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May 26, 2004
Kawasaki Kisen Kaisha, Ltd.

Enhancement of Container Terminal in Tacoma

International Transportation Service, Inc. (I.T.S.), a member of "K" Line Group, has been operating container terminals in Ports of Long Beach, CA, Oakland, CA, and Tacoma, WA and providing high quality services to customers through major shipping lines including "K" Line which call its terminals along the U.S. West Coast.

I.T.S. having established its container terminal in Tacoma named Husky Terminal in 1983, recently reached an agreement in principle with the Port of Tacoma on major terms with respect to the re-alignment of the terminal and future expansion of a larger facility. According to the agreement, Husky Terminal will be shifted from its current premises in Terminal 7D to Terminal 3 and 4 area by spring 2005. This enhancement will provide Husky Terminal with approximately 74 acres of lease and preferential berthing area in the major gate port in the U.S. Northwest, of which acreage is more than double the current premises of about 33 acres. The agreement also includes the second acreage increment to be effectuated around March 2006, bringing the total terminal acreage to about 93 acres. The Port of Tacoma also agreed with I.T.S. to make a variety of terminal improvements to the terminal area, including repaving of certain areas, provision of new gantry cranes, and so on. Interface with the Port of Tacoma north intermodal yard will remain the same.

This re-alignment and future expansion at Tacoma is part of the I.T.S. terminal enhancement plans which are aimed at making its terminals well prepared for handling steadily growing number of containers moving through the main gate ports along the U.S. West Coast as well as for accommodating larger container vessels that major shipping lines are deploying in U.S. West Coast trade.

I.T.S., as one of the major container terminal operators along the U.S. West Coast, will continue toward its commitment of providing a high level of quality services to shipping lines including "K" Line and their customers in anticipation of future market demand.


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