December 1, 2003

MOL Will Order 30 New Cape-Size Bulkers to Meet Increasing Demand for Iron Ore Transport


TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL: President: Kunio Suzuki) today announced plans to expand its fleet with 30 Cape-size bulkers (over 100,000 tons) to meet expanding and diversifying worldwide needs for iron ore transport, especially for customers in China, Japan, and South Korea. This move reflects one of the major management strategies of the company's mid-term management plan MOL next - allocating management resources in the fields of natural resource and energy transport, where significant growth is expected.

Summary of new fleet
*Launch: 2004 - 2007 First half
*Number of bulkers by type:
Type 230 (230,000 deadweight tons) 1
Type 200 (200,000 deadweight tons) 15
Type 170 (170,000 deadweight tons) 8
Type 150 (150,000 deadweight tons) 1
Type 90-110 (90,000 - 110,000 deadweight tons) 5
Total 30
* MOL has already signed long-term transport contracts for 20 of 30 bulkers listed above (two will serve Baoshan Iron and Steel Co., Ltd. of China in an agreement announced on November 17).
*Charter plan: Ten (type 170) Cape-size bulkers will be chartered under mid and long term contracts in addition to the above 30 new bulkers, from the second half of 2003.

Production volume of raw steel has been expanding on a global scale. In particular, import volumes of iron ore have risen tremendously in China, and more growth is expected.

MOL is committed to providing a fleet of bulk carriers that can meet customer needs in Japan and overseas. With this move, the company is expanding and improving its fleet to accommodate an expected drastic increase in trade volume. MOL's annual transport capacity will expand from about 80 million tons to 100 million tons by expanding its fleet from the current 60 to more than 80 carriers.