

35 major ports around the world, including the four most important Mexican ports. There has been much concern

amongst many Western nations that the Chinese have a monopoly on the major ports of the world including

American ports. The main concern is that in the event of a conflict with China there will be crippling economic

consequences as trade will be severely restricted.

Another major investor that was originally planning to partner with Hutchinson Whampoa Limited is the

Union Pacific Railroad. This company is the largest railroad network in the United States. In relation to Mexico,

4
it also owns 24% of the stakes in Ferromex, the largest railroad network in Mexico, after the privatization of the

state-owned Mexican companies. This company has proposed joint ownership and control of the Port with

Hutchinson Whampoa Limited.

Other proponents of this bid are the local and federal Mexican governments. The governor of Baja

California is definitely for this as it will increase the prosperity of the state and allow for an increase in the

infrastructure within the state. It will also improve the importance of the state as one of the most important ports

in North America will be located there. In addition to this, the citizens of Ensenada have pushed for the plan to be

carried out because they claim that the Mexican government was pushing to expand the port already in existence

in their city. In fact, the nearby Los Angeles and Long Beach ports are nearing the maximum capacity for the

amount of containers they can handle. When the Mexican government was faced with the prospect of alleviating

much of the excess maritime traffic that was being diverted from the United States, they jumped at the idea. The

local citizens of Ensenada, however, would not welcome such a move as it would overcrowd and deteriorate the

poor environmental conditions already in existence there.

The Mexican federal government also is a proponent of such a move as it will expand industrial growth

and will give Mexico a chance to be a key player in the international market. With the advent of globalization that

has been taking place for the past few decades, many ‘third-world’ countries have seen their economies rapidly

expand as industrialization has sky-rocketed. For example, in the 1970s Mexico had seen itself at a similar level

as South Korea, but South Korea has rapidly surpassed Mexico in many sectors as Mexico has remained at

almost the same position. The Mexican government is hoping to change all this. This port will expand the direct

dealings with many Asian countries and will allow a Mexican port to compete with the close, large Californian

ports to the North.

Furthermore, Mexican conglomerate Carlos Slim, the second wealthiest man in the world, seems to show

great interest in the project as well. As one of the most powerful Mexicans, he definitely has the ability to get the

project moving. He currently owns the largest telecommunications companies in Latin America and Mexico,

including Telmex and Telcel. He has the resources and connections to help support the project if roadblocks may

appear.

As mentioned earlier, the proposed port would need at least a population of 200,000 in order to achieve

5
the estimated productivity. This is a great opportunity for Mexico to develop and to take away the strain of

overpopulation in Mexico’s heavily populated south. As many Mexicans live below the poverty level and have

had trouble finding jobs and decent housing. It would be a great incentive to build an important city in the less

populated northern Mexican regions, especially Baja California. This may deter many Mexicans from emigrating

abroad to find jobs and contribute more to their own country’s economy. Many industrialized nations have gone

through the periods of rapid population growth and emigration but then they eventually have decreased

emigration and a more stabilized population growth level. This proposed port would help contribute to this

stabilization.

Similarly, it would allow the Mexican government to ‘start from scratch’ on a brand new major city. This

would be quite unique because it would allow the Mexicans to incorporate new methods for city planning so as to

make it more efficient. If successful, this new port city would allow the government to even experiment with

creating a special economic zone just as the Chinese have done with Hong Kong.

If successful, this port may also attract more attention from international investors for other projects, as

well. The success of this port may also bring foreign investment for the building of more ports in Mexico. This

would also attract the investment of automakers, textile manufacturers, and other aspects of industry so that

companies may have the confidence to base more of their operations directly in Mexico rather than elsewhere,

such as in Asia.

With all of the support and positive attention that this proposed port is receiving, there are also many

opposing factors to the project. Prior to the proposal of the port project, the Mexican federal government had

given a permit to Grupo Lobo for the rights to mine in the area. They were given the right to mine for titanium

and other metals in a large area that includes the area for the proposed port and even into the outlying coastline.

This company, realizing the importance of this port, has claimed that they also own the right to concessions for

the new port. However, the mining company and the government are in talks to come up with a solution that will

be beneficial to both the port project and the mining company’s aspirations. The mining company has agreed to

give up much of the needed land as long as they are able to co-exist and exploit the land. The government

believes that the port project and the mining efforts will be able to exist and prosper together.

Another downside to this proposed project is the opposition from various groups in the United States.

6
Many Americans oppose the port project in Mexico because they believe that an expanded port in Mexico will

greatly decrease the job availabilities in ports in the United States because of widely available cheap Mexican

labor. There is also a fear that the ports of Los Angeles and Long Beach will lose the significance that they

currently hold.

A potential force that will be a major impediment to the development of this project is the ejido, small

communally-owned farms. The ejido has challenged Mexico in the past. Ejidos were plots of land that the

government had handed over to small communities of farmers to use for agricultural production for indefinite

periods of time as long as they maintained usage of the land. Due to the low productivity of these plots of land

the government has recently been trying to abolish them and sell this land to businesses. However, much of the

land is still owned by small farmers who pose a determent to the expansion of the port project, as they own plots

of the surrounding land. The government and potential investors are going to have to negotiate a compromise in

order to move this project forward. Another drawback is that with resistance from the local farmer population,

the Punta Colonet project will progress more slowly and building costs will rise dramatically.

A point of concern is the impediment of goods to the United States. As many of the shipments that will

head to the port at Colonet will eventually be destined for delivery to the United States, there are some fears

about the slower movement of goods to the United States. In the case that products are delivered that are already

running late, there will be an even greater impediment in the checkpoints that must be conducted on the cargo

that will enter the United Stated either by truck or train once reaching the docks at Punta Colonet. As goods will

take longer to reach, many services and their resultant products will rise in cost in the United States.

Furthermore, this will prove to be quite deleterious to the local population as is already evident in other

parts of Mexico. It has been stated that that the boats will deposit sewage, toxic paint, and other pollutants will

ruin the ecosystem and make fishing almost non-existent in this pristine part of Baja California (Nauman, 2007).

Taking into consideration an example from a city with stricter environmental regulations, it has been shown that

the city of San Pedro owes its large pollution problems to the constant traffic of ships, locomotives, and large

trucks.

Overall, if this project were to go through it would offer tremendous benefits to the region and to

international maritime trade. The construction of this port would enhance the accessibility and productivity of

7
goods as the nearby Los Angeles and Long Beach ports have reached near maximum saturation. The port also has

the potential to attract great investment to Mexico, as its success would prove it to be an important asset to North

American and international trade. Another positive aspect of this proposed port is that it would provide jobs for a

large number of Mexicans who otherwise do not possess a job or need a more stable career.

Similarly, this project also has the potential for great disaster. If facilities go unmanaged, the pristine coast

surrounding Punta Colonet will be degraded by pollution and man-derived wastes. This will destroy the local

ecosystem and contribute to much of the global warming that the world is currently experiencing. A major

potential threat is the monopoly ownership a Chinese conglomerate company will possess, namely Hutchinson

Whampoa Limited, if the above-mentioned chain of events were to take place. As this company already has a

stronghold on many major ports worldwide, it would cause an economic crisis for any country in conflict with

China, in particular the United States of America.

The major roadblocks to the plan also have to be overcome if this port is ever to become more than a

dream. The recent developments in the Panama Canal expansion and modernization project have been made to

seem as if the Punta Colonet project should be shelved indefinitely. Grupo Lobo, the mining company that owns

the mineral rights over the proposed region for the Port also provides obstacles that must be overcome. Although

some claim that this project is now obsolete and should be avoided, there are still many great benefits that still

can be achieved despite competition from the Panama Canal. For instance, direct traffic to Mexico from the Asian

Pacific countries is more direct than by passage through the Panama Canal.

This project is quite feasible and foreign investment as well as Mexican government cooperation on all

levels is more than readily available. In addition to Hutchinson Whampoa Limited, Mexican business

conglomerate Carlos Slim, Union Pacific Railroad, and others are more than willing to provide capital and

incentive for this port to become a reality. By maintaining a smooth business deal and taking all of the small

details into consideration, this can prove to be a groundbreaking project that will benefit Mexico, North America,

and Asia. Special economic zones like Punta Colonet will give impulse and act as a catalyst to Mexico’s

economic prestige. It will also change the way the world views Mexico and Latin America, in general.

References

8
Aguilar, Ricardo. Punta Colonet, la disputa. http://www.el-
universal.com.mx/columnas/57916.html. March 12, 2008.

Baja Insider. Chinese and Korean interests want a port facility in Baja California.
http://www.bajainsider.com/environment/port-punta-colonet.htm. March 03, 2008.

Conroy, Nancy. Chinese ownership of Mexican port causing worry.

http://www.mexidata.info/id1278.html March 09, 2008.

Greenberg, David. Mexican ports could take traffic from L.A.

http://findarticles.com/p/articles/mi_m5072/is_33_26/ai_n6179868. March 12, 2008.

Lindquist, Diane. Baja's Ruffo, weaned in fishing industry, bidding on two major
infrastructure projects. http://www.signonsandiego.com/news/business/20070712-
9999-1b12ruffo.html. March 09, 2008.

Lindquist, Diane. Mexican farmers seek details on port project.

http://www.banderasnews.com/0609/re-puntacolonet.htm. March 13, 2008.

Lindquist, Diane. New port on horizon.

http://www.signonsandiego.com/news/mexico/20050814-9999-1n14port.html.
March 07, 2008.

Lindquist, Diane. Union Pacific wants to connect with planned Baja port.
http://www.signonsandiego.com/uniontrib/20070321/news_1b21up.html. March 07,
2008.

Medina, Tomas de la Rosa. Punta Colonet, mega puerto en la mira.

http://www.transportesxxi.com/revista/63/6312txt.htm. March 07, 2008.

Mireles, Ricardo Castillo. Bids to begin to build a port.

http://www.logisticstoday.com/sNO/8801/iID/20968/LT/displayStory.asp. March 02,
2008.

Mireles, Ricardo Castillo. Mexican port project inches forward.

http://www.logisticstoday.com/sNO/8529/iID/20957/LT/displayStory.asp. March 12,
2008.

Mireles, Ricardo Castillo. Mining group fights over rights to build Mexico’s newest
port. http://www.logisticstoday.com/sNO/8370/iID/20953/LT/displayStory.asp.
March 03, 2008.

9
Mireles, Ricardo Castillo. Search is on for more West Coast ports.
http://www.logisticstoday.com/sNO/7130/iID/20911/LT/displayStory.asp. March 05
2008.

Nauman, Talli. Big projects surprise small communities. http://americas.irc-

online.org/am/4195. March 04, 2008.

San Diego Metropolitan Magazine. Punta Colonet Is Poised To Become A New

City And Leading West Coast Maritime Center. http://www.sandiegometro.com/2006/dec/baja4.php. March 07,
2008.

Supkis, Elaine Meinel. Hutchinson-Whampoa tid bits of history. http://americas.irc-online.org/am/4195. March 08, 2008.

Wikipedia. Punta Colonet, Baja California. http://en.wikipedia.org/wiki/Punta_Colonet,_Baja_California. March 15, 2008.

Wikipedia. Hutchison Whampoa Limited. http://en.wikipedia.org/wiki/Hutchison_Whampoa_Limited. March 04,

2008.

Wild Coast. Panama Canal expansion could kill Punta Colonet mega-port project
http://www.wildcoast.net/site/index.php?option=com_content&task=view&id=355&Itemid=132. March 14,
2008.

www.baja.gob.mx: Baja California Norte; NAFTA WORKS, June 2001.

10
Iguanas of Puerto Vallarta and Cancún are in extreme
danger, as urban development is infringing upon their
territories.

Today more than never iguanas in Puerto Vallarta and

Cancún are in danger of extinction due to developmental
actions of humans. The rocks and flowers of PV and Cancún
are dependent on the ecosystem maintained by the actions
of iguanas of all sizes.
Help us obtain funding for research from UCLA on Iguanas
habits and reproduction. My iguana, Lily in the picture is
really friendly and likes to sit on my shoulders ;-)
Sincerely,

Dr. Olga M. Lazin

drlazin@verizon.net

Special Economic Zone
From Wikipedia, the free encyclopedia

This article needs additional citations for verification.

11
 Please help improve this article by adding reliable references. Unsourced 
material may be challenged and removed. (January 2007)
A Special Economic Zone (SEZ) is a geographical region that has economic laws 
that are more liberal than a country's typical economic laws. The category 'SEZ' covers 
a broad range of more specific zone types, including Free Trade Zones (FTZ), Export 
Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban 
Enterprise Zones and others. Usually the goal of an SEZ structure is to increase foreign 
investment. One of the earliest and the most famous Special Economic Zones were 
founded by the government of the People's Republic of China under Deng Xiaoping in 
the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has 
developed from a small village into a city with a population over 10 million within 20 
years. Following the Chinese examples, Special Economic Zones have been 
established in several countries, including Brazil, India, Iran, Jordan, Kazakhstan, 
Pakistan, the Philippines, Poland, Russia, and Ukraine. North Korea has also attempted 
this to a degree, but failed. Currently, Puno, Peru has been slated to become a "Zona 
Economica" by its president Alan Garcia. A single SEZ can contain multiple 'specific' 
zones within its boundaries. The two most prominent examples of this layered approach 
are Subic Bay in the Philippines and the Aqaba Special Economic Zone in Jordan.

In a recent comprehensive econometric study[1] on the SEZ policies in China and India, 
Leong(2007) investigates the impact of opening up the Chinese and Indian economy on 
economic growth in these countries using new panel data sets for both the national 
economies and the regional economies of China. The policy change to a more 
liberalized economy is explicitly identified using instrumental variables. The results 
provide support that export growth does have a positive and statistically significant effect 
on economic growth in these countries. However, the growth rates of these countries are 
export and FDI inelastic, in the sense that a one percentage point increase in growth 
rate of export or FDI will have a less than one percentage point increase in economic 
growth rate of these countries. In the case of the Chinese regions, the presence of 
export processing zones may exert positive effect on the regional growth rate but the 
increase in regional growth is even more export inelastic than at the national level. The 
result dispel the popular view that adopting a policy of more openness in the economy 
has a “multiplier” effect on economic growth. Of the two phases of liberalization in both 
countries, the second stage is statistically significant. One possible reason is that the 
scale of liberalization is greater in the second phase. Additionally, increasing the number 
12
of SEZs has very negligible effect on economic growth. Taken together, these results 
suggest that what contributes to greater growth is a greater scale of liberalization, rather 
than increasing the number of SEZs.

Contents [hide]
 1 China 
 2 India 
 2.1 List of SEZs in India 
 3 Indonesia 
 4 Iran 
 5 Kazakhstan 
 6 North Korea 
 7 Pakistan 
 8 Philippines 
 8.1 List of SEZs in the Philippines 
 9 Poland 
 10 Russia 
 10.1 Technical/Innovational Zones 
 10.2 Industrial/developmental Zones 
 10.3 Tourist Zones 
 11 Ukraine 
 12 References 
 12.1 External links 
According to World Bank estimates, as of 2007 there are more than 3,000 projects 
taking place in SEZs in 120 countries worldwide.

SEZs have been implemented using a variety of institutional structures across the world 
ranging from fully public (government operator, government developer, government 
regulator) to 'fully' private (private operator, private developer, public regulator). In many 
cases, public sector operators and developers act as quasi­government agencies in that 
they have a pseudo­corporate institutional structure and have budgetary autonomy. 
SEZs are often developed under a public­private partnership arrangement, in which the 
public sector provides some level of support (provision of off­site infrastructure, equity 
investment, soft loans, bond issues, etc) to enable a private sector developer to obtain a 
reasonable rate of return on the project (typically 10­20% depending on risk levels).

13
[edit]
China
Main article: Special Economic Zones of the People's Republic of China
Currently, the most prominent SEZ's in the country are Shenzhen and Pudong, a district 
of Shanghai.

[edit]
India
Considering the need to enhance foreign investment and promote exports from the 
country and realising the need that a level playing field must be made available to the 
domestic enterprises and manufacturers to be competitive globally, The Government of 
India had in April 2000 announced the introduction of Special Economic Zones policy in 
the country, deemed to be foreign territory for the purposes of trade operations, duties 
and tariffs. As of 2007, more than 500 SEZs have been proposed, 220 of which have 
been created. This has raised the concern of the World Bank, which questions the 
sustainability of such a large number of SEZs. The Special Economic Zones in India 
closely follow the PRC model. India passed special economic zone act in 2005

[edit]
List of SEZs in India
The policy provides for setting up of SEZs in the public, private, joint sector or by State 
Governments. It was also envisaged that some of the existing Export Processing Zones 
would be converted into Special Economic Zones. Accordingly, the Government has 
converted Export Processing zones located at

 Visakhapatnam  (Andhra Pradesh)
 Hyderabad  (Andhra Pradesh)
 Ahmedabad , Baroda, Kandla and Surat (Gujarat)
 Cochin  (Kerala)
 Pithampur  (Madhya Pradesh)
 Nagpur  also refer MIHAN, Pune and Santa Cruz­Mumbai (Maharashtra)
14
 Chennai , Ilandaikulam Madurai, Nanguneri and Tirunelveli (Tamil Nadu)
 NOIDA , Greater NOIDA (Uttar Pradesh) UP
Falta (West Bengal)
Currently, India has 1022 units in operations in 9 functional SEZs, each an average size 
2
of 200 acres (0.81 km ). 8 Export Processing Zones (EPZs) have been converted into 
SEZs. These are fully functional. All these SEZs are in various parts of the country in the 
private/joint sectors or by the State Government. But this process of planning and 
development is under question, as the states in which the SEZs have been approved 
are facing intense protests, from the farming community, accusing the government of 
forcibly snatching fertile land from them, at heavily discounted prices as against the 
prevailing prices in the commercial real estate industry. Also some reputed companies 
like Bajaj and others have commented against this policy and have suggested using 
barren and wasteland for setting up of SEZs.the special economic zones

Attempts to set up a Special Economic Zone in Nandigram have led to protests by 
villagers in the area. A Parliamentary Committee to study and give recommendations on 
SEZs has said that no further SEZs be notified unless the existing law is amended to 
incorporate the changes related to the land acquisitions.

Genpact has announced its plans to expand its presence in Hyderabad by setting up a 
Special Economic Zone (SEZ) across 50 acres in the city at Jawahar Nagar.

PointIndu has inaugurated Hyderabad by setting up a Special Economic Zone (SEZ) 
across 150 acres near Shamshabad close to airport.

[edit]
Indonesia
Main article: Batam Island#SEZ - Special Economic Zones

[edit]
Iran
 Arg ­ e ­ Jadid Special Economic Zone : Vehicle Manufacturing Hub.
 PetZone : Petrochemical special economic Zone, Mahshahr.
 Kish : Kish island special economic zone.
15
 Sarakhs 
 Sirjan 
 Shahid Rajaee Port [2]
   
 Amirabad Special Economic Zone [3]
   
 Bushehr Port 

[edit]
Kazakhstan
 Astana 

[edit]
North Korea
The Rajin-Sonbong Economic Special Zone was established under a UN economic 
development programme in 1994. Located on the bank of the Tuman River, the zone 
borders on the Yanbian Korean Autonomous Prefecture (or, Yeonbyeon in Korean) of the 
People's Republic of China, as well as Russia. In 2000 the name of the area was 
shortened to Rason and became separate from the North Hamgyeong Province.

[edit]
Pakistan
Taking the example of the Chinese success with their SEZs, China is helping Pakistan 
develop the Haier­Ruba economic zone on the outskirts of Lahore.

Other economic zones include the China­Pakistan economic zone open only to Chinese 
investors and also the future crown jewel of Pakistan, Gwadar.

There are also talks of creating a Japanese city for foreign investors from Japan only.

There has also been new SEZ proposed on the currently under construction Sialkot­
Lahore motorway, Qatar has proposed an investment for $1 billion in a new SEZ along 
the motorway.

There is also a new zone under construction in Faislababd, which will be the biggest 

16
industrial estate of Pakistan when complete, it has sections for each country and the first 
phrase is already complete with a special Chinese zone in it.

[edit]
Philippines
Philippine economic zones (ecozones) are collections of industries, brought together 
geographically for the purpose of promoting economic development. Although designed 
to operate separately from the political and economic milieu of surrounding 
communities, Philippine economic zones do in fact interact with their neighbors. There 
are 41 private­owned economic zones and 4 government owned economic zones in the 
Philippines. Of the 41 private economic zones, the biggest exporter is Gateway Business 
Park in General Trias, Cavite and the second biggest private ecozone is Laguna 
Technopark Inc. The four governmentally owned are Cavite Economic Zone, Bataan 
Economic Zone, Mactan Economic Zone and Baguio City Economic Zone. Thus it is a 
useful act for the growth of economic zone of the country.

[edit]
List of SEZs in the Philippines
 Subic Bay Metropolitan Authority 
 Clark Special Economic Zone 
 Philippine Economic Zone Authority 
 Phividec Industrial Authority 
 Zamboanga City Special Economic Zone Authority 
 Cagayan Economic Zone Authority 

[edit]
Poland
 Kamiennogórska SSE 
 Katowice Special Economic Zone 
 Kostrzyńsko­Słubicka SSE 
 Krakowski Park Technologiczny 
17
 Legnicka SSE 
 Łódzka SSE 
 SSE EURO­PARK MIELEC 
 Słupska SSE 
 SSE Starachowice 
 Suwalska SSE 
 Pomorska SSE 
 Tarnobrzeska SSE 
 Wa łbrzyska SSE
   
 Warmińsko­Mazurska SSE 

[edit]
Russia

[edit]
Technical/Innovational Zones
 Dubna 
 Zelenograd 
Noidorf (Russian: Нойдорф) ­ industrial and business park in special economic zone in 
Strelna near Saint Petersburg, Russia
Novo-Orlovskoe (Russian: Ново­Орловское) ­ SEZ territory in Saint Petersburg, 
Russia
 Tomsk 

[edit]
Industrial/developmental Zones
 Yelabuga 
 Lipetsk 

[edit]
Tourist Zones
18
 Krasnodar Krai 
 Stavropol Krai 
 Kaliningrad Oblast  (Yantar, Kaliningrad Special Economic Zone)
 Altai Krai 
 Altai Republic 
 Irkutsk Oblast 
 Buryatia 

[edit]
Ukraine
Special Economic Zones existed in Ukraine until March 31, 2005. The first created was 
the Nouth­Crimean Experimental Economic Zone Syvash (since 1996). From 1998 to 
2000 11 new zones were created.

Establis
Name Location Area
hed

NCEEZ Syvash Autonomous Republic of Crimea 1996

2,000 
Slavutych Slavutych, Kiev Oblast 30.06.1998
ha

Azov Mariupol, Donetsk Oblast 315 ha 21.07.1998

Donetsk Donetsk, Donetsk Oblast 466 ha 21.07.1998

Uzhhorodskyi Raion and Mukachivskyi Raion, 
Zakarpattia 737 ha 09.01.1999
Zakarpattia Oblast

116,00
Yavoriv Yavorivskyi Raion, Lviv Oblast 17.02.1999
0 ha

Interport Kovel Kovel, Volyn Oblast 57 ha 01.01.2000

Kurortopolis 
Truskavets, Lviv Oblast 774 ha 01.01.2000
Truskavets

Mykolaiv, Mykolaiv Oblast, shipyard territory, and 
Mykolaiv 865 ha 01.01.2000
adjoining area
19
Port Krym Kerch, Autonomous Republic of Crimea 27 ha 01.01.2000 3

Porto­Franco Odessa, part of Odessa Trade Sea Port's territory 32 ha 01.01.2000 2

Reni Reni, Odessa Oblast 94 ha 17.05.2000 3

* Initially planned time of operation given. All zones were shut down on March 31, 2005.
NCEEZ — Nouth­Crimean Experimental Economic Zone.
Sources: [4] [5] [6] and Пехник А.В., Іноземні інвестиції в економіку України. Навчаль
посібник, Вид. «Знання», Київ 2007, pages: 49, 310–319

[edit]
References

Chee Kian Leong,2007, A Tale of Two Countries: Openness and Growth in China and 
India [7], Dynamics, Economic Growth, and International Trade (DEGIT) Conference 
Paper.

[edit]
External links
 Regularly updated news about SEZs in India 
 Russian Special Economic Zones 
 PEZA Philippines 
 The New Maharajas of India 
 India Special Economic zones map 
Federal Agency for Management of Special Economic Zones (Russia)

INDIA is the largest democracy with population in excess of 1 billion presents

the world's biggest middle class consumer market of 300 million people. It
has a vibrant manufacturing and service sector. The country provides highly
skilled and costeffective workforce. The country with ready access to South-

20
East Asia, East Asia, the Middle East and Africa provides good opportunities
in infrastructure development.

India has progressively opened up the economy to effectively face new

challenges and opportunities of the 21st Century. To compete in the global
market the Government of India ("GoI") has liberalized export policies,
licensing of technology and implemented tax reforms providing various
incentives. As a result in 1999- 2000 exports rose to USD 38 million and FDI
inflows to nearly USD 3.6 billion.

SEZ Policy - Towards Creation of Zones of ExcellenceThe Special

Economic Zone ("SEZ") Policy, announced by GoI enables the creation of
SEZs in the country, with a view to provide an internationally
competitive and hassle-free environment for exports. These zones
are designated duty-free enclaves, and are deemed foreign
territories for the purpose of trade operations, duties and tariffs.
The Policy offers several fiscal and regulatory incentives to developers of the
SEZs as well as units within these zones. In addition to the incentives offered
by the Central SEZ Policy, the Government of Maharashtra ("GoM") has
announced a State SEZ Policy which offers several additional
incentives to the units within these zones.

Details of SEZs Approved

Maharashtra - The Preferred Industrial DestinationMaharashtra, the

leading state of India, is the economic powerhouse. It has more than 23,000
working factories and nearly 1 million factory workers with 94 major
industrial estates. Its per capita gross output is 2.5 times the national
average and per capita income is 55%, which is more than the national
average. Maharashtra contributes upto 22% of country's net value added and
21
30% of software. Mumbai, the capital city of Maharashtra, is the commercial
capital of the country. It houses two largest stock markets of the country and
70% of all stock market transactions take place in Mumbai.

During the last decade Maharashtra received investment worth Rs. 1,686
billion (around USD 33 billion) and 392 foreign direct investment proposals
worth Rs 94.6 billion (around USD 2 billion) UK, Italy, France, Germany and
Mauritius are major investors in the state. Infrastructure, auto components,
engineering, chemicals, rubber, petroleum, software etc are the sectors in
which FDI is concentrated. Maharashtra has the highest rate of
implementation of investment projects at 48%. Maharashtra has country's
highest power capacity of 14,000 MW. Maharashtra is the first state to
formulate a specific policy for the development of SEZs.

Navi Mumbai - SEZPowerhouse of Economic ActivityOne of the largest

SEZs in India is being set-up in Navi Mumbai ("New Bombay") Maharashtra.
City & Industrial Development Corporation of Maharashtra ("CIDCO") - a
company entirely owned by the GoM - is the nodal agency for the
development of the SEZ. Significant progress has already been made. CIDCO
has the SEZ land in its possession, and has already obtained all necessary
approvals from the State and Central Governments. An Ernst &Young
(formerly Arthur Andersen) led consortium - has prepared the business plan
for the project. McClier of US a world renowned architectural and master
planning firm has prepared the concept plan and has commenced the master
planning excercise for the SEZ.

Strategic LocationThe Navi Mumbai SEZ (NMSEZ) is spread over an area of

around 50 square kilometers. NMSEZ has inherent locational advantages on
account of its proximity to Mumbai - India's financial and commercial capital.

22
The SEZ has access to well-developed road and rail linkages as well as one of
India's largest and most modern seaport - Jawaharlal Nehru Port Trust
("JNPT"). The zone is also located in close proximity to other large industrial
areas, providing access to several feeder industries. Further, its location on
the Pune-Mumbai-Thane knowledge corridor provides it with instant access to
skilled manpower in the region.

State-of-the-Art InfrastructureUnits within the SEZ would have access to

worldclass infrastructure and services. Units can choose between land plots,
flatted factories and built-up office space. These facilities would be ready-to-
use with all basic infrastructure and services in place. Other infrastructure in
terms of convention centres, recreational facilities and social amenities are
also proposed. The NMSEZ project is proposed to be executed through a
Special Purpose Vehicle ("SPV"). CIDCO proposes to transfer land
development rights and existing infrastructure in the SEZ area to
the SPV. CIDCO proposes to develop the project jointly with strategic
partners who could assist CIDCO in the planning, development and
marketing of the SEZ to potential tenants. CIDCO also proposes to
offer management control and majority equity stake (51-74%) in the
SPV to the strategic partner(s).

Scalable Development PlanThe total area available for development of

NMSEZ is around 4,377 hectares (ha) (including 1,850 ha of regional park
zone). The capital cost of the entire project is estimated at Rs 26 billion
(around USD 520 million). CIDCO envisages a scalable development plan
wherein the project can be developed in viable phases to optimise the project
returns.

CIDCO is currently in the process of determining the optimum development

23
phasing plan. CIDCO proposes to finalise the development phasing plan in
consultation with the prospective strategic investors. CIDCO proposes to
transfer land development rights in a phased manner (in accordance with the
development phasing plan) which will be linked to achievement of agreed
upon development milestones.

Government of Maharashtra SupportThe project enjoys full support from

Government of Maharashtra ("GoM"). The following initiatives have been
taken by the state government to kick start the project and position NMSEZ
as the leading SEZ in the country.

Appointment of CIDCO as the nodal agency for development

of
Source: http://www.navimumbaisez.com/overview.htm
--
healer
20480K

This article promotes the analysis and understanding of the ways in which
the government of Baja California had designed and understood their
insertion to globalization as a change in the public administration paradigm
and the government administration. It exposes the problematic of the State
and its binational and dependent affairs. The book also analyzes the stages,
processes and impacts that have been registered in the development of Baja
California with special emphasis in local development politics.

24