INTERNACIONALIZATION IN THE CIS

COUNTRIES AND GEORGIA

DIEGO GABRIEL AMADO GARCÍA

RAILWAY DIVISION

Sector Perspectives in Central Asia

Long distances: more than15.000 km of railways only in KZ (ES 15.900 km)

Orography: Flatness (not counting the Tien Shan). Lack of inland waterways. Impossibility of access to open waters (landlocked countries).

The rest of the transports are not well developed For example: Spain has 370.000 km of roads compared with only

108.000 km in KZ.

New Silk Road Development of the land transport infrastructures

between Asia and Europe. Investments in the improvement and number of

passable corridors between Europe and Asia. Simplification of good transit.

Benefits Improvement in transit times (17 days from Xiangtan

to Hamburg) 30 days less than through a maritime route

Less logistic costs for a lot of products. Even 65% less expensive.

Availability of smaller deliveries.

New Silk Road

Conclusions Need of new investments in the sector.

Will of most of the governments from the area in developing the railway sector (“one Belt, One Road).

Foreseeing of a huge transit volume and consequently the need of more maintenance Works.

Market Areas Republic of Kazakhstan

Settlement Project.

Eurasian Economic Union and Uzbekistan: Talgo y Alstom.

Islamic Republic of Iran and the Caucasus: Talgo y Alstom.

Republic of Kazakhstan Priorities

Talgo Contact with Temir Zholy Contact with Alstom Contact with Turpan Express

Evaluate the possibility of working in the maintenance of short distance trains

Common steps – Other markets Work together with Talgo and Alstom (Iran). Attend transport and logistic exhibitions. Make use of the business trips in the security and defense sector to contact

actors in the railways sector. Evaluate the opportunities from every market.

SECURITY AND DEFENSE SECTOR

MARKET DIVISION BLOCK I - Kazakhstan and the Countries belonging to the Eurasian

Economic Union (The Republic of Belarus, The Russian Federation, The Republic of Kazakhstan, Republic of Armenia and the Republic of Kyrgyzstan).

BLOCK II – The Republic of Azerbaijan, The Republic of Georgia and the Republic of Uzbekistan).

BLOCK III – Eastern Europe and the Balkans.

BLOQUE IV – The Republic of Tajikistan, The Republic of Turkmenistan, The Republic of Mongolia and the Republic of Moldova.

MARKET DIVISION

PRODUCT DEFINITION

BASE PRODUCTS ANTIRIOT VEHICLES BORDER CONTROL VEHICLES

SECONDARY PRODUCTS POLICE TRANSFORMATIONS MOBILE BANKING CIVIL ARMOURED VEHICLES MILITARY ARMOURED VEHICLES.

COMMON SPTEPS FOR ALL THE MARKETS

MARKET ANALYSIS – SECURITY AND DEFENSE SECTORS INTERNET DOCUMENTS FROM THE OFECOMES CONTACTS EXHIBITION LISTS

MARKET INVESTIGATION VISIT TO EXHIBTIONS TRADE MISSION – AGENDA

MONITORING EVALUATION OF THE SETTLEMENT VIABILITY IN THE COUNTRY

BUSINESS VOLUME FUTURE PROSPECTS COMPETITION

BLOCK I – PEST ANALYSIS POLITIC-LEGAL FACTORS

CERTIFICATIONS AND AUTHORIZATIONS DOUBLE USE MATERIALS – Restrictions of selling to the Russian

Federation, Belarus and Armenia. ECONOMIC FACTORS

Short term: Negative. Long term: Positive.

SOCIOLOGIC FACTORS Insecurity Instability Politic and Social changes and adjustments Changes.

TECHONOLOGIC FACTORS Need to update and upgrade the equipment.

REPUBLIC OF KAZAKHSTAN

Why Kazakhstan? Market Knowledge Economic Potential Market opening and institutional relations Technologic development programs. Updating and upgrading programs of the security and defense

equipment.

EURASIAN ECONOMIC UNION Why to start in the EEU?

NEGATIVE ISSUES Moscow interference in the economic and the

comercial politic Bigger russian comercial competion.

POSITIVE ISSUES Access to a market with 183 million people and

with a GDP of a 1/3 of the UE. Unified tariff system. Sistema de certificados y autorizaciones común

(GOST)

Why we chose these products? Antiriot truck:1º - Obsolescence of the antiriot equipment.2º - Social Instability: Economic crisis and lack of replacement for the nowadays leadership. 3º - We haven’t noticed any manufacturer providing equivalent equipment. Border control vehicles1º - Huge borders (13.000 km in KZ)2º - Government will to have a bigger control of drug and weapon smuggling. 3º - Government will to reaffirm their suzerainty. Mainly Kazakhstan towards Russia and Uzbekistan.

REPUBLIC OF KAZAKHSTAN AND EEU

Equipment adquisitions – National border Guard of KZ (2014) In 2014 the Kazakh government

acquired for his National Border Guard the following equipment: An-74T-200.A Transport aircraft. Helicopter Mi-171 Sh. 447 vehicles (not specified).

Data about the border control: 24.000 persons detained. 673 tries of smuggling. 1,5 t of drugs were intercepted

(96,8 kg of heroin).

KAZAKH EQUIPMENT Antiriot

BTR - 80 Nomad and Barys (Paramount) Border control

REPUBLIC OF KAZAKHSTAN

REPUBLIC OF KAZAKHSTAN

Structure of Security and Defense in KZ.

Presidente de la República

Ministerio de Defensa

Ministerio del Interior

Guardia Nacional -

antidisturbios Arystán

Policía

Comité nacional de seguridad

Guardia de fronteras

REPUBLIC OF KAZAKHSTAN

Production and procurement structure of the Sector in Kazakhstan

President of the Republic of Kazakhstan

Ministry of Defense - Imangali

Tasmagambetov

Kazakh Engineering – Zhanseitov Bauyrzhan

Kazanaulyexport -Interior ministry-

Kalmukhanbet Kasymov

National Security Comitte - Vladimir

Zhumakanov

REPUBLIC OF KAZAKHSTAN

ACTIONS BLOCK I – EURASIAN ECONOMIC UNION

Agendas Astana: 6th and 7th June (With Ismael) Almaty: 3th and 7th October. Bishkek: 8th and 9th September. Moscow: 24th and 25th October.

Exhibitions See schedule.

Contact profil Guvernamental Ministries and institutions and

Public companies. Security companies Banks Possible commercial associates.

Block II – Uzbekistan, Georgia y Azerbaijan

Why this countries? Proximity to Kazakhstan. Similar Business Culture. Contacts: Georgia and Uzbekistan Economic capacity (Uzbekistan y

Azerbaijan) Necessity of the same products

(social instability, border control, etc.)

ACTIONS BLOCK II Georgia y Azerbaijan (26 – 30 of September):

Trip to both countries at the same time. Infrastructures exhibition – Georgia (28 -30 of September). ADEX Exhibition (27 – 30 of September). Contacts in Georgia. Meetings.

Uzbekistan (October 31th - November 4th): Exhibition «TransUzbekistan 2016» (2 – 5 of November). Adolfo’s Contacts. Moscow Economic and Commercial Office. Meetings.

Give support to the International Department in Spain. Accompany them to exhibitions and commercial

trips. Helping them to do agendas Provide them with information about the markets

(competitors, contacts, etc.). Give them information about opportunities and

information that could be interesting. Give them support through our contact in

Germany.

ACTIONS BLOCK III

Evaluate the opportunities of the sector in these countries. Make contacts. Relay on the ofecomes and multilateral institutions. Evaluate the possibility of acting as a trader in

Tajikistan According to the business needs and Schedule

evaluate the possibility of attending to the Economic Forum of Dushanbe (middle of October).

Turkmenistan and Mongolia are a big challenge but they offer us the possibility of been the first in a region almost virgin. Nowadays they are not really integrated in the Central Asian Economy and commercial corridors.

ACTIONS BLOCK IV

PLANNING ACTIVIDADES 2016 – REPÚBLICA DE KAZAJISTÁNActuaciones 1º abril 2º abril 1º mayo 2º mayo 1º junio 2º junio 1º julio 2º julio

1º agosto

2º agosto

1º septiembre

2º septiembre 1º octubre 2º octubre

1º noviembre

2º noviembre

1º diciembre

2º diciembre

Definición de mercados XDefinición de productos XEstablecimiento de pautas y prioridades X X X X X XContactos (REVISIÓN) X X X X X XLogística: alojamiento + visado X XRealización de agendas (empzar menos 21 días antes de la visita) X X X X X X X X X X X X

Foro Económico de Astaná (25 y 26 de mayo) - 90 € visita y 255 full) X

KADEX (3 al 5 de junio) XReuniones - Astaná X

Seguimiento + resultados (Foro+KADEX+Reuniones) XKazakhstan Security Systems (23-25 Noviembre) X

Seguimiento + resultados (Kazakhstan Security Systems) X"Astana Invest 2016" Astana International Investment Forum (6

julio)X

Seguimiento + resultados (Astana Invest 2016) XInt. Exhibition on Safety, Security, Fire Protection, Automation and

Police Equipment (21 - 23 septiembre)X

Seguimiento + resultados (Kazakhstan Security Systems) X“TRANSIT -TRANSKAZAKHSTAN – 2016” Almaty (4 - 6 Octubre) X

Reuniones - Almaty XSeguimiento + resultados (TRANSIT + Reuniones)

ATBI Expo-2016 (10 y 11 septiembre) XReuniones - Bishkek (hablar con Bapanov) XSeguimiento + resultados ATBI y reuniones X

Exporail russia (26-28 de octubre) XReuniones - Moscú XInterpolitex (18-21 octubre) XSeguimiento + Resultados Exporail + Moscú + Interpolitex X

Infraestructure Exhibition (28-30 September) XReuniones - Tbilisi X

Seguimiento + Resultados Exporail + Moscú + Interpolitex X

«TransUzbekistan 2016» (2 - 4 noviembre) XInternationa Economic Forum (*5 nov) X

Reuniones - Tashkent XSeguimiento + resultados

ADEX (27 - 30 Septiembre) XReuniones - Baku X

Seguimiento + resultados XInforme de resultados (bimensual) X X X XValoración y toma de decisiones X X X X X

Reunión de seguimiento X X X X X

PROSPECCIONES COMERCIALES - UZBEKISTAN

PROSPECCIONES COMERCIALES: FEDERACIÓN RUSA

PROSPECCIONES COMERCIALES: REPÚBLICA DE KIRGUISTÁN

PROSPECCIONES COMERCIALES : REPÚBLICA DE KAZAJISTÁN

PROSPECCIONES COMERCIALES: GEORGIA

PROSPECCIONES COMERCIALES - AZERBAIJAN

PLANNING 2016 – REPUBLIC OF KAZAKHSTAN

Guideline We tried coordinate the agendas with the main exhibitions of

Defense, Security and Railways. The planning has to be flexible and fit the needs of the business. Our idea is to prospect the possibilities of the sector in CIS countries

(and Georgia) but at the same time giving support to the rest of our sellers in Eastern Europe and the Balkans.

Actuaciones 1º abril 2º abril 1º mayo 2º mayo 1º junio 2º junio 1º julio 2º julio 1º agosto 2º agosto 1º septiembre 2º septiembre 1º octubre 2º octubre 1º noviembre 2º noviembre1º

diciembre2º

diciembreForo

Económico de Astaná 25 - 26

KADEX (1 - 5)

"Astana Invest 2016" (6 )

ATBI KG (10 - 11)

Safety, Security, police KZ (21-23)

TRANSKAZAKHSTAN ALM (4 - 6 )

Exporail y Interpolitex

Rusia(18 - 28)

«TransUzbekistan 2016» (2 - 5)

Kazakhstan Security System

(23 -25)

Infr. Exhib (28-30) TransUzbekistan

(2-4)ADEX (27 - 30)

ASTANA BISHKEK TBILISI ALMATY MOSCÚBAKU TASHKENT

FERIAS

AGENDAS

ANEXOS

TS KZ – COMPOSITE Astana – Republic of

Kazakhstan

TSD INDUSTRIAL Republic of Chile

Spain –Main manufacturing facilities in Herencia (Ciudad Real). And our own facilites in Madrid and Barcelona

Our worldwide facilities

TEMIR ZHOLY

Samruk -Kazyna Temir Zholy

JSC KazTemirTrans (freight transport)

AO Locomotive

KZT Express (multimodal operating Company)

Invest Kazakhstan