"K" Line Group Company (Ka Fung), starting Trucking Services in Guangdong Province
Tokyo Japan

Through the CEPA (Closer Economic Partnership Arrangement) between China and Macau, Ka Fung, a "K" Line affiliated company, successfuly set up a 100% self owned subsidiary international forwarding company in Shenzhen in June 2005. Going through the necessary process in China, Ka Fun's Shenzhen subsidiary, Shenzhen Jia Feng Shipping Co. Ltd., has started providing oceain container trucking services since June of this year (2006).

Providing high quality services, Ka Fung has immediately received good support from most shippers. All 20 units of self-owned container trucks are under full operation. An additional 10 unit container trucks will be added to strenghen the carrying capacity within this year. Currently, the trucking services are covering the Pearl River Delta area with the hub in Shenzhen. The trucking fleet will expanded in the near future with the aim to broaden the covering areas in neighboring Southern China provinces.

The application for relevant trucking licenses for handling of break bulk cargoes and providing car carrier services is currently under progress via the Shenzhen subsidiary company. Those licenses are expected to be approved soon.

Thanks to a close and long term relationship with many of the Pearl River Delta area shippers, Ka Fung successfully established a strong business base there. From now on, various kinds of trucking services will be developed together with warehousing and other forwarding services. Ka Fung is confident to grow steadily and quickly become one of the core comprehensive logistics service providers with a base in the Pearl River Delta area.

Description for Ocean Container Trucking Business:

• Operating center is located in Yantian, close to the terminal area. Eight control staff members are engaged in day to day operations, monitoring the drivers, trouble shooting and equipment maintenance.
• GPS (Global Positioning System) device has been equipped to all the tractors for multi-function monitoring. The above mentioned operating center can trace the real-time status of all container trucks in all aspects.
  
  For further information, please contact:
  
  "K" Line (Hong Kong) Ltd.
  Managing Director Yoshikazu Minagawa
  Tel: +852-2861-5681
  Fax: +852-2527-8776
  
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