Characteristics of the Mykolayiv Region Administrative and territorial structure: The regional center is Mykolayiv. The region includes: - 19 administrative and territorial districts; - 5 cities of regional subordination; - 4 cities of district subordination; - 17 urban type settlements; - 894 villages. Geographical location and natural resource potential The territory is 24,6 thousand square kilometers (4,1% of Ukraine`s territory). The extent: from North to South – 194 km, from West to East – 204 km. The borders: The Mykolayiv region borders upon the Odessa region in the west-southwest, the Kirovograd region in the north, the Dnepropetrovsk region in the northeast, and the Kherson region on the southeast. The region is also bordered by the Black Sea on the south. There are 110 rivers in Mykolayiv region. The main water source is the Southern Bug which is 257 km long within the region territory. The second-length river is the Ingul - 179 km. The Ingulets, a right tributary of the Dnieper, (96 km) is also considered a big river. There are 9 estuaries on the south of the Mykolayiv region, formed as a result of a sea flooded rivers’ estuaries. The biggest of them are the Dnieper–Bug (63 km), the Tiligul (60 km), the Bug (42 km), the Berezan (26 km) limans. 3 international transport corridors pass through the territory of the region: - Euro-Asian (EATC); - The Black Sea economic cooperation (Black Sea countries); - The Baltic Sea – The Black Sea. The Mykolayiv region is situated in the steppe physical-geographical zone, mainly in the Black Sea lowland. Specific feature of natural-resource potential of the area is achieved by the presence of fat lands which provide high harvests of agricultural products and also by presence of minerals, favorable climate, exterminating historical-cultural values. There are 184 natural resources deposits, 52 of which are included into National fund of natural resources deposits. Mineral and raw material resources are presented by considerable reserve of construction materials: over 627 million cubic meters of a building stone, near 70 million cubic meters of granite with various colors and high decorative quality, 60 million tons of cement raw material, 48 million cubic meters of clay, 123 million tons of building sand. Mykolayiv is attractive for direct investment Investment highlights of the Mykolayiv region: beneficial geographical location; developed transport infrastructure and marine complex (railway, marine, river, motor-car, international airport); high industrial potential; favorable agribusiness environment; support of investment activity development and improving of investment climate by the local authorities; an appropriate engineering infrastructure. The presence of waterways and seaside location of the territory caused a significant development of the marine complex The foundation of marine economic cluster of the region is formed by: - marine ports: “Mykolayiv Sea Trade Port” State Enterprise, Specialized Sea Port “Oktyabrsk” State Enterprise, “Port Ochakov” LLC; - “Mykolayiv river port” branch of “Ukrrichflot” JSSC; - large private marine terminals: AE “Nibulon” LLC, Specialized Sea Port “Nika-Tera” LLC, “Everi” LLC; - “Delta-Pilot” branch of “Ukrainian sea ports authority” State Enterprise, which provides services of pilot conduct of ships in marine and river ports of Ukraine, is a leading enterprise in the system of ensuring the navigation safety in the defined areas of the Black Sea. Mykolayiv ports have wide possibilities in overloading and keeping such cargos as: metal production, technical supplies, tare-piece goods, cereals, liquids (petrochemical product, molasses and various oils), bulk cargo (coal, iron-ore feedstock, phosphorites, etc. “Mykolayiv Sea Trade Port” State Enterprise is among the five most powerful ports, which form the export, import and transit potential of Ukraine. It provides a full range of services related to various types of cargo transshipment of export, import, transit directions and cabotage. Estimated turnover of the port is 9 million tons per year. In general, it is an export-import cargo. Chemical fertilizers, steel, pipes, cotton and other goods dominate in the export of products, food cargo – in the import. There are 14 berths in the port with railway sidings. The area of indoor warehouses is 42,9 thousand square meters and of the outdoors warehouses is 197,3 thousand square meters. Port is provided with modern reloading mechanisms: gantry cranes, cars and electrical loading mechanisms. Cargo handling operations are being carried out 24/7. “Port Ochakov” LLC which is located on the right bank of the Dnepr estuary in the industrial area of Ochakov disposes 4 moorages of 6,35 meters depth each and 2 of 178, 160, 140, 50 meters length. The port provides services for cargo-passenger ship sand ferry courts. There is an apparel in terminal serving “RO-RO” type of ships. Specialized Sea Port “Nika-Tera” LLC overloads and stores such products as potassium chloride, ammonium sulfate, urea, NPK, ammonium nitrate, phosphate diamony, nitroammophos, phosphorites, chemical fertilizers, wheat, pea, barley, corn, general cargos, containers. “Mykolayiv river port” branch of “Ukrrichflot” JSSC provides cargo hanling and storage of mass export and import goods, such as metal, wood, coal, coke and etc. The port owns over 1000 linear meters cargo berths with crane tracks and railways branches. There are indoor and outdoor warehouses for storage with total area of 32 000 square meters. The port receives cargo vessels up to 140 meters long with a draft up to 4,5 m (in the roadstead up to 8,5 m). Loading on the roads from the barges of floating cranes from 5 to 16 tons, tractors, cars and electric loaders for loading and unloading operations. “Nibulon” LLC, a modern high-tech handling terminal for grain and oil crops, was built as a result of investment project implementation. The main characteristics of the terminal are: possibility for shipping up to 20 thousand tons of grain per day; unique technology of high-quality grain storage; modern conveyor transport system; automated systems for cargo management, computerized range of weight with electronic scales; total output of agricultural products to the simultaneous reception of the terminal are 90 railroad cars and 700 cars; 2 domes-granaries of 50 thousand tons volume each; 352 m berth allowing two ships loading simultaneously. Terminal “Everi” LLC is situated in pre-port zone of the “Mykolayiv Sea Trade Port” State Enterprise. It is specialized sea complex, providing receipt, storage, qualitative forwarding, shipment of vegetable oil and molasses to marine transport. The capacity of the complex is planned around 500 thousand tons of vegetable oils and molasses per year. The leader in the marine branch, the center of operation and safety coordination of marine shipping in Ukraine is the “Delta-Pilot” branch of “Ukrainian sea ports authority” State Enterprise. The zone of responsibility of “Delta-Pilot” stretches along hundreds of marine miles from Mariupol on the East to Reni on the West. The enterprise’s balance includes Bug-Dnieper-Liman (BDLC) and Kherson marine (KMC) channels. Has its own specialized fleet and is a member of European Association of Marine Pilots. There is a modern training center for training and retraining of marine pilots and pilot-operators of ship movement regulation functions under SE «Delta-Pilot». The center is highly equipped with «Transas» training simulators and equipment. Four navigable running bridges, three regulation of maritime traffic posts and multimedia computerized pilot classes are combined into one virtual space. Various international meetings are held in the center, a range of services for international specialists are available. 3 Railway transport The total length of the Mykolayiv region railway is 719,6 km. The capacity of the railway hub “Mykolayiv” is 800 wagons per day, the full cycle of container operations is performed 24/7. Owing to the divided railway network, which goes up to all the ports, terminals and large industrial enterprises, Mykolayiv region has wide possibilities for receiving, processing, delivery of cargos, organization of transit transportations. Railway station in Mykolayiv provides the connection of the region with other regions of Ukraine, including Kiev, Odessa, Kharkov, Crimea, DonetskPridneprovsky region directions and the international communication via the mentioned above directions. Aircraft transport “Mykolayiv international airport” Public Utility is one of the largest airports in the south of Ukraine. The runway length is 2555 m and the width is 44m. The airport includes a 3800 square meters passenger terminal. The handling capacity is 430 passengers per hour and 45 planes per day with the maximum passenger traffic of 226000 passengers per year. The 720 square meters freight terminal can handle 100 tons of cargo. There is an ability for both passenger and cargo flows. Road transport Public road networks of Mykolayiv region is 4779,9 km long, including 594,8 km of national and 4185,1 km of local roads. There are 257 bridges and 13 overpasses. The following international automobile transport corridors run through the region: Euro-Asian (within the territory of Ukraine: Odessa - Mykolayiv - Kherson – Dzhankoy - Kerch) The Black Sea economic cooperation (within the territory of Ukraine: Reni – Ismail – Odessa – Mykolayiv – Kherson – Melitopol – Berdyansk – Mariupol – Novoazovsk) The Baltic Sea – The Black Sea (within the territory of Ukraine: Yagodin – Kovel – Lutsk – Ternopol – Kchmelnitsky – Vinnitsa – Uman – The Black Sea ports). The geographic location of Mykolayiv transport hub determines its role as an intermodal center with economically profitable schemes of cargo flow traffic. 4 Mykolayiv region occupies a significant place in the industrial production of Ukraine Mykolayiv region`s industry share in the total output of Ukraine is: o 100% production of gas turbines; o 100% of alumina; o up to 50% of treated skin; o 45% of tractor production for agriculture and forestry; o up to 40% of shipbuilding; o up to 30% of fruit and vegetable juices; o up to 30% of canned vegetables; o 20% of condensed milk and cream; o 16% of non-woven fabrics; o up to 13% of grape wine; o 10% of electric energy; o 8% of sunflower oil; o up to 8% of cement. Main industries The main sectors forming the region industry structure and the industrial products sales are: - food and beverage production – 29.9%; - energy production and distribution – 25.1% - metallurgical production – 16.4% - mechanical engineering – 14.8% - plastic and non-metallic mineral products production – 4.5% Food and beverage production 10 main manufacturers form more than 80% of the production and sales of foods in the region: “Sandora” LLC, “Laktalis-Mykolayiv” PJSC, “Bashtanka cheese factory” PJSC, “Pervomaisky tinned milk food factory” PJSC, “Koblevo” PJSC, “Organic Systems” FE and others. One of the most equipped powerful enterprises of primary and secondary winemaking in Ukraine is «Koblevo» PJSC. The plant possesses 2450 hectares of vineyard, which ideally corresponds to the required technological cycle. «Zeleniy Gai» OJSC has also taken the leading positions in Ukrainian winemaking. The plant has a full cycle of vine-making and brandy production. Besides commercial activity, the enterprise is involved in wide spectrum of agricultural production. “Ukrainian Sugar Company” LLC (sugar production) has been operating in the region for many years. The enterprise was founded by attracting a foreign investments. It is a part of the ED & Man Holdings Limited international company – one of the world market leaders in sugar and coffee production. The main products 5 are sunflower oil, wheat flour, butter, cheese, milk, juices, tomato paste, condensed milk and bakery. There is a powerful machine engineering complex in the Mykolayiv region A wide range of machineries is produced by the region`s enterprises – ships, engines, turbines, household appliances and others. The development of machine engineering complex is provided due to organization of a high tech export oriented products manufacturing. The Gas turbine production scientific complex “Zоrya”-“Mashproekt” SE, “Ekvator” PJSC, “Fregat” PJSC, “Pevomaiskdieselmash” DLC successfully operate in the region and increase output. One of the largest machine engineering companies is the Gas turbine production scientific complex “Zоrya”-“Mashproekt” SE, which produces gas turbine engines. Such engines can be used for vessel, natural gas transportation and electricity production equipments. Shipbuilding is the regional leading machine engineering sub-branch. It is presented by the following main plants: “Chernomorsky Shipbuilding Yard” PJSC, “The shipyard named after 61 Communards” SE, where home and foreign ship owners are being served. Tankers, dry cargo ships, container ships, naval vessels, trawlers, refrigerators and tug boats are the main products of these enterprises. Electric power industry Mykolayiv’s power stations produce 10% of electricity in Ukraine and 6% of the Ukraine`s power complex is concentrated in the region. The basis of the energy industry is SD "South-Ukrainian NPP", which produces more than 20% of electricity generated by nuclear power plants in Ukraine. In 2012 there were successfully launched Ochakivska and Berezanska wind turbines. Metallurgical industry is one of the main industrial sectors The largest enterprise is “Mykolayiv Alumina Plant” LLC which has potential to produce - 1,6 million tons of alumina per year. Foundry works are also carried out at Gas turbine production scientific complex “Zоrya”-“Mashproekt” SE and ”Pervomaiskdieselmash” DLC. “Uygcement” PJSC (a part of a world known company “Dyckerhoff”) is a leading enterprise in the production of construction materials and is the largest cement production plant on the south of Ukraine with project capacity of 1,25 million tons of a cement per year. The knowledge of latest innovations, equipment, the improvement of technology let the enterprise to be on the top of the Ukrainian industry. 6 The priority of light industry enterprises activity is to meet the requirements of inner, European markets and the markets of CIS (ready-made garments, knitted wear, leather, footwear). The leading enterprises in the sector are: «Velam» LLC is a manufacturer of mattresses and non-knitted textile materials for furniture industry, automobile, car, machine engineering complex. «Vozko» PJSC is one of the leaders of leather and foot-wear industry of Ukraine. It`s goods is in demand in Ukraine and abroad. A great number of leather and foot-wear companies value the quality of the products made by the masters of Voznesensk. «Santa Ukraine» PJSC and «Viktoria8» PE are modern and classic style women apparel manufacturers well known in Ukraine and abroad. SE «Angelа» is a manufacturer of qualitative, elegant and comfort women underwear. The enterprise cooperates with famous international brands, constantly raising the level of quality and the design of its production. The Mykolayiv region has a great potential for agricultural sector development Total area of agricultural land is 2 million hectares, including, arable land 1,7 million hectares. The Mykolayiv`s region share in the national output is: 10% of grapes; 9% of sunflower seeds; 5,5% of crops; 4% of vegetables; 3% of milk; Priority directions of agro-production complex development are: the development of irrigated agriculture; building and reconstruction of large-commodity stock-raising complexes; consolidation of agro-production manufacturers based on a cluster model according to «raw material production – preparation – storing – processing – sale»; realization of agro-production cooperation investment projects by creating village cooperatives which produce, process and sale agriculture products. Foreign economic activity The region is active in foreign trade which is an indication of the competitiveness of Mykolayiv products on world markets. Export traditionally exceeds import in 2.5-3 times and equals more than USD 2,7 billion. About 400 companies of the region co-operate with partners from 130 countries. The main export products are: crops; alumina; 7 machinery; oil seeds foods. The region imports mechanical and electrical equipment, ores, non-precious metals, vehicles, foods etc. Foreign investments Over USD 250 million of foreign direct investments from 50 countries has been invested in the region`s economy. Most attractive sectors of the economy to invest in are industry, including food industry, marine complex, real estate transactions. More then 300 enterprises with foreign capital were set in the region: “Sandora” LLC, “Vozko” PJSC, “Service center «Metallurg” Ltd, Specialized Sea Port “Nika-Tera” LLC, “Elika” LLC, “Uygcement” OJSC, “Laktalis-Mykolayiv” PJSC, “Ukrainian Sugar Company” LLC and others. Investment projects of world known companies are being successfully realized in the region: PepsiCo, Dyckerhoff, Rusal, Groupe Lactalis, Bunge and etc. MYKOLAYIV REGION IS OPENED FOR INTERNATIONALCOOPERATION Mykolayiv Regional State Administration 54001, Ukraine, Mykolayiv, 22, Admiralska Str. Tel./fax: +38 (0512) 37 01 36 E-mail: cancelar@mykolayiv-oda.gov.ua http:// www.mykolayiv-oda.gov.ua 8