The total budget of the coating and logistics contract is about $953 million, around $100 million of will be used to establish the coating and logistics infrastructure around the Baltic Sea. The remaining budget covers raw materials, transhipment, and labour costs. This decision on logistics made by Nord Stream represents an important step for the project's efficient and timely implementation. To ensure that the pipes are properly coated by the time pipelaying starts, Nord Stream is making preparatory investments in the facilities and infrastructure needed for the coating, handling and storage of pipes in several locations. Prior to the tender, Nord Stream prepared a comprehensive logistics concept for implementing the pipeline project. To ensure the pipeline is laid in the most efficient manner possible, in terms of costs, timing and to protect the environment, a customized logistics' infrastructure in the Baltic Sea region comprising weight coating plants, interim stock yards, and transshipment facilities is required. As Nord Stream is the first pipeline to be implemented in the region, with several other pipeline projects being planned, a logistics' infrastructure still needs to be developed. With the aim of minimizing transport distances, Nord Stream has assessed potential locations along the Baltic Sea coast that are technically feasible and environmentally viable. Kotka in the Gulf of Finland and Mukran on the German island of Rugen have been selected as the locations for concrete weight coating and interim stock yards. Slite on the island of Gotland in Sweden is selected as main interim stock yard. The port Hanko on the South of Finland and Karlshamn in Southern Sweden are envisaged as additional interim stock yards in order to reduce transport distances to less than 150km. EUPEC, as Nord Stream's logistics' partner, will hold further discussions with the relevant authorities at these locations about the facilities required to ensure delivery of comprehensive weight coating and logistics services.