News Releases in 2006

June 19, 2006

NYK Bulkship (Europe) Ltd. Secures Long-Term Charter Contract with ENEL S.p.A.

NYK Bulkship (Europe) Ltd., a British subsidiary of Nippon Yusen Kaisha (NYK Line), has secured a long-term charter contract with Italy's largest power supplier, Enel S.p.A. (ENEL). The contract calls for the use of two post-Panamax carriers for ten years. This is the first long-term charter contract that the NYK Group has secured with a European power supplier.

NYK has been working to strengthen business operations with overseas power suppliers and steel mills, and NYK now has more than 20 long-term contracts with such companies, often using Capesize bulkers for transport. In fact, to enhance overseas business operations, NYK created the Capesize and Panamax Bulker Team in April this year by uniting the overseas business sections of the company's Capesize Bulker Group and Steaming Coal Group.

Since then, NYK Bulkship (Europe) Ltd., in cooperation with NYK has invigorated business operations in Europe by employing post-Panamax carriers, which have often been used to service power suppliers in Japan. These upgraded operations led to the current contract agreement with ENEL.

ENEL, the second largest power supplier in Europe, is proactively expanding its business overseas. Previously, ENEL had been using Panamax carriers for charter contracts because the hulls of these carriers are suitable for landing ports that have water-depth limitations, such as the ENEL power plant port. ENEL expects coal imports to increase upon the opening of a new thermal power plants by 2010. The new post-Panamax carriers to be used for this service will conform to water-depth limitations, be more economically efficient, and offer an approximately 20,000-ton increase in loading capacity.

Because crude oil prices continue to soar, power suppliers around the world are paying attention to power generation using coal, whose reserves are abundant and more economical than oil. Thus, coal transport is expected to continue to increase in the future.

Using this contract as a step forward, NYK will continue its drive to develop business opportunities in Europe and around the world.

---Outline of Charter Contract---

Term of the contract	Ten years
Commencement	2009 and 2010
Capital	Two newly built post-Panamax carriers (90,000 tons) (Built by Oshima Shipbuilding Co. Ltd.)