Last checked at 26 May 2010 08:15
Acquisition of Additional Land Plots
for Deployment of Novorossiysk Fuel Oil Terminal
26.05.2010
The Novorossiysk Commercial Sea Port Group (LSE: NCSP, RTS and MICEX: NMTP) hereby announces the acquisition of additional land plots for construction of the fuel oil terminal with 4 million tons per year capacity.
On May 21 the North-Caucasus Rail Road, a branch of OAO Russian Railways, and Novorossiysk Fuel Oil Terminal LLC, project operator 50% owned by PJSC NCSP, signed the agreement of transfer of rights to sub-tenancy for land plots with total area of 10.62 hectares located within the cargo yard of the Novorossiysk train station. Through this agreement Novorossiysk Fuel Oil Terminal LLC acquired the rights of usage and ownership of the land plots for deploying and operating the fuel oil terminal for the term of over 40 years.
Commenting on the signature on the agreement, PJSC NCSP Chairman of the Board Alexander Ponomarenko said: «Construction of the fuel oil terminal with 4 million tons capacity is one of the top priority projects for NCSP Group. In April this year we have signed the general contract and started land development works to prepare for construction. As of today Novorossiysk Fuel Oil Terminal LLC is in possession of sufficient land to deploy all elements of the new terminal's infrastructure. The general contractor starts the ground-work cycle on major construction sites in the nearest future, which allows us to say that this massive project has entered into active investment phase».
Total investments in the project are estimated at 5 billion rubles, to be finances on a par basis by the Novorossiysk Fuel Oil Terminal LLC and the other founding partner. To facilitate loading of oil products from the terminal to tanker ships PJSC NCSP is reconstructing and modernizing liquid cargo berths at Pier #4.
Fuel oil terminal project envisages the construction of a tank farm with 82 000 cubic meters capacity, two railway discharge galleries for 60 and 48 tank cars, as well as technological pipelines and other units of infrastructure. Implementation of state of the art technologies for rail-to-tank and tank-to-ship transshipment and storage of fuel oil precludes any possibility of the oil's watering and guarantees the highest level of environmental and industrial safety.
About NCSP Group
Novorossiysk Commercial Sea Port is the largest Russian port operator in terms of cargo turnover. Group's consolidated cargo turnover in 2009 totaled 86.5 million tons. Consolidated revenue to IFRS in 2009 totaled $675.1 million and net profit $252.2 million.
NCSP shares are traded on Russia's RTS and MICEX exchanges (NMTP) and on the London Stock Exchange (NCSP) in the form of GDRs (1 GDR representing 75 shares).
NCSP Group includes the following stevedore companies: PJSC NCSP, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC NCSP Fleet, OJSC Novoroslesexport, OJSC IPP, and Baltic Stevedoring Company Ltd.
For more information please contact: Tel.: +7 (495) 783-5434; IR@nmtp.info