Nippon Express Establishes Joint Venture with Major Chinese Shipping Company

Nippon Express has joined with China Shipping Japan Co., Ltd. (Head Office: Chuo-ku, Tokyo; President: CHEN Changhai), the Japanese subsidiary of China Shipping (Group) Company, a major Chinese shipping firm, to establish a new company. With cargo shipments to and from China expected to grow substantially in future, the two partners are contemplating an expansion of the cargo they handle by utilizing the networks and logistics know-how possessed by both companies.

China Shipping is a key government-owned company managed directly by the Chinese government that boasts China's largest fleet of oceangoing container ships. The joint venture will provide customers with competitive services that combine extensive and reliable transport using China Shipping's world-class liner route network with Nippon Express' know-how in global logistics.

The new company, CNJ World Logistics Co., Ltd. (Michiya Shimizu, President), was established on September 25 with capital of 40 million yen provided in equal shares by Nippon Express and China Shipping Japan. CNJ World Logistics will work in concert with the joint venture partners, engaging in sales to acquire new business while the two partners carry out the actual logistics operations.

Nippon Express is seeking through this joint venture to increase its competitive advantage in transport to and from China and to provide even more comprehensive logistics services for Japan-China, trilateral and global trade. This will enable Nippon Express to further solidify its status as a leader in comprehensive logistics worldwide and to expand its sales by developing new customer segments and business models.

Nippon Express pledges to continue its efforts to accurately ascertain the needs of customers and improve its logistics services.

Name:	CNJ World Logistics Co., Ltd.
Location:	Shinagawa-ku, Tokyo
Date of establishment:	September 25, 2007
Start of business:	October 1, 2007
Capital:	40,000,000 yen (outstanding shares: 800)
Investment ratio:	Nippon Express 50%, China Shipping Japan 50%

Location:	Chuo-ku, Tokyo
Establishment:	November 1997
Capital:	20 million yen
Scope of business:	Exclusive agent in Japan for China Shipping (Group) Company
Other:	Wholly-owned subsidiary of China Shipping (Group) Company

Location:	Shanghai, China
Establishment:	July 1997
Capital:	6,620,227,000 RMB (approx. 99,303 million yen)
Scope of business:	A key state-run enterprise directly managed by the Chinese government whose principal business is ship operation (operation of container vessels, tankers, cargo ships, passenger ships, and special cargo ships); the company is also engaged in such incidental operations as terminal management, ship's agency, air cargo transport, ship repair, crew management, container manufacture, and trade-related financing and investment.
Container shipping industry share:	450,000 TEU (6th worldwide, 1st in China) <as of September 2007>