1. The Dnipro the Mississippi of UkraineA project of Leonardo Navigation S.A.Presented by Ronny Maas

2. THE DNIPRO The Dnipro River is one of the major rivers in Europe (fourth by length) • flows from Russia, through Belarus and Ukraine, to the Black Sea. • a total length is 2,285 kilometers - 485 km within Russia, - 595 km within Belarus - 1,095 km within Ukraine • basin covers 504.000 km², of which 289,000 km2 are within Ukraine. The Dnipro’s source is the turf swamps of the Valdai Hills in central Russia, at an elevation of 220 m.

3. The Ukrainian landscape consists mostly of fertile plains, steppes and plateaus, crossed by rivers such as the Dnieper, Seversky Donets, Dniester and the Southern Bug as they flow south into the Black Sea and the smaller Sea of Azov. The country was called the attic of the USSR.

4. UKRAINE: THE BREAD BASKET OF EUROPE (POPULATION 48 .0 MILLION) Agricultural production • 20.0 million metric tons of wheat, • 10.0 million metric tons of barley, • 8.0 million metric tons of corn, with an impressive increase in price of sunseeds withintwoyearsfrom $280 to $900 per metric ton. Logistics • Hugelogisticsproblem in grain storage, bulkhandling and finally transportation • The infrastructure of the rail system Salesprice of the agricultural products transportation costsdetermined international marketprices. Agricultural productswereinfluenced by transportation and handlingcosts. Fluvial transportation of grain via the river Dnipro

5. THE DNIPRO THE MISSISSIPPI OF UKRAINE

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11. THE DNIPRO THE MISSISSIPPI OF UKRAINE The Job Description The utilization of a barge fleet has the ability to quickly and efficiently load-transport and re-load to the ocean vessel, on a self reliance scheme, avoiding delays, congestions and additional port charges.

13. THE DNIPRO THE MISSISSIPPI OF UKRAINE Objectives: • to reduce time and costs • to revolutionize the static process • to introduce a brand new modus operandi • to effect convoy delivery For a distance of 830 km on a topping up operation basis from loading depots to the ocean vessel to be 114 hours (4.75 days) at an average speed of 4.4 knots per hour, including 12 hours delays in 5 locks.

14. THE DNIPRO THE MISSISSIPPI OF UKRAINE Logistics Infrastructure Three new port depots will be built in the northern part of the river between Kiev and Cherkasy with grain storage capacities of 30.000 tons each, including all necessary processing equipment.

15. THE DNIPRO THE MISSISSIPPI OF UKRAINE Storage Facilities

16. Three new floating cranes will carry out the loading of grain from the pit to the barges with an estimated loading capacity of up to 900 tons per hour. Thirty six closed hopper barges with a capacity of 1500-1800 tons each will transport the grain via the river to the Black Sea for the rendez-vous with the ocean vessel. Six shallow draft tugs or first-class used pushers powered by 2.500 H.P. each will navigate the convoy consisting of six-eight barges per convoy due to lock restrictions. Total capacity per convoy: 9.000 – 12.400 tons. Two specially converted barges with high efficiency equilibrium cranes with loading capacity of 900+ tons per hour each and weather tolerance up to 6-7 Beaufort (25-30 knots per hour) will be permanently located at the rendez-vous point with the ocean vessel in the Black Sea, near the shore to load the grain from the convoy.

17. Logistics Display Ukrainian Locks in Ukraine have average dimensions: 270m/18m. Zaporozhye Lock

18. Floating Crane This particular floating crane will be use for loading and it will be located on ports who have no loading facilities. Shallow Draft Floating Crane

19. THE DNIPRO THE MISSISSIPPI OF UKRAINE Barges and Tugs at work

20. THE DNIPRO THE MISSISSIPPI OF UKRAINE Grain Barge, Tug Boat and Floating Crane

21. THE DNIPRO THE MISSISSIPPI OF UKRAINE Configurations of hopper barges.

22. Characteristics The sides and bottom of the cargo hold are separated from the hull by void spaces. These barges: • are designed for efficient transport of commodities in bulk/breakbulk/containers such as grain, coal, sugar, ore, steel, aggregates, timber products, big bags, containers, steel coils etc • have a boxed, single raked, or double-raked hull configuration • barges may be covered or open. • hatchcovers provide protection of cargos from outside elements. • hatchcovers may be roll-top (telescoping), or lift-off (stacking) type.

24. THE DNIPRO THE MISSISSIPPI OF UKRAINE Offshore Loading of Ocean Vessel

25. THE DNIPRO THE MISSISSIPPI OF UKRAINE TRANSPORTABLE VOLUME 1 Convoy = 08 Barges = 12.400 TN 4 Convoys = 32 Barges = 49.600 TN

26. THE DNIPRO THE MISSISSIPPI OF UKRAINE A Win – Win project for all partiesinvolved Advantages connected with the use of barges via inland waterways 1 barge of 2000 mt = 50 wagons of 4 mt = 80 trucks x 25 mt Simplified administration due enlarged volume per unit • Invoicing • Insurance • Quality and quantity certificates • Load Compartments Inspection • Bills of lading • Cargo condition • Consolidating overall condition • Damages •Easy traceability •isolation • In hold fumigation • Homogeneous • No Loss • Alternative inland mean of transport • Railway transport • Haulage • Sea river barges

27. THE DNIPRO THE MISSISSIPPI OF UKRAINE Examples • Rhine • Rhone • Maas • Danube • Yangtse Extra logistic services • Fumigation in hold • Easy deviation to new inland and seaports destination • Floating storage • Suitable for bulk, break-bulk, bags, pallets, containers, coils, bundles, • Coastal transport to all seaports in the Black sea as well as sea of Azov • Multimodal shifts

28. THE DNIPRO THE MISSISSIPPI OF UKRAINE Transparency • In supply • In delivery • Lesser units to monitor • Lesser loading points in respect of inland silos Access to new production regions • West of Cherkassy up to Lvyv • East of Kremenchyk as far as Lugansk Carbon credits • Kyoto treaty • Less CO2 production • Carbon footprint For use for other industries • Cement • Coal • Fertilizers • Timber • Building materials Communication • Shorter communication due limited references

29. THE DNIPRO THE MISSISSIPPI OF UKRAINE Conclusion • A lesser number of units per contract. • A simplification of the administration in the most extensive way. • Cost saving on the internal administration. • Cost saving on the external suppliers. • Cost saving in comparison with the too high cost need for Quality Inspection per truck or wagon. • Reception/reloading in silo, creating space for potentially increase of fuel consumption per ton/km. • Cargo turnover: • improved gross profits. • minimises risk for mistakes. • reduces risks for cross contamination to a minimum.