Kish Free Zone Organization

Sub-Zero Fridge


Sub-Zero Fridge

A- Project Introduction

1. Project title: Construction of a sub-zero fridge

2. Sector: Services Sub-sector: Frozen food storage

3. Products / Services: Freeze and store Fish

4. Location:

Free zone  Special Economic Zone  Industrial Park  Main location

5. Project specifications
This project is for construction of a -3000ton minus zero fridge for keeping frozen fish and delivering to the market in different seasons of year. This fridge is to be constructed in a property in area of 6000sqm and approximate substructure of 3000sqm. This fridge is in ammoniac type holding 6 salons with an area of 340sqm and a preparing and pre-cooling salon with an area of 200sqm. Likewise, a 50ton bascule is considered for this project
The project provides jobs for 23 people and its annual capacity is 3,000 tons
6. Annual Capacity: 3,000 tons per year
7. Land requirement: 6,000Sq.m
8. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors

9. permissions:
The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from
other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject
10. Construction and operation period:

Theconstruction project will be done in 1 years and the operation phase is 15 years.
11. Target market:

Fishing is a very old carrier in this island but unfortunately, due to lack of infrastructure installations such as warehouses, a significant part of the fish fished by the fishers get decayed for not having enough space for storing them. Therefore, construction of a minus zero fridge able to reduce the
amount of such decays in production, could be so effective and in addition to decreasing rate of wasting, it could make a considerable amount of economic profits for the investors. Presently, 3000 tons of fish are fished by the fishers in the island per year and its average value equals Rls.3,000 billion.
It just happens when at least %20 of such fish get decayed for lack of appropriate storing facilities. Annual value of such decays is over Rls.600 billion and it can be easily prevented by appropriate
storage and providing the market with products in various seasons.
12. Access to Infrastructures:

Distance to project locationInfrastructure requiredtem
At the siteWater1
At the siteElectricity2
At the siteTelecommunication4
At the siteThe main road5
380kmRailway station8

B- Financial structure:
13. Cost and benefits

USD $ 1.7 millionCapital expenditure
USD $ 1.0 millionOperating Revenue
USD $ 0.3 millionOperating cost

14. Financial index

USD $ 0.7 millionNet benefit
1.4Benefit–cost ratio (B/C()
2.8 YearsPayback Period

15. Economic index

USD $ 1.1 millionNet present value (NPV)
37 %Internal rate of return (IRR)
21 %Break-even point

16. Methods of participation:
For this project, investor may proceed with individual investment by obtaining necessary permits or undergo partnership with Kish Free Zone Organization for carrying out project through various
partnership models.
C- Incentives, features and advantages of the project:

17. Incentives:

• Simplified formalities for re-export and goods transit
• Tax exemption and the benefits of accessing to foreign
• 20year tax exemption for any type of financial business
• Preferential rates of land to build hotels and recreational tourism places.
• Customs duties exemption to imports raw materials and industrial machinery of the production units
• No restrictions on entry and existence of the exchange currency on any amount and the possibility to transfer money to foreign companies
18. Support and legal advantages:

• Foreign nationals’ entrance with no visa
• Legally protecting and ensuring foreign investors.
• Registering company with 100 percent foreign ownership
• Have the right of entry and exit the capital and the profits
19. Special and unique benefits of the region:

• Having access to the international free waterways
• Having an energy source (gas) independent of the mainland
• The ability to transit goods to neighboring CIS countries and Iran
• High level of security and social peace and low levels of social disorder
• A harbor with the ability of berthing vessels with 12,000 tones capacity.
• Exporting products to foreign countries without paying customs and harbor duties
• International Securities Exchange activity and oil and petrochemical products stock
• Having good optical fiber network and an independent private mobile network privileges
• Having an independent airline and shipping lines with the possibility of transporting vehicles