Distribution and Logistics

04

We have established and developed a strong domestic transportation and logistics infrastructure, which provides us with
a greater degree of control over transport, storage and logistics, and also helps us to maintain our reputation as a reliable supplier.

Our distribution and logistics network is operated and managed by PhosAgro-Region LLC and PhosAgro-Trans LLC, and consists of seven distribution centres located in the major agricultural regions of Russia that account for approximately 70% of the domestic demand for MAP and NPK. Four of PhosAgro-Region’s seven distribution centres provide additional services such as blending various fertilisers produced by the Company to offer custom-made fertiliser mixes, tailored to various crops and types of soil, as well as delivery of PhosAgro’s products to the customer. In addition, the Company operates approximately 6,000 railcars in order to ensure uninterrupted deliveries. In order to maintain a stable production cycle and to meet high-season domestic and export demand, PhosAgro-Region owns and operates 17 storage facilities in Russia with a total storage capacity of more than 270,000 tonnes of fertilisers.

We deliver our products to our domestic Russian customers principally by rail, while delivery of our products to customers abroad is primarily done by rail with subsequent shipment by sea through the ports of Murmansk, Novorossiysk and the Baltic ports of St. Petersburg, Kaliningrad (Russia) and Tallinn (Estonia). PhosAgro-Trans arranges the transportation by rail of PhosAgro’s raw materials and products, including phosphate rock, nepheline concentrate and sulphur, the storage of products at storage facilities at ports and the loading of products onto ships, while PhosAgro’s managing company CJSC PhosAgro AG arranges sea and river transportation. In addition, Ammophos owns and operates a river port on the Sheksna river, which allows it to receive certain raw materials and ship some of its products by river during navigable periods. In 2011, Ammophos shipped 172 thousand tonnes of fertilisers through its river port for delivery to the St. Petersburg international port, where these fertilisers were transferred to seagoing vessels for subsequent delivery to export customers. In 2011, the total volume of freight traffic arranged by PhosAgro-Trans exceeded 10.5 million tonnes.

Our distribution network