1. COHESION Freight (HK) Ltd. 2008 Beijing Olympics Business Impact Date: 4 th August, 2008

2. Key Highlights Beijing Tianjin Qingdao Shanghai Hong Kong Extend of Impact HKG Shanghai Qingdao Tianjin Beijing The 29 th Olympic Games From Aug/08 to Aug/24 Main Venues : Beijing Sailing Competition : Qingdao Football : Tianjin, Shenyang, Qinhuangdao, Shanghai Equestrian : Hong Kong Beijing Paralympics Sep/06 to Sep/17 Control Measures Air Quality Control Traffic Control Port Security Control DG Cargo Control Affected Geography

3. Beijing Traffic Control – Local vehicle usage restriction Meet Euro-1 emission standard Odd/Even # license plates operate  six-hour window  on alternate days Cargo movements  Skirt around Beijing  Longer transit time between XGN & PEK area Cargoes in, out & within PEK  Extremely restrictive  Much more costly Air Quality Control – Heavy-polluting industries Suspension or reduction of production activities  metallurgy, steel production, chemicals, glass, cement, etc Minimal impact PoliciesImpacts

4. Tianjin Traffic Control – during extreme weather condition Suspension of oil production Closure of gas stations Odd/Even # license plates operate  on alternate days Limited impact, as:  Only during extreme weather conditions  Less chance for effective several days in a row Buffer on shipment time is suggested Air Quality Control – Heavy-polluting industries Suspension or reduction of production activities  metallurgy, steel production, chemicals, glass, cement, etc Minimal impact PoliciesImpacts

5. Qingdao Tightened Port Security Control Special administration & regulation on Maritime Safety, with limits on:  Vessel traffic  Vessel speed  Vessel type  Passing time Ships delay in calling TAO  Some carriers drop Qingdao New World Alliance  Withdrawn 3 services from Qingdao temporarily Air Quality Control – Heavy-polluting industries Suspension or reduction of production activities  metallurgy, steel production, chemicals, glass, cement, etc Minimal impact PoliciesImpacts

6. Shanghai DG Cargo Control Local Security Measures Prohibits several categories of DG From July/18 to Aug/25 Applies to:  Export  Import  Transship  In transit at SHA DG importers not able to get sufficient raw materials for production DG exports suspended PoliciesImpacts

7. Regions around Beijing Hebei, Shanxi, Shandong & Inner Mongolia Traffic Control – moving goods to Tianjin Not allow passing through Beijing Needs to diverted Cargo movements  Skirt around Beijing  Adding distance  Extra fuel consumption  Longer transit Air Quality Control – Heavy-polluting industries Suspension or reduction of production activities  metallurgy, steel production, chemicals, glass, cement, etc Minimal impact PoliciesImpacts

8. All Mainland China DG Cargo Control Disallowed to enter the Olympic Games cities Stringent control of DG transportation Challenge for manufacturers in transporting :  raw materials  finished products Heightened Security Control Customs Declaration & Quality Inspection Both import and export  Tight customs inspection  Increase of frequency Customers need to pay more attention to :  documentation compliances  buffer time for shipment PoliciesImpacts