Investment program
Implementation of projects under existing investment programAs part of the continued implementation of the investment program that was adopted by NCSP Group's previous management, $416 million of the planned $538 million had been spent by the end of 2011. The program focused on construction of new terminals (Sheskharis Oil Terminal, Novorossiysk Fuel Oil Terminal, BSC). This program will expand capacity across the Group by 5.5 million-20.5 million tonnes and 238,000 TEU. Reconstruction of Sheskharis Oil Terminal (Stages 1 and 2)Back to topProject Highlights
Construction period - 2006-2013 Objective
Construction of the terminal Рђ with capacity of 50 mln tons to ensure capital repairs at the terminal B Planned results
Terminal capacity to increase up to 65 mln tons of oil per annum (65 mln tons = main pipeline limitation) Construction of Fuel Oil Terminal (NCSP Group's stake in the project is 50%), Pier 4 reconstructionBack to topProject Highlights
Construction period - April 2010-Q1 2012 Objective
Construction of a modern fuel oil terminal with capacity of 4 mln tons per annum through a 50-50 joint venture with a major international oil trader Planned results
Redirection of Russian oil products going through the ports of Ukraine Construction of bunkering complex in PrimorskBack to topProject Highlights
Construction period - March 2010 - Q1 2012 Objective
Construction of bunkering complex with the capacity of 410 thousand tons per annum has been completed Planned results
To decrease mooring time at berth - cost reduction for cargo owners Current Situation
Construction of bunkering facility completed Container terminal construction at BaltiyskBack to topProject Highlights
Construction period - Jan. 2010 - Q4 2013 ObjectiveConstruction of a modern container terminal with capacity of 400 thousand TEU for Kaliningrad region needs Key changes
Container throughput increase is possible due to existing clients' volumes growth, as well as due to attraction of new shipping lines Current Situation
Completion of construction of the first phase of container terminal with capacity of 200 thousand TEU for Kaliningrad region needs IPP reconstruction, storage facilities replacement; bunkering terminal expansion at IPPBack to topBunkering terminal expansion at IPPProject Highlights
Construction period - Feb. 2012.- Sept. 2012 ObjectiveExpansion of the existing storage park via construction of a new tank with capacity of 5 thousand cubic meters Planned resultsIncrease of bunkering volumes by 96 thousand tons per annum Multi-purpose of the the bunkering complex, export perspectives Creation of additional competitive advantages for IPP on the bunkering market of Novorossiysk Current SituationProject documentation is ready Glavgosexpertiza approval is obtained Construction and installation works are being implemented IPP reconstruction, storage facilities replacementBack to topProject Highlights
Construction period - Sept. 2010 - Nov. 2012 ObjectiveIncrease of existing capacities of IPP by replacing old tanks with new highervolume diesel fuel tanks and reconstruction of other technological equipment Planned resultsReplacement of 4 worn-out tanks with capacity of 20 000 cubic meters with 3 new tanks with capacity of 30 000 cubic meters to handle up to 6 mln tons of diesel fuel per annum and up to 1 mln tons of oil products Scheduled reconstruction period of 16 months, of which
New development conceptWithin the context of the Master Plan, management is proposing a new concept for NCSP Group's growth in the period to 2020 that calls for transition from specialization by stevedoring company to specialization by production area, with a focus on high-margin cargo. The cost of the new investment program is estimated at $1.0 - $1.1 billion. The priorities of the new concept for NCSP Group's growth are:
ContainersThe Company's priority is to expand its container business. There were three options for expanding container turnover in Novorossiysk. Management chose the least costly and least risky option for achieving the desired result, which calls for gradually expanding the existing container terminals at NLE and NCSP to respectively 500,000 TEU and 700,000 TEU, and the construction of an inland container terminal in Novorossiysk. The construction of the inland container terminal will significantly expand the range of services offered at NLE, boost revenue per TEU and lay the foundation for building the NCSP logistics chain. For the construction of the inland container terminal, the Company plans to buy a plot of land at the Novorossiysk port, on which it could spend $30 million-$ 40 million. Construction of specialized container terminal at NLEThe first phase of the Group's strategy to increase container turnover will be the construction of a specialized container terminal at NLE with throughput capacity of up to 500,000 TEU with an average storage period of 10 days. This project is to be carried out in 2012-2014. In the course of terminal construction, there are plans to conduct dredging works at NLE berths No. 28 and No. 28A, which will enable them to accommodate direct ocean lines with capacity of 5,000 TEU, and thus attract new customers. Construction of NCSP container terminalOnce throughput capacity at NLE is at least 75% utilized, the Group will begin the project to build a container terminal in NCSP's Western Area, which will expand NCSP container throughput capacity from 170,000 TEU to 700,000 TEU. Upon completion of this project, the Group's container handling capacity in Novorossiysk will reach 1.2 million TEU per year. The anticipated timeframe for this project is 2015-2018. GrainBack to topExpansion of NGT terminal facilitiesGrain remains a staple cargo for NCSP Group, and as part of its new concept the Company plans to build up a reserve of grain handling capacity to secure its share of this market. With this goal in mind, the Group plans to expand the terminal facilities of NGT in 2012-2014. There are plans to increase grain storage capacity to 188,000 tonnes from 120,000 tonnes with the construction of new silos; install a third ship loading machine, overhaul berths, and build a fourth receiving line for grain trucks. These measures will help to expand grain throughput capacity at NGT by 2 million tonnes to approximately 7-8 million tonnes. The future of this project will be confirmed following the technical audit. Iron oreBack to topNCSP Group plans to create a unique service for producers of iron ore by building a universal terminal for transshipment of iron ore, coal and mineral fertilizers, with projected capacity of up to 12 million tonnes per year, in NCSP's Central Area. This project is scheduled for 2015-2016. A prerequisite for its implementation is increasing the loading rate to 50,000 tonnes per day, with the capability of loading ships with DWT of up to 120,000 tonnes. With this goal in mind, the company carried out dredging works last year that made it possible to load a bulk carrier with DWT of 114,000 tonnes at NCSP's Eastern Pier in November 2011. Other cargoBack to topIn order to more efficiently utilize existing facilities, the Company plans to redirect transshipments of metals, timber products (possibly), perishables, outsized cargo and other types of cargo to NCSP's Eastern Area and NSRZ in 2013-2016, which will require updating their equipment. PrimorskBack to topOne of the projects that NCSP Group is considering is a long-term program for the construction of terminals in Primorsk to handle oil products, containers, general and bulk cargo, the potential handling capacity for which is tentatively estimated at respectively 22 million tonnes, 1 million-2 million TEU, and 11 million tonnes. The main goals of these projects would be to build a universal deepwater port in Russia's Northwest, set the stage for increasing, the country's export potential, and diversify the Company's business.
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