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