July 31, 2014
KAWASAKI KISEN KAISHA, LTD. ("K" Line) is pleased to announce that "K" Line and Ports America have agreed to form a strategic partnership aimed at enhancing and expanding "K" Line’s container terminal business.
International Transportation Service, Inc.（ITS）, which is a wholly-owned subsidiary of "K" Line, has operated container terminals in Long Beach and Tacoma for more than 40 years. ITS was the pioneer in providing on-dock double stack rail service to its customers, which enable them to have direct delivery across North America, especially to inland delivery points in the mid-west. The partnership with Ports America, which operates terminals throughout the U.S., will further enhance "K" Line's terminals with high operating standards, improved efficiency, quality service and cost competitiveness. This will enable ITS to handle ultra-large containerships and continuously support "K" Line's transpacific service.
"K" Line has maintained a good relationship with Ports America, the largest terminal operator and stevedoring company in the United States. Ports America provides stevedoring services to "K" Line in Oakland for containerships and in Jacksonville, Newark, Brunswick and Charleston for car carriers.
With this transfer of a partial stake in ITS to Ports America, ITS will be well positioned to meet its core objectives and to ensure a successful strategic partnership between "K" Line and Ports America.
| (1) Subsidiary | : International Transportation Service, Inc. (KL: 100 percent) |
| (2) Transfer to | : Ports America (Headquarters: New Jersey, U.S.) |
| (3) Shares to be transferred | : 30 percent |
| (4) Date of the transfer | : Closing will occur after regulatory approvals, expected in late August 2014. |
Ports America, headquartered in New Jersey, is the largest independent marine terminal operator and stevedore company in the United States. The company currently operates in more than 42 ports and 80 locations. Ports America handles all types of cargo, including container, bulk, breakbulk, automotive, project, military and cruise, typically handling 12.7 million TEU, 4.3 million vehicles, 8.9 million tons of general cargo and 1.6 million cruise ship passengers annually. For more information, please visit www.PortsAmerica.com.
ITS was established in 1971 and operates terminals in Long Beach, California, supporting "K" Line's transpacific services for more than 40 years. Husky Terminal & Stevedoring, Inc., a wholly-owned subsidiary of ITS, was established in 1983 and has operated terminal in Tacoma, Washington for more than 30 years. They are responding to increasing cargo movements by conducting terminal expansion construction and increasing exclusive leased land.