Liquid. Bulk. Wise Players Win.

1 Liquid Bulk Wise Players Win.

2 3 Estonia in a nutshell 4 Estonia: Distances 4 Estonia: Business Environment & Position 5 Port of Tallinn 6 Muuga Harbour 8 Paldiski South Harbour 10 Liquid Bulk in Port of Tallinn 12 Terminals 14 Available plots: Lonessa 16 Liquefied Gases 17 Safety & environmental protection 18 Why choose Port of Tallinn? 19 UK NORWAY TALLINN ESTONIA LATVIA LITHUANIA Contact 19 This booklet is subject to alteration. Up to date information always available on.

4 5 ESTONIA IN A NUTSHELL Business Environment POSITION Official Name: Government: Head of State: Area: Population: Population Within: 24h Serving Area: National Currency: Timezone: Republic of Estonia Parliamentary Republic President 45,227 square km 1,342 million (As of 01.01.2007) 90 million people EURO since 01.01.2011 GMT +2 hours Estonia is a member state of NATO and the European Union. Distances Roll North Roll South Tallinn Helsinki 43 nautical miles* Tallinn Riga 310 km Tallinn Vilnius 600 km Tallinn Warsaw 968 km Tallinn Kiev 1,334 km Tallinn Rome 3,010 km Tallinn Barcelona 3,010 km * intermodally Estonia is a country located at the heart of the Baltic Sea Region - Europe s fastest-growing market of more than 90 million people. It is a country described by political and economic stability, accessibility, ease and low cost of doing business, and investor equality. Estonian business life has largely reoriented toward the West instead of the East, and today the business regulations are less rigid than in the neighbouring Nordic countries. The Estonian cost level is gradually converging with the surrounding EU, but still there are meaningful differences. On average, Estonian wages are about a third of those in Sweden or Finland, but maybe more importantly, wages are very market sensitive. Therefore, the spread between high and low income earners is substantially wider in Estonia than in the neighbouring Nordic countries. Estonian taxes are low and simple. There is a general flat income tax (currently 21 percent) which applies to private individuals earnings whether out of work or capital. There is no corporate profit tax, instead the flat 21 percent tax is withheld when profits are distributed, e.g. as dividends, to the owners of the company. Estonia s value-added tax rate is 20%. According to German-Baltic Chamber of Commerce business survey 2009, Estonia is the second most attractive business location in Europe for German businesses after Germany itself. Historically the Baltic Sea region has acted as a major transport corridor both in itself and for the rest of the world: during the Middle Ages the Hanseatic League, uniting towns around the Baltic Sea, formed the most dominating trading bloc in the world. Estonia has been a transit gateway for the east-west as well as the north-south connections for ages. With its location on the east coast of the Baltic Sea, Estonia is ideally placed for cargo transshipments between the East and West. Main trade corridors and markets served: Delivery time Size of the market (inhabitants) 24 h 90 million 48 h 100 million 72 h 450 million Sail West Sail East Tallinn Stockholm 217 nautical miles Tallinn Rostock 558 nautical miles Tallinn Hamburg 1,038 nautical miles Tallinn Rotterdam 1,137 nautical miles Tallinn Felixstowe 1,159 nautical miles Tallinn Zeebrugge 1,180 nautical miles Tallinn Antwerp 1,233 nautical miles Tallinn Le Havre 1,327 nautical miles 72 h 48 h 24 h Rail West Rail East Tallinn St.Petersburg 370 km Tallinn Moscow 964 km Tallinn Almaty 4,978 km Tallinn Beijing 8,831 km

6 Port of Tallinn is the largest port authority in Estonia and as far as both cargo and passenger traffic are taken into account, the biggest port on the shores of the Baltic Sea. Port of Tallinn is a state-owned limited liability company operating as a landlord type of port. It is maintaining and developing the infrastructure of the port and leasing territories to terminal operators through long term building titles giving the operators an incentive to invest into superstructure and technology. Port of Tallinn consists of five constituent harbours: Old City Harbour: passengers (regular lines, pleasure crafts and cruise ships), Ro-Ro Muuga Harbour: containers, dry bulk (fertilizers, coal, grain, scrap metal, etc), liquid bulk, general cargo, Ro-Ro Paldiski South Harbour: general cargo, dry bulk, liquid bulk, Ro-Ro PALJASSAARE HARBOUR: 59 27 N, 24 42 E PALDISKI SOUTH HARBOUR: 59 20 N, 24 05 E MUUGA HARBOUR: 59 30 N, 24 58 E OLD CITY HARBOUR : 59 26 N, 24 46 E Paljassaare Harbour: General cargo, dry bulk, liquid bulk Saaremaa Harbour: passengers (cruise ships and pleasure crafts) Good hinterland connections Port of Tallinn is well integrated into the road and rail network with links heading east, west and south through Estonia. Estonian-Russian border is only ca 270 km from Paldiski South Harbour and ca 220 km from Muuga Harbour by railway. Estonia s railway system is directly connected to the Russian ones and to those of other CIS countries. The only regular container block train to Moscow in Baltic States and Finland connects Muuga Container Terminal with Moscow on frequent basis. Road network In terms of density and quality, Estonian road network can be compared to that of the Nordic countries. Main routes connect Estonia with Russia (St. Petersburg region and Moscow) in the east and with Latvia in the south. Via Baltica connects Central and Northern Europe with the Baltics. Ideal natural conditions All five harbours of the Port of Tallinn are practically ice-free, 100% navigable all the year round and easily approachable with depths of up to 18 meters enabling them to receive all vessels able to pass the Danish Straits. Well developed infrastructure Companies operating in the port are equipped with modern infrastructure, superstructure and technology there are deep-water berths, secure warehouses (including cold stores), open storage areas, free zone, new equipment and machinery and easily accessible rail and road links at their disposal. Focus on safety All port facilities have security plans approved by the national maritime authority and are compliant with ISPS requirements. Free zone Muuga Harbour has a free zone status. This means no custom procedures within the zone and simplified procedures for transit. Land availability In terms of land availability for extension, Port of Tallinn possesses the greatest development potential in the entire region. Competitive prices Port of Tallinn has the best quality and price ratio in the Baltic Sea region with clear and easy pricing. European service standard Port community s companies offer 24 / 7 a wide variety of services related to cargo handling and marine business, reaching the highest EU level service and quality standards. All major European and global logistics companies are presented in Estonia. Customs clearance is performed 24/7. SAAREMAA HARBOUR: 58 32,4 N, 22 14,4 E ESTONIA: BETWEEN 57.31 AND 59.49 N. BETWEEN 21.46 AND 28.13 E. Highest quality and environmental concern Lloyds Register Quality Assurance and Bureau Veritas Certification have declared the management system of Port of Tallinn to be in full compliance with the requirements of the international quality management standard ISO 9001:2000 and the environmental management system standard ISO 14001:2004 enabling to ensure the well-being of all its clients and the surrounding society.

8 9 MUUGA HARBOUR Oil terminals Muuga Harbour is the biggest cargo harbour in Estonia and specialized on handling transit origin goods. It is the main cargo harbour for Port of Tallinn and locates ca 17 km east of Tallinn. New oil terminal area, 30 ha The cargo volume handled accounts for around 80% of the total cargo volume of Port of Tallinn and approximately 90% of the transit cargo volume passing through Estonia. The cargo loaded in Muuga Harbour includes crude oil and oil products, dry bulk (mostly fertilizers, grain and coal), containers, ro-ro and general cargo. Ortofoto Muuga Harbour is among the deepest (up to 18 m) and most modern ports in the Baltic Sea region. Tallinn Airport 20 min. New container terminal infrastructure An extensive free zone in Muuga Harbour grants more flexible customs procedures for companies rendering transit and distribution services. Simplified customs procedures, easy transfer of ownership rights and additional value operations allowed in the zone are designed to foster the development of distribution centres. No import VAT is applied to goods imported temporarily to be processed and exported in due time from Estonia. Tallinn - St. Petersburg Road 5 min. New quay In terms of land availability for extension, Muuga Harbour possesses the greatest development potential in the whole region. Industrial park area 55 ha Potential gas terminal areas 13 ha See: portoftallinn.com/muuga-harbour 7,8 ha

10 11 PALDISKI SOUTH HARBOUR Paldiski South Harbour, the Port of Tallinn s second cargo harbour, is located 45 km west of Tallinn. Alexela The core activity of the harbour is focused on the handling of Estonian export and import cargo and transit cargo. Mainly ro-ro cargo, scrap metal, containers, timber, peat and oil products are handled there. Developing fields of activity include transit of new cars for neighboring markets and pre-sale service. Ortofoto In 2008, a modern terminal for biodiesel production and vegetable oils was launched in the Paldiski South Harbour. Due to the application of the state of the art environmentally friendly technology for the production of biodiesel and for the storage and handling of vegetable oils, the Biodiesel Paldiski is now the most innovative and modern biodiesel plant and vegetable oil terminal in the Baltic Sea region. The capacity of the refining process of the vegetable oils and the production of biodiesel is 100,000 tons per year. The terminal is capable of loading and receiving tanker vessels with capacity of 12,000 cubic metres for the transport of vegetable oils and biodiesel fuel. Paldiski South Harbour has been successfully developed over the past few years. Due to the harbour s development potential, remarkable proportion of the port s investments goes to Paldiski. The currently ongoing developments include construction of new quays and enlargement of car terminal areas. Biodiesel Industrial park area 21 ha The development plans of the Port of Tallinn envision among other things also the construction of a oil refinery at the Paldiski South Harbour, providing healthy competition in both Baltic States and Scandinavian markets and increase the independence of the energy supply in the area. See: portoftallinn.com/paldiski-south-harbour Car terminal area 10 ha Tallinn

12 13 LIQUID BULK IN PORT OF TALLINN QUAIS AND BERTHS The Port of Tallinn is processing oil and oil products in the Muuga Harbour, Paldiski South Harbour and Paljassaare Harbour. The transit of oil products is concentrated mainly to the Muuga Harbour, where three large liquid bulk storage and transhipment terminals are located: Vopak E.O.S., Vesta Terminal Tallinn and Oiltanking. In addition to the aforementioned, also Neste Eesti and Nynas terminals are operating at the Muuga Harbour. The structure of petroleum products processed at the Port of Tallinn in 2010: VGO 4% Other 2% Crude oil 3% Gasoline 9% Gasoil 1% At the Muuga Harbour, petroleum is processed on nine berths: Berth No 1 length 205, depth 11.5 m Berth No 1A length 210 m, depth 14.5 m Berth No 2 length 205 m, depth 11.2 m Berth No 3 length 111 m, depth 8.2 m Berth No 3A length 218 m, depth 13 m Berth No 7 length 310 m, depth 14.4 m Berth No 9 length 331 m, depth 17.4 m OPPORTUNITIES & ADVANTAGES Year-round navigation (ice free basin) Alexela Terminal is processing oil products at the Paldiski South Harbour and Scantrans at the Paljassaare Harbour. The proximity to Russia and the existing highly advanced infrastructure and superstructure provide excellent opportunities for oil products transit from Eastern Europe to Western Europe, America and Asia. Majority of the cargo supply is provided by the Russian plants (about 85 per cent), Belarus and Kazakhstan. For the most part the petroleum processed at the Port of Tallinn is transhipped to Europe (about 45 per cent, of which 26 per cent to Netherlands) and to the United States (37 per cent). Fuel oil 81% Of the processed goods, the heavy fuel oil has the largest share up to 81 per cent of the total volume processed. 10 per cent of the total volume amounts to light petroleum products, 4 per cent vacuum gas oil, 3 per cent crude oil and 2 per cent other liquid bulk. Berth No 9A length 340 m, depth 18 m Berth No 10A length 340 m, depth 18 m At the Paldiski South Harbour, petroleum is processed on two berths: Berth No 1 length 193 m, depth 12.0 m Berth No 7 length 249 m, depth 13.5 m At the Paljassaare Harbour, petroleum is processed on two berths: Berth No 33 length 184 m, depth 8,7 m Berth No 34 length 97 m, depth 6,7 m Taking into account available infrastructure and superstructure, the transhipment capacity is up to 40,000,000 tons of liquid bulk per year Loading and discharging of VLCC tanker vessels, the loading rate of tanker vessels is up to 8,000 cubic metres per hour Collection and storage of large shipment batches Vessel to vessel transhipment The volume of liquid bulk processed at the Port of Tallinn in 2002-2010 (in millions of tons): Blending 30,0 25,0 20,0 15,0 10,0 5,0 0,0 25,8 26,2 25,8 24,3 23,8 24,0 22,4 23,0 20,5 2002 2003 2004 2005 2006 2007 2008 2009 2010 CAPACITIES Storage capacity total about 2.0 million cubic metres 13 oil berths, including 9 berths at the Muuga Harbour, 2 berths at the Paldiski South Harbour and 2 berths at the Paljassaare Harbour Maximum depth 18 m Loading rate of tanker vessels is up to 8,000 cubic metres per hour Discharging over 2,500 tanks per day (during the winter season as well) Simultaneous discharge of full train load The tanks will be kept in Estonian territory for less than 24 hours Available plots for the construction of a new terminal

14 15 THE TERMINALS AS Vopak E.O.S. Crude oil, light oil products and fuel oil Storage capacity 1,026,000 cubic metres Vopak E.O.S. is a joint venture established by Royal Vopak (Netherlands) and Global Ports. Global Ports is a leading container and oil products terminal operator in Russia and the Baltics, respectively, by gross throughput. Royal Vopak is the world s largest independent terminal operator, owning 80 terminals in 31 countries. Vopak E.O.S. terminals are located at the Muuga Harbour and in the proximity of the harbour, at Maardu and Iru. Address: Regati pst. 1, 11911 Tallinn, Estonia Telephone: +372 6266 100; Fax: +372 6313 096 E-mail: info@vopakeos.com www.vopakeos.com OÜ Vesta Terminal Tallinn Crude oil, light oil products and fuel oil Storage capacity 405,000 cubic metres Vesta Terminal Tallinn is owned by Mercuria Energy Asset Management BV, which in turn is part of the Mercuria Energy Group. Mercuria Energy Group is one of the world s largest trading companies. Vesta Terminal Tallinn terminals are located at the Muuga Harbour. Address: Õli 3, 74115 Maardu, Estonia Telephone: +372 6 319 861; Fax: +372 6 319 949 E-mail: tallinn@vestaterminal.ee www.vestaterminals.com AS Oiltanking Tallinn Light oil products and petroleum chemicals Storage capacity 78,550 cubic metres Oiltanking Tallinn is owned by Oiltanking GmbH one of the world s largest independent terminal operators. Oiltanking GmbH has 69 terminals in 21 countries. Oiltanking Tallinn terminal is located at the Muuga Harbour. Address: Õli tn 7, 74115 Tallinn, Estonia Telephone: +372 6 319 403; Fax +372 6 319 406 E-mail tallinn@oiltanking.com www.oiltanking.com AS Nynas Bitumen, transformer oils Storage capacity 14,600 cubic metres Nynas is owned by Swedish Nynas AB. Nynas has four own refineries: two in Sweden and two in the UK. Nynas terminal is located at the Muuga Harbour. Address: Õli 5, 74115 Maardu, Estonia Telephone: + 372 6 319 422; Fax +372 6 319 423 E-mail info@nynas.ee www.nynas.com AS Neste Eesti Light oil products Storage capacity 26,000 cubic metres Neste Eesti is owned by NesteOil. NesteOil of today is a production and retail sale company. NesteOil runs businesses in 10 countries. NesteOil is operating two refineries in Finland, at Porvoo and Naantali. Neste Eesti terminal is located at the Muuga Harbour. Terminal address at the Muuga Harbour: Lasti tee 18, Muuga küla, Viimsi vald, 74001 Harjumaa, Estonia Telephone: + 372 6 319 330; Fax +372 6 319 329 Head Office in Estonia: Sõpruse pst 155, 13417 Tallinn, Estonia Telephone: +372 6 285 500; Fax +372 6 285 507 E-mail: neste.eesti@nesteoil.com www.neste.ee AS Alexela Terminal Light oil product, petroleum chemicals, LPG Storage capacity 345,900 cubic metres petroleum and petroleum chemicals + 12,000 cubic metres LPG Alexela Terminal is located at the Paldiski South Harbour. Address: Rae põik 6, 76806 Paldiski, Estonia Telephone: +372 679 0999; Fax: +372 679 0998 E-mail terminal@alexelaterminal.ee www.alexelaterminal.ee

16 17 AVAILABLE PLOT FOR THE CONSRUCTION OF A NEW TERMINAL Lonessa AVAILABLE PLOTS Liquefied Gases Lonessa plot size: Of which commercial: Commercial land: Transportation/ service plot for the rail fleet: 30 ha, terminal area about 20 ha 4.2 ha, construction load 15 per cent, Maximum height 13.5m 7.5 ha, construction load 90 per cent, Maximum height 40m 8.3 ha The Port of Tallinn has set a goal to penetrate the LNG and/or LPG logistics market in 2010 2015 by creating suitable environment for the construction of gas terminals and thus building the fundamentals for the preservation of the energy independence of the Republic of Estonia. The Port of Tallinn envisages the construction of gas terminal(s) into the Eastern part of the Muuga Harbour. The transhipment operations could be performed on the existing quay No. 33 or if deemed necessary, a new berth can be built to the breakwater extension. The possible terminal locations are indicated in the sketch map below. Detailed plan : Free zone: Affirmative, zoned as liquid bulk terminal area Negative Lonessa plot is the only possible location in the neighbourhood for the construction of an additional liquid bulk terminal that can be connected with the liquid bulk deep-water berth (length 340 m, depth 18m). The valid detailed plan allows for the construction of a liquid bulk terminal. It is possible to build a rail connection from the plot to both harbour and to the existing Estonian Railways network that would ensure the multiple functionalities of the terminal it would allow for both maritime and land cargo flows. According to the detailed plan, the Lonessa area allows for construction of a container fleet with the capacity of up to 150,000 cubic metres (including 110,000 cubic metres the construction permit has been already issued for) and with a cargo turnover of 3,000,000 tons per year, and rail loading bays for 120 carts. For the plot of a size of 7.8 ha a detailed plan required for the construction of a liquefied gas terminal will be finalised in the beginning of 2011. For the plot of a size of 13 ha a relevant general and detailed plan and performance of filling at the sea is required for the construction of a liquefied gas terminal. The existing berth No 33 is 196 m of length and its depth at quay is 11m. In the construction of a new berth, the requirements of the developer will be considered in relation of the parameters of the berth. The current depth of 10m can be further dredged. The areas for the construction of potential gas terminal(s) are far away from dense population areas and also from the petroleum terminals at the Western end of the Muuga Harbour. There are no direct restrictions applied in these areas in relation to processing of liquefied gases. 13 ha 7,8 ha 30 ha

18 19 SAFETY AND ENVIRONMENTAL PROTECTION WHY CHOOSE PORT OF TALLINN? In our activities we adhere to the following environmental management principles: To operate in environmentally friendly ways pursuant to the environmental pollution prevention principle; To assess all environmental impacts when planning development activities; To take into consideration the public opinion and the suggestions made by our clients and customers in making any decision; To comply with Estonian, European Union and international environmental legislation; To work in close co-operation with Estonian and international organisations, scientific establishments and research institutions and consultation companies in pursuit of our environmental policies and goals. Port industry with centuries of experience at the crossroads of busy trade routes Frequent and wide-spread sea, rail and road connections Port of Tallinn is the largest and deepest (18 m of depth) port of the Baltic Sea Most efficient and modern terminals in the region Plenty of development area for distribution, value added services and production Simple, transparent and reliable business environment Ideal location in the centre of Europe s fastest growing markets European quality standards merged with Estonian liberal economic environment and cost advantages Estonia is ranked among the top 25 out of all countries in the Ease of Doing Business index by The World Bank Group The Port of Tallinn is a founding member of the Estonian Association for Environmental Management, a member of the European prestigious inter-port environmental protection organisation Ecoports, and a supporting member of the world ports climate initiative C40 World Ports Climate Declaration. The EcoPorts membership indicates that the environmental activities of the Port of Tallinn are in compliance with the international requirements the company audits the environmental aspects related to its activities in order to reduce the impact on natural environment. Well-developed infrastructure and services Location inside port Long-term concessions Port of Tallinn Address: Sadama 25, 15051 Tallinn Phone: (372) 6 318 555 Fax: (372) 6 318 166 Free-zone E-mail: portoftallinn@portoftallinn.com Low costs

Wise decision.