HOW TO INCREASE THE PROFITABILITY OF ROAD TRANSPORTATION май, 2008

The average life duration of a trucks is Truck fleet in Kazakhstan In 2003, more than 66% of the vehicles on the country’s roads had exceeded their authorised period of exploitation. The average life duration of a trucks is 9-10 years

1994: Creation of the transport company « СВС»

How to increase profitability of road transportation? Plan from the start and reduce costs Establish professional links and seek partners Implement new technology Include all costs in calculations Implement new logistics solutions Compensate Vat Increasing profits from road transportation

In 2006, the company «СВС» replaced its cargo vehicle fleet 20 IVECO roadtrains in 2006

Terms of leasing per country Country Leasing rate per year Kazakstan 20% Ukraine 13-18% Russia 12-15% Poland 3- 4 %

Number of vehicles by Euro category in Kazakhstan as of 10/12/2007 22,2% 9,7% 48,5% 16,2% 3,4% Еuro-0 Еuro-1 Еuro-2 Еuro-3 Еuro-4

Structure of direct costs in the Europe-Asia transportation corridor 5 10 15 20 25 30 35 40 45 50 2004 2005 2006 2007 Travel documents Travel allowance for staff Repair Depreciation Wages Travel costs Fuel

Fuel prices per country 0,43 0,56 0,59 1,13 1,27 0,2 0,4 0,6 0,8 1 1,2 Евро Kazakhstan Belarus Russia Poland Germany Data as of: 02.2008

Diesel fuel price dynamics 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 1,1 1,2% 2003 2004 2005 2006 2007 год Germany Poland Russia Kazakhstan

Shengen zone expansion countries which joined before 2000. countries which joined during 2001-2007.

Beijing Brussels Caravan (09.2005) Today, it is possible to organise a new logistic chain from Beijing, to all the major markets, without spending one penny in infrastructure costs. This trucks caravan also demonstrated that Chinese containers could be shipped to the US, not only from one Black Sea country, but from the twelve different countries along the Black Sea, which all have different political and social advantages, and therefore highly competitive rates and excellent service in ports.

We invite you all to the next conference in Kazakhstan in 2009!

Thank you for your attention