3. Motivations for development of warehousing property
in the Chuvash Republic
Advantageous
geographical
location
3
Concentration of
production streams
Concentration of
trading networks
Necessity of new
logistics center
construction
10 mln. people within a radius of 500 km
Federal highway М7
Сenter of the transport corridor «North-
South», «West-East» - 70 thousand trucks
and trailers daily along the highway of the
Volga River District
The plants of the biggest foreign companies
(Nestle, Danon, PEPSI, Coca-Cola,
Chevrolet, Glaverbor) and Russian auto
giants (VAZ, GAZ, UAZ, ZMZ) are located
within the radius of 300 km
Industrial production index is 115% to the
level of 2010
The development of federal and regional
networks (METRO Cash&Carry, Media
Markt, «Perekrestok», «Karusel»,
«Sportmaster», «DOMO», «Pyaterochka»,
«Magnit», «Letoile», «Zenit Vola region»,
«Ruble Boom», etc.)
Well-developed
transport
infrastructure
18th
place in Russia on density of railways
5th
place in Russia on density of roads
with hard surface
Absence of modern
logistics centers
4. “Yesterday’s” market of warehousing property in the
Chuvash Republic
Old wholesale depots and re-equipped
industrial buildings
4
Description of the objects:
Date of construction the 1980s
The area proposed from 80 to 8000 m2
Rental cost from 90 to 200 RUR./m2 per month
Premises are not equipped
Heated/unheated
Height of ceilings from 4 to 8 m
Communications are available or it is possible to connect to them
There is lack of areas to organize parking
Limited areas (There is no possibility to widen areas by building
new ones)
Objects are located in the center of the city (The traffic is hindered
due to traffic jams)
Minimum demand
5. “Today’s” market of warehousing property in the Chuvash
Republic
New cold and warm warehouses
Rapidly erected hangars
5
Description of the objects :
Date of construction beginning with 2000 year
The area proposed from 50 to 1500 m2
Rental cost from 120 to 500 RUR./m2
Premises are not equipped
Heated /Unheated
Height of ceilings 4-6 m
Communications, Internet, security, office premises
In most cases correlation of area and height provides for
human processing of freights
There is a great demand among small and
middle-sized business for the following
objects:
Automobile sales centers, repair shops
Trade warehouses (medical equipment, spare parts for
equipment, building materials)
6. “Tomorrow’s” market of warehousing market in the
Chuvash Republic
6
Warehousing complexes built by the
production companies for their own needs
(Akkond, JSC; Buket Chivashii, JSC; Santek
Company)
Modern warehousing complexes of
В+ class
Premises are used only for own
needs of the companies
Responsible storage services and
freight processing services for third
parties are not rendered
8. Concept of the logistics center
To create the logistics center in order to receive wholesale
freight consignments, to process them and to deliver small-
batch lots to sales outlets in Cheboksary and Novocheboksarsk
To meet increasing demand for modern warehousing areas
among wholesale and retail companies of the region
8
9. Location of the object
9
+ proximity to federal highways
+ proximity to Cheboksary and Novocheboksarsk (more then 60% of main sales outlets of the
region)
+ awareness of the project location
+ proximity to the city transport stations
+ level of traffic jams is lower in comparison with Kazan and Nizhny Novgorod
10. Object structure
10
Warehousing complex of В+ class
• temperature rate
• fire alarm
• warehousing control system
• fiber optics communications
• video control system
Managerial, office premises
Hotels
Parking for trucks and automobiles
Car wash centers
Filling stations
Repair shops
11. Indices of the project efficiency
11
Total area of the warehouse 40 thousand m2
Offices 6 thousand. m2
Project cost 20 mln.EURO (800 mln.RUR.), including
Construction 16 mln. EURO (640 mln. RUR.)
Infrastructure 0,4 mln. EURO (16 mln. RUR.)
Equipment of the warehouse 3,6 mln.EURO (144 mln. RUR.)
Investment raised 15 mln.EURO (600 mln. RUR.)
Payback period of the project 4,2 years
Critical point of utilization 65-68%
Net present value (NPV) 37,2 mln. EUR (1488 mln. RUR.)
Internal rate of return (IRR) 22,9%
Rated period of project implementation 2012 year
Form of cooperation co-financing
13. 13
Price increase in building materials
Delta between construction cost and rental cost in the region
Occupancy rate of the warehousing complex
Increase in Payback Period of the investment
Risk factors
14. Investors are invitedInvestors are invited
Corporation of Development of the Chuvash Repubblic
General director – Danilov Anatoly
Email: anikdan@mail.ru
Tel: (8352)62-05-50