14/2/2008 1

Japan-India PPP Seminar ~ Infrastructure in the Eleventh Plan

- Engaging the Private Sector ~

14th February, 2008

India International Centre Annex, Delhi

Hiromitsu Kuramoto

Senior Managing Corporate Officer

NYK Line

14/2/2008 2

Corporate Profile

Company Name : Nippon Yusen Kabushiki Kaisha Established : October 1, 1885 Paid-in Capital : \88,531 million (US$754 million) Revenue : \2,164,279 million (US$18,334 million) Operating Income : \107,534 million (US$911 million) Rating : A3 by Moody’s Investors Service Scale of Fleet : 742 vessels Employees : Approx. 48,000

The above data is on consolidated basisUS$ = @ Japanese Yen 118.05 as of March 31, 2007

14/2/2008 3

Business at a Glance Fleet : 742 vessels (2007)

　　　　　 932 vessels (2010)

Logistics center : 34 countries

: 379 warehouses

: 2.2mil m2

Container Terminals (2007)

: In 6 countries

: 34 terminals

: 8.27 mil. teus

RORO Terminals : In 4 countries

: 7 terminals

Air cargo : 10 air freighters (2007)　　　　　　 22 air freighters (2

010)As of March 2007

14/2/2008 4

History

1885 NYK Line inaugurated operations

1893 Tied up with Mr.J.N.Tata, established Japan-India liner service between Kobe and Bombay

1911 Commence Calcutta liner service

1992 Tata NYK Transport Systems Ltd. is incorporated as a 50:50 JV between NYK and Tata Tea Ltd as the exclusive agent in India for

NYK.2003 Name of the company was changed to NYK Line (India) Ltd after re

view of shareholding structure in 2001.2007 TATA Steel Ltd.and NYK established a joint shipping company for

the carriage of coal and iron ore etc. • Bombay-Kobe 1Bombay-Kobe 1stst Int’l liner service in 1893 Int’l liner service in 1893• Serving India for over 110 yearsServing India for over 110 years

14/2/2008 5

Activities in India

• NYK LINE (INDIA) LTD.– Business : Shipping agency for container business– HQ/Branch : Mumbai, Delhi, Ludhiana, Pipavav, Kolkata, Chennai, Bangalore, Cochin, Tuticorin – No.of staff : 190

• NYK MASTER AUTO LOGISTICS LTD.– Business : Truck transportation of finished vehicles– HQ/Branch : Mumbai / Delhi, Chennai– Main client : Maruti, Tata Motors– No.of staff : 30– No. of Trailer : 47

• NYK LOGISTICS (INDIA) LTD. – Business : Warehousing, Forwarding– HQ/Branch : Mumbai / Delhi, Kolkata, Channai, Pune, Cochin, Tuticorin – Main client : Sony, Tata, Brother, JCB– Warehouses : Mumbai, Grugaon, Chennai– No.of staff : 170

• Yusen Air & Sea Service (India) Pvt. Ltd.– Business : Freight Forwarding (air freight) – HQ/Branch : Delhi (HQ), Mumbai, Bagalore– No. of staff : 40

• NYK SHIPMANAGEMENT PTE LTD– Business : Recruitment & Training for Seafarers– HQ / Branch : Mumbai / Delhi, Kolkata, Channai– No. of Staff : 29

14/2/2008 6

Keys to Success

1. Harmonized exploitation of infrastructure

Continued

Container Terminals

Roll-On/Roll-Off Terminals

Roads Railways ICD (Inland Container Depot)

i) Hardware

14/2/2008 7

Keys to Success

Continued

Deregulation & Reformulation of Laws Motor Vehicle Act 1988 (5th Amendment) Central Motor Vehicles Rules, 1989 (5th Amendment)

Planned land acquisition by Public sector and smooth procedure for Change of Land Use

ICEGATE (Indian Customs & Excise Gateway) Customs EDI Format needs to be unified and simplified Require ONE system for customs’ clearance

ii) Software – Government Policy

14/2/2008 8

Supply Chain Cyclefor Automobile Industry

RORO terminal

～　～　～　～　～～　～　～　～　～

～　～　～　～　～

～　～　～　～　～

～　～　～　～　～

～　～　～　～　～

Carrier car

Vehicledistribution

center

Dealer

Consumers

Supplier

Supplier

Road / Highway / Rail

RORO terminal

Carrier car

Car carrier

Finished cars

Parts

Parts

Consolidation center

CKD, Parts, etc

Rail & Truck

Development by Public and Private

Asia / Japan India

Rail / Truck

Inland Container

Depot

Factory

Carrier carDealer

Consumers

Finished cars

Container ship

CKD, Parts, etc

Container terminal

Container terminal

14/2/2008 9

Keys to Success

From Historical and Geographic perspective, Mumbai/JNPT(Nhava Sheva) remains the gateway to/from Western countries

ENNORE Port, strategically located on the south east coast, must be developed as another gateway port for SE ASIA and FE Chennai Port has little space for further expansion SE ASIA and FE are the fastest growing region and have more or l

ess 50% of global container traffic volume

2. Balanced development between the regions

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(‘000TEU)

Container Throughputat JNPT & Mumbai

Grew at 5-year CAGR of 13.5% from 2001 and dominate approximately 60% of entire Indian container traffic

Continue to remain as the gateway port between Europe, USA, M.East and Africa

Port 2001 2002 2003 2004 2005 20062001-06CAGR

JNP & Mumbai 1,827 2,143 2,466 2,590 2,823 3,437 13.5%

Source: Containerization International

14/2/2008 11

Future Supply & Demand at JNPT & Mumbai

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Demand (Throughput) 3,900 4,425 5,021 5,697 6,464 7,335 8,323 9,444 10,716 12,159

Supply (Capacity) 3,750 3,750 3,750 3,750 5,150 7,350 9,550 9,550 9,550 9,550

Utilization (%) 104% 118% 134% 152% 126% 100% 87% 99% 112% 127%

Assumption : Annual growth rate of 13.5%

(‘000TEU)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2007 08 09 10 11 12 13 14 15 16

'00

0T

EU

0%

20%

40%

60%

80%

100%

120%

140%

160%

Demand (Throughput)

Supply (Capacity)

Utilization (%)

• Demand will steadily increase and consequently far exceed capacity in the short term

• Additional capacity definitely required

14/2/2008 12

Container Throughput at Chennai

Chennai has grown at 5-year CAGR of 22.5%, much faster than JNPT & Mumbai

Port 2001 2002 2003 2004 2005 20062001-06CAGR

Chennai 344 425 539 617 735 957 22.5%Source: Containerization International

14/2/2008 13

Future Supply & Demandat Chennai

Assumption : Annual growth rate 22.5%

(‘000TEU)

• Chennai is an important port as the gateway to/from SE Asia and FE

• Nevertheless, it has little space for further expansion after 2nd Terminal under construction by PSA and SICAL

• Need to develop additional capacity at Ennore Port with proximity of Chennai and less environmental problems

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Demand (Throughput) 1,172 1,435 1,757 2,152 2,635 3,227 3,952 4,840 5,927 7,258

Supply (Capacity) 950 1,400 1,400 1,400 3,050 3,800 3,800 3,800 3,800 3,800

Utilization (%) 123% 151% 185% 227% 86% 85% 104% 127% 156% 191%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2007 08 09 10 11 12 13 14 15 16

('000

TEU

)

0%

50%

100%

150%

200%

250%

Demand (Throughput)Supply (Capacity)Utilization (%)

14/2/2008 14

Keys to Success3. Look Asia!, Look

Japan!

Asia is the most important region both in export & import

India Export & Import Trade Amount- Share by Region -

0%

5%

10%

15%

20%

25%

30%

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 Europe Americas AsiaM.East Others

14/2/2008 15

How can NYK contribute ?

1. Development and Operation of container terminal at ;• JNPT 4th Container Terminal, and/or• Terminal in Gujarat

2. Development and Operation of container terminal at ;• Ennore Port

3. Operate RORO terminals developed by Public sector on both East and West coast

14/2/2008 16

Strength of NYK - Global Container Carriers-

< Individual Carrier Ranking > (TEU)1 MAERSK 1,610,0002 MSC 990,0003 CMA-CGM 650,0004 EVERGREEN 550,0005 HAPAG-LLOYD 440,0006 COSCO 380,0007 CHINA SHIPPING 360,0008 HAJIN 340,0009 NYK 310,00010 APL 310,00011 OOCL 300,00012 MOL 280,00013 K-LINE 270,00014 YANGMING 260,000 15 ZIM 220,00016 CSAV 220,00017 HAMBURG-SUD 190,00018 HYUNDAI 180,000

MISC 50,000

< Group Ranking Top 5 >(TEU)

1 MAERSK 1,610,000

2 CKYH 1,250,000

3 Grand Alliance 1,100,000

4 MSC 　 990,000 　

5 TNWA 770,000

Continued

Source: MDS 2006

14/2/2008 17

“Hercules Service”

“Hyper Galex Service”

“China India Express”

“Pakistan India Express”

Strength of NYK- Container Shipping -

Continued

•Four weekly direct sailings between JNPT and SE Asia / FE

•Another new service - JNPT / China direct linkage - is coming soon

•No other carriers than NYK serving JNPT directly from Japan

14/2/2008 18

Strength of NYK- Container Shipping -

• NYK is the 1st carrier launched weekly service between Chennai and SE ASIA

• Two weekly direct sailings between Chennai and SE Asia / FE

Continued

“Thai Chennai Express”

“Asia Chennai Service”

14/2/2008 19

Container Terminals

Tokyo

Yokohama

Nagoya (2)

Kobe

Japan

Canada Netherlands

Thailand

Australia

Taiwan

Montreal

Halifax

Amsterdam

Sydney

Laem Chabang

China

Dalian (2008)

Shanghai (2009)

USA

Los Angeles

Houston

Tacoma (2012)

Kaohsiung

Continued

Total 13 terminals in 6 countries

Handled 8.3 million teus in 2006 (incl. stevedoring)* As of Dec 2007

14/2/2008 20

Strength of NYK- Container Terminal -

JNPTJNPT

ENNOREENNORE

NYK, as the lead member, is aiming to develop and operate new terminals at JNPT and ENNORE in alliance with Asia based global carriers.

Asian Carriers’ ConsortiumAsian Carriers’ Consortium

NYK LineNYK Line (Leader)(Leader) Hyundai Merchant Hyundai Merchant MarineMarine

++ Evergreen MarineEvergreen Marine

Continued

14/2/2008 21

Strength of NYK- RORO Carrier & RORO Terminal -

• Largest operator of RORO vessels in the world

• Strong relations with all the major automobile manufacturers, TOYOTA, SUZUKI, MARUTI, TATA MOTORS

• Rich experiences in operation of RORO terminals in overseas (China, Singapore, Thailand and Belgian)

ContinuedSource : “World PCC Fleet” July 2007 Fearnresearch

Capacity (Cars)

459,911

0

100,000

200,000

300,000

400,000

500,000

NYK MOL EUKOR K LINE WWL

Share 17%

14/2/2008 22

RORO TerminalsChina

Dalian Tianjin Shanghai

Thailand Laem

Chabang

Antwerp Zeebrugge

Belgium

Singapore Singapore

RegionLand area

(ha)

Storage capacity

(cars)

Far East 106 34,000

SE Asia 33 24,000

Europe 238 98,000

Total 377 156,000

14/2/2008 23

RORO Terminal Requirements

Capacity : 500,000 vehicles p.a.

Quay length : 540 m

Draft at Berth : 12 m

Width of apron : 50 m

Parking Space : 250,000 m2 (adjacent to the terminal)

Free from tidal/current factors for operations on 24x7 basis

Rail-siding with adjustable ramp

Land for PDI facilities for Multiple automobile companies

Area free of dust pollution

Continued

14/2/2008 24

RORO Terminal – Planned Layout

Continued

14/2/2008 25

Keys to Sucess

1. Harmonized exploitation of infrastructure

2. Balanced development between the regions

3. Look Asia!, Look Japan!

14/2/2008 26

Our Wishes

1. Concession to develop, operate and manage JNPT 4th Container Terminal or alternative in Gujarat

2. Concession to develop, operate and manage new container terminal at Ennore Port

3. Concession to Operate dedicated RORO terminals developed by PUBIC sector

14/2/2008 27

Thank you !