Green News and Press Releases

"K" Line Announces Shift to Low Sulfur Fuel in the Pacific Northwest

March 22, 2007

Kawasaki Kisen Kaisha, Ltd. ("K" Line), one of the world's largest ocean transportation companies and an industry leader in environmental stewardship, announced that all container vessels in /"K" Line's Pacific Northwest service, calling at Tacoma , WA and Vancouver , B.C. will use low sulfur fuel in auxiliary machinery while the vessels are docked at Pacific Northwest ports.

All containerships in "K" Line's NOWCO-A service will be shifting to distillate fuel with a target level of 0.5% sulfur or less. This distillate fuel will be used in the ships' generators, which supply power to the ship while the ship is docked. The switch to distillate fuel will generate signif icant emission reduction of sulfur oxide (SOx) and particulate matter (PM). Sulfur oxide emission is expected to be reduced by 80% and PM emission is expected to be reduced by 70%.

"The Puget Sound region is in compliance with federal air quality standards today," said Port of Tacoma Executive Director Timothy J. Farrell. "As we continue to benefit from the growth of international trade, voluntary actions like "K" Line's will ensure that our region continues to be a great place to work and a great place to live."

Dennis McLerran, the Executive Director of the Puget Sound Clean Air Agency, expressed his support for the announcement when he stated, "We greatly appreciate "K" Line's shift to low sulfur fuels while its vessels are in port in Tacoma and Vancouver. This will result in very large emission reductions and provide significant public health and environmental benefits. "K" Line's decision to switch to much cleaner fuels on a voluntary basis demonstrates the company's continuing leadership in environmental stewardship."

The voluntary move to distillate fuels is just one step in "K" Line's global environmental strategy. Other Pacific Northwest initiatives included last year's switch to biodiesel use in all yard equipment at Husky Terminal in Tacoma , WA (jointly owned by Cooper/T. Smith, Inc. and International Transportation Service Inc., a wholly owned subsidiary of "K" Line). "K" Line has already implemented the use of low sulfur fuels for auxiliary machinery aboard Pacific Southwest vessels and "K" Line is a proud recipient of the Port of Long Beach's Green Flag Award in each year since its inception.

Ships operated by the "K" Line Group made 345 callings at Port of Long Beach with a 99.13% compliance rate during 2006 which is the highest among the carriers with more than 200 calls during 2006.

"K" Line's decision to use low sulfur fuels at Pacific Northwest ports is further evidence that the "K" Line Group is firmly committed to exert ceaseless efforts towards environmental preservation. Further details on "K" Line's environmental strategy may be found in "K" Line's Annual Corporate Social and Environmental Report.

"K" Line is an ocean transportation company operating over 400 vessels in world wide service. "K" Line is listed on the FTSE4 Good Environmental Index and is a member of the Clean Cargo Working Group.