PECT and MAERSK SEALAND Ink Terminal Service Contract

MAERSK SEALAND, the world's number one shipping line, and Pusan East Container Terminal (PECT), the leading container terminal in the Port of Busan, showed their cooperation for the public eye. A contract representing the largest volume lifted by a single brand name in the Port of Busan was entered into by the two companies at a signing ceremony that took place in the Lilac Room of The Westin Chosun Hotel, Seoul, at 12:00 on the 1st day of November 2005, which was witnessed and endorsed by senior management from both organizations.

The contract will take effect on the 1st of January 2006 whereby MAERSK SEALAND will contribute approximately 1 million TEU per annum to PECT, equivalent to almost 40% of PECT's total handling capacity. The commitment from MAERSK SEALAND will go a long way towards securing PECT's future as well as improving the Terminal Operators market share in an increasingly competitive market.

At the signing ceremony, MAERSK SEALAND were represented by President K.S. Park and CFO Klaus Laursen both from MAERSK Korea Ltd. Above all, the presence of MAERSK SEALAND's CEO for North East Asia, Joergen H. Madsen, indicated the significance and importance of the terminal agreement.

MAERSK SEALAND has a combined tonnage capacity of 1.5 million TEU with over 500 containerships including those of P&O Nedlloyd. PECT commenced operations in June 1991 and accounts for about 17% of the total container traffic in the Port of Busan. Its four-berth facility offers 1,200m of quay length and a depth alongside of 14m~16m. Land area there totals 1,144,600 sq. m, supported by thirteen ship-to-shore gantry cranes, six of which are able to handle 20 containers across, and thirty-two four-high RTGs with sufficient yard trucks and reach stackers.

With a customer list including OOCL, NYK, Hapag-Lloyd, MISC, APL, MOL, HMM, CMA CGM, and K-LINE, PECT's throughput stood at 1,963,304 TEU in 2004 and will exceed the 2 million TEU mark before 2005's year end.

In Jin Kim, president of PECT, revealed his mood at the event saying, "I trust MAERSK SEALAND, and thought long and hard over this decision while also considering the alternatives, and have made the right choice as they have shown their commitment and confidence in PECT. We at PECT will endeavor to make our best effort to meet the expectations and standards set by MAERSK SEALAND in support of their decision and confidence in PECT."

He continued, "For several years, PECT has been looking towards the future which can be seen in the company's most recent investment plans, starting with the dredging of several berths allowing for deeper draft alongside, the recent purchase of new bigger quay cranes now in full swing, the construction of a new CY for berth no. 4, Korea's first automated unmanned yard crane system, and the construction of berth no. 5 and its adjoining CY."

"These recent initiatives will ensure we stay ahead of the rapidly ever-changing global competition."

"MAERSK SEALAND showed a keen interest in our determination and efforts for aggressive future investment. On the solid ground of strong confidence in each other's capability, we built a new win-win partnership today," explaining what made it a success story.

The integration of MAERSK SEALAND and P&O Nedlloyd is expected to bring synergy to a new giant entity under a single world-renowned brand name. PECT appears to be the first container terminal in the region that has shaped its partnership anew with the mega-carrier with combined volumes. "It's truly a win-win result and will present valuable synergy for both the line and the terminal," said the two presidents of MAERSK Korea and PECT.