Company Study of China Shipping Development Co.

In Jan-Mar 2007, China has imported 14.3 million tons of coal, up by 60.7% year-on-year; and exported 1.41 million tons, down by 31.9% from a year earlier, which made China a net coal importer from a net exporter.

In 2006, the world oil shipping turnover mounted to 11740 billion ton kilometers, increasing by 60.7% over previous year; and it is estimated that the oil shipping turnover in 2007 and 2008 will grow by about 3% each, reaching 12092.2 and 12455 billion ton kilometers respectively.

In 2006, China Shipping Development Co., Ltd. purchased 42 bulk cargo ships, totaling up to 1.4 million deadweight tons from the parent company, which further consolidated its market share in China's domestic coal transport industry.

In Jan-Mar 2007, due to the growth in coal demand driven by the economy development, the coal shipping capacity of China's domestic coastal ports ascended by 27%. In addition, it is estimated that by 2010, China's domestic coastal coal handling capacity will have been growing at above 10%.