Purchase of vessel by CJSC «Belarusian Shipping Company»

A. Project Opportunity Description:
A1. Project Name:
Purchase of vessel by CJSC «Belarusian Shipping Company»
а. 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.
А2. Progress Status:
Stage of searching the supplier and vessel corresponding to the required characteristics. The stage of preparation for working out business-plan.
А3. Organizations involved and their roles:
1) JSC «Belarusian Shipping Company», Maslennikov Vladimir, Director, tel.: + 375 17 210 16 52, fax: + 375 17 210 16 50, e-mail . 2) The Ministry of Transport and Communications of the Republic of Belarus, Minsk, Chicherin str. 21, tel/fax 3342321 consultant Sokolov Alexander
А4. Project Description:
Purchase of the vessel up to 47500 gross tonnage for carriage of goods by sea. The project aims at the increase of export efficiency and competitiveness of Belarusian goods by means of transportation’s optimization.
А4a. Project cost (mln USD):
60.0
A5. Background / history / overall programme / related or similar projects:
CJSC «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:
A7. Possible obstacles/ problems/ risk assessment:
The growth of prices for fuel and for vessels
A8. Term of realization / term of recoupment (years):
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 / 60.0
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)
Borrowed funds / Сredit / 60.0
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.
E2. Revenues (Sales) / E3.Amount (mln USD)
F. Operating and Maintenance Costs:
F1. Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:
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)
H. Project information source:
H1. This form was completed by:
H2. Organisation (address):
CJSC «Belarusian Shipping Company». V. Khoruzhey Street, 3-408, Minsk, 220005, the Republic of Belarus, Maslennikov Vladimir, Director.
H3.Тel/Fax/E-mail:
tel.: + 375 17 210 16 52, fax: + 375 17 210 16 50, e-mail
H4. Date:
December, 2007
H5. Supreme Organization:
Ministry of Transport and Communications of the Republic of Belarus