CONTAINER TERMINAL

Capital city: Belgrade, population more than 1,600,000 Geographic location: Southeastern and Central Europe, Balkan Peninsula, Western Balkans Area: 88,509 km 2 Climate: moderate continental Longest river: Danube, Serbian section, 588 km Population: millions Official language: Serbian Religion: 85% Eastern Orthodox Christian, 5.5% Roman Catholic Christian, 3.2% Muslim Time zone: central European, CET (GMT + 1 hour) Water from public mains: Safe to drink GDP: $42.52 billion (2013 World Bank figure) GNI per capita: $5,730 (2013 World Bank figure) Official currency: the dinar (RSD) Port Governance Agency The Republic of Serbia- facts

The Danube river – E 80 Port Governance Agency Main Inland Waterways ROMANIA BULGARIA CROATIA AUSTRIA HUNGARY SLOVAKIA GERMANY MOLDAVIA UKRAINA BLACKSEABLACKSEA SERBIA

The second most dense waterways network in Europe Port Governance Agency Main Inland Waterways

The Danube river Е 80 – (46 bis – 52) The total Danube’s length of 587,6 km through the Republic of Serbia is regarded as an international waterway allowing free navigability for the vessels under all flags On the part of the Danube from the border with Hungary (rkm ) to Belgrade (rkm ) is necessary to meet the category VIc in accordance with the AGN Agreement Waterway of the Danube through Serbia is fully marked in accordance with applicable international regulations The Sava river Е The river Sava on the part of the flow through Serbia, with a length of km, is regarded as an international waterway with free navigability for the vessels under all flags Waterway of the river Sava in Republic of Serbia is classified as IV The Tisza River Е By the AGN Agreement the Tisza River has been determined as an international river Port Governance Agency Main Inland Waterways

Port Governance Agency Ports in Serbia

The Danube River is the backbone of the inland waterway system in the Republic of Serbia and on it there are nine international inland ports : Apatin Bogojevo Backa Palanka Beocin Novi Sad Belgrade Pancevo Smederevo Prahovo On the Sava river, there are two ports open for local inland traffic: Sremska Mitrovica Sabac There is one international port on the Tisza River, Senta. Port Governance Agency Ports in Serbia

Port Governance Agency Danube waterway transport today

CHOOSING INVESTMENTS BY THE INVESTORS REGISTERING PORT OPERATORS IN PORT GOVERNANCE AGENCY REGISTER DETERMINATION OF AREA OF THE PORT BY THE GOVERNMENT OF RS IN WHICH AREA WILL BE BUILT CONTAINER TERMINAL NEGOTIATING WITH A POTENTIAL INVESTOR APPROVALS FOR PORT ACTIVITIES Port Governance Agency Phases of the Project

The law on navigation and ports on inland waters European agreement on main inland waterways of international importance (AGN) European agreement on important international combined transport lines and related installations (AGTC) Agreement on cooperation between the governments involved. Port Governance Agency Legal framework

The Republic of Serbia has signed free trade agreements with other countries: with European Union member states with Russian Federation with Belarus with Kazakhstan with EFTA member countries with CEFTA member countries with Turkey Port Governance Agency Legal framework

1.Port of BELGRADE, green field investment 2.Port of NOVI SAD, brown field investment 3.Port of PRAHOVO, brown field investment Port Governance Agency Proposals for investment

1 2 3 Port Governance Agency Proposals for investment

The Port of Belgrade port operator - Luka “Beograd” a.d. Port Governance Agency Proposals for investment Port of Belgrade

The Port of Belgrade port operator – Luka “Beograd” a.d. The Port "Belgrade" a.d. has the following infra and superstructure: Operative docking area 940 m long Indoors storage space m 2 Outdoor storage space m 2 Container terminal of TEU capacity per year Loading equipment 3 bridge cranes with load capacities 50 t, 20 t, 3 t 9 portal cranes with the capacity of 3 to 6 t 3-6 t Manipulator for containers - 27 t Port "Belgrade" ad annually reloads between 200,000 and 400,000 tons of various goods. Port Governance Agency Proposals for investment Port of Belgrade

Green Field investment Container Terminal location of Zemun - Borča Port Governance Agency Proposals for investment Port of Belgrade

Advantages of locations during the constructing of container terminal: There is no limit in the size of the space for the construction and development of the container terminal Legal aspects of the site have been resolved. The land is owned by the right of use of the Republic of Serbia There are effective road links with Belgrade outer main tangent, bypass around Belgrade and the international highway E-75 The location is in close proximity to areas with significant production, mainly agricultural products and the consumption of imported goods. Limitations : It is necessary to build the railway tracks that connect the container terminal with the main rail routes. Green Field investment Container Terminal location of Zemun - Borča Port Governance Agency Proposals for investment Port of Belgrade

2 Port Governance Agency Proposals for investment Port of Novi Sad

The Port of Novi Sad port operator - “Luka Novi Sad” a.d. Port Governance Agency Proposals for investment Port of Novi Sad

The Port of Novi sad has the following infra and superstructure : Operative banks with a total length of 800 m, of which m vertical quay Network of rail sidings Indoors storage space m 2 Outdoor storage space m 2 Loading equipment 5 portal cranes with the capacity from 5t to 27,5 t 2 telescopic funnels for dry bulk cargo handling, capacity up to 250 t/h per funnel 1 forklift with capacity 28 t, 10 forklifts with the capacity from 3 t to 12,5 t, In 2013, the port operator is overloaded tons and 52 container while a record in 2012 handled more than 1.1 million tons of various goods. The Port of Novi Sad port operator - “Luka Novi Sad” a.d. Port Governance Agency Proposals for investment Port of Novi Sad

Location of the new container terminal is at rkm 1254 on left bank of the Danube River, in the entrance to the DTD canal (Danube- Tisa-Danube). Space for container terminal has an area of ​​ about 5 ha. Brown Field investment - Option 1 Container Terminal location of extended Port zone Port Governance Agency Proposals for investment Port of Novi Sad

Brown Field investment - Option 1 Container Terminal location of extended Port zone Port Governance Agency Proposals for investment Port of Novi Sad

BUYING COMPANIES IN BANKRUPTCY REGISTERING PORT OPERATORS IN PORT GOVERNANCE AGENCY REGISTER DETERMINATION OF PORT AREA BY THE GOVERNMENT RS IN WHICH CONTAINER TERMINAL WILL BE BUILT GRANTING APPROVALS FOR PORT ACTIVITIES Brown Field investment - Option 1 Container Terminal location of extended Port zone Port Governance Agency Proposals for investment Port of Novi Sad

Advantages of locations during the constructing of container terminal: Buying companies in stage of bankruptcy. The space is not in use and can be quickly bring in function. Using the benefits Free Zone regime Novi Sad (8 ha). Immediate vicinity of the international highway of the road E-75. Easily established rail link with the main rail routes. The possibility of expanding in the function of the Free Zone. It is possible use of infrastructure capacity and hydraulic structures of Port of Novi Sad a.d. Brown Field investment - Option 1 Container Terminal location of extended Port zone Port Governance Agency Proposals for investment Port of Novi Sad

Limitations of location during the constructing of container terminal: It is necessary to remove the building owned by companies in bankruptcy. Slope construction of coastal defence reduce efficiency of port operations Relatively small channel width at the level of operational quay. To eliminate restrictions is necessary to build a vertical quay operational coast where it is necessary to increase the bandwidth of the operational part of the coast. Brown Field investment - Option 1 Container Terminal location of extended Port zone Port Governance Agency Proposals for investment Port of Novi Sad

Location of the new container terminal is at the port area that is used for port activities by the Port of Novi Sad a.d. REGISTERING PORT OPERATORS IN PORT GOVERNANCE AGENCY REGISTER DETERMINATION OF PORT AREA BY THE GOVERNMENT RS IN WHICH WILL BE BUILT CONTAINER TERMINAL GRANTING APPROVALS FOR PORT ACTIVITIES Brown Field investment - Option 2 Container Terminal location of Port zone Port Governance Agency Proposals for investment Port of Novi Sad

Brown Field investment - Option 2 Container Terminal location of Port zone Port Governance Agency Proposals for investment Port of Novi Sad

Advantages of locations during the constructing of container terminal: The space is not in use and can be quickly bring to function. Using the benefits of Free Zone regime Novi Sad (8 ha). Immediate vicinity of the international highway of the road E-75. Easily established rail link with the main rail routes. The possibility of expanding in the function of the Free Zone. It is possible use of infrastructure capacity and hydraulic structures of Port Novi Sad a.d. Brown Field investment - Option 2 Container Terminal location of Port zone Port Governance Agency Proposals for investment Port of Novi Sad

Limitations of location : Slope construction of coastal defence reduce efficiency of port operations To eliminate restrictions is necessary to build a vertical quay along the operational coast Limited space for expansion of the terminal Brown Field investment - Option 2 Container Terminal location of Port zone Port Governance Agency Proposals for investment Port of Novi Sad

3 Port Governance Agency Proposals for investment Port of Prahovo

The Port of Prahovo port operator - IHP Prahovo Krajna D.O.O. Port Governance Agency Proposals for investment Port of Prahovo

Port operator IHP Prahovo – Кrajina d.o.o – is in the process of restructuring and majority-owned by the Republic of Serbia. Operator is loading and storing coal, coke, phosphate, ferrous metallurgy products, pyrite burns etc. The Port of Prahovo has the following infra and superstructure: Operative docking area 560 m long Network of railway sidings length 571 m Indoors storage space m 2 Outdoor storage space m 2 Loading equipment 3 portal cranes with load capacities 10 t, 6 t, 5 t 3 bridge cranes with load capacities 40 t, 10 t, 10t Realized handling general and bulk cargo between 200,000 and 350,000 tons per year. The Port of Prahovo port operator - IHP Prahovo Krajna D.O.O. Port Governance Agency Proposals for investment Port of Prahovo

Brown Field investment Container Terminal location of Port of Prahovo Port Governance Agency Proposals for investment Port of Prahovo Location of the new container terminal is at the port area that is used for port activities by the - IHP Prahovo Krajna D.O.O. REGISTERING PORT OPERATORS IN PORT GOVERNANCE AGENCY REGISTER DETERMINATION OF PORT AREA BY THE GOVERNMENT RS IN WHICH WILL BE BUILT CONTAINER TERMINAL BUYING OF OPERATOR OR GRANTING APPROVALS

Brown Field investment Container Terminal location of Port of Prahovo Port Governance Agency Proposals for investment Port of Prahovo

Advantages of location Port of Prahovo during the constructing of container terminal : Port of Prahovo and port operator are 100% owned by the Republic of Serbia The possibility of rapid introduction of new operators in the port area of ​​ Port of Prahovo The possibility of expanding primarily by adjusting the unused. Industrial railway track length of 971 m is associated with the national railway network Limitations of location : Investments in bringing new purpose unused space winter storage arrangement and construction of bank stabilization. Brown Field investment Container Terminal location of Port of Prahovo Port Governance Agency Proposals for investment Port of Prahovo

In the Republic of Serbia, under the laws, there are two possibilities for investment in port and port activities, including: 1)Based on the approval for the performance of port activities, which is a contractual model of public-private partnerships Interested port operators submit to Port Governance Agency following documents: - Letter of intention - Plan of activities for the approved project time; - Financial Feasibility Study for the project. Approval may be granted a maximum for a period of 25 years. Deadline validity of the approval given depends on the type of port activities for which authorization is requested as well as investments in infrastructure and / or superstructure facilities that port operator intends to build. Port Governance Agency Performing project trough Public-Private partnership

2) On the basis of obtaining a port concession Threshold for awarding the port concessions shall be the value of public works for construction and use of the port, or the value of port services, in an amount exceeding of million euros. Port concession may be: - service concession with the right to exploit a specific service, when the concession is granted for port services; - concessions for public works, when the concession is given for the construction of port structures and facilities. Port Governance Agency Performing project trough Public-Private partnership

The period for which will be given to the port concession depends on the type of concession, but no longer : 1) service concessions, when the concession is granted for port services: a) for nautical services to 5 years, b) for transport services up to 15 years. 2) concessions for public works, when the concession is given for the construction of port structures and facilities, according to public-private partnerships with the elements of the concession - up to 30 years. Port Governance Agency Performing project trough Public-Private partnership

The Republic of Serbia offers a number of possibilities that makes it interesting for investors : Financial incentives for investors Favorable tax system with the corporate lowest tax among the lowest rate in Europe by 15% Duty-free exports to the countries of South Eastern Europe, Russia, Belarus, Kazakhstan Exemption from payment of corporate income tax for investments of more than 7 million or if it employs at least 100 new workers. Educated workforce that is available at competitive prices The tax credit amounting to 80% of the committed investment Exemption from customs duty on import of equipment and materials under certain conditions Loans and facilities for greenfield investments Port Governance Agency What Serbia offers to foreign investors

Financial incentives are most reflected in the program of the Government of the Republic of Serbia on the award of grants The amount of funds that can be allocated to large enterprises is determined up to 50% of eligible costs for implementation of the investment project The amount of funds allocated for investments over EUR 50 million can not be greater than 25% of the eligible investment costs, and the investment of over 100 million, this percentage can not be greater than 17% For investments that exceed the total amount of 200 million euros and create at least 1,000 new jobs, resources are determined in the amount of 25% of the total investment For investments in excess of 50 million euros and create at least 300 new jobs, resources are determined in the amount of 20% of the total investment Port Governance Agency What Serbia offers to foreign investors

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