Infrastructure and capacity development of the State Enterprise “Sea Trade Port of “Yuzhny”

46  3602  N 31  0125  Е

Increase of the port’s and Ukraine export-import and transit potential Provide services for the local and transit cargoes of the TRACECA country- members Increase of the port’s turnover, development of its infrastructure Increase of the port’s revenues and, as a result, increase in payments to the budget and other funds Creation of new jobs, improvement of working conditions Development of the port as the most perspective in Ukraine and increase of its competitiveness Project Objectives

Deepening of the port SE «STP «Yuzhny» to possible 19,0-20,0 m water depth Reconstruction of overloading complex of general cargoes for receiving of import bulk cargoes located on the berths NN 8, 9 with the capacity up to 10 million tons per year Construction of a specialized overloading complex of export bulk cargoes located on the deep-water berths NN 11, 12, 12a with the capacity of 15 million tons per year Project Description

The project implementation will ensure further development of external infrastructure of rail and automobile routs Ukraine occupies key positions in providing work of the following International Transport Corridors: ITC «Baltic –Black sea» ITC №9 «Cretan» ITC «TRACECA» and others Development of this project will allow the port to take a leading position in the Black Sea region, serving local and transit flows of TRACECA member- countries and many others SE «STP «Yuzhny» occupies a strategic position in international transcontinental transport corridors, and it is one of the most perspective ports providing interests of Ukraine as a transit state Regional Criteria

Dynamics of the forecast port’s turnover, Mt

The project provides: Deepening of the sea Approach Harbour Channel to 19,0-20,0 m water depth; Deepening of the port waters and active berths №№ 5,6,8,9 to possibly 19,0 м water depth Total amount of dredging works – 10,3 mln. м3 Technical Criteria Stage 1: creation of a deepwater port in the harbour of the SE “STP “Yuzhny”

Reconstruction of runways for installation of specialized vessel unloading facilities Construction of specialized technological overloading cargo complex for the unloading of bulk cargoes of vessels with a capacity of 10 million tons per year Construction of new open storage areas for bulk storage with a capacity of about 650 thousand m3 of cargoes 8 9 Main stages of reconstruction Stage 2: reconstruction of the overloading complex of general cargoes for import bulk cargoes (berths NN 8, 9)

The main stages of custruction: Construction of berths NN 11, 12, 12a with total length of 950 l.m. linear meters Construction of technological overloading cargo complex for unloading of export bulk cargoes with the capacity to 15 million tons per year Construction of new open storage areas for bulk storage capacity of about 950 thousand m3 Construction of the station of unloading wagons with capacity of 2 x 24 items per hour а Stage 3: construction of overloading cargo complex for export bulk cargoes (berths NN 11, 12, 12a)

Investment expenses, U.S. $ Estimated Project Cost 628,2 mln. U.S. $ Calculated income 180,9 mln. U.S. $ Calculated profit 80,0 mln. U.S. $ p.a. Payback period8 years Internal Rate of Return (IRR) 12 % Main items Timing Costs BeginningEnd Creation of a deepwater port in the waters of the SE «STP «Yuzhny» , 3 Reconstruction of the overloading general cargo complex for import bulk cargoes on berths NN 8, ,0 Construction of specialized overloading cargo complex for export bulk cargoes on the deep-water berths NN 11, 12, 12a ,9 Financial analysis

Estimated economic indicators of the project, mln. U.S. $ Indicators Years Incomes --19,04180,9 Costs --7,9101,4 Net profit --11,179,5 Capital investments 210,9228,7188,6- Project implementation period years. Economic analysis of the project is based on actual data for 2010 and forecasts for the period until Economic analysis

«Transport Strategy of Ukraine for the period of up to 2020» has been adopted by the Decree of the Cabinet of Ministers of Ukraine N 2174 from and is strategic document about further development and operation of the transport sector of Ukraine Program of long-term development of the SE «МТP «Yuzhny» approved by Decree of the Ministry of Transport and Communications of Ukraine № 623 from , provides further development of transshipment facilities of the ports, their infrastructure, including - creation of a deepwater port Adoption of new legal and regulatory acts of Ukraine, such as the Law «On sea ports of Ukraine», will provide additional new capabilities for port’s intensive development Political Criteria «Strategy of seaport development of Ukraine till 2015» approved by the Decree of the Cabinet of Ministers of Ukraine № 1051 from , and provides further increase of sea potential of Ukraine

During the execution of a preliminary assessment of environmental impact and determining the measures of project implementation significant risks to the ecological system were not found Impact on the environment