Engineering and Management of the container yard at the FEZ Khorgos Eastern Gates. January, 2012

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Engineering and Management of the container yard at the FEZ Khorgos Eastern Gates January, 2012

Container Yard Container Yard is a boundary reloading point at the territory FEZ Khorgos Eastern Gates and it provides all complete integrated services on acceptance and departure of container trains passing through the state border between Kazakhstan and China, as well as it provides services on reloading containers train to train because of changing a gauge of railway, and forming/breaking up of container trains.

Operator of the project 1 Operator of the project is Tranco Logistics Group Ltd 2 Tranco Logistics Group Ltd founded in 26 th April, 2011 3 Tranco Logistics Group Ltd is subsidiary company of TRANCO JSC 100,0% 0% 4 Address: Almaty region, IlI district Zhansugurov village, 57 а

Licenses & Certificates

Organizational structure of Tranco Logistics Group Ltd Генеральный директор Инженер 1 Начальник склада 1 Бухгалтер 2 Инженер по ТБ и ОТ 1 Водители кранов 4 Диспетчеры 2 Операторы 4 Рабочие склада 4

Location of FEZ Khorgos Eastern Gates FEZ Khorgos East Gates is located in Panfilov district of Almaty region of 1,0 kilometers from a state border between Kazakhstan & China

Main objectives & activities of FEZ Khorgos Eastern Gates The main objectives of FEZ «Khorgos Eastern Gates» are: Creation of an efficient transport and logistics and industrial center, in the interest of trade and export activities and the implementation of the transit potential ti of Kazakhstan, as well as promoting the development of economic and cultural exchanges with neighboring countries; Integration of Kazakh products in the global system of production and marketing, kti creating an innovative and competitive domestic products in accordance with international standards; Creation of the favorable investment climate and attract t domestic and foreign investments t for the implementation of investment projects; Accelerated development of the region to enhance the occurrence of the republic s economy into the world economic relations; lti Improvement of the legal norms of market relations, the introduction of modern management techniques and management; Increaseofthe employment ment ofpopulation. By priority kinds of activity FEZ are defined: Warehousing and auxiliary transport activity; Manufacture of foodstuff; Manufacture of leather and relevant to it production; Manufacture of textile products; Manufacture of other not metal mineral production; Manufacture of products of the chemical industry; Manufacture of finished metal articles, except cars and the equipment; Manufacture of cars and the equipment, not included in other categories; Construction according to the design estimates of buildings for the organization of exhibitions, amuseum, warehouse and office buildings.

Logistics hub FEZ Khorgos Eastern Gates International Road Corridor WEST EUROPE WEST CHINA Railways Extension 2 787 km Jetigen Altynkol Khorgos 298,4 km Development FEZ Seaport Aktau Railways Uzen Bolashak 146 km Logistics hub FEZ Khorgos East Gates

Potential participants of the FEZ Khorgos Eastern Gates 1 Dry port ; Industrial Area; Centre of the frontier international cooperation; Objects of the FEZ Khorgos - East Gates 2 Warehousing and auxiliary transport activity; Manufacture of foodstuff; Manufacture of leather and relevant to it production; Manufacture of textile products; Manufacture of other not metal mineral production; Manufacture of products of the chemical industry; Manufacture of finished metal articles, except cars and the equipment; Manufacture of cars and the equipment, not included in other categories; Construction according to the design estimates of buildings for the organization of exhibitions, amuseum, warehouse and office buildings. Specialization of the business activities 3 Logistics companies; Transport companies; Distribution companies; developed by Guild Design Inc. Large companies of different fields; small & medium enterprises; banks, insurance, tourism, developers; Potential Participants of the FEZ Khorgos East Gates

Objects (works) of the container yard Operational yard with cranes Container storage yard Container Yard Branch lines for container trains; Branch lines for container handling services Technical premises Parking for trucks Offices

Description of the container yard Services Possibilities Total area 30 hectares; Length of branch line 1350,0 m; Length of branch line for forming container trains 1200,0 m; Storage capacity of the yard 3 000 TEU; Total capacity 80 000 TEU /a year; Acceptance/Departure of container trains Forming of container trains Container handling services Container storage services Equipment 2STS Panamax cranes (Konecranes) with capacity 50,0 tons; 1 mobile crane (Liebherr) with ihcapacity 104,0 0 tons; 2RMG cranes (Baltkran) with capacity 45,0 tons; Cars; Trucks; Providing quality & integrated services

Scope (operation possibilities)of the container yard The container yard will be provide the following operational figures: Acceptance & Delivery of 79 200 TEU containers/a year Storage & Sorting of 80 000 TEU containers/a year Handling of 40 000 TEU containers/a year Acceptance & Handling of 100 container trains/a year;

Cost of the project Total cost of the project is 29 781 300 USD. Source of financing is a banking credit of 29 781 300 USD. Rate of remuneration is 11,0%, Term of credit is 13 years.

Development period of the project - main phase of engineering: - engineering of branch lines; -engineering of the terminal; - engineering of offices & technical premises 2013 - decision of designer firms and engineering companies; - designing; - financing; i - start up of engineering; 2012 2014 - assembling of equipment; - obtaining cranes & cars; - readiness to operations; - the end of engineering the all objects of a container yard December 2014

Contacts 050020 Almaty Gornaya street 276А Phone.: +7 (727) 258 88 00 Fax: +7 (727) 258 81 17 mail@tranco.kz http//www.tranco.kz Contact Person J. Kaynarbayev Marketing Department kaynar@tranco.kz