News Releases in 2006

June 12, 2006

Nippon Yusen Kaisha (NYK) has decided to build and deploy a new vessel as a replacement for the coal carrier Sanyo Maru, which is currently engaged in coal transport for the Chugoku Electric Power Company.

Three coal carriers - Sanyo Maru, Sekiyo, and Sage Sagittarius - operated by NYK currently transport coal from abroad for Chugoku Electric. Sanyo Maru was built in 1984 and was the first coal carrier for the power company. Because of the vessel's age, NYK has decided to build and deploy a replacement in order to ensure the sustained safety and stability of the transport of coal, and NYK and Chugoku Electric have concluded a long-term contract for the operation of the new vessel. This contract will bring to 30 the total number of coal carriers operated by NYK.

Under the contract, NYK will carry coal mainly from Australia and Indonesia to the Misumi Power Station and other thermal power plants of Chugoku Electric from April 2007 using a new broad-type bulk carrier (90,000 deadweight tons) to be built at Oshima Shipbuilding Co. Ltd.

NYK's coal transport division desires to enlarge its fleet of broad-type bulk carriers because these vessels have the ability to not only enter ports with limited water depths but also carry about 20,000 tons more per voyage than Panamax vessels in the 70,000-deadweight-ton class. By improving the long-term stable transport services offered to customers, NYK will be able to widen the scope of its bulk/energy transport business.

Outline of the New Coal Carrier

Shipbuilder	:Oshima Shipbuilding Co. Ltd.
Date of completion	:March 2007
Deadweight tonnage (DWT)	:90,000 tons
Length overall	:235 meters
Breadth extreme	:43 meters
Full load draft	:12.9 meters