projectoverview - esteri
TRANSCRIPT
ProjectOverviewJune2019
GEORGIA - HIGH LEVEL DESCRIPTION
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6th
Ease of DoingBusiness
(by World Bank)
16th
Freest Economy
(By the Heritage Foundation)
EXTREMELY BUSINESS ORIENTED GOVERNMENT:
8th
Tax Burden Level
(By the World EconomicForum)
Population (2018) 3.73 million
GDP (2018) US$ 16.2 billion
GDP/Capita (PPP) (2017) c.US $ 9,745
Real GDP Growth (2017) + 4.8%
Real GDP Growth (2018*) + 4.7%
Export (2018*) US$ 3.35 billion (+22.6%)
Import (2018*) US$ 9.12 billion (+14.9%)
FDI (2017) US$ 1.86 billion (+16.2%)
Unemployment % (2018) 12.7%
Inflation % (2018) 2.6%
Sovereign Moody’s rating(March. 2018) Ba2 (Stable)
GEORGIA - CROSSROAD OF EUROPE AND ASIA
● Strategically located on a crossroad ofEurope and Asia
● Non-resources based efficiency driven freemarket economy
● Free trade access to markets with over 2.3billion population
● The only country in the region that hassigned free trade agreements with both the EU and China (incl. HK)
● The EU Associated Country, ongoing approximation of business environmentand quality standards to theEU
● Floating exchange rate / no currencyconversion regulations
● No restrictions on the import or export ofcapital
FTA DCFTA FTA FTA FTA GSPChina
Hong KongEU28 CIS EFTA Turkey The USA
CanadaJapan
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CURRENT BLACK SEA PORT DEPTHS
Vessels up to 10,000TEUVessels up to 1,500 TEU
Downtimein 201827%
GEORGIA CURRENTLY CANNOT ACCEPT VESSELS OF MORE THAN 1,500 TEU CAPACITY
GEORGIA CAN NOT ACCEPT 75% OF VESSELS OPERATING IN THE BLACK SEA
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HIGH COSTS AND INEFFICIENCY OF GEORGIANPORTS
Poti endured considerable downtime primarily due to wind and ineffective layout of the breakwaters open to main wave direction.
● 3-day average waiting time.● Up to 7-day waiting time during bad weather conditions.● Inefficient/old container handling equipment● Absence of container yard
Consistent downtimes and inability to receive largeships significantly affects Terminal Handling Cost.
THC COMPARISONDOWNTIME DAYS
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GEORGIAN PORTS CAPACITY AND EXISTING MARKET GROWTH TREND
PORT CONTAINER TRAFFIC TEU
Oil Crisis, Currency Devaluation by 42%
World Crisis, War with Russia
33.5% CAGR
19.7% CAGR
Actual Q1 2019 container growth+33%
531,436
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GEORGIA – SHORTCUT TO CENTRAL ASIA MARKETS
Primary MarketSouth Caucasus: Georgia, Armenia and Azerbaijan Landlocked
17m populationUS$ 62 bln. Total GDP+4% average GDP growth outlook
Secondary MarketCountries of Central Asia and North-West of Iran Landlocked
146m populationUS$ 655 bln. Total GDP+5% average GDP growth outlook
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CORRIDOR ONGOING AND COMPLETEDDEVELOPMENTS
Aktau port:$210 mln
Kuryk port:$235 mln
Kazakh transport system: $26 bln
Georgia rail & road: $5.5 bln
Alyat port:$530 mln Turkmenbashi
port: $1.5 bln
Khorgos dry port: $250 mln
Azerbaijan rail:$1.2 bln
Anaklia port:$600 mln
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ANAKLIA PORT PROJECT - KEY HIGHLIGHTS
PROJECT SUMMARY
• Public-private partnership with the Government of Georgia(“GoG”)
• Build Operate Transfer (“BOT”) with 52-year concession• Up to 9 development phases• Design Port depth of 16m CD
• Able to accommodate vessels up to 10,000 TEU• GoG to receive 2% of port revenues after 20 years• Opening in 2021• Up to 600,000 TEU initial capacity + 1.5 million tons of dry bulk• Phase 1 development cost c. $ 600m - 65% debt / 35% equity• Signed mandate letters for debt financing of up to US$ 400
million with ADB, AIIB, EBRD and OPIC
• GoG direct investment into equity: $ 100m subordinated debt• Government additional investments in addition to project costs:
• Hinterland road and rail connections ~ $ 120m,• Purchase and transfer of port land ~ $ 30m,
“Strategic Project of the Year”- 2016 Global Infrastructure Leadership Forum in Washington,DC
“Best Investment Project of the Year”- 2016 Dubai Annual Investment Meeting
“Outstanding Conceptual Design”- BUILD (UK construction industry architectural journal)
“Belt & Road Initiative Project of the year”- Asiamoney (Euromoney Institutional InvestorPLC)
* SEZ is developed as a separate project with separate shareholdingstructure
ANAKLIA DEEP-SEA PORT
11 | PROJECT PRESENTATION
Bulk quay – 225 m
Service Pier
Two Container Berths 625m
Intermodal YardRail length- 825m
Block Trains- 82TEUs
23ha Container Yard12 eRTGs
SSA MARINE – PORT OPERATOR
Puerto Rico 2016
Panama
2Costa Rica 1995
000
Colombia 2009
Chile2000
Canada 2005
U.S. 1949
Mexico 1995
South Africa 1993
Vietnam 2006
New Zealand 1993
SSA Marine profile:
One of the Worlds Leading port operators;
Founded in 1949 (68+ years of experience);
Operates 250 strategic locations around the five continents;
More than 30 Joint Ventures with Shipping lines, Local Partners
and Marine terminals around theworld;
Traffic served (2017):
• 27.8 million TEU per annum; and
• 112.7 million tons of non-containerized cargo
Number of employees: 17,000;
Annual revenue of more than $ 1.6 billion
Colón, Panama
San Antonio & San Vicente, Chile.
Saigon, Vietnam.
12 | PROJECT PRESENTATION
DREDGING WORKS COMPLETED – COMPACTION ONGOING
● Total cost $ 28.5 million, performed by Van Oord
● Up to 5,000,000 cubic meters of material dredged from sea bed and placed on construction site
● Works started mid-September 2018
● Dredging completed in early November
● Compaction process ongoing untilend of May 2019
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DREDGING PROCESSVISUALS
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PROCUREMENT – EQUIPMENT / EPC
Tender for port equipment announced in November 2018
● Tender value up to US$ 100 million
● Participants: ZPMC, Konecranes, Kalmar Netherlands,
Hyundai, Liebherr, PACECO USA, Mitsubishi
● Bids received from four companies
●Hyundai selected for STS cranes, ZPMC for eRTG Tender
for the selection of EPC contractor ongoing since
September 2018
● Tender value: several hundred million USD
● Participants: internationally acclaimed construction
companies from France and Turkey
15 | PROJECT PRESENTATION
• First Special Economic Zone in Georgia
• Special economic and legal status defined by the Constitution of Georgia
• Attached and fully integrated with the Anaklia Deep Sea Port• Up to 1,000 ha development area
• Mixed use development SEZ with logistics, industrial, financial and service clusters
• Access to multimodal transport infrastructure: the most advance port, direct links to the national road and railway networks. International airport in less than 90km distance
• The most competitive location to become the logistics, industrial and business hub for the region
• Long-terms development to emerge as new urban center on a Black Sea coast
ANAKLIA CITY/SPECIAL ECONOMICZONE
PROJECT SUMMARY
PHASE 1 DEVELOPMENT
• To be commencement simultaneously with Anaklia Deep Sea port
• 110 hectares dedicated to the logistics and industrial parks ( 55ha for Phase1a by 2024)•Modern logistics park to capitalize on the access to multimodal transportation: port, road and railway
• Light industrial park for the export oriented industries
ANAKLIA SEZ
Grant Acquired from the Japanese Government
• Engineering, infrastructure alignment etc.• Operations and management• Investment Promotion (ASEAN region)
Strategic Cooperation with the ADB – vital node of CAREC project
for the region.
16 | PROJECT PRESENTATION
IDENTIFIED OPPORTUNITIES – SECTORS/PRODUCTGROUPS
• Port supplementary services• Storage/Warehousing• Re-export/transit• Distribution/Value added services• Industrial park induced logistics
Logistics/Distributionsector
• Confectionary/Cocoa products• Packaged food/Snacks/Savories• Preparations of fruits &
vegetables• Sweetened beverages
Construction MaterialsFood & Beverages
• Ceramics products• Sandwich panels• Insulation materials• Roofing/Flooring materials• Frames, windows, doors and alike
Cosmetics & Beauty
• Personal hygiene products• Dental products, shaving and alike• Essential oils, odoriferous substances
and mixtures• Make-up and beauty preparations
• Tier 2 and 3 products• Parts and accessories for vehicle bodies• Brakes, gear boxes and parts• Suspension systems and parts• Interior components, accessories and
wiring
Automotive Components
• Soap products• Surface active agents and washing
preparations• Lubricants and waxes• Polish products
PharmaceuticalsCleaning Products
• Unmeasured and packaged medicaments
• Pharmaceutical preparations• Herbal, greens, berries preparations• Wadding, gauze, bandages and the
like
Household Appliances/Elect.
• Dishwashing, refrigerators and freezers• Air-conditioning and heating• Small electromechanical appliances• TV/radio apparatus (components/assembly)• Spare parts for electronics
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THANK YOU FOR YOURATTENTION!
www.anakliadevelopment.com