1. Development of marine logistics hub
TenizService LLP
Development of marine logistics hub
in Kuryk
(for Western Kazakhstan Investment Forum: expanding production and development)
Aktau, 2012 г.

2. Current situation of cargo turnover in KSCS
12,175 mln of cargo were transshipped in 2011, including dry cargo:
metal products : 2,014 mln tones;
other cargoes : tones;
grain: tones
Ferry cargoes 1,433 mln tones
Volume of cargo turnover in 2011 – 399 bln tenge, what is more up to 16.2% than in 2010.
670,272 mln tones of cargo were transshipped in January-March 2012, what is more up to 20% than the same period in 2011 :
Planned average annual cargo handling through the "TRACECA" (Zhezkazgan - Beineu) - 19 million tons per year.
Herewith need for new routes for cargo handling exceeds the existing transport capacity of RK.
TRACECA
North route of TAZHM
North-South
South route of TAZHM
Central route of TAZHM

3. AktauSeaPort information
In August of current year, RSE «AISCP» transshipped 704 thousand tons of dry and oil-bulk cargo, what came up to 100.7% of the target, including:
Oil-bulk cargo – 458 thousand tons;
Metal products – 125 thousand tons;
Ferry cargoes – 83 thousand tons;
Grain – 1 thousand tons;
Other cargoes – 38 thousand tons;
Number of ships’ calls – 122. Since the beginning of 2012 «Aktau International Sea Commercial Port» has handled over 7 million 436 thousand tons of dry and oil-bulk cargo, what came to % of the target.
Moreover total transshipment of crude oil and oil products came to 5 million 173 thousand tons, dry cargoes thousand tons, including transshipment of metal products – 952 thousand tons, other cargoes – 255 thousand tons, grain – 460 thousand tons. The volume of ferry transportations came up to 595 thousand tons.
Number of ships’ calls since the beginning of 2012 is
12,175 mln of cargo were transshipped in 2011, including
Oil-bulk cargo– 8, 032 mln tones,
Metal products– 2 ,014 mln tones;
Other cargoes– 0,388 mln tones;
Grain– 0,308 mln tones;
Ferry cargoes– 1 ,433 mln tones.

4. Prerequisites of offshore logistics hub development
Constant and increasing export and import cargo flows exist between ports of the Pre-Caspian states ports, which requires appropriate development of transport and transshipment facilities by expanding terminals of onshore capacities and by building of new ferryboats;
Development of cargo flows is largely associated with political interests of nations involved in goods transportation. Ever growing trade and industry ties with China, India and Iran predetermine the progress of the West China – West Europe, the North - South and other corridors. A political understanding with Azerbaijan in place facilitates the Kazakhstan’s own traffic of goods towards ports of the Black Sea, as well as the TRACECA Program implementation. Also, there are other political relationships between countries that intend to have flows of cargoes, which should be considered for further stages to create actual freight traffic;
In the context of the given circumstances, construction of the Logistics Hub in Kuryk is the republic-wide strategic task to expand cargo flows and to build a state-of-the-art logistics center matching future demands to increase flows of goods in the nearest years.
Ersai
317,2 ha
216,5 ha
Kuryk
70 km from Aktau;
100 km from airport;
20 km from railway station
220 ha
191,3 ha
Bautino
Aktau
Kashagan
Kalamkas
Convenient and advantageous place;
Lack (limitation) of available facilities at Aktau International Sea Trade Port;
No offshore infrastructure to export/import certain types of goods
All-the-year-round operation (navigation);
Proximity to main communications lines;
Natural depths
Safety: the bay is protected against most strongest winds and waves ( NW direction )

5. Structure of shipping by types of cargo
Offshore operations support base (OOSB)
Grain terminal
Coal terminal
Oil products terminal
Other cargo
CIO(Coastal infrastructure objects)
LOGISTICS HUB - KURYK

6. Structure of logistics hub
OOSB
Grain
Coal
Oil products
Other cargo
CIO
Project: Offshore operations support base (OOSB)
Investment : 27 mln USD
Number of workplaces: 40 .
Dates:
Local content: 80%
Prerequisites:
In connection with the positive results of exploratory drilling on “N“ oilfield, topicality of implementation of the Project were raised;
The beginning of the project at present time will allow to accelerate efficient and timely development of the block “N“
Absence of this kind of base in Southern part of KSKS.
Proposed solutions:
Long-term contracts with N Operating Company for offshore oil operations support services ;
Forward-development of drilling program of N Operating: 2 wells per year (min).

7. Structure of logistics hub
OOSB
GRAIN
Coal
Oil products
Other cargo
CIO
Project: Grain terminal.
Investment: 15 mln USD.
Number of workplaces : 55.
Dates : гг.
Local content: 100%
Prerequisites:
Annual export potential ~ 6-8 million tons per year;
The existing infrastructure of transportation by railroad is about 3 million tons per year;
Current capacities of Aktau Sea Port: tons per year;
In connection with the development of agricultural production in Kazakhstan, it wre increased demand for port infrastructure for grain handling;
Realization of project will increase the grain export potential of Kazakhstan in the southern direction,
Necessity for additional transportation route.
Deficiency of transport / handling facilities is about million tones per year.
Proposed solutions:
Ensuring of guarantee for resource base for grain handling (up to 3 million tones per year);
Conclusion of contracts with large grain traders to guarantee the Grain Terminal usage;
Construction of 20 km railroad near Kuryk.

8. Structure of logistics hub
OOSB
Grain
COAL
Oil products
Other cargo
CIO
Project: Coal terminal.
Investment: 34 mln USD.
Number of workplaces: 70.
Dates: гг.
Local content: 100%
Prerequisites:
Export potential : up to 30 mln tones/year;
Kazakhstan plans to increase coal production by 2015 to 134 million tones by up to 151 million tones
Aktau sea Port doesn’t transship a coal ;
Existing transport capacities are limited due to ban on wagons export outside the Republic of Kazakhstan in the period July-December of each year;
High tariffs of railway transportation;
Growing demand for coal in Western and Eastern Europe due to non-use of nuclear power;
Omplementation of the project will increase the export potential of mining and metallurgical industry of Kazakhstan.
Proposed solutions:
Ensuring of guarantee for resource base for coal handling up to mln tones per year;
Conclusion of long term contracts with coal producers to guarantee the Grain Terminal usage;
Construction of 20 km railroad near Kuryk.

9. Structure of logistics hub
OOSB
БПМО
Grain
Зерно
Coal
Уголь
OIL PRODUCTS
Нефтепродукты
Other cargo
Другие грузы
CIO
ОБИ
Project: Oil products terminal Investment: 58 million U.S. dollars. Number of working places: 40. Dates: Local Content: 100%
Prerequisite:
Realization of this project will ensure the stability of the oil products market in Kazakhstan and it will increase oil export from Kazakhstan.
Absence of transport and transshipment outputs by transferring oil products with specialized courts.
The dynamics increase of overstocking boiler oil;
High rail fair
With development of oil production in Kazakhstan as well as demand for import and export of this type of products there is a need for specialized oil terminals.
Suggested solutions:
1. Providing resource base for the transshipment of oil production,
2. Entering into a long term contract with petroleum refinery for usage of the terminal
3. Construction of the 20 km railroad within the Kuryk area

10. Structure of logistics hub
OOSB
Grain
Coal
Oil products
OTHER CARGO
CIO
Project: Other general cargo Investment: 100 million U.S. dollars. Number of working places: 50 people. Dates: Local Content: 100%
Prerequisites:
Absence of transport and transshipment outputs by transferring oil products with specialized courts
High rail fare;
Positive dynamics of general cargo traffic (per year):
- Sulphur and mineral fertilizers: up to 700 tons
- Liquefied gas TCO: up to 500 tons
- Food: up to 100 tons
- Hardware: Up to 50 tons
- Other loads: up to 200 tons
The possibility of reducing the time of transportation;
Ability to create a ferry complex
Suggested solutions:
Conclusion of a contract for the transportation and handling of sulfur from Tengizshevroil.
Conclusion of a contract for the transportation and handling of liquefied natural gas from oil and gas operators TCO, KPO up to 2-3 million tons per year;
Construction of the 20 km railroad within the Kuryk area

11. Structure of logistics hub
OOSB
Grain
Coal
Oil products
Other cargo
CIO
Project: Landfill location and disposal of the waste products Investment: 37 million U.S. dollars. Number of working places: 30 people. Dates: 2013, Local Content: 100%
Prerequisites:
In connection with the existing positive results of exploratory drilling on the block "H", Increasing actuality of building testing area
The absence of such a production facility
The need for oil and gas operators in the services of testing area
Environmental Code of the Republic of Kazakhstan
Suggested solutions:
Long-term contracts with N Operating framework for services to support offshore oil operations;
Forward-development drilling program: 2 wells per year.
Construction of the 20 km railroad within the Kuryk area

12. Structure of logistics hub
OOSB
Grain
Coal
Oil products
Other cargo
CIO
Project: Environmental Oil Spill Response Base Investment: 80 million U.S. dollars. Number of working places: 65 people. Dates: Local Content: 100%
Prerequisites:
Absence of the environmental response base for oil spill in the southern area of KSCS
The proximity of EBR to the perspective oil and gas block «Block H»
Environmental Code of the Republic of Kazakhstan (effective from01/09/2007)
Recognized international practice: the presence of EBR during the exploration phase.
The positive results of exploratory drilling on the block "N"
Suggested solutions:
Entering into long term contract with N Operating for providing services in order to support offshore oil operations.
Forward-development drilling program: 2 wells per year
Construction of the 20 km railroad within the Kuryk area

13. Business model of project realization
Investor : OOSB
Investor : grain Terminal
Investor : coal terminal
Investor : oil products terminal
Investor : other cargo
CIO (coastal infrastructure objects)
TENIZSERVICE
Operator of marine logistics hub

14. Project business model
Благоприятные условия для развития хаба:
Строительство ЖД 20 км;
Предоставление преференции и налоговых
Льгот ;
Гарантийное использование нефтегазовыми операторами;
Финансирование в рамках программы ПРЕ ИНВЕСТМЕНТ
20 km Railway– Government
operator / owner
Pool of partners and investors
Offshore support base
Grain
Coal
Oil products
Other cargo
Offshore infrastructure objects
Pool of partners and investors
Ensuring a resource base;
Guarantee usage;
Creation of related infrastructure
TenizService
Design;
Со-funding;
Construction;
Operator,
of logistics hub
Quay wall 500 meters
Approach channel (dredging)

15. Conclusion
Conclusion:
The emergence of alternative export-import route;
Implementation of the projects will give a new impetus to the development of the oil and gas sector, will create capacity for new jobs (350) and to achieve a multiplier effect, which corresponds to the strategic interests of the Republic of Kazakhstan;
Possible risks:
Risk of insecurity capacity, transport infrastructure, required for full operation.
Currently there is no approved plan of railway development in the proposed construction of the ferry complex. Normal functioning of the ferry complex is impossible without sufficient capacity (bandwidth branches and marshalling yard) railway.