MOL Group Reinforces Tanker Business Structure
- Drive to Meet New Trade Trends -

November 04, 2008

TOKYO - Mitsui O.S. K. Lines, Ltd. (MOL, President: Akimitsu Ashida) today announced that MOL and Tokyo Marine Co., Ltd. have created a new organization to provide more flexibility in meeting customer needs in the liquefied cargo trade.

New organizations in both companies will team up to address new trends in the tanker business such as transport of ethanol which is drawing considerable attention, and increasing seaborne trade of chemical products and vegetable oil, while proactively exploring new businesses.

Outline

MOL formed the new Tanker Project Group in the Tanker Division, and Tokyo Marine created the Chartering & Project Center effective November 1. Some employees will hold concurrent positions in both new organizations. In the future, the organizations will cooperate to formulate fleet plans, respond to customers and manage vessel operations. This allows the MOL Group to reinforce its overall structure and provides more flexibility to meet diversifying customer needs.

Background

MOL and Tokyo Marine have developed separate tanker services. MOL offers high-quality transport services of crude oil, petroleum products, and chemical products (especially methanol) with tankers, product tankers, and methanol tankers. MOL's vessels are generally above 40,000 dwt class. Tokyo Marine transports mainly parcel chemical products and vegetable oil using tankers of about 20,000 dwt. The group has the world's largest fleet of VLCCs, MR-type tankers (the mainstay of the product tanker trade), and methanol tankers, and ranks No.3 worldwide in chemical tankers.

On the other hand, new seaborne trade^* outside of these traditional categories has emerged in recent years. To meet this trend, the MOL Group is restructuring to more effectively meet customer needs, by utilizing both companies'experience and know-how - MOL's in methanol tankers and Tokyo Marine's in chemical product and vegetable oil transport.

* New seaborne trade

• Transport of biofuels, such as ethanol which attracts lots of attention as a fuel that helps reduce CO₂ emissions.
• Increasing seaborne trade of liquefied chemical products and increasing vessel size as oil refineries and chemical plants, which were conventionally located near consuming regions, are being built in oil producing countries, mainly in the Middle East.
• Increasing seaborne trade of vegetable oils because of increased production in Southeast Asia due as demand rises, particularly in Europe.