[ PORT OF KOBE: REDUCTION OF PORT CHARGES ]

The Port of Kobe has revised the charges for use of port facilities as
part of its cost reduction measures.

Revision of Port Facilities Charges(Effective from May 1, 1998)

▷ Revision of the charge system for cargo handling yard
The charges for use of wharf with cargo handling yard have been replac
ed with a charges for use of cargo handling yard.

※ The charges for use of cargo handling yard
① This is a volume-incentive, three-day charge for container cargo ha
ndling.
② Instead of paying the charge for use of the cargo handling yard, us
ers may opt to pay a charge for use of the wharf area, according to th
e area of the yard and the number of days in use. (In general, the cha
rge for use of the cargo handling yard is more economical when handlin
g a larger than average volume.)

▷ Change in the basic unit of time for crane rental charges
The basic unit of time for rental charges for gantry cranes and cranes
for heavy cargoes has been changed from one hour to 30 minutes. This
arrangement has led to enhanced service flexibility and increased user
satisfaction.

Comparison with the previous charge system

The revision of the charges above has resulted in a cost reduction of
up to 30%.

Assumption
① Gross tonnage 7,800 ton
② Container Loading Capacity 440 TEU
③ Hours of moorage Up to 12 hours
④ Cargo handling is completed within three consecutive days including
the day on which the ship is berthed.
⑤ Hours of crane usage: 35 units/hour (Outreach: Between 37.0 m and 4
0.0 m)

Revision of the standards for ships subject to mandatory pilotage (Eff
ective from July 1, 1998)

In its capacity as a port manager, the city of Kobe submitted requests
to the Ministry of Transport to revise the standards for ships subjec
ts to mandatory piloting service, in line with other ports in Osaks Ba
y. As a result, the Ministry of Transport has resolved to relax the re
gulation from more than 300 ton to more than 10,000 ton, effective fro
m July 1, 1998.

* The calculations for the above charges are made on the assumption th
at a ship enters the Port of Kobe early in the morning and departs dur
ing the daytime.
* The charges for line handling, piloting and tug boats are for port e
ntry and departure, including overtime charges.

Exemption of port charges for the first calling of ocean-going vessels
(Effective as of July 1, 1998)

Ocean-going vessels entering Kobe Port for the first time are exempt f
rom port dues and wharfage.

▶ Other incentive measures
① Charges for use of port facilities have been reduced as follows.
(Effective as of May 1, 1997)
* The demurrage applied on cargo stored in general transit sheds for m
ore than 46 days was abolished.
* The basic unit of time for wharfage was changed from 24 hours to 12
hours. The extra charge which was applied to users given in using spec
ific wharves (an increase of 50%) was abolished.
② The rent for the port-related areas adjacent to the berths was redu
ced. (Reduction by 8.3% on average in the case of municipally-owned la
nd.) (Effective as of April 1997)
③ Rental discount system to decrease costs of starting up (on a de-es
calating curve) is applied for the use of newly reclaimed land as a po
rt-related area.
④ The tolls for the Harbor Highway which connects the coastal area al
ong Rokko island, Port island, and Maya Wharf with the center of Kobe
City, and for the Maya Bridge were revised. (Effective as of February
1, 1998) As a result, all tolls applicable to large-sized vehicles hav
e been reduced.