Circular Ref No.: PNI1401

Date: 22 July 2014

Dear Sir/Madam,

Subject: 12.5m Deep Fairway on Yangtze River from Taicang to Nantong Now Ready for Use

(This circular is prepared with credit to Capt. Jiang Weijian and His Team in Huatai Insurance Agency & Consultant Service Ltd., Shanghai Office)

On July 9th, the dredging works of 12.5m deep fairway on Yangtze River from Taicang to Nantong has been successfully completed and became ready for sailing. This project was the first phase of the plan of dredging fairway on Yangtze River from the CJK waters to as far as the Nanjing port.

On completion of this project, the limited draft of vessels sailing this fairway has been increased from 10.5m to 12.5m. Now ocean-going vessels around 50,000DWT could directly sail from the sea to Nantong port and vessels around 100,000DWT could proceed from Changjiangkou waters to Nantong on high tide. According to the notice issued by Changjiang Fairway Bureau on trial use of this fairway, the maintenance specifications during trial use will be as follows: depth 12.5m (during lowest local tide), width 500mt, minimum bending radius 1500m. 59 buoys and 1 coast beacon are placed along the fairway.

In the afternoon of July 12th, Panama flag bulk M/V “Shourong Harmony” (DWT180,000) arrived at Nantong through this new dredged fairway with draft of 11.5m, being the first big ocean vessel doing so. She sailed from Australia laden with iron ore and conducted lightering near Zhoushan reducing her laden cargo weight to 94,000mt and draft to 11.5m before entering Yangtze River along this new dredged fairway and finally arriving safely at Nantong.

We hope the above is of assistance. Should you have any query, please do not hesitate to contact us.

Sincerely yours,

Shan Hong Vice President