September 29, 2005

MOL to Expand MR Product Tanker Fleet to 40 by 2009

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President: Akimitsu Ashida) today announced an aggressive expansion of its tanker fleet, including introduction of the newest double-hull MR-type*1 product tankers. The move is part of MOL's mid-term management strategy calling for growth in the natural resource/energy transport sector. This field encompasses oil tankers, mainly very large crude carriers (VLCCs), methanol carriers, in which MOL holds the world's leading market share, and product tankers, which carry gasoline, jet fuel, and other refined petroleum products. MOL intends to take a leading role in worldwide product transport and meet the needs of customers all over the world.

Outline of MOL's MR-type tanker pool fleet expansion -- 50 ships after 2010 --
MOL and its group company Asahi Tanker Co., Ltd. currently manage and operate an MR-type tanker pool of 24 vessels all over the world. The companies have already made plans to expand the pool to 32 ships by mid-2006.

In light of anticipated growth in demand for petroleum product transport, the companies plan to add another 8 to 10 MR-type tankers, bringing its total fleet to 40 by mid-2009. While continuing to monitor the growth of the market and vessel price trends, the companies have a long-term goal of 50 ships after 2010.

Background
Demand for clean petroleum products such as naphtha, kerosene, diesel oil, and jet fuel, which are the main cargoes for the product tanker, is expected to grow steadily. MOL has already decided to expand its fleet of LR1-type*2 product tankers with nine vessels. The company also operates four LR2-type*3 product tankers. As a leader in global product tanker operations, MOL offers flexible, high-quality services that meet the ongoing needs of customers in Japan and overseas.

MOL also assigned dedicated product tanker specialists to its U.K. subsidiary, which started operation in August 2004. In August of this year, MOL expanded its staff in Houston, Texas, USA, the hub of the North and South American petroleum products trade. This brings MOL closer to its customers and makes it easier to gather market information.

In the near future, MOL will assign personnel exclusively for product tanker business to Singapore, the center of Asia's oil industry. This will complete the company's worldwide service network.


*1 MR-type stands for Medium Range (45,000 dwt-class product tankers)
*2 LR1-type stands for Large Range 1 (75,000 dwt-class product tankers)
*3 LR2-type stands for Large Range 2, (105,000 dwt-class product tankers)