COMPLEX DEVELOPMENT OF USTLUGA SEAPORT AND ADJACENT TERRITORY

COMPLEX DEVELOPMENT OF UST-LUGA SEAPORT AND ADJACENT TERRITORY Svetlana Makarova, Srategy and Development Director Marina Lebedeva, Environmental Projects Manager St. Petersburg 2012

Ust-Luga Company JSC Developer of Ust-luga seaport and adjacent territory Initiator of the PPP with the participation of the Russian Government and the Government of the Leningrad Region Developer of the Priority Investment Project of North-West Russia, Leningrad Region 2

Mission of Ust-Luga Company HARMONIOUS DEVELOPMENT of the Territory as a bases for Present and FUTURE OF RUSSIA VISION Being a leader in the field of complex development of territory in Russia on the principles of Sustainable Development

= CDT City Cluster Recreational Cluster AGRO Cluster Ust-Luga Port Industrial Zone 4

5 Clusters Logistic cluster Industrial cluster Recreational cluster City cluster AGRO Cluster 5

МОРСКОЙ ТОРГОВЫЙ ПОРТ УСТЬ-ЛУГА Ust-Luga merchant seaport 2011 § An example of a successful project implemented on the principles of Public-Private Partnership § Private investments at the moment - 2, 5 billion Euro § The most deep-water port in Baltic Sea Area of the Russian Federation - the depth of approach channel - 17. 5 m § In the nearest future it will be biggest port of the Russian Federation with cargo turnover up to 180 million tones in 2018 1999 2011

Ust-Luga Seaport Master Plan 1. Coal terminal 2. Universal Cargo terminal 3. Sulfur terminal 4. Oil Products terminal 5. Crude Oil terminal 6. Logistics Center 7. Multipurpose terminal «Yug-2» 8. Auto-railway ferry complex 9. Container terminal 10. Liquefied hydrocarbon gas and light oil product transshipment complex 11. Oil products and bunkering terminal 12. Gas condensate terminal 13. Metallurgical terminal 14. Terminal of mineral fertilizers terminal Universal 15. -19. Terminals of general and bulk cargoes 20. Port fleet base Port operating complexes The complexes which are planned to be commissioned in 2011 The complexes under construction

Ust-Luga seaport 8

External transportation services Motorways Rosavtodor provides reconstruction of exterior motor roads in three directions: Ø along Tallinskoye highway bypassing Gatchina with exit to the Federal Motorway of Russia from Saint Petersburg to Moscow Ø via Petrodvorets and circular motor road Ø construction of a new federal motor highway to Veliky Novgorod with an exit to the Federal Highway of Russia

Preconditions of creation of Industrial Zone 150 km from St. Petersburg one of the largest centers of consumption in Russia The closeness to markets in Europe St. Petersburg The unique combination of the deep -sea port and industrial zone Russia Oil industry area Ust-LUga Logistics part Well developed transport infrastructure Chemical area Industrial Park Europe Access to the pipeline BPS-2 with a planned capacity of 50 million tons of crude oil Ability to create a product pipeline for ethane 10

Industrial Zone Space, hectares 4 000 Factories 6 олее 50 Employers 17 200 Investment, billions of rub 68, 7 Industrial Investment 563 Duration 2011 -2030 years 11

New City Territory of New City – 1 849 hectares. The population of the first part of New City will be 34 500 residents. Next step - up to 58 000 residents. We have to build more than 1 million square meters of living space next 15 years 12

Recreational Cluster 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 with preserving unique recreational potentiality of the Kurgalsky and Kotelsky reserves. This activity will create a right environment for the development of eco, agro and ethno-tourism in the region 13

Multifunctional recreation complex near the mouth of the river Vibya Timeline for implementation: 2012 - survey work and design 2013 – Construction period 2014 – Launching of the first stage and design of the second stage 2015 - construction of the second stage 2016 - Launching of the second stage 14

Sustainable Development Action Plan of Sustainable Development Creation of new relationships with citizens Environmental Projects Strategy of Sustainable Development Of the Territory Economy development (SME) Socio-ecological activity Social Agreement of Sustainable Development 15

Complex implementation of project on the principles of sustainable development will significantly improve the quality of life in Baltic Sea region! Thank you for attention! 16