Innovation based development of Klaipeda Port technologies

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Discover a proven way! Innovation based development of Klaipeda Port technologies Mr. Artūras Drungilas Marketing and Corporate Affairs Director Klaipeda State Seaport Authority PortofKlaipeda.lt 1

Management of Klaipeda Port Ministry of Transport of the Republic of Lithuania Board of Klaipėda State Seaport Authority Klaipėda State Seaport Authority Port Development Council Port Council Port Associations Port Operators: Stevedoring, shipbuilding, ship repairing and other companies render cargo handling, warehousing, towage, logistics, forwarding, agency and other port-related services. Main functions of Klaipėda State Seaport Authority: Leases port land and collects port dues; Uses and manages the state property; Ensures safe navigation in the port; Builds, operates and develops port infrastructure; Implements strategic development plans.

Cargo turnover, mln.t Annual Cargo Turnover in Klaipeda Port 45 40 35 30 25 20 19,4 17,2 19,7 21,2 20,3 21,8 23,6 27,4 29,9 27,9 31,3 36,6 35,2 33,4 36,4 38,5 15 15,0 10 05 00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Average growth of annual cargo turnover is 6,6 % (from 1999 to 2014) 3

Types of Cargo in Baltic Ports, 2014 Grain 8,0% Ro-Ro 11,9% Klaipeda Others 15,0% Containers 15,4% Fertilizers 32,8% Oil products 16,9% Fertilizers 6,2% Timber 7,0% Container s 10,1% Others 15,5% Riga Oil products 24,8% Coal 36,4% Fertilizers 5,3% Containers 7,0% Ro-Ro 14,1% Tallinn Others 7,1% Oil products 66,5% Fertilizers 5,8% Ro-Ro 7,1% Coal 22,3% Ventspils Others 7,1% Oil products 57,7% 4

Klaipeda Port - Discover a Proven Way! Infrastructure Development 5

Maritime Transportation Trends Growth of world maritime transportation volumes Existing locks Panama Canal expansion Decline in transportation costs and increase of ship tonnage Expansion of Panama and Suez Canals New locks

Port Dredging and Fairway Widening Plans Feasibility study of the port dredging up to -17 m was carried out by UAB Sweco Lietuva (completed in 2014). Dredging up to -17 m; Outer fairway shifting to the North; Inner fairway widened to 200 m and dredged to -17m; 7

Reconstruction of Breakwaters The reconstructed breakwaters will enable: to broaden entrance channel approx. 230 meters; to ensure the navigation safety; to extend the life-time of the breakwaters up to 50-100 years. This reconstruction will be carried out without impediment of port navigation and/or stevedoring works. The breakwaters will be reconstructed in 2 phases: o I phase: the reconstruction of the southern breakwater, by turning the entrance channel axis to the North; o II phase: the reconstruction of the northern breakwater, including construction of new quays in the northern part of the city. These works will be completed by 2020. 8

Klaipeda Port Expansion and Dredging 2018 2022 150 ha BALTMAX -17,5 m -14,5 m -17,0 m Improvement of Klaipeda Port Infrastructure: 1. Port navigation and Malkų Bay channels will be dredged to 16.5-17 m. scheduled for 2018-2020. 2. New territories reclaimed in the Southern part: area approx. 150 ha with expansion opportunity, scheduled for 2018-2020. 3. New territories reclaimed in the Northern part: area approx. 50-70 ha, scheduled for 2019-2022. 9

Port Expansion Plans in Southern Port Area New territories reclaimed in the Southern part of the port: area approx. 150 ha; scheduled for 2018-2020 m.; depth 16-17,5 m.; access motorways and railways (intermodality). 150 ha In the Southern part the Marina will be constructed; Prospective cargo types: Containers; General cargo; Other types of cargo. 10

The Closure of the Eastern flow The port expansion in the southern part (vicinity of the Pig s Back shoal and Smelte Peninsula). The new additional territories of 50-70 ha, will be reclaimed and used for port business activities. Approx. 2000-3000 meters of quays will be constructed. The new territories will be used for stevedoring, warehousing, logistic, transportation, LNG terminal expansion, etc. 11

Development in the Southern Part of Klaipeda City III phase ~ 78 ha II phase ~ 534 ha I phase ~ 890 ha In the southern part of the city, there are large territories - total over 1500 ha - in adjacent to the Logistic Centre, industrial and port areas. These territories shall be converted into new INDUSTRIAL PORT AREA for stevedoring, logistics and other maritime business activities. 12

Long-term port expansion: BALTMAX PORT New territories reclaimed in the Northern part of the port: area approx. 70 ha; scheduled for 2019-2022 m.; depth 17,5 m.; access motorways and railways (intermodality). Prospective cargo types: Liquid gas; Crude oil and oil products; Containers; Other types of cargo. 13

Outer-Port Perspective Outer port alternatives Outer port in Godrice (Canada) Due to ever increasing cargo throughput and new cargo types handled in the port, the reclamation of new territories is planned in the northern part of the existing port by constructing an outerport. Outer port in Kembla (Australia) 14

LNG terminal TECHNOLOGY The floating Ship Regasification Unit (FSRU). FSRU SHIP Newly built FSRU ship INDEPENDENCE constructed by Norwegian company Hoegh. FSRU arrived in Klaipeda on 27 of October, 2014. TANK CAPACITY: 170 000 m 3, which will ensure energy security for consumers for 14-30 days. FSRU CAPACITY: Annual throughput capacity - 4 billion m 3 Handling: from ship to FSRU 9 000 m 3 /h LNG Handling: from FSRU to pipeline - 460 000 m 3 /h LNG. FINANCING 1. AB KLAIPĖDOS NAFTA INVESTMENTS 129,7mln.. 2. SHIP RENT(10 years) 522,3 mln... 3.TERMINAL QUAY BUILDING 33,7 mln.. 4. INSTALATION OF GAS TRANSMISSION PIPELINES 33 mln. 15

LNG reloading station concept LNG Supply Route FSRU LNG unloading LNG supply route FSRU Independence LNG Reloading station LNG LNG LNG LNG 16

Investments by Klaipeda State Seaport Authority Investment projects Reconstruction of breakwaters and reinforcement of the slopes of the Curonian Spit. Improvement of outer and internal entrance channel (Dredging and Widening). Implementation Period Costs, without VAT 2014-2019 43,4 2014-2021 156,4 Dredging of the Malkų Bay to -14.5 m. 2014-2018 20,3 Construction of the Two-Level Crossroad over railways and Nemunas street. Purchasing implements for safe shipping and navigation in Klaipeda port. 2011-2016 3,8 2015-2018 20,3 TOTAL 244,2 17

Advantages of Klaipeda Port Convenient geographical location: northernmost ice-free port on the Eastern coast of the Baltic Sea; Multipurpose: 33 specialized terminals; Competitive and flexible cargo handling rates and port dues Lithuanian market is larger than of the other Baltic states Attractive for investors Free Economic Zone, Baltic Logistics Center. Lithuanian rail system is the same standard as in Russia, Belarus and other CIS countries Well-developed IT technologies, KIPIS system, LNG bunkering service (2016). The port can accommodate: Dry cargo vessels 100,000 DWT Tankers 160,000 DWT Containerships 12,000 TEU s. (18 rows, 13,2 m. draught)

Klaipeda Port - Discover a Proven Way! Questions 19

KLAIPEDA PORT Discover a proven way! PortofKlaipeda.lt THANK YOU FOR YOUR ATTENTION!