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May 25, 2006
Kawasaki Kisen Kaisha, Ltd.

"K" Line's Ship Management Structure to Sustain Safety and Quality

Kawasaki Kisen Kaisha, Ltd. ("K" Line) has put together the principle and various initiatives as follows to establish the ship management structure to sustain safety and quality and to promote the planned expansion of business operations advocated in the previously announced newly-revised interim management plan "K" LINE Vision 2008+.

The framework of this ship management structure is comprised of its two pillars: 1. global expansion and competitive intensification through buildup of a high-quality management structure based on the ship management/administration principle - "K" Line Spirit; and 2. securing and training marine technical personnel on a global basis based on the concept of "K" Line Maritime Academy to keep well-trained seafarers.

  1. Global Expansion and Competitive Intensification
    1. We will maintain and strengthen the ship management structure placing emphasis on In-House ship management by positioning management know-how accumulated on reserve from the experiences of In-House ship management companies as the basis of the safety navigation.
    2. We will carry out ship management for specialized types of vessels with the aim of conducting more specialized management.
    3. We will expand In-House ship management to strengthen the structure including its competitiveness.
    4. For the quality management of our owned and controlled vessels, we will train crewmembers at the "K" Line Maritime Academy, as we consider that the quality of the ships' crews and the skill of supervisors who support the ships on land and their commitment to the principle ("K" Line Spirit) are important. Also, for the supervisors, we will, in addition to Japanese maritime engineers, select SI candidates from a pool of foreign crewmembers and train them as supervisors mainly through OJT programs aimed at high-quality ship management.
  2. Securing and training of marine technical personnel on a global basis
    1. Training facilities at home and abroad, development of global policies to support the training and the standardization of education/training programs and curriculums are collectively referred to as the "K" Line Maritime Academy. Based on this concept, we will develop seafarers' standards in accordance with "K" Line global standards.
    2. We will network training facilities in various places of the world around the "K" Line Maritime Academy (Japan) to foster seafarers in accordance with "K" Line standard on a global scale. "K" Line Maritime Academy (Philippines) will move its training center in Manila, rebuild and expand its capacity and develop "K" Line standard for the entire "K" Line Group. We will actively upgrade training facilities and enhancement of training systems in the world, which includes the introduction of training facilities, such as ship maneuvering simulator, cargo handling simulator, boiler combustion control system simulator and reefer container unit, in India.
    3. We will promote securing of seafarers and upgrading of their abilities through tie-up with various crew-training organizations based mainly in Asia including Japan, Philippines and India, as well as in Europe.
    4. For the purpose of promptly fostering and securing highly capable maritime officers, who support the safety navigation of our growing group fleet, on a long-term sustainable and stable basis, we will improve and beef up training ships with more private rooms and increased the maximum numbers of persons allowed onboard. As instructors for the trainees, onboard instructors will be taken on board to provide training.
    5. We will reinforce the connection with manning companies in various places in the world to secure and train our seafarers.

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