Transcript KOMPANIJSKI PORTFOLIO

Government of Montenegro
Ministry of Transport and Maritime Affairs
Privatization of
Container Terminal and
General Cargo - Bar
1. PLAN OF THE PRIVATIZATION PROCESS
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Tender indicative planning Rebel group – privatization
consultant
2012 year
May - publication of tender
June - expression of interest
July - selection of candidates & send out tender
documents
August / September - submission of proposal
October - selection of preferred candidate
November - signing of contract
1.1.
Container Terminal and General Cargo JSC Bar
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The company „Container terminal and General Cargo„ JSC is
designed for handling and storage of containers and of general
cargo. Terminal operational area covers approximately around
52 acres, and it has completely integrated infrastructure –
electricity and water networks, lighting and telecommunication
systems.
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The possibility to accept different type of ships according to
international common practice, with declared draft between 9 and
12 m, represents a real market potential. All warehouses are built
of quality construction materials of universal character. The
railroad reaches every berth and warehouse, so that direct
handling activity road-railroad-ship is possible. Depending in the
length of ships 5-9 berths with different type of cargo and
different handling activities can be simultaneously organized.
The entire Company's business is performed through fullyequipped technological units:
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Container terminal – this terminal is equipped for unloading,
loading, handling of containers, stuffing and stripping of
containers which takes place in open areas or closed
warehouses depending on type of goods and on handling
methods, and we offer a complete container service (washing,
cleaning, etc).
Terminal for light and heavy general cargo – Terminal for
general cargo is equipped for acceptance and dispatch of all
types of general cargo (palletized goods,
food products,
various metal products, coils, slabs, pipes, steel strips, and
other standard types of cargo, as well as the application of
specialized technologies). General cargo terminal includes
around 71 000m2 of closed storage areas – warehouses – and
other facilities in the port area.
Timer terminal - Timer terminal has a covered storage area of
24 200m2, which is designed for storage and drying of timber.
It has ideal technological solution for handling, storage and
for the functionality of facilities, all designed according to
prevailing microclimate influences.
1.2. Privatization share – property of Montenegro
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Government of Montenegro has a strategic plan to sell
62,09 % of its equity stake at Container Terminal and
General Cargo JSC-Bar, which represents the majority of
shares, and conclude a concession agreement with future
terminal operator.
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Container Terminal and general Cargo JSC – Bar is a joint
stock company listed on the Montenegro Stock
Exchange.
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December 2009
December 2010
December 2011
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1109 employees
972 employees
625 employees
1.3. Preliminary assessment of the Company
value
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Total equity capital is 71 248 339,38 EUR,
divided into
- shareholder's equity amounting to 65 196 596 euros or 56
766 736 shares, trading symbol KOGE and
- shareholder's equity amounting to 6 051 803 euros or 12 040
993 shares, trading symbol KOTE .
Nominal value for 1 share, trading symbol KOGE is 1,1485 EUR.
Nominal value for 1 share, trading symbol KOTE is 0,5026 EUR.
1.4. Basic tender conditions
Transaction consists of two elements:
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1. The sale of majority stake (62%) of the Government of Montenegro in CTGC
2. Signing the Concession Agreement between CTGC and Government of Montenegro
The Government of Montenegro has the intention to publish a Tender for the selection of
appropriate investor / terminal operator who will buy a majority stake and have an exclusive
right to conclude the Concession Agreement.
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Main clauses in the Concession Agreement are:
Agreement signed between Port Authorities (PA) and the operator
It gives the right to use the terminal for a period of 25 years.
Port Authorities responsibilities
» Safety and security in the port area
» Access to the terminal via road and sea
» Maintaining the draft in the access channel and along quays
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Responsibilities of the Operator:
Upgrading and the investment in the terminal according to CAPEX
Operating the facility according to international standards.
Maintains all terminal assets including buildings, asphalt / paved surfaces, quay wall and
equipment.
Pays concession fees to Port Authorities. Concession fees include a fixed fee for the lease per
m2 and a variable fee per TEU or per handled ton.
2. Key information on assets that are a subject of
privatization
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Container quays are
constructed in 1975 and a
deck on reinforced steel
pipes filled with concrete.
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General cargo quays are
constructed in 1960 and are
block walls.
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Quays have a Capacity of 4
t/m2.
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The draft along the
(container) quay is 12 meter
and can be dredged up to 14
meter.
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The quality of the quay
constructions is good, apart
form the south Pier 1
(container quay) which is in
need of extensive repair work
on reinforced concrete beams
and columns.
2.1. Business, partners, technologies
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Strategic partners of CTGC JSC are the leading container terminal
operators in the World, and their regional agents: MSC , Maersk line , CMA
CGM Group , Happag Lloyd. The most important partners with the highest
amount of handled general cargo in 2011 are:
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US Steel Serbia
/hot and cold rolled steel strips and sheet metal;
KAP Podgorica
/aluminium, alumina;
Pacorini
/ aluminium, sugar, coffee;
Jadroagent
/B materials, aluminium rods, water pipes;
Nimont
/cement;
Fab Live
/cement;
San Francisko, Rastoder, Pop Fruit, MDD Group, Mont Valeri / bananas;
Zenšped
/sugar, timber;
Jugodrvo, Kubo, Mi Rai, Trgo Duka / timber;
Gorenje
/white goods;
Jugoimport
/B materials;
Montavar Metalac /steel structures.
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2.2. Operational area for the acceptance of ships
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Operating berth/pier, with draft from 9 to 12 m, has the ability to
accept simultaneously different types of ships according to
international common practices.
Storage space/warehouses of around 71 000 m2 were built out of high
quality construction materials of universal character. Every berth and
warehouse is connected with railroads which enables direct road –
railroad – ship handling activity.
Depending on the length of ships, 5-9 berths could be operational
simultaneously.
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Length of operational quay
1.440 m, with draft 10-14 m;
Length of rail network in the port area
14,6 km;
Length of primary roads in the port areaa 1,2 km.
Port aquatorium
cca 80000 m2
2.3. Handling activities – natural business
indicators for container traffic
Container throughput as per owners and per months, and in total for 2011 (TEU)
Container
Owners
Jan
Feb
Mar
1627
1300
1572
MAERSK
801
885
CMA CGM
316
HAPAG LLOYD
217
MSC
EVERGREEN
LINE
Other
Total in TEU
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
1818
1505
2417
2316
2038
1732
1596
1913
1846
21680
698
889
375
718
895
761
573
427
618
623
8263
159
164
156
290
275
352
274
309
537
404
257
3493
137
98
88
115
153
139
33
53
55
60
23
1171
2
2
8
2969
April
3
48
16
2484
2580
2969
12
6
2287
3569
3702
3106
1
4
2668
2619
2995
25
103
2774
34722
2.3.1. Handling activities – natural business
indicators for general cargo
Cargo throughput as per type of goods for 2011.
No.
Type of goods
Quantity in tons
1
Containers 20’ and 40’ full and empty
333.573,54
2
Steel strip hot rolled
178.439,83
3
T aluminium ingots
48.016,19
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Cement
47.293,51
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Bananas
33.054,65
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Sugar
26.054,53
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Aluminium slabs
12.473,92
8
Hot rolled sheet metal
7.822,16
9
Steel strip cold rolled
7.794,69
10
Rolled steel sections
4.660,93
11
Aluminium rods
4.404,91
12
Standard aluminium ingots
3.826,96
13
B materials
2.645,79
14
Electrolyte resin
3.118,97
15
Cigarettes
1.347,68
16
Hard sawn timber
1.337,92
17
Various good not mentioned
1.234,76
18
Water pipes
1.277,66
19
Steel constructions
1.269,22
TOTAL WITH OTHER
721.385,50
2.4. Market position
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CTGC has a favourable strategic maritime and geographic position
in relation to main maritime routes in the Mediterranean and in
relation to transshipment hub centers. Infrastructural base
includes port territory that can be extended, rail and road network
in the gravitational area and connection with main transport
corridors. The lack of highway towards Serbia , of modernized rail
road and of connection with Pan-European network puts CTGC in a
secondary position. CTGC has old mechanization of low capacity
and partially neglected and undeveloped infrastructure facilities
(shores, reinforced concrete beams, iinternal roads). There are no
international logistic companies, which integrate all participants
in the supply chain and find the best transport combination
between producer and customer, present at our market. The main
change that characterizes a modern market is the development
and domination of logistics industry.
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Negative factors that directly influence the process of
attracting goods from the gravitational area and the volume of
cargo throughput in CTGC are the fact that we haven't got a
regular container train between Bar and industrial centers in
CTGC gravitational area, there are no larger intermodal
operators in Montenegro and the region, who would be able to
significantly improve intermodal routes, limited capacities of
road network, which result in longer transit times and force
intermodal operators to look for systems with better transport
flow.
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In relation to Serbia, our very important market segment when
we talk about hinterland, we recognize port of Koper, Rijeka,
Thessalonica and Constantza as our main competition. Apart
from Constantza which is important because of its connection
with the Danube river, other competition ports are well
connected with Serbia via inland roads. However, north ports
are a lot further away from Serbia, more specifically Belgrade,
than Bar. Sailing time to north Adriatic ports, compared to
Bar, is considerably longer.
2.5.
Potential and development chance
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Container Terminal and General Cargo –Bar with its capacities and its
maritime position offers a great chance for opening regional distribution
centers that would be specialized in certain types of goods and brands.
Extensive experience in handling, very favourable maritime – geographical
position and Company's capacities that primarily reflect in large storage
areas for storing containers and general cargo are all together positive
factors that attract business and lead to successful implementation of
business arrangements with leading export import companies from Serbia.
The vicinity of hub ports, direct container lines, knowledge of international
procedure that in accordance with international rules and requirements,
free zone activities are some of numerous advantages and possibilities that
the port offers to future projects and development plans.
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As the largest terminal operator in Bar port area, we represent the system
whose operation requires a complete integration in the logistic chain in
order to fulfill its function. Efficiency and quality of service provided by the
terminal requires adequate infrastructure, superstructure and equipment,
adequate connections with other transport sectors, motivated management
and qualified employees.
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Establishing CTGC as a transshipment hub center in the
Mediterranean and as distribution center in the Adriatic region is our
strategic vision of success. The corresponding terminal area, length of
shore / quays and
draft depth, as well as container handling
equipment which is a prerequisite that according to international
standards and contemporary container mega ships` capacities must be
met in order to accept and service the new generation of ships, and
securing cargo volumes form CTGC hinterland countries all together
justify direct calls of mother ships at CTGC. This way we would
achieve a competitive advantage over the ports in the area as
container dispatch time and transit time would be shorter . With the
reconstruction and modernization of railways system that connects
Bar with hinterland industry centers, building of Bar-Beograd
highway, faster customs procedures in the port and border crossings,
modern equipment for handling containers and containerized goods
CTGC would gain competitive strategic advantage in attracting large
volumes of cargo which destination are multinational companies in
the middle and south-east Europe, and in the future in Serbia, Bosnia
and Herzegovina, Macedonia and Kosovo.
Thank You for Attention!