March 23, 2004

MOL, Sinotrans Launch Joint Venture to
Transport Completed Cars in China


TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced the establishment of a joint venture with Sinotrans, Ltd. to transport completed cars in China. The new company, Sinotrans-MOL Shipping Co., Ltd., is based in Guangzhou.

Company Profile

Name: SINOTRANS-MOL Shipping Co., Ltd.
Location: Guangzhou city, Guangdong Province, China
Paid-in-capital: US$8 million
Ownership: MOL 49%, Sinotrans 51%
Directors: Chairman - Wang Chunlin (Assistant to President of Sinotrans, Ltd.)
Vice Chairman - Setsuyasu Hagiwara (MOL Managing Executive Officer)
Number of employees: 15 (planned)
Foundation date: April 2004 (date to acquire business license)


Objectives and future approaches
The Chinese automobile market showed drastic growth in 2003, exceeding 4.5 millions units. MOL expects China to emerge as an automobile exporter in the near future, while foreign automakers require pure car carriers (PCCs) to transport completed cars. To meet these needs, MOL decided to establish a joint venture with Sinotrans to transport complete cars in China. The establishment of Sinotrans-MOL Shipping will allow the deployment of top-quality auto-related logistics services in a broader area of China.

Sinotrans Group offers inland transport services, and MOL has nearly four decades of extensive know how on global transport of completed cars, making this an ideal joint-venture combination. The new JV company will develop weekly service in northern, eastern, and southern China by launching two small-size pure car carriers with capacities of 600-700 units this fall.