January 6, 2004

Beibu Gulf Towing Company Starts Operation
-- First tug boat services in China
by a non-Chinese joint venture --

TOKYO - Mitsui O.S.K. Lines Ltd. (MOL; President: Kunio Suzuki) today announced that the Beibu Gulf Towing Co., Ltd. started operation on January 1.

Beibu Gulf Towing Company (BGT), a joint venture between Fangcheng Port Authority and South China Towing Co. Ltd., is the first Sino-foreign joint venture company to provide harbor towing services in China.

BGT is starting off with a fleet of three modern and powerful tugs equipped with the advanced steerable propulsion system. The company will acquire additional tugs to meet the growing demand for towing services in the Beibu Gulf.

The new company will build on the solid track records and fine reputations of its two joint venture partners.

South China Towing, established in 1987, is the second largest tug operator in Hong Kong. Mitsui O.S.K. Lines is one of the founders of South China Towing and holds a 25% share. Another Japanese founding shareholder is Tokyo Kisen Co. Ltd., one of the largest tug operators in Japan. With a highly trained and experienced management staff and crew, South China Towing has to date provided reliable and efficient services to more than 35,000 vessels calling at Hong Kong. The company is committing its management expertise and resources in partnership with Fangcheng Port Authority to provide towing services in Fangcheng port and neighboring ports in the Beibu Gulf.

Fangcheng port, situated on the northern bank of Beibu Gulf, is the largest port in China's Guangxi Province. With a total of 28 berths, 12 of which can accommodate vessels of over 10,000DWT, Fangcheng port is expected to handle more than 12 million tons of cargo in 2003.

The port, which is the shipping hub between southwest China and Southeast Asia, is poised to play a significant role in the development of China's southwestern region, providing a major gateway for the provinces of Guizhou, Sichuan, Yunnan , Guangdong, and Hainan.