1. Port Governance Agency Passenger terminals in Republic of Serbia Investment opportunity February 2016

2. General information Port Governance Agency 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: 7.209 millions Official language: Serbian Religion: 85% Eastern Orthodox Christian, 5.5% Roman Catholic Christian, 3.2% Muslim, 6,3 % other. Time zone: central European, CET (GMT + 1 hour) Water from public mains: Safe to drink GDP: $42.65 billion Official currency: the dinar (RSD)

3. Rivers in Republic of Serbia Port Governance Agency The Danube river E 80 - 46 bis - 52 587.6 km-international waterway with free navigation for all flags. The Sava River E 80-12 210.8 km- international waterway with free navigation for all flags. The Tisa river E 80-01 164 km-granted the status of an international waterway The geographical position of the RS provides natural advantages for the intensive waterborne transport thanks to rivers Danube, Sava and Tisa Of the 36,000 km of water networks in Europe, 1,680 km of internal waterways belong to the Republic of Serbia

4. Danube (International inland waterway) Sava (International inland waterway) Tisa (International inland waterway) State inland waterways Passenger Ports and Terminals - the locations of the future Sava Danube Tisa BELGRADE NOVI SAD D.MILANOVAC APATIN BACKA PALANKA S.KARLOVCI SMEDEREVO KOSTOLAC V.GRADISTE GOLUBAC LEPENSKI VIR KLADOVO NEGOTIN S.MITROVICA SABAC KANJIZA SENTA BECEJ TITEL Passenger terminals in Republic of Serbia Existing and locations of future

5. Existing international passenger terminals in RS Port Governance Agency Currently there are only three passenger terminals open for international traffic: Belgrade Novi Sad Donji Milanovac The annual number of passengers is around 65,000 tourists from around 900 port calls. Passenger terminals in Serbia in 2015 had the following number of port calls: Port of callNumber of port callsPort calls (%) Belgrade49255 Novi Sad29032 Donji Milanovac11313

6. Strategy Table 1. Growth of passenger ships from 2001-2012 in passenger terminal in Belgrade The Strategy on waterborn transport development of the Republic of Serbia 2015-2025 to has a vision of highly organized and profitable port sector throguh develpment od port and passenger terminals in RS. The commitment of the Republic of Serbia, defined by the European Union Strategy for the Danube Region and Tourism development Strategy of the Republic of Serbia, looks to a maximum valorization of tourist destinations on the Danube, Sava and Tisa. Based on the indicators of growth of passenger traffic on the rivers from 2001-2013, there is an overall trend of increasing volume of passenger traffic on the rivers. YearNumber of port callsNumber of passengers 20012190 2002495500 200314117440 200429136580 200538146900 200634944960 200739650890 200840152030 200941149670 201039048350 201144557820 201248060960 201351065285 table 2. Number of crousers and passenger traffic in the passenger terminal in Belgrade from 2001 to 2013

7. Passenger terminals in RS-potential locations Future passenger terminal in Zemun Passenger terminals are thesedays considered as AIRPORTS on rivers, and should be treated as such. In order to improve touristic offer and valorise full potential of rivers in RS, Strategic documents have determined a network of passenger ports open to international traffic and covers : Apatin, Backa Palanka, Sremski Karlovci, Smederevo, Kostolac, Veliko Gradiste, Golubac, Lepenski Vir, Kladovo, Negotin, Šabac, Sremska Mitrovica, Titel, Bečej, Senta and Kanjiza. Passenger terminal in Smederevo

8. Investments Port Governance Agency The forecast of incrising number of tourists is 100,000 per year, and the number of cruise ships at 800-1000 per year, through the construction of international passenger terminals. The Republic of Serbia in 2015, through the Ministry of Trade, Tourism and Telecommunications, has provided initial funding of approximately 1 million euros, which are planned for investment in the development of tourism through the construction of 6 international passenger terminals, for the following municipalities: Sremski Karlovci,Smederevo, Kostolac, Veliko Gradiste, Golubac and Kladovo. Investment funds are provided specially for the purchase of pontoons and other equipment necessary for the project. Agreement on the project was signed by MTTT and the local municipality in charge of the construction.

9. Forecasts Port Governance Agency Year2013201420152016201720182019202020212022202320242025 Forecast65285680597032372376743287649778599807888243784921874799011492829 Time periodProcentage growth 2013-20161.70 2017-20201.90 2021-20252.50 Table 3. Forecast of the number of crouser ships in RS Table 4. Forecast in percentage for crouser ships in RS Table 5. Forecast for number of crouser ships in RS

10. Passenger terminals in RS- Phases of the project Port Governance Agency Project of construction and development of the passenger terminal has several stages: Determening the port area of the passenger terminal. Local governments submit the required documentation. Adoption of Regulation for port area by Governmant of Republic of Serbia. PHASE I

11. Phases of the project Port Governance Agency PHASE II Tender procedure for choosing the port operator through the public proceedings with the specified criteria for participation in the procedure. Election of port operator/company. (best submitted offer through the process of public call).

12. Phases of the project Port Governance Agency PHASE III Issuing approval for performing port activities for selected operator for a period of 10 years, and signing of Agreement on port activities, which regulates mutual rights and obligations between the Port Governance Agency and the operator. PHASE IV Control of fulfillment of contractual obligations.

13. Investment opportunity Port Governance Agency Passenger terminal in Golubac Passenger terminal in Veliko Gradište Future passenger terminal in Smederevo

14. Passenger terminals in Republic of Serbia THANK YOU FOR YOUR ATTENTION Port Governance Agency General Manager Vuk Perović Nemanjina 4 11 000 Belgrade The Republic of Serbia E-mail: vuk.perovic@aul.gov.rsvuk.perovic@aul.gov.rs url: www.aul.gov.rswww.aul.gov.rs