Management report
Logistics and international sales

Logistics

Logistics is not a reportable business segment, but represents an important part of our vertically integrated business model and makes an important contribution to our competitiveness. Our logistics assets include three port facilities (Murmansk Bulk Terminal, Sillamae liquid terminal and Tuapse transhipment terminal), long-term leases on cargo ships and our own rail facilities (c. 7,000 rail stock and 45 locomotives). The financial benefits that we extract from our logistics assets manifest themselves in the reduced costs of the reportable segments.

International sales

Similar to Logistics, our international sales infrastructure is not a reportable business segment. Currently it includes our fully-owned Swiss-based trader EuroChem Trading GmbH, which is responsible for global sales outside the CIS and North America; a US-based trading company, EuroChem Trading USA Corp., responsible for North American sales and; a newly set up company in Brazil is responsible for this rapidly growing market. These companies are primarily responsible for the sales of our product globally and their revenues are attributed to the Nitrogen and Phosphate segments.

Reconciliation of segment and external sales volumes (kt)
2010 Nitrogen Phosphates Distribution Other Intra-Group sales External sales
Nitrogen fertilizers
Ammonia 521 2 14 (328) 209
Urea 1,709 42 11 (39) 1,722
AN 1,710 442 (440) 1,712
UAN 680 44 77 (47) 753
CAN 140 41 (38) 142
Organic synthesis products 455 5 460
Phosphates
MAP, DAP 1,849 84 (87) 1,846
NP 87 26 (25) 88
Feed phosphates group 236 236
NPK 456 23 220 7 (79) 628
Apatite concentrate 219 (4) 215
Iron ore concentrate 6,116 6,116
Baddeleyite concentrate 8 8
  5,671 8,539 901 113 (1,088) 14,136
Logistics and international sales