NCSP comprises the six largest stevedore and port services companies at the Port, together handling approximately 97% of the Port’s cargo volumes, which gives NCSP a leading market position at the Port. In addition, NCSP has a stevedore operation specialising in container cargo at the port of Baltiysk, on the Baltic Sea in Russia’s Kaliningrad Region.

NCSP operates principally in the following areas:

 
• NCSP provides a full range of stevedoring services, including shipment of oil and oil products, other liquid cargo, dry bulk cargo and general cargo.

 
• IPP operates a high-speed complex for shipment of liquid cargoes, including oil products and liquid fertiliser.

 
• NLE Timber & Container Terminal provides cargo shipment and storage services for exporting containers and wood products, such as timber and timber products and other general cargo.

 
• NZT Grain Terminal operates a high-speed grain storage and shipment terminal, with capacity for storing and shipping up to 4.0 million tonnes annually, and which can load a Panamax class vessel in 72 hours.

  
• NSRZ Ship Repair Yard ships ferrous metal products, non-ferrous metal products and metal scrap, provides ship repair services to vessels calling at the Port, including vessels from the Russian navy’s Black Sea Fleet, and generates electricity for its own use.

  
• NCSP Fleet provides tug, towing and mooring services for vessels in and around the Port, and also provides emergency, hazardous materials response and waste management services at the Port.

 
• Baltic Stevedore provides shipment services for container cargo, cargo storage and vessel mooring at the car ferry, cargo and passenger terminal located at the port of Baltiysk on the Baltic Sea in Russia’s Kaliningrad Region.

We are a multi-purpose Russian stevedoring and port services company and Russia’s largest commercial sea port operator, according to the ASOP Overview. We are Russia’s key Southern gateway for shipment of a wide range of Russian export and import cargoes, handling approximately 20% of Russia’s export and import volume shipped via sea port during 2006, according to the ASOP Overview. Our multi-purpose facilities give us the capability to handle cargoes shipped by any of the four main modes for seaborne cargo transport—liquid, dry bulk, general cargo and containers—and sufficient flexibility to react rapidly to changes in the mix of cargoes we handle.

We operate primarily at the Port of Novorossiysk (the ‘‘Port’’), a multi-purpose, year-round, deep-water port located on the Russian shore of the Black Sea which has a number of geographic, topographic and infrastructure advantages in comparison to ports, and potential port sites, in the Black Sea-Azov basin.

The Group includes the six largest stevedore and port services companies at the Port, which together handled approximately 97% of the cargo volume shipped through the Port in 2006, according to the ASOP Overview. In addition, we have a stevedore operation specialising in container cargo at the port of Baltiysk, on the Baltic Sea in Russia’s Kaliningrad Region. The Port is Russia’s largest sea port in terms of cargo volume according to the ASOP Overview, and in 2005 it was Europe’s fifth largest commercial sea port by cargo volume, according to the Global Insight/ISL Report. The Port is one of the few Russian sea ports in the Southern Basin, formed by the Black Sea and Azov Sea. Together with the Northwest Basin of the Baltic Sea and White Sea, and the Far East Basin along Russia’s Pacific coast, the Southern Basin is one of only three commercially viable gateways for passage by ship between Russia and the open seas.

We own all of the immovable property located at our facilities at the Port and part of the underlying land. The land and hydrotechnical structures (berths and piers) are held under long-term leases. Our facilities include 10.8 kilometres of berths; 58 operating cargo berths, which have depths of up to 24 metres and can accommodate VLCC-class tankers with deadweight of up to 250,000 tonnes, and our dry cargo berths, which have depths of up to 13.5 metres and can accommodate Panamax-class vessels with deadweight of up to 65,000 tonnes. We have specialised terminals such as those for handling oil and oil products as well as multi-cargo terminals that can handle similar cargoes within a broad category of cargoes. We own 136 cranes of various types, bunkerage facilities, a fleet of vessels providing support services at the Port, a power generation station and other infrastructure