“K” Line and ITS Expand ‘Green' Operations

May 26, 2006 -Tokyo, Japan. International Transportation Service s, Inc. (ITS), “K” Line's marine terminal subsidiary based in Long Beach has concluded a new 20-year lease agreement with the Port of Long Beach . This innovative deal focuses on accommodating cargo growth and improving terminal efficiencies, while at the same time reducing the environmental impact of expanding operations.

As part of the new agreement, ITS will phase in shore powering capabilities. The dockside capability will be phased in over the next six years and will be built by the Port, while “K” Line will invest in the technology to equip the vessels for shore powering. “K” Line estimates that the total investment into outfitting its ships will reach $ 20 million. Initially 5 of “K” Line's ships will be outfitted to shift to shore power, but ultimately all ships calling at ITS will embrace shore powering cap a bility.

Shore powering, a practice that is also referred to as ‘cold ironing', will allow “K” Line vessels to shut down their auxiliary power motors while at berth, which in turn will significantly reduce stack exhaust emissions into the local atmosphere. ITS will also shift fuel usage of yard equipment to verified emulsified “clean” diesel fuels and will further upgrade the engine standards of yard handling equipment, in order to achieve maximum air emissions reductions.

ITS will have the option to expand its existing 246 acre facility by another 70 acres. The terminal expansion will support further cargo growth, while simultaneously streamlining terminal operations, as well as accommodating expanded on dock double stack train capability.

“K” Line operates 385 cargo ships in the container, energy and car carrier businesses, generating annual revenues of $8 billion. As one of the largest global ocean transportation companies, “K” Line is committed to environmental preservation. This investment in shore powering is just another example of “K” Line's environmental commitment. “K” Line is ISO 14001 certified and has been recognized for its commitment to environmental protection by being listed in the FTSE 4 Good Global Index.

For further information, please contact:

Hiroshi Nishiyama
General Manager of Container Transport Management Group
TEL: 81-3-3595-5 300 FAX: 81-3-3595-5 289
Kenjiro Takenaga
General Manager of Ship Planning Group
TEL: 81-3-3595-5 101 FAX: 81-3-3595-5 355
Kawasaki Kisen Kaisha, Ltd.