Investment project: Purchase of vessel by CJSC «Belarusian Shipping Company».
A. Project Opportunity Description:
A1. Project Name:
Purchase of vessel by CJSC «Belarusian Shipping Company»
a. Short name:
Purchase of vessel
b. Full name:
Purchase of vessel by CJSC «Belarusian Shipping Company»
c. Summary description:
The aim of this project is to purchase a new built vessel or a vessel of not more than 5-year old age.
A2. Progress Status:
Stage of searching the supplier and vessel corresponding to the required characteristics. The stage of preparation for working out business-plan.
A3. Organizations involved and their roles:
1) JSC «Belarusian Shipping Company» - the initiator of the project. 2) The Ministry of Transport and Communications of the Republic of Belarus - the coordinator of the project.
A4. Project Description:
Acquisition of one marine dry-cargo ship by cargo capacity about 50000 tons for cargo carriage by sea. The project is directed on problem realisation on creation of a national merchant marine fleet according to the Development programme inland water and a sea transport till 2010 and aims at the increase of export efficiency and competitiveness of Belarusian goods by means of transportation’s optimization.
a. Project cost (mln USD):
35.0
A5. Background / history / overall programme / related or similar projects:
Joint-Stock Company «Belarusian Shipping Company» is formed in 1994 from 100 % by a private fund. According to the decree of Ministerial council of the Republic of Belarus from 24.12.2004 № 1644 75 % of shares of Company on a gratuitous basis are transferred to the possession of the state. Functions supervision of state-owned shares are realised by the Ministry of transport and communications of the Republic of Belarus. Joint-Stock Company «Belarusian Shipping Company» is one of the leading forwarding companies in Belarus and the leader in the area of carriage of goods by sea. In order to intensify the development of carriage of goods by sea the Government of the Republic of Belarus adopted the inland water transport and sea transport development program. The purchase and use of the first Belarusian vessel will improve the position of CJSC «Belarusian Shipping Company» at sea shipping market.
A6. Environmental impact summary:
No
A7. Possible obstacles/ problems/ risk assessment:
The growth of prices for fuel and for vessels
A8. Term of realization / term of recoupment:
3 / 5,7
A9. Project’s branch:
Maritime transport
B. Capital Cost Items (additional requirements for project):
B1. Project physical components
B2. Capital cost (mln USD)
Purchase of a vessel
35.0
B3. Sub-projects by location
B4. Project cost (mln USD)
C. Capital Resources Available from Sponsors/ Proposers:
C1. Resources 'in kind', grants, investments, equity / ownership, etc.
C2. Amount (mln USD)
D. Required Financial Assistance:
D1. Financing gaps, type of financial assistance required:
Financial assistance for purchase of the vessel
D2. Sources of finance
D3. Type of investment
D4. Amount (mln USD)
Foreign investment funds:
Сredit, Direct foreign investments, leasing
35.0
D5. Financial/ International Institution Name:
E. Demand (users) and revenues:
E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:
1. Marketing research made it clear that cargo volumes carried by sea are constantly increasing and their further increase is predicted on average by 3-4 % per year. In comparison with other modes of transportation carriage by sea is the cheapest one for large cargo volumes. At present about 15 mln tones of Belarusian export-import goods are carried by sea.
Charges on vessel’s registration and certification. Expenses at repairing vessel’s gear, machinery, equipment to keep the vessel in good working order. Maintenance supply, namely expenses at reequipment, change of rigging, etc. Crew living expenses, namely crew salary expenditure and nutrition. Fuel and lubricant costs. Port charges and agencies. Other navigation expenditure such as water supply, disinfestations, defumigation, purchase of equipment, maps and books on sea shipping, laundering, postal and telegraph expenditure, hospitality allowance for captain. Мanagement expenses.
F2. Cost Item
F3. Amount (mln USD)
G. Net Income Value:
G1. Net Income Value
G2. Amount (mln USD)
6.0
H. Project information source:
H1. This form was completed by:
JSC «Belarusian Shipping Company», Maslennikov Vladimir, Director
H2. Organisation (address):
CJSC «Belarusian Shipping Company». V. Khoruzhey Street, 3-408, Minsk, 220005, the Republic of Belarus
