Yug-2 Project of Ust-Luga port to be provided with tax exemption
The authorities of the Leningrad region will grand tax exemptions to an investment project on construction and operation of a multi-purpose transshipment complex Yug-2 in Ust-Luga port. According to the press center of the Leningrad region Government a corresponding agreement was signed on January 29 by the regional authorities, Transport & Logistic Complex (TLC OJSC, owner of Yug-2) and Commercial Seaport of Ust-Luga OJSC.
Under the contract on state support measures the Project will be provided with tax exemptions for the actual investment payback period and for 2 years upon this period completion. In particular, the property tax rate for the companies will be equal to zero while the profit tax rate will be decreased from 18% to 13.5%.
The construction of Yug-2 complex was started in 2006, the project facilities will be put into operation in several stages. The start-up facility of Yug-2 was launched in 2008. The investment plan provides for allocations till 2016. Total investment into the project will amount to some RUR 11.8 bln. The project implementation will bring 495 new jobs.
By 2018 the terminal is expected to increase its annual handling capacity to 350,000 of automobiles, 240,000 containers, 25,000 ro-ro cargo and 800,000 tons of general cargo, the release reads.
