Senior Managing Corporate Officer 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

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$911 million) Rating : A3 by Moody’s Investors Service Scale of Fleet : 742 vessels Employees : Approx. 48,000 Please let me introduce NYK briefly. NYK was established one hundred and twenty three years ago in 1885. We have been diversifying from shipping to warehousing and air freight to meet customers’ needs. In 2006 Fiscal Year, NYK made record revenue of one hundred and eighty three billion US dollars. The above data is on consolidated basis US$ = @ Japanese Yen 118.05 as of March 31, 2007 14/2/2008

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 (2010) We operate 742 vessels in 2007 and will expand our fleet by 25 % to 932 vessels in 2010. Also, we are operating 379 warehouses around the world. We are recently expanding terminal business as well. We are operating container terminals and providing stevedore service at 34 terminals, while we operate 7 Roll-On Roll-Off terminals. Meanwhile, we acquired air freight operator namely NCA that will increase its fleet from 10 to 22 in 2010. 14/2/2008 As of March 2007

History Bombay-Kobe 1st Int’l liner service in 1893 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 review 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. In 1893, just 8 years after inauguration, NYK launched Japan-India liner service in response to request of Mr J.N.Tata. Since then, NYK has been serving India for over 110 years with intimate relationship with TATA group. Bombay-Kobe 1st Int’l liner service in 1893 Serving India for over 110 years 14/2/2008

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 As of today, we operate 5 companies here in India and provide our valuable customers with container shipping, trucking finished vehicles, warehousing and freight forwarding services. 14/2/2008

Keys to Success Harmonized exploitation of infrastructure i) Hardware Container Terminals Roll-On/Roll-Off Terminals Roads Railways ICD (Inland Container Depot) For the development of Indian economy, quality upgrade and capacity expansion of economic and social infrastructure are imperative. They are Container Terminals, RORO Terminals, Roads, Railways and Inland Container Depot. At the same time, each infrastructure must be developed in harmonized way, and well integrated with each other to maximize the value of supply chain management. Continued 14/2/2008

Keys to Success ii) Software – Government Policy 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 In addition, support from legislative and administrative field will optimize successful use and economic effect of the developed infrastructure. We propose Motor Vehicle Act 1988 and Central Motor Vehicles Rules 1989 should be deregulated and reformulated to streamline traffic on roads. Also, planned acquisition of land and change of land use by the government will help Private sector to expedite their development. Also, customs EDI systems must be modernized, utilizing IT Continued 14/2/2008

Supply Chain Cycle for Automobile Industry Asia / Japan India Road / Highway / Rail Supplier Carrier car Dealer Consumers Parts Consolidation center ～　～　～　～　～ CKD, Parts, etc Rail & Truck Container ship CKD, Parts, etc Container terminal Rail / Truck Inland Container Depot Factory Finished cars Carrier car Vehicle distribution center Dealer Consumers This picture describes key infrastructure in supply chain cycle taking automobile industry as an example. In this supply chain model, we propose the Public Sector should be responsible for developing Road, Highway and Rail as well as RORO terminals. Then, The Private Sector will develop Container Terminals and ICDs. RORO terminal Car carrier Finished cars RORO terminal Carrier car Development by Public and Private 14/2/2008

Keys to Success 2. Balanced development between the regions 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 less 50% of global container traffic volume Another aspect for successful installation of infrastructure development in India is “Balanced Development” between each region (以下スライドに沿って説明) 14/2/2008

Container Throughput at JNPT & Mumbai (‘000TEU) Source: Containerization International 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 Annual average growth in JNP / Nhava Sheva is 13.5% during the period of 2001 and 2006. 14/2/2008

Future Supply & Demand at JNPT & Mumbai (‘000TEU) Assumption : Annual growth rate of 13.5% Demand will steadily increase and consequently far exceed capacity in the short term Additional capacity definitely required Assuming 13.5% of growth continues, future supply / demand s 14/2/2008

Container Throughput at Chennai Source: Containerization International Chennai has grown at 5-year CAGR of 22.5%, much faster than JNPT & Mumbai Chennai shows 22.5% of annual average growth, even faster growth than that of Nhava Sheva 14/2/2008

Future Supply & Demand at Chennai (‘000TEU) Assumption : Annual growth rate 22.5% 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 Supply and demand situations will be more serious in Mid 2010’s in Chennai than in Mumbai / Nhava Sheva if Chennai continues to grow maintaining present pace. 14/2/2008

Asia is the most important region both in export & import Keys to Success 3. Look Asia!, Look Japan! The graph shows trade amount share by region. Trade scale between India and Asia has been growing over the years and surpassed that of Europe in year 2003 to 2004 for the first time. This trend is most likely to continue and even accelerate. Japan’s manufacturing sector such as automobile, electric appliances (SONY, Panasonic etc.) and many others are driving the strong economic development of the region. Therefore, India should weigh more importance on the Asian side in developing infrastructure. ※Asia = including North East Asia (Japan, China, Korea and Oceania) and South East Asia (ASEAN), Asia is the most important region both in export & import 14/2/2008

How can NYK contribute ? Development and Operation of container terminal at ; JNPT 4th Container Terminal, and/or Terminal in Gujarat Ennore Port Operate RORO terminals developed by Public sector on both East and West coast （プレゼン資料に沿って説明） 14/2/2008

Strength of NYK - Global Container Carriers- < Individual Carrier Ranking > (TEU) 1 MAERSK 1,610,000 2 MSC 990,000 3 CMA-CGM 650,000 4 EVERGREEN 550,000 5 HAPAG-LLOYD 440,000 6 COSCO 380,000 7 CHINA SHIPPING 360,000 8 HAJIN 340,000 9 NYK 310,000 10 APL 310,000 11 OOCL 300,000 12 MOL 280,000 13 K-LINE 270,000 14 YANGMING 260,000 15 ZIM 220,000 16 CSAV 220,000 17 HAMBURG-SUD 190,000 18 HYUNDAI 180,000 MISC 50,000 < Group Ranking Top 5 > (TEU) MAERSK 1,610,000 CKYH 1,250,000 Grand Alliance 1,100,000 MSC 　 990,000　 TNWA 770,000 NYK is the core member of 3rd largest shipping alliance in the world. Source: MDS 2006 14/2/2008 Continued

Strength of NYK - Container Shipping - 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 “Hercules Service” “China India Express” “Hyper Galex Service” “Pakistan India Express” In reflection of the growing trade, NYK has pioneer to direct container services from Asian cities to both west and east coast of India. Currently NYK has 4 direct services into Nhava Sheva. Only NYK has direct container service between Nhava Sheva and Japan. And new service connecting Nhava Sheva with India will start soon. 14/2/2008 Continued

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 “Asia Chennai Service” “Thai Chennai Express” NYK is also the pioneer in direct container service between South East Asia/Far East and Chennai. 14/2/2008 Continued

Container Terminals Total 13 terminals in 6 countries Japan Tokyo Yokohama Nagoya (2) Kobe Canada Netherlands Montreal Halifax Amsterdam China Dalian (2008) Shanghai (2009) Taiwan Kaohsiung USA Los Angeles Houston Tacoma (2012) Thailand Laem Chabang (プレゼン資料に沿って説明) Australia Sydney Total 13 terminals in 6 countries Handled 8.3 million teus in 2006 (incl. stevedoring) * As of Dec 2007 14/2/2008 Continued

Strength of NYK - Container Terminal - Asian Carriers’ Consortium NYK Line (Leader) Hyundai Merchant Marine + Evergreen Marine JNPT ENNORE As explained, as the most important region for Indian economy, you need to take Asia into consideration in developing infrastructure. In line with this concept, NYK called two other Asian container shipping carriers, Hyundai for Korea and Evergreen for Taiwan to form a consortium in pursuit of winning the tender in Container Terminal Development Project in JNPT and Ennore Port. NYK, as the lead member, is aiming to develop and operate new terminals at JNPT and ENNORE in alliance with Asia based global carriers. 14/2/2008 Continued

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) Share 17% (プレゼン資料に沿って説明) Source : “World PCC Fleet” July 2007 Fearnresearch 14/2/2008 Continued

Storage capacity (cars) RORO Terminals Region Land area (ha) Storage capacity (cars) Far East 106 34,000 SE Asia 33 24,000 Europe 238 98,000 Total 377 156,000 China Dalian Tianjin Shanghai Belgium Antwerp Zeebrugge Thailand Singapore Laem Chabang Singapore Presently NYK operates 7 RORO terminals in the world. 14/2/2008

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 If RORO Terminal is development in India by Public Sector NYK is happy to operate them taking the advantage of rich experience. 14/2/2008 Continued

RORO Terminal – Planned Layout NYK is able to advise in design and layout of the RORO terminal. If anybody is interested, please contact us after the session. Continued 14/2/2008

Keys to Sucess Harmonized exploitation of infrastructure Balanced development between the regions Look Asia!, Look Japan! (添付資料に沿って説明) 14/2/2008

Our Wishes Concession to develop, operate and manage JNPT 4th Container Terminal or alternative in Gujarat Concession to develop, operate and manage new container terminal at Ennore Port Concession to Operate dedicated RORO terminals developed by PUBIC sector （添付資料に沿って説明） 14/2/2008

Thank you ! 14/2/2008