Wondernet Express
at

logistic corridor

The Caspian Sea and the Black Sea

Concept of the​

logistic corridor​

At the beginning of 2017 Wondernet Express has initiated the project on developing logistic corridor for transportation of dry cargo from Central Asian countries to Black Sea ports through Azerbaijan and Georgia.

For this purposes the Company has entered into number of agreements with some of its key partners on this route – Georgian Railways, Azerbaijan Railways, Port of Baku and Port of Batumi.

Wondernet Express has a priority in operating railway logistics for fertilizers from Port of Baku to the Georgian ports.​

Main product that will be transported through this corridor at the beginning stage expected to be granulated urea from Garabogaz Fertilizer plant in Turkmenistan. Besides Turkmenistan there are more fertilizers and raw materials for fertilizers from other countries in Central Asia to be transported through this corridor.

Joint Venture betwen Wondernet Expres LLP and Trammo Inc.​

On 14th January 2019 Wondernet Express LLP and Trammo Inc. have signed Shareholders' Agreement on Joint Venture for construction and operation of Fertilizers Transshipment Terminal in Batumi Sea Port.​

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Trammo was originally formed and incorporated as Transammonia in 1965. It is a privately held company with corporate headquarters located in New York (USA). Trammo is a diversified commodities merchandising company both in terms of product mix & global network.

Commodities division is headquartered in Tampa (USA) and Zurich (Switzerland). Diversified product portfolio: ammonia, mineral fertilizers and raw materials.​ ​ Deep market penetration thanks to storage network in the US, China, Europe, Thailand, West Africa & South Africa; offers possibility of consignment to customers. Vast experience in inland logistics in the FSU, USA, China.

Sourcing & selling in different geographic regions: gain access to very diversified markets

Varied pricing structures: spot, formula, hedging. Tolling agreements (supply raw material) & off-taker (market finished products).

Offtake Partners (Urea sourcing): Linggu (China), PIC (Kuwait), Fertil (U.A.E.), KUAZ (Russia), Phosagro (Russia), Mendel (Russia), Indorama (Nigeria), CF Industries (USA).​

Worldwide annual trade volume exceeds 63 million metric tons with a turnover of

9.4

US$ billion

Production capacity and share of export of fertilizers
Central Asian Countries

Turkmenistan

Maryazot Yolotan gas plant Garlyk potash plant Garabogaz carbamide plant
Production capacity:
600
thousand
tons
carabamide

60% export

exports to:
Poti,​ Bandar Abbas, Volga-Don canal through the​ Black Sea (seasonal)
Production capacity:
1.2
mln
tons
granulated sulfur​

100% export

exports to:
Poti,​ Bandar Abbas, Ust-Luga
Production capacity:
700
thousand
tons
granulated products​
500
thousand
tons
crystallized products​​

90% export

exports to:
Planning for export to Poti and Bandar Abbas​
STATUS:​
Production started​ in April 2017​​
Production capacity:
1.2
mln
tons
granulated carbamide​​​

identified

exports to:
Planning for export to Poti and Bandar Abbas​

Uzbekistan

Fargonaazot Maxam-Chirchiq​ Navoiyazot Almalyk
Production capacity:
240
thousand
tons
carabamide
360
thousand
tons
ammonium nitrate

20% through Bandar Abbas

sells to:
Bandar Abbas and near abroad
Production capacity:
240
thousand
tons
carabamide
340
thousand
tons
Saltpeter

15% through​ through Ukraine, Kazakhstan​

sells to:
Bandar Abbas and near abroad
Production capacity:
700
thousand
tons
Saltpeter
670
thousand
tons
carbamide
sells to:
Ukraine and near abroad​
Production capacity:
360
thousand
tons
ammonium phosphate​
600
thousand
tons
Dehkanabad potash plant
sells to:
Internal market​
sells to:
90% through Bandar Abbas export

Kazakhstan

Kazphosphate KazAzot​
Production capacity:
400
thousand
tons
ammonium phosphate

potencially 20% through Port of Baku​

Sells to:
Ukraine, China, Belarus, Eastern Europe​
Production capacity:
360
thousands
tons
Ammonium nitrate​
600
thousands
tons
carbamide​ in Aktau port

potencially 20% through Port of Baku​

SELLS TO:
Domestic market, Ukraine, Romania​
SELLS TO:
Domestic market, Ukraine, Romania​

Garabogaz Fertilizer plant

Product: Granular Urea
Production capacity:
1.2 mio tons
per year
Launch:
in September
2018
Total investment:
estimated to be
$1.5 bn

The Garabogaz fertilizer plant is built on an area covering approximately 2600,000m. The ammonia plant will have a production capacity of 2,000t a day, a granulated urea plant will have a production capacity of 3,500t a day. The project also involves a construction of 50MW natural gas-fired combined heat and power plant,

Equipped with two sets of H-25 gas turbine and generator, which will be supplied by Mitsubishi Hitachi Power Systems (MHPS). Other project components include the construction of internal access roads, a 2.5km-long conveyor system and a road connecting the project site with the Bekdas Harbour Pier, where the product will be conveyed, buildings to accommodate the workers, and a new water treatment plant.​

Baku International Sea Trade Port

The project of a multimodal warehouse for storage and transshipment of fertilizers and raw materials for fertilizers with total capacity of up to 60k tons.​

Terminal will be operated to unload the goods from vessels and load them to wagons, capacity of the terminal is projected to be 100k tons of fertilizers per month.​

Batumi Sea Port

​​By the beginning of the XX century, Batumi Sea Port became one of the leading ports of the Black Sea by its importance and freight turnover.

The main advantage of Batumi Sea Port is that it is able to serve large- capacity vessels with deadweight up to 50 k tons.

​In December 2018 the Company signed Right to Build Agreement with Batumi Sea Port for construction of Transshipment Terminal on the Berth No. 7. This Terminal will be built and operated by the WE-Trammo JV.

Concept design of Fertilizers terminal has been developed by Royal HaskoningDHV. Project provides for construction of multimodal terminal for storage and transshipment of fertilizers and raw materials for fertilizers with transshipment capacity up to 100k tons per month and warehouse capacity will be up to 60k tons.

Construction works will start in the beginning of 2019.

Dry Cargo Terminal

​​The Berth No.6 owns open storing area and specializes in handling the scrap metal in direct and storage ways.

The Berth No.7 serves the large-capacity vessels and specializes in bulk cargo, fluid cargo, general and packing and piece load with the weight of one piece no more than 20 tones.

The Berth No.8 serves the small-capacity vessels and specializes in bulk cargo, fluid cargo, general and packing- piece load with the weight of one piece no more than 10 tones.

The Berth No.9 serves the small-capacity vessels and specializes in fluid cargo, general and packing and piece load with the weight of one piece no more than 6 tones.

Maximum throughput of the dry cargo terminal
2
millon tones annually

Competitive lines​

Review of other destinations for the export of cargoes​ of the Caspian ports, interest to us (Iran, Kazakhstan, Russia), approximate tariffs, rates​

Port of Ust-Luga, Russia:

Transshipment capacity: 6 million tons. per year

Warehouse: 100 thousand tons.

Deadweight of the vessel: 73 thousand tons.

Seasonality: no

​​Port of Tuapse, Russia:

Transshipment capacity: 2.3 million tons. per year

Warehouse: 90 thousand tons

Deadweight of the vessel: 52 thousand tons

Seasonality: no

Port Bandar Abbas, Iran:

Transshipment capacity: 70 million tons. per year

Seasonality: no

The strategy of using the

logistic corridor​

Key components of logistics solutions:

  • Routes based on the principle of "door-to-door";
  • Availability of necessary capacities to receive and to ship goods throughout the route;
  • Discharge of empty convoy;
  • Provision of transit railway through rates.​

01

Selection of suppliers

02

Logistic corridor

03

Marketing / delivery to customers​