EDB to Finance Eurasia Logistics Projects
A network of industrial & logistics parks being built under this project will provide infrastructure for the Asia-Europe transport corridor
The EDB signed an agreement on a credit facility for Eurasia Logistics, as part of a project to create a network of industrial & logistics parks in large Russian cities. These modern, class A parks which will provide infrastructure for the Asia-Kazakhstan-Russia-Europe transport corridor, are being developed under a single brand, Greengate. The borrower is a Russian company with Kazakh capital.
The limit of the proposed credit facility is $100 million. The loan will be provided for three years. The borrower will use EDB resources to finance the pre-investment cycle of the project.
This project is fully in line with the mission and strategy of the EDB, and is aimed at optimising transport infrastructure in Russia and other CIS countries.
As importantly, the project will have a profound social impact: more than 12,500 jobs will be created in large economic centres in Russia. The tax revenue which the logistics parks will generate at all administrative levels during their design life (until 2017) is expected to exceed $195 million.
The project will further integration of the EDB member countries’ economies by promoting international trade, mutual investments and integrated transnational groups. The development of a common transport system in the CIS will also strongly benefit from the project.
Summary
Eurasia Logistics is the largest developer of international-level industrial complexes in Russia. Since 2005, the company has been implementing a project to build a network of class A industrial & logistics centres. In November 2007, all these industrial parks were united under a single network brand, Greengate. The company’s development programme provides that 28 parks with a total area of 10 million m2 will be built in Russia, Ukraine and Turkey until 2012. By the end of 2007, the company secured a 15% share in the Russian market of warehouse facilities. To date, Eurasia Logistics commissioned facilities with a total area exceeding 700,000 m2 (these were the first phases of industrial parks in Moscow Oblast and Yekaterinburg). About 2,000,000 m2 of park facilities in St. Petersburg, Novosibirsk, Kazan and Volgograd is in the pipeline.