SOUTH CAUCASUS RAILWAY REPORT OF THE DIRECTOR GENERAL OF SOUTH CAUCASUS RAILWAY CJSC VIKTOR REBETS

Transcription

1 SOUTH CAUCASUS RAILWAY REPORT OF THE DIRECTOR GENERAL OF SOUTH CAUCASUS RAILWAY CJSC VIKTOR REBETS Prague 2013

2 «SCR» CJSC GOALS AND OBJECTIVES Strategic goals are focused on the development and positioning of South Caucasus Railway as the national transport company, dynamically developing efficiency and quality of transportation services Increase of longterm efficiency and financial stability Provision of the economy of Armenia with strong and effective transport service Integration into the European - Asian transport system Cooperation in the field of improvement of social policy and humanitarian collaboration 2

3 Investment policy of «SCR» CJSC GOALS Improvement of quality and efficiency of the services provided; Development of the railway traffic capacity in the direction of border passages and ports; Improvement of the train traffic safety. OBJECTIVES Restoration of the railway infrastructure and technical means; Modernization and renovation of the rolling stock; Implementation of the information technologies. 3

4 Realization of the investment programs according to the concession agreement (US Dollars Million). Name of the direction Total: Modernization of the infrastructure 20,81 42,02 27,47 37,05 33,68 161,03 Renovation of the rolling stock 9,59 32,94 31,27 0,92 0,22 74,94 Modernization of infrastructure Unit of measure Quantity Track repair km 300 Modernization and repair of the switches package 770 Repair of the engineering structures (bridges, tunnels, galleries) Repair of the buildings, constructions and crossings object 33 object 169 Repair of the overhead system km 130 Repair of the power supply line, 10 kw km 143 Modernization and repair of the traction substations object 25 Renovation of rolling stock Unit of measure Quantity Modernization of VL10 yard unit 18 Capital repair of CHME3 diesel locomotives unit 7 Modernization of the freight car fleet unit 800 Modernization of the passenger car fleet unit 27 Purchase of Multiple units (MU) unit 60 Purchase of CHME3 unit 10 Purchase of VL10 unit 8 Modernization of line communication km 150 4

5 Volume of the freight traffic ton kilometers achieved in SCR CJSC accounts for 34,2% of the freight traffic market of Armenia. Since 2008 company's market share increased by 5%. Despite the crisis period, the volume of freight traffic increased by 25.6%, including container traffic by 81%. The share of value of the main freight item groups in the volume of traffic for 2012 Grain freights 13,2% Oil-loading freights 8,7% Metals 3,8% Industrial commodities and building materials 17,30% Ore of metals of value 31,4% Containerized shipping 11,8% Other freights in wagons 7,6% In The Budget plan 2012 the share of freights of the main item groups to the total value of traffic Grain freights 13,0% Oil-loading freights 8,6% Metals 2,2% Industrial commodities and building materials 23,6% Ore of metals of value 28,3% Containerized shipping 12,4% Other freights in wagons 7,3%

6 Europe-Caucasus-Asia transport corridors development Ports of Ukraine Ports of Georgia Ports of Russia Azerbaijan Turkey Active line Projectable line Iran 7

7 Vanadzor-Phioletovo railway construction project Georgia Russia Realizable goals: Turkey Azerbaijan Reduction of the tariff range from 57 km to 112 km; Reduction of delivery time of freights in local and international traffic from 3-7% and transport expenses; Foundation of The Europe-Caucasus- Asia international transport corridor through Armenia. Forecast cargo traffic 6 million tons. Republic of Nakhijevan Iran Active line Projectable line 8

8 Iran-Armenia railway construction project The total trackage is 540km km, including 480km trough the territory of Armenia and 600km through the territory of Iran. The railway construction of years. The initial cost of the construction 2-4 billion $. Russia Georgia Realizable goals: Turkey 19,6 21,5 Azerbaijan Establishment of the effective transport infrastructure, providing the access to the mineral resources of the South regions of Armenia; Arrangement of traffic streams from Persian Gulf along the lines of BSEC member-states; Establishment of the shortest traffic for the creation of Iran-Armenia-EU countries transit route. Republic of Nakhijevan Iran Projectable line Active line Merand 9

9 Transit potential for the coal transportation from Russia to Turkey One of the largest suppliers of coal to Turkey is Russia (9 million tons), over 90% of Russian coal s import is provided by Kuznetsk Basin. The main railway route passes through the territory of Russia, then through The Black Sea ports. Potential routes: - Railway through Central Asia and Iran; - Railway through Russia, then in transit through Azerbaijan and Armenia. The route in transit through Armenia is competitive in price and delivery time, which indicates its transit potential. 10

10 ESTABLISHMENT OF THE INTERNATIONAL LOGISTIC CENTER ON THE BASE OF AKHURYAN RAILWAY STATION Center will serve the cargo traffic of the Armenian- Turkish trade and part of cargo traffic of mixed railway traffic using the sea ports. Georgia Discovering of client s requirements Realizable Goals: Loading resources management Express delivery of freights by the railway transport Informational support of order through the whole production string Turkey AKHURYAN LOGISTIC CENTER Azerbaijan Optimization of transport schemes Iran Active line 11

11 International Logistic Center on the basis of Akhuryan railway station The location of the Akhuryan station, which at this stage is the only connecting link between Armenia and Turkey, that could provide local monopoly. Advantages The presence of a certain base for the capital increase of the company in a property complex of the Akhuryan station. Financing of the property complex will be achieved mainly at the expense of its own funds, which indicates the financial stability of the company. The Obtaining the status of the country's first logistic center, providing comprehensive logistics services, can contribute to the consolidation of the customers. 12

12 Forecast of the freight traffic volume through ILC, thousand tones Year MINIMUM SCENARIO (only Turkey) Import 106,2 122,2 140,5 154,6 170,0 187,0 205,7 Export 55,0 63,2 72,7 80,0 87,9 96,7 106,4 Total 161,2 185,4 213,2 234,5 258,0 283,8 312,1 Baseline scenario (Turkey and cargos in transit to Armenia through Turkey) Import 230,1 264,6 304,3 334,7 368,2 405,0 445,5 Export 79,4 91,3 105,0 115,5 127,1 139,8 153,8 Total 309,5 355,9 409,3 450,2 495,3 544,8 599,3 MAXIMUM SCENARIO (Turkey, cargos in transit to Armenia through Turkey, international transit goods) Import 1 694, , , , , , ,6 Export 162,4 177,6 194,8 208,9 224,2 240,8 258,8 Total 1 857, , , , , , ,4 13

13 Indicators of the ILC project effectiveness Basic Minimal Maximal Discounting rate 13,5% Net discount cash flow, NPV, USD Payback period, PB, year 6,41 no 3,62 Discounting payback period, DPB, year 10,13 no 4,41 Internal Rate of Return, IRR, % 14,9 no 39,6 Rate of Return of total investment costs, PI 6,30% -95,90% 121,60% Business worth, USD

14 ILC Investment volume Basic Minimal Maximal Design and Survey, Construction and Installation Equipment Other (WMS) Total USD Базовый Basic scenario сценарий Минимальный Minimal scenario сценарий Максимальный Maximal scenario сценарий 15

15 THANK YOU FOR YOUR ATTENTION!