V.Putin on the business meeting at Ust-Luga merchant seaport

V.Putin: Ust-Luga merchant seaport «…the largest russianinfrastructural project of the European scale»

Overview and structure of Ust- Luga

Biggest infrastructure project in Russia for the upcoming years:

• Ust-Luga merchant seaport• Complex development of the adjacent territory (CDT) – six interrelated clusters

Ust-Luga is the first project implemented under PPP

Competitive Advantages of the Port

• the deepest – depths up to 17,5 m• the shortest access channel – 3,7 km• construction of II channel will be completed in 2011 – 1, 8 km• short period of ice-channeling ~ 2 months per year

• proximity to EC and Central Russia – cargo-generating regions• Ust-Luga port is situated at the crossing of intermodal transport

corridors “North – South” (the Baltic, Black and Caspian Seas) and “East – West” (Europe – Asia)

• railway and road access bypassing congested Saint-Petersburg transport communication

NAVIGATION

LOCATION

• free areas for further development - seaport and industrial estate

PERSPECTIVES

PORT UST-LUGA – THE MOST MODERN PORT WITH PLANNED THROUGHPUT UP TO 180 MLN TONNES

Ust-Luga Master Plan

Universal terminal

1. Coal terminal2. Universal Cargo terminal3. Sulfur terminal4. Oil Products terminal5. Crude Oil terminal6. Logistics Center7. Multipurpose terminal «Yug-2»8. Auto-railway ferry complex9. Container terminal10. Liquefied hydrocarbon gas and light oil product transshipment complex11. Oil products and bunkering terminal 12. Gas condensate terminal13. Metallurgical terminal14. Terminal of mineral fertilizers15. Grain terminal16.-19. Terminals of general and bulk cargoes20. Port fleet base

Northern Port District

Coal terminalUniversal terminal

Sulphur terminal Oil terminal

Coal Terminal

Coal TerminalConstruction manager: “Rosterminalugol” JSCInvestor: “Kuzbassrazrezugol Coal Company” JSC

2001 – commissioning

Declared full capacity – 12.4 mln tons per year

2011 – declared cargo turnover achieved

Universal Cargo Terminal

Universal Cargo TerminalConstruction manager: “Universal Transshipping Complex”JSC Owner: CNP Investments

June 2007 – commissioning

Declared full capacity – 5.0 mln tons per year

Sulfur Terminal

Sulfur Terminal

Construction manager: “European Sulfur Terminal” JSCInvestor: Interfinance SA

2008 – commissioning

Declared full capacity – 9.0 mln tons per year

Oil Products TerminalConstruction manager : “Rosneftbunker” JSCInvestor: Gunvor

First stage – completedDeclared full capacity –30.0 mln tons per year (railway)

January 2011 – commissioning (test)

Oil Products Terminal

Crude Oil Terminal

Crude Oil Terminal Construction manager : “Ust-Luga Bunkering Complex” JSCInvestor: MN Druzhba JSC – subsidiary of Transneft JSC

Final point of the BPS-2First stage –under constructionReceiving and transshipping – up to 38 mln tons of oil per year

2011 – beginning of transportation, Capacity of first stage – 30 mln tonsDecember 2013 – completion of the second stage of construction (throughput – 38 mln tons per year).

Gas Condensate Terminal

Gas Condensate TerminalConstruction manager: “NOVATEC - Ust-Luga” LLCInvestor: “NOVATEC” JSC

Formed the territory, completed the design work

Declared full capacity – 6.0 mln tons per year

2012 – commissioning of the first stage2015 – operation at full capacity2016 – declared cargo turnover achieved.

Metallurgical terminal

Metallurgical TerminalConstruction manager: «The Baltic metallurgical terminal»

Declared full capacity – 4.0 mln tons per year

2012 -commissioning of the first stage2013 -commissioning of the second stage

Oil products and bunkering terminal

Oil products and bunkering terminalConstruction manager: «The Baltic universal terminal» LLC

Declared full capacity – 800 000 tons per yearCompleted the design work

I quarter 2011 – construction beginning

I quarter 2012– beginning of operation

Terminal of mineral fertilizers

Terminal of mineral fertilizersConstruction manager: «Baltic general cargoes» JSCInvestor: «Eurochem» JSC

2011 –construction beginningFull capacity – 5 mln tons

Sothern Port District

Auto-Railway ferry complex

Multipurpose Terminal Yug-2 Multipurpose Terminal Yug-2

Container terminal

Southern Port District Layout

Container Terminal

Container terminalConstruction manager : “Baltic Container Terminal” JSCInvestor: “National Container Company” LLCCompleted: • formation of the territory• construction of 2 berths of the first stageThe units of internal infrastructure under construction, procurement of crane equipment

Declared full capacity – 3.0 mln TEUs per year

2011 – commissioning of the first stage (0.44 mln TEUs)2018 – declared cargo turnover achieved.

Auto-Railway Ferry Complex

Auto-railway ferry complexConstruction manager : Ust-Luga branch of FSUE “Rosmorport”Investor: the Russian Federation

2007 – commissioning of the railway component2010 – commissioning of the of automotive component

Declared full capacity – 2.9 mln tons per year

Multipurpose Terminal Yug-2

Multipurpose Terminal Yug-2Construction manager: “Ust-Luga Company” JSCInvestor: “Ust-Luga Company” JSC with attraction of the funds of the IF RF

June 2008 – commissioning of the first start-up complexDeclared full capacity – 4.6 mln tons per year (jointly with the WLC)

2012 – operation at full capacity2012 – declared cargo turnover achieved.

Storage logistic center

Storage logistic center

Investor - Ust-Luga Company OJSCArea – 500 000 m2

January, 3th 2012 – first stage installation2017 – 100 % fulfillment

LPG Terminal

Liquefied hydrocarbon gas and light oil product transshipment complex

Construction manager: SIBUR-Portenergo LLCInvestor: SIBUR-Holding JSC

The estimated annual cargo turnover is up to 4.0 mln tons per year, including: • Liquefied hydrocarbon gases – up to 1.5 mln tons per year (propane, butane);• Light oil products – up to 2.5 mln tons per year (stable natural gasoline, motor

gasoline).

Beginning of operation of the complex: 4 quarter of 2012.

Transport and Engineering Infrastructure

Rail road Transport junction

Telecommunications Power substation

External transportation services -Railways

External transportation services -Motorways

Rosavtodor provides reconstruction of exterior motor roads in three directions:

along Tallinskoye highway bypassing Gatchina with exit to the Rossiya Federal Motorway from Saint Petersburg to Moscow

via Petrodvorets and circular motor road

construction of a new federal motor highway to Veliky Novgorod with an exit to the Rossiya Highway

Dynamics of a turnover of goods

20086 413 000 tons + 3 000 cars

200910 326 700 tons+ 17 000 cars

201011 810 963 tons+ 65 521 cars

Complex development of the territory

Complex development of the adjacent territory (CDT):six interrelated clusters

Transport

Industrial

Logistic

Intended for building

Recreationalleisure and tourism zones

Agri-industrial

Competitive Advantages of the project. The Adjacent Territory

• Possibility of an investor to lay the required project architecture from the very beginning (infrastructure, power engineering, social sphere)

• Availability of free energy facilities – proximity of the LNPP

• Developed transport infrastructure (port, railway, motor roads)

Industrial-Production Zone

Ust-Luga industrial-production zone will be advantageously located:

• in close proximity to marine, railway and motorcar lines of communications of a large transport hub;

• near a powerful source of cheap electric energy: Leningrad Nuclear Power Plant;

• in close proximity to the port warehousing logistic center capable of forming and effecting wholesale distribution of goods;

• near a new large settlement planned to be built.

Development of industrial facilities near the large port is inevitable. State authorities can considerably speed up formation of the industrial cluster by construction of an engineering infrastructure or slow it down in case of lack of a clear strategy of industrial development.

Social-Housing Constructionon the Adjacent Territory

The basic indicators• The built-up area is 1849 hectares.• The population is 34 500 residents• Labor content working in port by 2015 -10 000

people

Social responsibility

Construction of the Holy Trinity Marine Cathedral

Ust-Luga Company OJSC acts as the primary sponsor of the Holy Trinity Marine Cathedral construction project with the Side Chapel of Saint Nicholas of Myra.

Childcare

Entertainment (play grounds), Education (new computer class, textbook reissuing), Culture and Arts (creative contests, museum tours, visits to circus, tickets to Children’s New-Year Shows)

Sports

Ust-Luga Company OJSC is devoted to the task of propagating and popularizing of sports (ski run in the Romanovka Park, Kingisepp town; basketball school, etc.)

Recreation Zones

Development of recreational facilities is aimed both at ensuring migration attractiveness of the territory for workers of the port and industrial zone and at external demand: mostly, business tourism and market of out-of-town rest of Saint Petersburg.

The plans include using the recreational potential of Kurgalsky and Kotelsky wildlife reserves for development of ecological tourism, children and family seasonal rest, agrotourism and ethnotourism.

To ensure accessibility of tourist facilities for workers of the port and industrial zone it is planned to use social and trade union tickets, vouchers for children as well as other available possibilities.

Agri-industrial Complex

Development of the agri-industrial cluster will be aimed at high-quality meat production. There are plans to create:

• Genetic center for maintaining the high genetic level of the livestock as well as breed livestock sales of cattle based on the leading Australian breeds;• Beef-cattle breeding farms – female herds;• Fattening complex, slaughtery with dissection and waste disposal;• Related production of hothouse vegetables, biogas and biofuel as well as organic fertilizers.

The market of the Northwest of Russia and countries of Northern Europe have a fully formed demand for high-quality beef imported from Australia.The agri-industrial complex will allow bioth import replacement and export of products to neighbouring countries

Development Plans for 2011-2015

• Commissioning of BPS-2

• Development of the port infrastructure northwards

• Commissioning of the warehousing logistic center

• Construction of the administrative-business center

• Launching of the general cargo district

• Construction of the condensed hydrocarbon gas (CHG) transshipping terminal

• Construction of the condensed gas condensate (CGC) transshipping complex

• Launching “Yug-2” MTT at full capacity

• Creation of universal sites in the industrial zone

Ust-Luga Project

Thank you for attention!