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February 5, 2002
Kawasaki Kisen Kaisha, Ltd.

"K" Line Pte Ltd's Startup Party held on February 4, 2002
- Current and Future Business of "K" Line Pte Ltd -

"K" Line Pte Ltd (hereinafter called KLPL), a 100%-owned subsidiary of Kawasaki Kisen Kaisha, Ltd. (hereinafter called "K" LINE) in Singapore, held its startup party at the Shangri-La Hotel on February 4, 2002. Guests numbered about 280 persons, including Singapore government officials, the Japanese Ambassador to Singapore, customers and persons related to maritime business in Singapore. A press conference was held by Mr. Isao Shintani, Chairman of the Board of both "K" LINE and KLPL, prior to the party. He announced current and future business of KLPL as follows:

1. The functions of KLPL as expected by "K" LINE Group

  1. "K" LINE Group's aim is that KLPL will develop into a Singapore-based shipping company that will provide a newly expanded and dependable type of service to satisfy the needs of customers performing business in global markets centering on Asia by which KLPL will take over the long experience and fostered functions from "K" Line (Singapore) Pte Ltd, a 100%-owned subsidiary of "K" LINE mainly responsible for shipping agency business, as a business stronghold and will also further expand its sales activities.
  2. In pursuit of globalization of management, a top-priority assignment of the current "K" LINE Group's management plan, New "K" LINE Spirit for 21 (New K-21 started from April 1998), KLPL was established to perform general marine-related transportation business in Singapore. In the future, it is expected that KLPL will become an another Singapore-based "K" LINE with its own independent strategy by promoting the business know-how cultivated by "K" LINE Tokyo for many long years, such as Containership service, Car Carrier service, Bulk Carrier service, Tanker service.

2. Why did the "K" LINE Group decide to set up a second comprehensive shipping company in Singapore?

  1. Singapore being very well known for its Political stability, efficiency and reliable financial, banking and other business support infrastructures in both public and private sectors, especially, those which are extensively and intensively related to both International Shipping and Logistic fields.
  2. Availability of an abundant pool of highly educated and skilled talent which is vital and a key to sustain business operations at any location.
  3. A very open and hospitable society which encourages people of any nationality from all over the world to feel welcome.
  4. These are some of the primary reasons for "K" LINE's decision to establish KLPL, as well as Singapore being a major hub for a very significant scale of business and cargo into, from and through this part of Asia.

3. Current business

(Containership service)

  1. KLPL has just started to do business on its own for Containership services since January 1, 2002, with one service between Singapore and East and South Australia, the other between Singapore and West Australia.
  2. KLPL has already assumed the principal functions for Containership services in Inter-Asia, Asia-India, Africa and South America on behalf of "K" LINE Tokyo under an operation management agreement.

(Car Carrier service)

  1. KLPL has already assumed some principal functions for Car Carrier services on behalf of "K" LINE Tokyo under an operation management agreement in Inter-Southeast Asia service.
  2. KLPL has already assumed the sales activities for the customers for Car Carrier business based in Inter-Southeast Asia service under "K" LINE Tokyo's control.

(Bulk Carrier service)

  1. KLPL owns M/V Pulang Lupa built June1989 and charters it out to "K" LINE.
  2. KLPL has already assumed the sales activities for the new customers for Bulk Carrier business.

(Tanker service)

  1. "K" LINE Tokyo started chartering activity for Aframax tankers in Singapore at the end of 2000, and KLPL has already functioned as a chartering and operation office for those vessels under "K" LINE Tokyo's control.

4. Future business within coming two years

(Containership service)

  1. "K" LINE Group has announced that it will set up a new organization named AOC (Asia Operation Center) within KLPL effective July 2002, and that the following jobs shall be entrusted under an operation agreement between "K" LINE Tokyo and KLPL: 1) Stowage planning for outbound legs from Asia and Japan ports in the East-West trunk services such as Trans-Pacific, Asia-North Europe, Asia-Mediterranean; 2) Ship operations including space control in the Asia and Japan area; 3) Inventory control of container equipments and cost control of variable expenditures in Asian countries including Japan. This scheme is based on recent decision by the "K" LINE Group that operations in Asia shall be operated by and centered in Singapore, and also is expected to be reinforced with 10 new staff recruited in Singapore at the time of setting up the new organization. It is expected that the expanded staff will shoulder the core part of the future of "K" LINE's operations in Asia.
  2. In the future, KLPL has in sight to take over more Containership services currently performed by "K" LINE Tokyo and to develop new services in Asia.

(Car Carrier service)

  1. "K" LINE Group will strengthen its Car Carrier services, especially those between Thai and Australia, Malaysian Coast and Inter-Asia to respond to the increasing demand in the vehicle trade created by mainly Japanese Vehicle Manufactures that will start complementary vehicle movement between their various factories within the Inter-Southeast Asian countries. "K" LINE Tokyo has a plan for the timely transfer of these services to KLPL.
  2. "K" LINE Group also foresees that trade expansion will be materialized with Indian Ocean Rim countries in the future. In consideration of the above prospects, KLPL will have to reinforce both international and Japanese staff with capable individuals so that the company can positively catch up with the needs of such new cargo movements. "K" LINE Tokyo will sincerely study the timely transfer these services to KLPL as well.

(Bulk Carrier service)

  1. As for M/V Pulang Lupa, KLPL will seek a new charterer other than "K" LINE Tokyo from 2nd half of 2002 at the termination of the current charter between KLPL and "K" LINE Tokyo.
  2. KLPL is planning to increase its ownership of Cape-size bulkers step-by-step and to make these bulkers available for chartering out to other parties rather than only to "K" LINE Tokyo.
  3. KLPL has a plan to acquire a Panamax-size bulker this April or May and aims to do business on its own after chartering out to "K" LINE Tokyo for the initial short period.
  4. KLPL also has a plan to operate two or three Handymax bulkers for Intra-Asia business.

(Tanker service)

  1. KLPL has a plan to own an Aframax type (100,000 DWT) newbuilding using Singapore flag which will be completed at a Japanese shipyard this September.
  2. KLPL is also planning to take over the Aframax tanker business from "K" LINE starting from January 2003, together with a fleet of 6 vessels including the above-mentioned newbuilding.
  3. KLPL has a further plan to enlarge its fleet size to the extent of 10 vessels step-by-step within the next three years.
  4. We are confident KLPL will develop the Aframax tanker business into a good combination of COA and SPOT cargo, and we are quite confident that as a first-class Aframax tanker operator in Intra-Asia, KLPL will provide highest quality services to our customers.
Mr.Isao Shintani, Chairman of the Board of Both

Mr.Isao Shintani, Chairman of the Board of Both "K"line and KLPL

Mr.Isao Shintani, Chairman of the Board(right)
and Mr.Juro Shiga, Managing Director of KLPL(left)

Mr.Isao Shintani, Chairman of the Board(right)and Mr.Juro Shiga, Managing Director of KLPL(left)

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