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COSCO, "K" LINE AND YANGMING SEEK FURTHER COOPERATION

COSCO, “K” LINE AND YANGMING SEEK FURTHER COOPERATION

   Alliance partners China Ocean Shipping Co., "K"
Line and Yangming Marine Transport have discussed the possibility of cooperating more
closely.
   Following a meeting by representatives of the three Asian carriers in Tokyo,
all parties agreed to deepen the current joint service cooperation, a spokesman for COSCO
said.
   COSCO Container Lines is asking its regional offices and subsidiaries to
comment on the alliance cooperation to rationalize and upgrade its current cooperation
with "K" Line and Yangming.
   COSCO would then study and discuss other areas of cooperation with these
partners, the Chinese shipping line said.
COSCO has operated within a global alliance with "K" Line and Yangming since
January 1998. Details of the seven transpacific services, three Asia/Europe loops and two
transatlantic operations of the alliance are posted on the ComPairData global shipping
database at http://www.compairdata.com.
   The three shipping lines of the alliance have also ordered containerships of
the same capacity, a move that is seen as a sign of further long-term operational
integration.
   Yangming ordered five 5,500-TEU ships and recently announced a plan to order
another two vessels of the same size. COSCO is having seven 5,250/5,500-TEU containerships
built, with another three vessels on option. "K" Line is considering an order
for eight ships of 5,500-TEU capacity.
   If all orders and options are confirmed, the Asian alliance will add 25 ships
of about 5,500-TEU within the next two or three years.