News Releases in 2006

July 7, 2006

On July 6, Nippon Yusen Kaisha (NYK Line) inaugurated a dedicated terminal for automobiles in Dayao Bay in the port of Dalian in partnership with local investors (see note). NYK holds a 30 percent stake in the terminal.

A grand opening ceremony was held in the presence of about 200 people, including the interested quarters of Dalian and representatives of businesses operating in the city. NYK Chairman Takao Kusakari delivered a speech at a reception held inside a local hotel and attended by Dalian Mayor Xia Deren and Mr. Zhang Chengyin, secretary of the municipal committee of the Dalian City Communist Party of China.

"NYK regards Dalian Port as a logistics hub for northeast China," Kusakari said. "Therefore, NYK is anchoring great expectations on the new automotive terminal in the port. We would also like to contribute to the development of China's automobile industry by promoting the terminal as a logistics center for automobiles in northeast China."

NYK already operates dedicated automobile terminals in the ports of Shanghai and Tianjin through joint ventures with local interests. Those terminals are mainly used by NYKCOS Car Carrier Company Limited (NYKCOS), NYK's joint venture with China Ocean Shipping (Group) Company (COSCO Group), for the coastal transport of automobiles. The dedicated automobile terminals in China's three major ports, including the new one in Dalian, will enable NYK to better deal with the anticipated growth of China's finished-car exports in the years ahead.

China's automobile output exceeded 5.7 million units in 2005, making the country the No. 3 car producer in the world after the United States and Japan. To respond to the increasing demand for automobile transportation, NYK will continue its efforts to best respond to customer requirements.

Outline of Dedicated Automobile Terminal in Dalian:

Total area	Approximately 210,000 square meters
Quay length	505 meters
Handling capacity	Approximately 300,000 cars per year
Operator	Dalian Automotive Terminal Co. Ltd. (joint venture ownership: 40 percent by Dalian Port Group, 30 percent by NYK, and 30 percent by COSCO Ports (Dalian RoRo)

Opening Ceremony (1)	Opening Ceremony (2)
	NYK Chairman Mr. Kusakari and Dalian Mayor Xia Deren

Note:

The local investors are Dalian Port (PDA) Company Limited, which was previously the Operation Department of the Dalian Port Authority, and COSCO Ports (Dalian RoRo), which was established by COSCO Pacific, a company in the COSCO Group, to invest in and operate the Dalian Automotive Terminal.