Reliable transportation is a key component in the value chain of potash production as it allows top quality customer service and the ability to react to peaks in demand. It also ensures total control over keeping costs low.

Uralkali has an established logistics network which goes from the potash mine to the loading port at St. Petersburg.

Railcars

Railway transportation plays a key part of Uralkali's deliveries to BBT for export by sea as well as China Rail Sales. Each of Uralkali's processing plants has outlets in the Berezniki train terminal for transportation of potash.

Uralkali is one of the largest customers of the Russian Railways. By owning our own fleet of rail cars, we are not dependent on the availability of rail cars from the Russian Railways for our North China Sales by rail and deliveries to BBT for export by sea. Uralkali does not rely on the availability of rail cars from Russian Railways for its domestic deliveries either. Demand for rail cars from the Russian Railways far outweighs supply, and companies who are reliant on their rail cars often suffer delays in transport. Uralkali realizes the financial benefits of owing a fleet of rail cars for most of its deliveries. Uralkali also has a logistics management system that monitors the movement of its rail cars and furnishes Uralkali's logistics staff with information about the location of each car.

Uralkali has a long-term agreement with the biggest Russian railcar manufacturer. We will therefore keep expanding our railcar fleet in order to support our growth.

Warehouses

Warehousing capacity is important to Uralkali's business mainly for a basic logistical one - potash inevitably needs to be stored from time to time as immediate transportation away from production facilities upon production or initial transport is not always possible, for example, because of transportation scheduling difficulties on the Russian Railways or freight timetables.

The total current capacity of Uralkali's warehouses in Berezniki is 160 thousand tonnes of potash. Each of Uralkali's warehouses at Berezniki is connected to the rail freight terminals by a system of belt conveyors, which are fully isolated from the environment. Different kinds of potash are stored in separate, isolated sections of the warehouse.

Uralkali also has two warehouse complexes at BBT with a capacity of 240 thousands tonn .

The expansion of Uralkali's production capacity will be accompanied by the corresponding expansion of storage capacity.