NYK Shipping line

The NYK Group provides global services that encompass both the "hardware" and "software" aspects of marine, land, and air transport.

These services are supported in part through our transport of containers and cars, and the added value we provide through our terminal operations and harbor transport services.

We also have a Sea-Earth-Air Logistics Integrator Program (SEA-LIP) that we use to organically integrate the large-scale, global services that we provide so as to achieve optimal synergies.

At the very heart of our endeavors are a customer-centric philosophy and a regionally oriented management structure, in which all employees participate and take responsibility for profitability, allowing our organizations to move beyond the vertical walls between individual business units.

CONTAINER TRANSPORT

A variety of goods that are essential to our daily lives, including food, electrical appliances, etc., are transported via container vessels.

In recent years, the global flow of goods has dramatically changed along with increasing economic development in BRIC countries (Brazil, Russia, India, and China). Additionally, the volume of cargo movement via container vessels has also been increasing. In order to respond to the future demands for container transport, NYK will proceed to build 36 vessels to add to its fleet of 111 container vessels currently in operation.

NYK is making efforts not only to expand its fleet but also to construct the largest service-route network in the world. The Grand Alliance (GA), an organization established by Nippon Yusen Kaisha (NYK), Hapag-Lloyd Container Line Gmbh (Germany), Malaysia International Shipping Corporation (Malaysia), and Orient Overseas Container Line Ltd. (Hong Kong), currently offers joint-operation services using 125 container vessels. Further, in October 2005, the organization reached a business cooperation agreement with the New World Alliance (TNWA). They began their cooperation by exchanging slots in the Asia-Europe and Asia-Mediterranean trade routes, and introducing a new jointly operated Asia-North American East Coast route from March 2006.

Utilizing this large-scale transportation network, the NYK Group will continue to expand its shipping capacity, number of operation services, and number of ports of call in order to further increase the comprehensive strength of the NYK Group.

LOGISTICS

Supply-chain optimization, which often involves accessing the most suitable location and quickly responding to market demand amid globalization and fierce market competition, is a significant challenge for our customers. In order to meet such customer needs, the NYK Group offers a comprehensive logistics package that covers sea, land, and air.

Land tansport In order to provide efficient logistics services and respond to customers' diversifying global logistics needs, NYK operates 291 logistics centers in 36 countries and is capable of providing a variety of transport services by sea, land, and air between a large number of locations around the globe.

At many sites around the world, including numerous in Europe, North America, Asia, and China, NYK offers thorough supply-chain management services that include warehouse storage; processing, such as inspection, sorting, labeling, and repackaging; delivery to designated recipients; milk-runs; VMI (vender managed inventory); and IT-based inventory management. We also provide extensive transport services, such as overland delivery by truck or train, customs brokerage, forwarding, NVOCC (nonvessel operating common carrier) service; origin vender management service; and buyers consolidation. At NYK, we work hard to fulfill customers' logistics needs, and subsequently add more value to supply chains.

TERMINAL & HARBOR TRANSPORT SERVICES

Global cargo movement has increased in speed and complexity. Providing efficient comprehensive transportation services requires appropriate logistics control and the expansion of terminals, which are significant transition bases for integrated logistics services that cover sea, air, and land. Under these circumstances, the role of a comprehensive logistics company has become more and more important. The NYK Group, which owns 26 terminals in Asia, North America, and Europe, is ranked as the No. 9 terminal operating company worldwide.

Cargo Work In 2002, NYK acquired Ceres Terminals Incorporated, headquartered in the U.S. state of New Jersey, and began operations in the United States, the east coast of Canada, and areas around the Gulf of Mexico. Additionally, the facilities run by Ceres Paragon Terminals B.V., headquartered in Amsterdam, have steadily expanded after new route services were cultivated that use large vessels to connect North America with Europe, and Asia with Europe.

The NYK Group also agreed to a strategic partnership with Dalian Port Corporation in April 2006 to purchase shares of Dalian Port (PDA) Company Limited. By deepening its strategic partnership with Dalian Port Corporation, NYK has expanded its sea, air, and land logistics business, including the container and finished-automobile terminal businesses.

Additionally, in order to further strengthen its global logistics networks, the NYK Group strives to proactively expand each terminal's handling capacity.

CAR TRANSPORT

In the automobile transport business, NYK has operated transport services mainly for finished automobiles. However, the company has effectively responded to the recent trend in the automobile industry to assemble overseas and customers' demand for trilateral transport. In addition, NYK strives to construct a firm infrastructure by establishing coastal transportation networks in Europe, China, and Southeast Asia, constructing and operating dedicated terminals for finished automobile transport in each area, and investing in and developing inland transportation businesses.

NYK has also expanded transportation of used automobiles from overseas to Japan and offers value-added services such as predistribution inspection (PDI) processing, which includes inspections before final delivery to dealers, supplying parts, and repairing assembled automobiles at terminals.

In the automobile transport business, where cargo movement has increased globally, NYK operates 116 dedicated automobile carriers, the largest fleet in the world. Over the next three years, NYK will add more than 30 newly built carriers to proactively enhance fleet lineups in order to respond to customer needs.