The construction of logistics center The construction of logistics center

in Cheboksaryin Cheboksary

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Сonstruction of logistic center in Cheboksary

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Motivations for development of warehousing propertyin the Chuvash Republic

Advantageous geographicallocation

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Concentration of production streams

Concentration of trading networks

Necessity of new logistics center

construction

10 mln. people within a radius of 500 kmFederal highway М7

Сenter of the transport corridor «North-South», «West-East» - 70 thousand trucks and trailers daily along the highway of the

Volga River District

The plants of the biggest foreign companies (Nestle, Danon, PEPSI, Coca-Cola,

Chevrolet, Glaverbor) and Russian auto giants (VAZ, GAZ, UAZ, ZMZ) are located

within the radius of 300 kmIndustrial production index is 115% to the

level of 2010

The development of federal and regional networks (METRO Cash&Carry, Media

Markt, «Perekrestok», «Karusel», «Sportmaster», «DOMO», «Pyaterochka», «Magnit», «Letoile», «Zenit Vola region»,

«Ruble Boom», etc.)

Well-developed transport

infrastructure18th place in Russia on density of railways

5th place in Russia on density of roads with hard surface

Absence of modern logistics centers

“Yesterday’s” market of warehousing property in the Chuvash Republic

Old wholesale depots and re-equipped industrial buildings

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Description of the objects:

Date of construction       the 1980s

The area proposed from 80 to 8000 m2

Rental cost from 90 to 200 RUR./m2 per month

Premises are not equipped

Heated/unheated

Height of ceilings from 4 to 8 m

Communications are available or it is possible to connect to them

There is lack of areas to organize parking Limited areas (There is no possibility to widen areas by building new ones)

Objects are located in the center of the city (The traffic is hindered due to traffic jams)

Minimum demand

“Today’s” market of warehousing property in the Chuvash Republic

New cold and warm warehouses Rapidly erected hangars

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Description of the objects :

Date of construction              beginning with 2000 year

The area proposed from 50 to 1500 m2

Rental cost from 120 to 500 RUR./m2

Premises are not equipped

Heated /Unheated

Height of ceilings 4-6 m

Communications, Internet, security, office premises

In most cases correlation of area and height provides for human processing of freights

There is a great demand among small and middle-sized business for the following objects:

Automobile sales centers, repair shops Trade warehouses (medical equipment, spare parts for

equipment, building materials)

“Tomorrow’s” market of warehousing market in the Chuvash Republic

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Warehousing complexes built by the production companies for their own needs (Akkond, JSC; Buket Chivashii, JSC; Santek Company)

Modern warehousing complexes of В+ class

Premises are used only for own needs of the companies

Responsible storage services and freight processing services for third parties are not rendered

Freight turnover in Cheboksary

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Freight delivery6 thousand vehicles

daily

Freight shipment 50 thousand tons

daily

Concept of the logistics center

To create the logistics center in order to receive wholesale freight consignments, to process them and to deliver small-batch lots to sales outlets in Cheboksary and Novocheboksarsk

To meet increasing demand for modern warehousing areas among wholesale and retail companies of the region

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Location of the object

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+ proximity to federal highways+ proximity to Cheboksary and Novocheboksarsk (more then 60% of main sales outlets of the region)+ awareness of the project location+ proximity to the city transport stations+ level of traffic jams is lower in comparison with Kazan and Nizhny Novgorod

Object structure

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Warehousing complex of В+ class• temperature rate• fire alarm• warehousing control system• fiber optics communications• video control system

Managerial, office premises

Hotels

Parking for trucks and automobiles

Car wash centers

Filling stations

Repair shops

Indices of the project efficiency

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Total area of the warehouse 40 thousand m2Offices 6 thousand. m2

Project cost 20 mln.EURO (800 mln.RUR.), including

Construction 16 mln. EURO (640 mln. RUR.)

Infrastructure 0,4 mln. EURO (16 mln. RUR.)

Equipment of the warehouse 3,6 mln.EURO (144 mln. RUR.)

Investment raised 15 mln.EURO (600 mln. RUR.)

Payback period of the project 4,2 years

Critical point of utilization 65-68%

Net present value (NPV) 37,2 mln. EUR (1488 mln. RUR.)

Internal rate of return (IRR) 22,9%

Rated period of project implementation 2012 year

Form of cooperation co-financing

Prospective lessees

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Production plants

Regional companies

Federal networks

Regional wholesale and retail companies

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Price increase in building materials

Delta between construction cost and rental cost in the region

Occupancy rate of the warehousing complex

Increase in Payback Period of the investment

Risk factors

Investors are invitedInvestors are invited

Corporation of Development of the Chuvash RepubblicGeneral director – Danilov AnatolyEmail: anikdan@mail.ruTel: (8352)62-05-50