"K" Line is actively developing its logistics services in Thailand, Indonesia and China—countries that are undergoing remarkable economic growth. We provide comprehensive logistics services with strong local ties to meet customer needs in various manufacturing industries including the automotive and electrical machinery industries. Below, we describe our business in these regions.

Looking first to Thailand, K Line (Thailand) Ltd., which was established in 1964, plays a central role in all aspects of the logistics services from onshore transport and warehousing to forwarding, customs clearance, facility installation and insurance. In the onshore transport segment, K Line (Thailand) has 50 carrier cars, 200 container trailers and 150 trucks that it uses to provide a wide range of services including container transport service, completely built-up car transport service and auto parts milk runs (periodic collection and distribution). In the warehouse segment, group company K Line Container Service (Thailand) Ltd. operates two warehouses—one in Bangkok (KCST No. 1; 9,600 m2) and one in Laem Chabang (KCST No. 2; 11,500 m2). In addition, the "K" Line Amata Nakorn Distribution Center (KADC; 21,272 m2) was constructed in Amata Nakorn in 2009 as an all-weather facility, while Bangkok Cold Storage Ltd. operates a refrigerated and freezer warehouse (BCS; 4,133 m2) in Bangkok and stores and transports foodstuffs and other goods.

In Indonesia, PT. K Line (Indonesia), established in 1996, functions as the parent body for comprehensive logistics operations including onshore transport, warehousing, forwarding and customs clearance conducted by group companies. In the onshore transport sector, PT. Kline Mobaru Diamond Indonesia (KMDI) owns 45 container trailers and 139 carrier cars and boasts the top share of the local market for automobile transport services. The company also provides motorcycle transport services using a triple-decker vehicle that it developed in collaboration with a local manufacturer and for which it obtained the patent in Indonesia, Vietnam, India, China and Thailand. The triple decker is an innovative service that offers more than 30% higher efficiency than the earlier double deckers, resulting in lower transport costs and carbon dioxide emissions. In the warehouse segment, PT. Karawang Taro Logistics Center Indonesia (K-Taro) operates its own warehouse in Jakarta (5,000 m2) and stores and manages diverse freight at favorable locations adjacent to the Jababeka I, II and III Industrial Parks. In 2011, we established PT. "K" Line Biz Management to provide comprehensive consulting services ranging from labor disputes and addressing issues relating to religion as well as domestic logistics to small and medium Japanese companies that have set up operations in Indonesia.

Lastly, in China, a joint venture established in 2005 with Zhenhua Logistics Group, one of our partner companies, operates its own warehouse (12,000 m2) in a bonded logistics zone in Tianjin and an additional general warehouse (12,000 m2) outside the bonded logistics zone. At these sites, the company conducts international freight forwarding under the management of "K" Line (China) Ltd., which was established in 1995. In the bonded logistics zone, bonded warehouse and export-processing zone functions are used to handle mixed freight bound for Western destinations for multiple venders. Other freight demands are met at the general warehouse. In the international freight forwarding business, in addition to the Tianjin site, the Group also has branches in Qingdao, Zhengzhou, Dalian and other locations.