TOAZ TAMAN TRANSSHIPMENT TERMINAL CONSTRUCTION RENEWED ON SCHEDULE

Togliatti, March 21, 2016. OJSC Togliattiazot (ToAZ), the biggest ammonia producer in Russia, took part in the 12th International Transport Forum YugTrans-2016 held in Gelendzhik (Krasnodar region). At the forum, ToAZ was represented by Sergey Kalugin, deputy project lead for the construction of the port.

In his presentation, Sergey Kalugin reminded that the construction of the transshipment terminal was suspended due to reasons beyond control of the company; however, last year the board made a decision on renewal of the strategic project, primarily in order to reduce dependence of domestic chemical plants on international political situation.

Currently Togliattiazot in partnership with LENMORNIIPROEKT (one of top three Russia’s designers of seaports, terminals and transport systems) is working on adjusting the earlier prepared project documentation to the current construction standards. In particular, a survey of technical conditions of the sites under construction and engineering surveys are scheduled for 2016, while State Expertise and State Environmental Safety appraisal of the project documentation are slated for 2017.

Mr. Kalugin noted that special attention in realization of the project is given to issues of environmental safety and protection. Any negative impact of the transshipment complex on the environment will be excluded or minimized in strict compliance with the requirements of Russian and international regulatory documents on nature protection. The planned adjustment of the documents will be done with consideration of the best technologies available (as provided for under Federal Law No. 219-FZ of 27.07.2014).

Mr. Kalugin once again noted that launching of the first phase of the complex on transshipment of ammonia and urea is planned for 2017; the second phase is to be launched in 2020. Turnover of the terminal will make 2 million tons of ammonia and 3 million tons of urea a year. In the event of successful and timely realization of the 1st and the 2nd phases of the project, the board considers a possibility of construction of the 3rd phase of the complex thus increasing the annual turnover to 13 million tons.

Concluding his speech, Mr. Kalugin emphasized that ToAZ is prepared to strictly fulfillits responsibilities within this strategic project, as stipulated in a number of documents by the Russian Ministry of Transport, Economic Development Ministry, as well as Rosmorport and Rosmorrechflot. He also expressed hope of efficient cooperation with the Krasnodar region authorities to facilitate timely completion of the project, noting that completion of the new terminal will provide significant tax inflow into the regional budget and will benefit the socioeconomic situation in the Temryuk District.