First Florence Logistics Center - Construction Update - October 2016
The construction of logistics center in cheboksary
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Transcript of The construction of logistics center in cheboksary
The construction of logistics center The construction of logistics center
in Cheboksaryin Cheboksary
1
Сonstruction of logistic center in Cheboksary
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Motivations for development of warehousing propertyin the Chuvash Republic
Advantageous geographicallocation
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Concentration of production streams
Concentration of trading networks
Necessity of new logistics center
construction
10 mln. people within a radius of 500 kmFederal 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 kmIndustrial 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
infrastructure18th place in Russia on density of railways
5th place in Russia on density of roads with hard surface
Absence of modern logistics centers
“Yesterday’s” market of warehousing property in the Chuvash Republic
Old wholesale depots and re-equipped industrial buildings
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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
“Today’s” market of warehousing property in the Chuvash Republic
New cold and warm warehouses Rapidly erected hangars
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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)
“Tomorrow’s” market of warehousing market in the Chuvash Republic
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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
Freight turnover in Cheboksary
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Freight delivery6 thousand vehicles
daily
Freight shipment 50 thousand tons
daily
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
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Location of the object
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+ 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
Object structure
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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
Indices of the project efficiency
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Total area of the warehouse 40 thousand m2Offices 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
Prospective lessees
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Production plants
Regional companies
Federal networks
Regional wholesale and retail companies
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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
Investors are invitedInvestors are invited
Corporation of Development of the Chuvash RepubblicGeneral director – Danilov AnatolyEmail: [email protected]: (8352)62-05-50