MINISTRY OF INFRASTRUCTURE OF UKRAINE
UKRAINIAN INFRASTRUCTURE: OPEN FOR INVESTORS
January 2018 TABLE OF CONTENT
INTRODUCTION 3
1. SEA & RIVER 4
2. AIRPORTS 11
3. ROADS 17
4. RAILWAYS 24
5. POSTAL SERVICES 29
6. ELECTRIC VEHICLE INFRASTRUCTURE 31
PARTNERSHIP 34 MINISTRY OF INFRASTRUCTURE INTRODUCTION OF UKRAINE UKRAINE – TRANSIT BRIDGE BETWEEN THE EU AND ASIA
Area: GDP (PPP): Population: Workforce: Average Salary: 603 500 km2. $354 bln in 2016 42.8 million people. 20 million people. €260 per month. Largest country Top-50 economy 70% urban-based #1 country in the CEE by the Most cost-competitive within Europe globally number of engineering graduates manufacturing platform in Europe Trade Opportunities: Geographical center of Europe, making the country an ideal trade hub to the EU, Middle East and Asia Free trade agreement (DCFTA) with the EU and member of the WTO Free trade: EU, CIS, EFTA, FYROM, UKRAINE Georgia, Montenegro. Ongoing negotiations with Canada, Israel, Turkey
Infrastructure:
19 Airports 13 Sea & 170 000 km 22 000 km 16 River Ports of Roads of Railways 34 SEA & RIVER MINISTRY OF INFRASTRUCTURE 1 SEA & RIVER OF UKRAINE CONCESSION OF STEVEDORING COMPANY “OLVIA” ASSETS
EU Russia Key Investment Highlights o Port has a favorable location close to the key agricultural regions of Ukraine, has rail and road access available Russia EU SC “Olvia” o Growing grain export flows create great opportunity for the port o Pre-viability assessment finished and greenfield project defined Black Project area o Project preliminary involves construction of grain terminal and Sea Located on the west oil-extracting plant bank of the Dnipro-Bug o Full feasibility study will follow with support of EBRD and IFC estuary in a Southern agricultural region of Ukraine Key Project Assumptions
25.7 ha 3 10.3 m Project Area New Berths Max Depth
4 mtpa 0.5 mtpa New Grain Terminal New Oil Extracting Capacity Plant Capacity
Unique greenfield opportunity for the concession in Black Sea region
6 MINISTRY OF INFRASTRUCTURE 1 SEA & RIVER OF UKRAINE CONCESSION OF COMMERCIAL SEA PORT KHERSON ASSETS
EU Russia Key Investment Highlights Kyiv o Pre-viability assessment finished and project defined o All assets of Kherson SCP will be transferred into concession, Russia EU Kherson SCP including existing total area on the right (main) and left bank, outdoor and indoor storage areas, berths, fleet of barges and BlackSea vehicles o Road and rail access available Located on both banks of the Kherson Сity o Grain is the most promising cargo for the port Dnipro river (key inland waterway in o Full feasibility study will follow with support of EBRD and IFC Ukraine) 15 km away from its Left bank Key Project Assumptions mouth, 28 km from backwaters the Dnipro-Bug estuary and 90 km 47 ha 4 7.6 m from the Black Sea. Project Area Existing Berths Depth Available
3.8 mtpa $30 mln Potential Capacity CAPEX Estimated
Opportunity for development of multimodal cargo hub 7 MINISTRY OF INFRASTRUCTURE 1 SEA & RIVER OF UKRAINE CONCESSION OF THE FERRY TERMINAL OF CHORNOMORSK SEA PORT
Chornomorsk Ukraine Key Investment Highlights Russia Romania Unique facility in Ukraine, which handles rail and auto ferry Constanta lines, as well as “ro-ro” vessels Varna Highly marginal operating business with unused capacity Bulgaria Poti Georgia Existing facilities in good condition including 3 berths Batumi Haydarpasa Turkey Derince Samsun Rail and road access available as well as 9.7 m depth
Located on The complex is a part of rail ferry lines functioning on the the north- Black Sea and the “New Silk Road” trade corridor western shore of the Black Ferry Sea in complex Terminal Capacity Chornomorsk sea port + +
4.5 mln tons 150 000 250 000 cargo in railway heavy duty trucks units of vehicles wagons
Niche and unique potential for development of Silk Road logistic
7 MINISTRY OF INFRASTRUCTURE 1 SEA & RIVER OF UKRAINE DEVELOPMENT OF THE BULK TERMINAL IN CHORNOMORSK SEA PORT
Key Highlights o One of the few remaining opportunities for developing stevedore business in Chornomorsk Seaport o Current used for bulk cargo handling but suitable for any cargo handling operations o Available depth 9.75 -11.5 m with planned dredging in HARBOUR 2018-2019 up to 15 m o Available handling capacity up to 7200 tons per vessel- TERMINAL 2 day
- Cargo specialization of a terminal o Developed road system with weighting complex available - Offered area Key Project Assumptions
26 ha 3 15 m Terminal 2 Project Area Existing Berths Depth by 2019
Storage 1.6 mtpa 450 ktons Current Capacity Storage Capacity Bulk cargo terminal opportunity in the biggest sea port of Ukraine
8 MINISTRY OF INFRASTRUCTURE 1 SEA & RIVER OF UKRAINE STATE STEVEDORING COMPANY “YUZHNIY”
EU Russia Key Highlights Totally handled in the port 48.6 mln tons in 2015, including 15 mln tons by the state seaport operating company The depth of the main piers is 14 meters, there are two deep-water Russia berths with a depth of 18.5 meters capable of accommodating EU Yuzhniy Capesize vessels It has 7 berths with anchorage capacity of 24 vessels Black Sea Open storage yards cover 185 500 m², sheltered warehouses – 2 000 m² (1 mln tons storage capacity) Loading intensity is 40 000 tons/day, 650 cars/day Located on the northwest coast of Main cargos: chemicals, ore and general cargoes including coal, the Black Sea, in metal, cast iron, pellets, palm oil, carbamide, ammonia, methanol, Small Adzhalyk SE “SCP crude oil and grain (Grigorievsky) “Yuzhniy” Cargo Turnover estuary, 30 km million tons north-east from 14.8 15.1 15.0 Odesa 14.3 11.6
2013 2014 2015 2016 2017 Revenue EBITDA Margin Cargo Turnover $57 mln 31% 11.6 mln tons The deepest port of Ukraine with export orientation
9 MINISTRY OF INFRASTRUCTURE 1 SEA & RIVER OF UKRAINE PRIVATIZATION OF UKRAINIAN DANUBE SHIPPING COMPANY
Key Highlights Danube Shipping Company is one of the largest shipping companies both in Ukraine and in the Danube region. It has sea and river vessels, operates close to Reni, Izmail and Ust-Danube ports, which allows it to create a transportation hub Germany on the Black Sea
Austria Hungary Romania Izmail The Company’s fleet consists of 75 self-propelled and 245 non- self propelled vessels, including: River barges with carrying capacity 1 000-2 300 tons River push-tow boats with the capacity of 1 050-3 000 hp Self-propelled vessels with the capacity of 1 814 tons It also operates a fleet of foreign JV companies consisting of 125 vessels Handles 2.7m tons of cargo per year and provides 20% of all Danube shipping
Revenue Number of Vessels Annual Cargo Turnover $30 mln 320 2.8 mln tons One of the largest shipping companies in the region 10 AIRPORTS MINISTRY OF INFRASTRUCTURE 2 AIRPORTS OF UKRAINE BORYSPIL AIRPORT
Key Highlights The largest by volume airport, serving 65% of passenger air traffic, all intercontinental flights and a majority of international flights It is among the top-3 best airports in East Europe The airport is It has 2 runways, 4 passenger terminals with total capacity of over located 19 km east 5000 passengers per hour and 1 cargo terminal with 9 warehouses from Kyiv city at an Kyiv and total area of 14 580 m2 intersection of many air routes running Facilities are used by 33 airlines, which provide 76 regular flights from Asia to Europe and America Passenger flow reached a record of 8.6 mln passengers in 2016 Passengers Flow million passengers 10.6 7.9 8.6 6.9 7.2
2013 2014 2015 2016 2017 Revenue EBITDA Passengers $153 mln 66% 10.6 mln The largest airport in Ukraine
12 MINISTRY OF INFRASTRUCTURE 2 AIRPORTS OF UKRAINE INVESTMENT PROJECT IN BORYSPIL AIRPORT
Cargo Terminal Key Highlights Total existing area of 15 000 m2 9 warehouses with total area of 5 100 m2 Cold storage area of 450 m2 Current capacity: 2 700 pallets, 800 tons/day Cargo transportation requires construction of new modern cargo terminal with: New road access to the terminal Parking places for TIRs Special temperature storage facilities Appropriate infrastructure for clients New automated control system
Investments 1st Stage Cargo Turnover ~$900 per m2 up to 10 000 m2 30 100 tons Development of modern cargo facilities in the biggest airport of Ukraine
13 MINISTRY OF INFRASTRUCTURE 2 AIRPORTS OF UKRAINE LVIV AIRPORT
Key Highlights Lviv Airport is the biggest airport in the Western part of Ukraine with terminal area of 47 233 m2 and runway of 3 305 m Airport has 9 departure gates and 1 125 parking places Hour capacity: 2 000 PAX Located 6 kilometers from 32 regular flights go through Lviv Airport and it provides up to 80% discount for new regular flights central Lviv, close Lviv to the western In 2013 Lviv Airport was awarded with the “Best CIS Airport” title on border of Ukraine the forum “Development of Airports in Russia and CIS” Car parking has 238 parking spots
Passengers Flow million passengers
1.1
0.7 0.7 0.6 0.6
2013 2014 2015 2016 2017 Revenue EBITDA Passengers $15 mln 40% 1.1 mln The biggest airport in Western Ukraine with close proximity to the EU
14 MINISTRY OF INFRASTRUCTURE 2 AIRPORTS OF UKRAINE REGIONAL AIRPORTS DEVELOPMENT
HOSTOMEL ZHULYANY
BILA TSERKVA BORYSPIL ZHYTOMIR €52 mln CHERKASY €15 mln
RIVNE KHARKIV €111 mln Airport Prospective airport LVIV POLTAVA
€11 mln Grow Decrease UZHGOROD DNIPRO Irregular or technical flights
€4 mln PASSENGERS
Normal condition IVANO-FRANKIVSK ZAPORIZHZHYA Repaired
€18 mln Reconstruction needed RUNWAY
CHERNIVTSI KRYVIY RIH Normal condition Repaired VINNITSYA MYKOLAIV Reconstruction needed TERMINAL Absent €13 mln
ODESA KHERSON €106 mln €26 mln Passenger flow in Ukraine grew +21% (+2.2mln) up to 12.9 mln passengers in 2016 (2015 - 10.7 mln passengers) Virtually all Ukrainian airports need modernization/reconstruction €361 mln to modernize 9 Ukrainian airports 15 MINISTRY OF INFRASTRUCTURE 2 AIRPORTS OF UKRAINE BILA TSERKVA AIRPORT
EU Russia Key Highlights Bila Tserkva city is located 91 km to Kyiv and 126 km to Uman Bila Tserkva The airport has 46 airport ramps for planes and 2.5 km runway Russia EU 91 km to Kyiv Currently airport has existing customs facility and handles one cargo flight per day Black Sea Key Projects Assumptions Increase cargo transportation through modernization of multimodal infrastructure (aviation, railway, road) Expand cargo services Improve passenger services and attract new passengers: local population of 211 000, comparable to many regional centers realize potential for attracting existing passenger traffic from other airports
Estimated Cost 126 km to Uman €52 mln
Great opportunity for multimodal cargo hub development
16 ROADS MINISTRY OF INFRASTRUCTURE 3 ROADS OF UKRAINE “GDANSK/GDYNIA-ODESA” GO HIGHWAY
Key Highlights o Connected to TEN-T network o Connects Black and Baltic Seas o Improves road safety, border connection, international economic relations o Improves cargo flows speed rate, up Kyiv Lviv to 8 hours (35%) of time savings Poland Ternopil Khmelnytskyi
Key Assumptions Vinnytsya Uman o Reconstruction of road from Category-2 upgrading to Category-1 o Concessions of the road sections Mykolaiv Total Estimated Cost Kherson o New road construction, including Odesa construction of bypasses around €1.9 bln residential areas 17 MINISTRY OF INFRASTRUCTURE 3 ROADS OF UKRAINE TEN-T CONNECTIVITY
Key Highlights Development of TEN-T program in Ukraine facilitates improving cooperation with EU and eliminating bottlenecks inside the country 69 projects facilitate growth of transit potential in 16 regions of Ukraine through: reconstruction of road sections on М-01, М- 03, М-19, М-06, М-14, Н-01, М-13, М-11, М- 07; construction of 3 interchanges, 3 railway over-passes; reconstruction/construction of 2 river bridges Total Estimated Cost €8.9 bln
20 MINISTRY OF INFRASTRUCTURE 3 ROADS OF UKRAINE IMPROVING TRANSPORTATION TO THE EU
Key Highlights
20 projects in 4 regions on the roads Р-14, М-08, М-24, М-25, М-26, Н-22, Р-14, Р-53, Т-07-14, Т-14-01, Т-26- 01, Т-26-04, Т-26-08
Improving road connections with Poland, Slovakia, Hungary, Romania will facilitate:
growth of cargo/passenger transportation;
increase of transit potential;
unification of Ukrainian and European infrastructure standards
Total Estimated Cost €180 mln
20 MINISTRY OF INFRASTRUCTURE 3 ROADS OF UKRAINE CONSTRUCTION OF THE BRIDGE ACROSS THE SOUTHERN BUH RIVER IN MYKOLAIV
EU Russia Key Highlights Existing road runs through Mykolaiv city across Southern Buh River by the city drawbridge
Russia The drawbridge was built in 1964 and is located on the main EU Mykolaiv road M-14 Odesa-Melitopol-Novoazovsk
Black Sea It hinders the traffic in the city while opening for ships passing and has limited capacity for cargo and urban traffic combined The nearest bridge across the river is 90 km upstream
Key Assumptions The axis of the new bridge is planned outside Mykolaiv city that will provide traffic unload The total length of the bridge with access roads – 13.2 km including 2.05 km of the bridge Category of the road is I (B) with: 4 traffic lanes, 2 road junction, 10 bridges
Total Construction Cost Timeline Traffic Forecast $204 mln 5 years 33 000 cars/day An important bridge to bypass the city center designed to relieve commercial traffic
21 MINISTRY OF INFRASTRUCTURE 3 ROADS OF UKRAINE CONSTRUCTION OF THE BRIDGE AND M-22 APPROACH ROAD IN KREMENCHUK (POLTAVA OBLAST)
EU Russia Key Highlights On March 21, 2017 the MoU on project was signed between State Kremenchuk Road Agency of Ukraine and China Road and Bridge Corporation
Russia Ukrainian side expects to obtain preferential loans and preferential EU PRC government export consumer loan to implement the project BlackSea
Granit Pit Kremenchuk Project site
Residential area Residential area
Estimated Construction Cost $330 mln An important bridge to bypass the city center designed to relieve commercial traffic
20 MINISTRY OF INFRASTRUCTURE 3 ROADS OF UKRAINE KYIV RING ROAD CONSTRUCTION
EU Russia Key Highlights Kyiv Kyiv region has the most intensive traffic The traffic flow across Kyiv reached 30 000 cars per day Russia EU Today the freight traffic is moving from Odesa and Yuzhniy seaports via Kyiv to Europe The 1st stage of the project will connect Odesa direction with the airport Boryspil, with the total road length of 93.5 km, category 1A with 4 lines, 3.75 m width, 12 transport interchanges in two levels, 1 bridge across Dnipro river and 3 small bridges Total road length to be build is 149 km with 35 interchanges, 50 overpasses, Northern and Southern bridges over the Dnipro River, Bridge over the Desna river, 42 roadside services The project is expected to unload Kyiv from freight transit transport Total Length Timeline Investments Required 149 km 4 years $6.8 bln Traffic growth requires the construction of new roads and bridges to unload the city
23 MINISTRY OF INFRASTRUCTURE OF UKRAINE
RAILWAYS MINISTRY OF INFRASTRUCTURE 4 RAILWAYS OF UKRAINE EUROPEAN 1435 MM RAIL TRACK HIGH SPEED CONNECTION WITH EU (POLISH BORDER) and ODESA-KYIV-LVIV ROUTE
Key Highlights o Improves passenger and freight EU-UA connectivity o Total length of the route 1 100 km o Design and construction – 8 years o Passenger trains’ speed up to 350 km/h o Freight trains >120 km/h o >1 million containers per year in each direction
Total Length Timeline Estimated Cost 1 100 km 8 years $10 bln MINISTRY OF INFRASTRUCTURE 4 RAILWAYS OF UKRAINE UKRAINE-AUSTRIA 1520 RAIL TRACK
Key Highlights o TEN-T Related Priority for Ukraine o Improves of EU–UA connectivity o Relevant to National Transport Strategy of Ukraine Priorities o Construction of 1520 mm rail track to Vienna includes Chop - Kosice - Bratislava – Vienna route o Feasibility study is completed
Total Length Timeline Estimated Cost 575 km 8 years €6.4 bln MINISTRY OF INFRASTRUCTURE 4 RAILWAYS OF UKRAINE OTHER RAILWAY INVESTMENT PROJECTS
BELARUS Electrification of the railway section Berdychiv – Korosten – Berezhest Korosten UKRAINE Estimated Cost €140 mln Zhytomyr Kyiv
Berdychiv Modernization of the railway gauge 1435 mm on the section Kovel – Yagodyn – Kovel state border with further electrification Estimated Cost POLAND UKRAINE €50 mln
SLOVAKIA Reconstruction of passenger connection UKRAINE Mukachevo – Chop – Zahony
Chop Mukachevo (Hungary)/Chierna-nad -Tisoj (Slovak Republic)
HUNGARY Estimated Cost €6.4 mln
23 MINISTRY OF INFRASTRUCTURE 4 RAILWAYS OF UKRAINE PASSENGER RAIL CONNECTION KYIV−BORYSPIL AIRPORT
Key Highlights o Kyiv Light Rail Public Transport System connection to Boryspil International Airport o Airport terminal design ideal for new rail link station o Raillink line construction possible on the north side of airport
Boryspil o New Raillink can follow existing UZ right-of-way Airport from airport to downtown Kyiv o New Raillink link can use highway right-of-way to crossover and connect to existing railways right-of- way lines heading to downtown Kyiv o Raillink track infrastructure costs will be a minimum cost for construction with usage of UZ right-of-way
Estimated Construction Cost $300 mln
22 POSTAL SERVICES MINISTRY OF INFRASTRUCTURE 5 POSTAL SERVICES OF UKRAINE NATIONAL POST OPERATOR “UKRPOSHTA”
The biggest retail in Ukraine… …with huge potential… …and investment needs
11 700 branches 76 000 employees 1.3 mln m2 of real estate in the smallest villages of Ukraine 28 mln clients out of 44 million 3rd largest employer in the country population #1 company in parcels and letters 3 600 cars and trucks Derivers $1 bln of communal and $4 bln of retirement payments
Computerization of Truck fleet New sorting centers the network is crucial renovation is needed required CAPEX CAPEX CAPEX up to $15 mln up to $100 mln up to $150 mln
30 ELECTRIC VEHICLE INFRASTRUCTURE MINISTRY OF INFRASTRUCTURE 6 EV INFRASTRUCTURE OF UKRAINE EU-UKRAINE EV CONNECTIVITY
Key Highlights o Ukraine is Top-5 country in the world by the growth rate of EV sales o The VAT and import duties have been canceled for 2018 (up to 17% savings) o Lack of fast-charging infrastructure
EV Market Growth in Ukraine Number of EVs
5,000 4,000 3,000 2,000 # of Superchargers Estimated Cost 1,000 € mln 0 50 5 2013 2014 2015 2016 10M 2017
23 MINISTRY OF INFRASTRUCTURE 6 EV INFRASTRUCTURE OF UKRAINE LITHIUM BATTERY AND EV PRODUCTION
POLOKHIVKA AND STANKUVATE ARE ONE OF THE LARGEST LITHIUM FREE TRADE DEPOSIT SITES IN EUROPE WITH EU
0% x4 x2.6
CORPORATE INCOME TAX CHEAPER CAR PRODUCTION CHEAPER LABOUR ON LITHIUM AND THAN IN GERMANY THAN IN CHINA BATTERY PRODUCTION (AUTOMOTIVE SECTOR) (FOR 15 YEARS, AS OF 01.01.2019) 23 PARTNERSHIP MINISTRY OF INFRASTRUCTURE PARTNERSHIP OF UKRAINE STRATEGIC INVESTORS ARE COMING…
ALREADY IN PROGRESS
35 MINISTRY OF INFRASTRUCTURE OF UKRAINE
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