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Avlita to Engage International Environmental Auditors for Multipurpose Transhipment Complex
9 February 2010

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Press release

Sevastopol

To build on a constructive dialogue with all stakeholders Avlita Stevedore Company plans to engage international organizations for an independent environmental audit. The project will last 6-12 weeks.

The international independent environmental audit seeks to ensure that the project meets international environmental standards and is an essential condition for borrowing from international financial organizations. The European Bank will act as the audit customer with the cost to be included into the project budget.

Currently the customer is selecting an international auditor for the project. The audit will meet the EU practices and comprise a research of documents and analysis of details at the site of the upcoming facility.

Metinvest Holding

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Aleksandr Lagosha, Avlita CEO, said: "Avlita's shareholders made an international independent environmental audit a fundamental condition for the project implementation. This fully meets the expectations of social, environmental and political organizations of Sevastopol, the Crimea and Ukraine. This audit will give answers to all the questions of experts, environmentalists and the general public. We are interested in reaching a consensus".

The audit is expected to take 6-12 weeks after the contractor has been selected and an agreement signed. The budget of the audit may amount to hundred thousands of Euros.

"The construction will start only after we obtain results of the independent audit and discuss them with all our stakeholders", emphasized Aleksandr Lagosha.

Profile:

MTC – Multipurpose transhipment complex. Technical and technological solutions of the project will allow for transhipment from heavy-tonnage bulkers with capacity of up to 140,000 tonnes, short-term storage of imported freight - coking coal of 4,000,000 tonnes per year and its dispatch to consumers via rail transport.

On average, the complex is expected to accept from 28 up to 40 ships with such freight per year.

The process of the terminal operation is as follows: ship - transportation system – warehouse for temporary storage - railcars loading station. Cargo unloading is performed by two closed-type cargo-unloading machines. Similar unloading facilities work at transhipment terminals in the ports of Savona, Brindisi (Italy), Hamburg (Germany), Taiwan and Singapore. A "water fog" system is installed on ship unloading facilities to prevent penetration of dust from the hold and emissions into the sea.

From the ship unloading machine the cargo is transported to a closed gallery of the berth conveyor belt and then through the system of closed conveyor belts gets to the covered warehouse.

Each point of coal reload from one conveyor to another is equipped with aspiration systems with two-level purification. Collected dust goes back to conveyor lines to the cargo flow and does not pollute the environment.

For a short-term coal storage, the project will construct a covered warehouse, which will be equipped also with aspiration systems for air purification, other necessary equipment and safety systems. Similar covered warehouses applying the same technology of coal loading and storage are operating in Ventspils (Latvia), Savona (Italy), Taiwan; another two covered warehouses are being constructed in Germany.

From the covered warehouse, coal goes through the system of conveyor belts to the closed railcar loading station. The station also runs a system of air aspiration with two-stage purification, as well as a system for coal compaction and treatment to prevent dusting at loading, transportation and unloading activities.

The maximum capacity of the complex will allow to run 3-4 rolling stocks a day through Mekenziyevy Gory station.

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Environmental aspect of the complex. Aspiration and dust-suppression systems installed at the transhipment terminal will ensure air purification, which matches the global standards and significantly exceeds the Ukrainian legal standards.

Cutting-edge technologies will allow to minimize the environmental footprint. Aggregate dust emissions from all production areas at the maximum capacity of the terminal will not exceed 6 tonnes a year. For comparison - alone motor vehicles in Sevastopol account for around 20,000 tonnes of emissions per year.

All technical water used in terminal operation will be purified and reused to ensure its efficient consumption and prevent contamination of the Sevastopol Bay.

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Background. In 2009, the engineers were improving the technical solutions for the project to construct Avlita, multipurpose transhipment complex.  The project was finalized in close cooperation with stakeholders, the Environmental Committee of the City Council and scientists of state R&D centres. When finalizing the project they introduced a range of additions requiring the use of the latest  technical, technological and environmental solutions. Many of the suggested solutions will be unmatched in Ukraine. This will make the project technologically-perfect and environmentally friendly.

The project provides for a whole range of measures to ensure trouble-free technological operation of the terminal and prevent emergencies, including earthquakes. In particular, the terminal can withstand an earthquake of magnitude 9. This natural disaster is very improbable; however, this factor was also taken into account. Also, the highest standards are applied to other parameters and characteristics of the facility.

Modern technological solutions will require additional investment of over UAH 200m. With additional funds allocated on safety of the terminal, the total amount of investment grew to UAH 1.1bn.

Avlita Stevedoring Company has two deep water berths in the non-freezing water areas of Sevastopol Bay located at the southwest of the  Crimean peninsula. The Company has all capabilities for transhipment of cargoes from railway cars and trucks to sea transport and from sea transport to trucks and railway cars, as well as from ship to ship. The Company handles metal shipments and operates a grain terminal with storage capacity of 170,000 tonnes. The grain receiving station can handle 1,200 tonnes per hour of cargoes from railway cars and 300 tonnes per hour of cargoes from trucks (at other points of product receipt). The capacity for handling ships equals to 2,400 tonnes per hour. Transhipment facilities of the Company consist of 15 berth cranes including 5 mobile port cranes Liebherr and Gottwald of the last generation.

Press Office, Avlita Stevedore Company

2g Primorskaya str, 99016, Sevastopol

Tel:  +38 (0692) 92 65 09

Fax: +38 (92 64 03)

e-mail: avlita@avlita.com

http://www.avlita.com


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