NCSP Group

NCSP Group is one of the largest European providers of stevedoring and port services. The Group is the third largest port operator in Europe by cargo turnover, and the undisputed leader in the Russian market.

In 2011, the Group strengthened its market positions by completing theacquisition of Primorsk Trade Port (PTP), the largest and most advancedoil terminal in Russia and the country's second largest port by cargo turnover after Novorossiysk itself. As a result of the deal, the Group not onlybecame the owner of two of the country's key port assets, but also significantly expanded geographic diversification of its business, while simultaneously setting the stage for future growth in the Baltic Sea.

The Group accounts for 29.3% of all cargo turnover through Russian seaports. The Company exceeded the country's second largest portby turnover, the Big Port of St. Petersburg, by nearly three times in 2011.

The Company holds leading positions in transfer of crude oil (58.6% of total), sugar (70.8%), grain (29.6%), oil products (15.7%), ferrous metals(28.2%) and nonferrous metals (26.9%).

Acquisition of PTP enabled the Group to dramatically expand the scale of its business, increase geographic diversification and become the port industry leader in two key regions of Russia - the Northwest and the South.

The Company's subsidiaries are located in Krasnodar Territory (Novorossiysk), Kaliningrad Region (Baltiysk) and Leningrad Region (Primorsk).

The port in Novorossiysk, which is a key gateway for Russian import and export cargo, handles about 52% of the Group's cargo turnover. NCSPGroup accounts for 96% of the combined cargo turnover of stevedoring companies operating in Novorossiysk.

NCSP operates primarily at the Port of Novorossiysk (the "Port"), a multi-purpose, year-round, deep-water port located on the Russian shore of the Black Sea which has a rare combination of geographic, topographic and infrastructure advantages among ports in the Black Sea-Azov basin.

Novorossiysk Port

Novorossiysk Port is located in the eastern part of the Black Sea, in the Novorossiysk (Tsemes) Bay.

Competitive advantages of Novorossiysk Port:

• Good location. The port lies at the crossroads of international transport corridors that connect Russia to the Mediterranean Sea, the Middle East, Africa, South and Southeast Asia, and North and South America
• The only deepwater port in southern Russia. NCSP Group operates the deepest berths in the CIS and the Baltic region: the maximum depth is 24.5 meters at oil loading terminal and 14.5 meters at berths for transshipment of bulk, general and container cargo
• Favorable natural conditions. Ice-free Tsemes Bay allows year-round operations, and the port's system of seawalls and breakwaters provides sufficient protection for port facilities, minimizing downtime due to weather conditions
• Ample covered and open storage facilities
• State-of-the-art handling equipment
• Own fleet
• Extensive road, rail and pipeline infrastructure
• Assets flexible to enable timely response to shifts in trends on the Russian and global shipping markets

Primorsk Port

Primorsk Port is located on the mainland coast of the Bjerkesund Strait on the Gulf of Finland in the Baltic Sea.

Competitive advantages of Primorsk Port:

• Largest port for handling crude oil and oil products in the Russia's Northwest. The port is the end point of the Baltic Pipeline System that transports oil from fields in the Timan-Pechora, Western Siberia and Volga-Urals regions of Russia
• A modern and promising transport hub in the Russia's Northwest. The port was built in 2001-2005 and therefore does not require major expenditures on capital repairs and upgrades
• Good location. The port is close to Western and Northern Europe, at the crossroads of European foreign trade and transit cargo shipments
• Favorable natural conditions allow year-round operations of the port and shipping with a short period of ice channeling
• Natural depth. Maximum depth at berths is 17.8 meters
• Own fleet

Baltiysk Port

Baltiysk Port is located on the Strait of Baltiysk, connecting the Gulf of Kaliningrad (Vislin) with the Baltic Sea, at the entrance to the Kaliningrad Sea Canal, which provides access from the Baltic Sea to the Kaliningrad Seaport.

Competitive advantages of Baltiysk Port:

• Good location. The port is located in the center of the Baltic Sea, close to Western and Northern Europe
• Natural depth. The port is located at the entrance to the Kaliningrad Sea Canal, in its deepwater section, which enables it to accommodate large ships with a draft of up to 9.2 meters
• Favorable natural conditions. The icefree waters allow year-round operation of the port. Unlike the port of Kaliningrad, Baltiysk's access to the open sea provides favorable navigation conditions for liner traffic, as it eliminates the need for piloting ships through the Kaliningrad Sea Canal
• Ample storage facilities
• Developed transport infrastructure. The port has a developed network of transport links with the European part of Russia and countries in Central and Eastern Europe, including the ability to ship cargo by railroad with Russian and European gage. A direct road link to Kaliningrad significantly accelerates cargo delivery.