MOL Restructures Ship Management System to Enhance Safety

March 29, 2006

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL: President: Akimitsu Ashida) today announced a restructuring of the company's ship management system to enhance the company's already excellent safety program. MOL is pressing forward with a plan to expand its fleet from about 700 vessels today to 900 by the end of March 2010, based on the mid-term management plan MOL STEP Review.

Establishment of MOL Tankship Group

MOL's Marine Management Division Tanker Supervising Group will be consolidated into International Energy Transport Co., Ltd. which is renamed as MOL Tankship Management Ltd. Tokyo, effective on April 1, 2006. The company will manage very large crude carriers (VLCCs), product tankers, LPG carriers, and methanol tankers.

The company will move to a floor close to the MOL Tanker Division and Marine Management Division at the Head Office in Toranomon, Tokyo, on April 24. This will create a ship management system organically linking the sales divisions to meet the needs of customers such as Japanese oil companies and international oil majors.

New structure

MOL Tankship Management Ltd. Tokyo, MOL Tankship Management Ltd. (London), and MOL Shipmanagement (Asia) Pte. Ltd. (Singapore) will take responsibility for tanker management operations. Last two overseas companies will be renamed MOL Tankship Management (Europe) Ltd. and MOL Tankship Management (Asia) Pte. Ltd., respectively, and these three companies share a common policy and strategy under the leadership of MOL Tankship Management Ltd. Tokyo.

Magsaysay Mitsui O.S.K. Marine opens ship management center for containerships, car carriers, bulkers

Since 1993, MOL has operated Magsaysay Mitsui O.S.K. Marine Inc. under joint management with the largest local crew manning company Magsaysay Maritime Corporation, which focuses on recruiting, training, and assigning Filipino crew members to MOL-operated vessels. Magsaysay Mitsui O.S.K. Marine recently established a ship management division for bulkers and wood chip carriers.

In Singapore, MOL has established M.O. Ship Management (Singapore) Pte. Ltd. as a new ship management company for containerships, pure car carriers (PCCs), and bulkers, effective on 21st March, and this company will commence its business from May. In addition, MOL Shipmanagement (Asia), which until now managed tankers and bulkers in Singapore, will be renamed MOL Tankship Management (Asia) and focus exclusively on tanker management under the restructured system outlined above.

Azalea Maritime B.V. in Rotterdam reinforced its ship management division and started full-scale containership management in March of this year.

Summary of new system

In addition to two new firms, the restructured system includes a total of six companies ? two in Tokyo (M.O. Ship Management, Mitsui Kinkai Kisen Co., Ltd.), one in Hong Kong (New Asian Shipping Co., Ltd.), and three others in Rotterdam, Singapore, and Manila). The restructuring will meet the needs of MOL's expanding fleet and worldwide network. Each of the six companies will manage an appropriate number of vessels to ensure thorough on-site supervision.

In the future, MOL plans to reorganize ship management companies for containerships, car carriers, and bulk carriers both in Japan and overseas, under a management company that will assume headquarters functions.

Basic concept