Iino Gas Transport Co., Ltd. (IGT) transports gas in domestic waters (Japan) and adjacent waters (Asia). The company began operations on April 1, 2007, with the integration of Iino Kaiun Kaisha's Small Gas Tanker Division and the Iino Kaiun Group's two main domestic shipping companies. This ensured that from the outset IGT had a coherent, integrated system covering functions from ship ownership, management, and operation through to marketing and sales. As a leader in maritime transport in domestic and adjacent waters, IGT will continue rising to the challenges posed by the business environment facing the industry.

The shipping industry in domestic and adjacent waters faces serious crew shortages in addition to the prolonged market slump and surge in fuel oil prices. In these circumstances, IGT will overcome such issues by accurately meeting customers' needs and pursuing management that emphasizes safety and the environment.

Specifically, we are building new, advanced vessels to replace aging ones. This replacement of our fleet with new vessels will enable us to provide our customers with higher quality shipping services. We are also building these new vessels to be highly energy efficient so as to reduce fuel consumption and help preserve the environment.

As part of our safety and environmental efforts, we obtained ISO 9001 and ISO 14001 certification in 2007, and we continue to maintain quality and environmental management systems in accord with ISO standards. Our vessels used in adjacent waters are certified under the ISM (International Safety Management) Code, a ship management system published by the International Maritime Organization for ensuring maritime safety and preservation of the marine environment. Although the ISM Code is not mandatory for vessels used in domestic waters, we have instituted our own ship management system based on the ISM Code, and we proactively pursue operational safety.

To address the crew-shortage problem, we are actively pursuing various efforts to enhance the technical capabilities of our crews. These efforts include providing bridge resource management training for navigation officers and encouraging junior engineers to participate in maintenance and technical training.

At IGT, we will continue to focus on meeting customers' needs and addressing safety and environmental issues as we aim to provide even better transportation services to maximize customer satisfaction. We will also continue striving to help preserve the marine environment.

We look forward to your continued support.

Masayuki Murakami
President
Iino Gas Transport Co., Ltd.