Shanghai Super Express Launches High-Speed Ocean Cargo Service between Hakata and Shanghai

Shanghai Super Express Co., Ltd., a new company formed as a joint venture by Sumitomo Corporation (head office: Chuo Ward, Tokyo; Motoyuki Oka, President & CEO), Nippon Express Co., Ltd., Mitsui O.S.K. Lines, Ltd. (head office: Minato Ward, Tokyo; Kunio Suzuki, President), and Kamigumi Co., Ltd. (head office: Kobe City, Hyogo Prefecture; Mutsumi Ozaki, President), will be launching a high-speed ocean cargo service between Hakata (Fukuoka City) in Japan and Shanghai in China. The first departure from Shanghai is scheduled for November 7, and the first departure from Hakata for November 8. This will be the first high-speed RORO cargo liner service offered between Japan and China.

To handle the sharply rising demand for cargo transport between Japan and China, the new company will offer direct service in 26.5 hours between Hakata and Shanghai, operating high-speed RORO vessels (gross hull weight: 7,389 tons; cruising speed: 20 knots) at regular departure/arrival times on scheduled days. This shuttle service will link the Kanto, Kyushu, Kansai, Chubu and other domestic economic zones with Shanghai and the Huadong region in China and offer a lead time on par with air transport. For example, factory-to-factory shipping of cargo from Shanghai to Tokyo (truck transport between Hakata and Tokyo) by conventional container ship requires about 10 days, but the new company's express service substantially cuts this time to 3.5 - 4 days, nearly the same as for general air transport (3 days).

Although transport volume will be restricted (120 trailers or 40' containers per trip), sailing frequency will be increased to twice weekly and perhaps even more often in future. Shanghai Super Express will be providing high-quality door-to-door logistics service for apparel, perishable goods, electronic components, automotive parts, machinery and equipment, etc., that fully satisfies a variety of customer needs. Sales are forecast to reach ¥3 billion in two years (2005).

Joint operation by Nippon Express-Mitsui O.S.K. of a RORO ferry service between Hakata and Tokyo began in October (sailing daily except Sundays from January 2004), and Shanghai Super Express intends to establish a seamless connection with this service to meet its customers' needs.

Name:	Shanghai Super Express Co., Ltd.
Date of establishment:	August 2003
Head offices:	Fukuoka City, Fukuoka Prefecture and Minato Ward, Tokyo (registration: Fukuoka City, Fukuoka Prefecture)
President:	Keisuke Hamada (dispatched from Sumitomo Trading)
Paid-in capital:	¥300 million
Shareholders:	Sumitomo Corporation (40%), Nippon Express (40%), Mitsui O.S.K. (15%), Kamigumi (5%)
Employees:	10 (initially)
Business:	High-speed RORO cargo vessel operation, international forwarding, etc.

RORO (Roll On Roll Off) vessels

• Cargo vessels that transport trucks and trailers loaded with cargo. The Roll On Roll Off method, whereby trucks and chassis drive under their own power up the rampway onto the vessel and are transported still loaded with cargo to the point of discharge, has the following advantages: (1) loading efficiency is far higher (and loading easier and faster) than for air and container shipments, (2) cargo is not subject to the shocks or bouncing caused when aircraft take off or land or when container vessels are loaded/unloaded, meaning less chance of damage, and (3) a wide range of cargo - from small-lot and consolidated shipments to large machinery difficult to transport in containers - can be handled flexibly.

High-speed transport/regular transport

• Use of high-speed (20-knot) RORO vessels shortens transport and loading/unloading time.

• Ordinarily, information must be transmitted back and forth among various shipping companies and forwarders in carrying out import/export customs clearance both at the loading location and the point of discharge, but Shanghai Super Express will be able to perform all tasks in-house in accordance with customer needs. Taking maximum advantage of the advance declaration system will make communications more efficient and substantially reduce the time required for customs clearance.

• With the time needed for ocean transport, loading/unloading, and customs clearance controllable to a high degree, Shanghai Super Express can provide something extremely rare in international ocean cargo shipping: cargo transport with a stipulated arrival time period.

High added-value/optimal transport

• Utilizing the logistics know-how as well as the logistics infrastructure and networks of Sumitomo, Nippon Express, Mitsui O.S.K. and Kamigumi, Shanghai Super Express will provide a high-quality door-to-door logistics service that fully satisfies various customer needs and achieves net cost reductions through overall optimization.