STRATEGIC PARTNERSHIP 1520

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1 STRATEGIC PARTNERSHIP 1520 ZSSK CARGO and Eurasian Logistics From national interests to a common strategy Martin Vozár Chairman of the BOD and CEO Vienna,

2 Characteristics and position of ZSSK CARGO in Slovak Republic Rail freight carrier a joint stock company established as of the founder and 100% shareholder is the Slovak Republic. most experienced and the only network wide rail freight operator in Slovakia Core business Transport services - block trains and single wagonload Siding services Transshipment and re-pumping services at gauge change at the Ukrainian border Key parameters of ZSSK CARGO 2017* Transport volumes in mil. of tones 35,7 35,6 34,7 Revenue from transportation in mil. of EUR 252,8 247,6 255,5 Registered number of employees * Estimated not audited yet 2

3 What is the biggest challenge on the way to a faster, cheaper and hassle-free rail logistics across Eurasia? SILK ROAD Infrastructure Automotive and electrotechnical industry in Central Europe (KIA, VW, PSA PEUGEOT CITROËN, Jaguar Land Rover, Samsung) Legislation Sufficient capacity of the railway infrastructure, the combined transport terminal Dobrá, usage of the railway - Danube waterway Cooperation Potential trade in the line of southern Europe - CIS countries and Asia 3

4 How to tackle the challenge? Promotion, cooperation and coordination of all logistics chain members (operators, customers and owners of goods) on positive aspects and advantages of rail transport from Asia to Europe Proportional distribution of goods flows (trains) among the participants to reach maximum utilization of the available capacity of the railway infrastructure and operational-technological capacities Simplification of legislation, customs and transport standards and directives Appropriate State Policy in Supporting Rail Transport from Asia to Europe (e.g. subsidies for new wagons, terminals, modernization of transshipment facilities, etc.) 4

5 What positive results this can lead to? Substantial shortening of the transport time by rail compared to sea transport (from 8 to 4 weeks) = Time is money Flexibility and choice of alternative railway routes A large increase in the number of trains from China to Europe Better and more efficient circulation containers (TEU) = lower number of used containers Increased demand for rail freight transport = greater development of rail transport (new investments, modernization and reconstruction of railways and terminals) 5

6 Transportation & Transshipment of goods from Asia to Europe via 2 border crossing stations 2 border crossing stations Čierna nad Tisou Chop 1520/1435 mm (more than 8 mil. tons/year transhipped) Maťovce - Uzhhorod 1520 mm up to Haniska pri Košiciach (nearly 7 mil. tons/year transported) Available equipment Rotary tippler Portal crane Heavy mechanism (cranes) Re-pumping complex Bogie-change workplace ZSSK CARGO guarantees the transit time in the east-west direction hours 6

7 Transshipment COMBINED TRANSPORT TERMINAL DOBRÁ CCT Dobrá App. 9 km from Slovak-Ukrainian border Container transshipment between broad and standard gauge and vice-versa Standard terminal services Area of 180,750 m2 Transshipment capacity: up to 700 TEU/day Storage capacity: 1,730 TEU Customs area In long term lease (TransContainer Slovakia) 7

8 Railways of the Slovak Republic (ŽSR) ŽSR - Railways of the Slovak Republic are the rail infrastructure manager and the operator of the railway tracks in Slovakia organizes and manages transport on the railway tracks in Slovakia without any discriminatory restrictions modernizes the railway corridors (TEN-CORE) for certified logistics trains, the fulfillment of the train traffic diagram is 89% 8

9 Railway corridors in Slovakia 9

10 Thank you for your attention. Discussion