KNTOTAL

Annual Report | No.4 | December 2017 TOTALINSIGHT CONTENTS 01 INTRODUTION 02 CHALLENGES IN MOVING HEAVY PIPES IN KUWAIT 03 TRANSPORT OF HRSG FROM KOREA TO IRAN 04 TRANSPORT AND EXPORT USED PLANT 05 TIME SENSITIVE CARGO FLIED FROM USA TO KAZAKHSTAN 06 CONTINUED COMMITMENT TO SAFE DELIVERY OF HEAVY SHIPMENT TO SHYMKENT 07 KNTOTAL LOOKING TO SET UP THE OFFICIALLY REGISTERED OFFICE IN IRAN 08 NEWS 4 KNTOTAL 5 01 Introdution This year we will be celebrating the 8th year of KNTOTAL. What started out as a small team today became a leading international logistics company with nearly tens of thousands

of annual cargo volume. Over the years, thanks to the skills of our Management team and employees, we were able to grow into many segments within the logistics sector. During these years, we have grown an amazing team of people to manage and grow our services. We now can define ourselves as a company with skills of a global player and a heavier focus on the Middle East and the Central Asia regions. KNTOTAL is staffed with experienced logistics and transport professionals. With a combined 30 years of experience in heavy haul trucking and project management, we lead a team of logisticians

dedicated to providing the highest level of service to each customer and project. You can rely on our expertise and commitment to excellence to provide you with a custom solution for your transport challenge. KIM KYUNG HEE CEO 6 KNTOTAL 02 Challenges in moving heavy pipes in Kuwait "Getting the right product to the right place in the right quantity at the right time, in the best condition and at an acceptable cost..." 7 The Arabian Peninsula sits at the heart of a market of around 1.7 billion people, covering the Middle East, Indian Subcontinent and Africa. A combination of rapid population

growth, increasing consumer awareness and high oil prices mean that this is a booming market for fast moving consumer products. At the same time, many parts of this region are re-emerging after long periods of war and political isolation. These countries are hungry not only for the consumer products that were previously denied to them, but also for the building materials and medicines required for their reconstruction. KNTOTAL caters to distribution, purchasing and warehouse managers in need of logistics services, as well as the numerous companies whose business is the transportation of goods.

KNTOTAL covers all aspects of the logistics industry, including warehousing and transport. KNTOTAL had been involved in an ongoing project for our long time client, over the last several months. The project, which was completed in the middle of June, consisted of 7 lots of different kinds of CWC such as concrete weight coating pipes. To plan appropriately for transport of CWC, KNTOTALvisited the locations and drafted a detailed load-out plan in conjunction with manufacturer. The biggest challenge during the project was maintaining the quality of the cargoes. Since the cargoes are sensitive to

damage and large number of lifting operations occurred, the protection of cargo quality was the first priority. The space between cargo and deck has to be enlarged or at least great care must be taken to ensure that the cargo does not under any circumstances come into contact with the deck over which sweat may flow. The Wooden dunnage and carpet were used to cover the underdeck floor on which the cargoes were placed. At the same time, the rope with a diameter of 1cm was put around each pipe to protect any contact among pipes. All of the cargo was safely loaded and secured without significant

delays and responsibility was accepted by the ship’s Chief Officer for transport to port of Shuaiba, Kuwait.Upon arrival at the Port of Shuaiba of Kuwait, Mr.Cho, the general manager and KNTOTAL’s representative in Iran office supervised the unloading for any damage. Finally the job was completed with satisfaction to all parties concerned. 1. VOLUME : 70,187.90MTS, 7,367PKGS, 63,491CBM, 11.40TON(MAX WEIGHT) 2. POL/POD : PYEONGTAEK, KOREA / SHUAIBA, KUWAIT 3. PERIOD : 2016.12 ~ 2017.06 4. WORKSCOPE : FROM UNDER HOOK PYEONGTAEK TO FOT SHUAIBA, KUWAIT 8 KNTOTAL 03 Transport of HRSG from Korea to

Iran Equipments for oil refineries are frequently transported to Iran and generally, all these cargoes are over-dimensional and out of gauge. KNTOTAL’s Project Team was tasked with handling and working out the most efficient route for the transport of two HRSG to Iran. Certainly not the heaviest piece handled but with their deadline fast approaching, the customer needed the shortest possible transit time for delivery to final destination. Always up for a challenge, KNTOTAL’s Project Team began planning right away. KNTOTAL carried out the transport of HRSG and accompanying parts and accessories

from Masan, Korea to Bandar Abbas, Iran. The initial part of this project began with the transport of the cargoes from factory to the port yard on low-bed trailer. Our client was involved with the pre-carriage in close coordination with us. The trailer and the cargoes made the short journey to shipside for loading and at the same time the vessel crane was positioned for lift. All necessary slings and shackles were attached to the cargoes and the lift began. The crane lifted the cargoes over the fence and placed them below deck on the vessel. The cargo was further secured using webbing straps,

each tensioned by its own ratchet. Using in-house resources, KNTOTAL’s Korea office supervised the loading and lashing at origin and dispatched the cargo, where upon arrival at Bandar Abbas Iran, the consignee controlled the offloading and subsequent re-loading onto the trailer for the final leg of the journey. 9 "A heat recovery steam generator (HRSG) is an energy recovery heat exchanger that recovers heat from a hot gas stream. It produces steam that can be used in a process (cogeneration) or used to drive a steam turbine (combined cycle)." Meticulous and thorough planning resulted in

another successful delivery and in fact our team has built up another experience and knowledge. Comprehensive planning, flawless execution and constant monitoring ensured the job was completed as promised. 1. VOLUME : 220.43MTS, 42PKGS, 1,277.74CBM, 46.38TON(MAX WEIGHT) 2. POL/POD : MASAN, KOREA / BANDAR ABBAS, IRAN 3. PERIOD : 2017.05 ~ 06 4. WORKSCOPE : FROM UNDER HOOK MASAN TO UNDER HOOK B.ABBAS, IRAN 10 KNTOTAL 04 Transport and Export Used Plant The devaluation of many currencies, the lack of capital and expensive credit has forced companies to look for alternatives to buying new equipment

and parts. Many companies are up-grading their equipment or buying used equipment and then refurbishing it. It may be the first instinct to buy new equipment when you need it to complete a job, but there are many advantages to buying used equipment as well. Buying new equipment is an investment that can have a significant impact on your company’s cash flow. However, you can purchase quality used equipment and at a much lower cost. It’s possible to save thousands over the cost of buying new machinery by choosing this option. The price of new equipment has increased over the past several years.

It’s always nice to think about buying something brand new, but you don’t need to sacrifice quality simply because the machinery has been previously owned. If the equipment has been well maintained, you can still get several years of reliable service from it. There are companies all around the world willing to buy used heavy equipment from overseas dealers. Exporting heavy equipment can be challenging because you must follow both export and import regulations. In addition, shipping heavy equipment gets very expensive and must be worked into the price of the equipment itself. In late summer

2017, KNTOTAL’s marine solution team completed the successful transport of used equipment for PTA plant from Masan, Korea to Veracruz, Mexico. The project, which spanned three months from the planning phase through completion, was the most recent project in which KNTOTAL served as the prime contractor. 11 Once the cargo arrived at port of Joongheung, Yeosu in Korea, it was lifted onto the chartered barge and transported to port of Masan, where the mother vessel was waiting for the shipment. The cargo was loaded on the mother vessel directly from the barge using heavy lift vessel cranes with

iron cables and snap-hooks duly dimensioned, placed at the lifting points to ensure a safe loading. Cargoes were carefully positioned inside the hold to allow sufficient space to lash and secure without suffering any type of damage. Finally with everything done in safety, the vessel departed for Mexico and is still under her voyage. KNTOTAL’s client was extremely happy with the efficient transport and continued communication and support throughout the process of this shipment, which, as usual, will arrive on time and within budget. Experience matters when transporting over-dimensional and/or

heavy-lift project cargo. KNTOTAL’s knowledge and relationship with carriers allow us to plan, manage and execute the optimal solution to handle the customer’s equipment safely and at the lowest practical cost. 1. VOLUME : 48.074MTS, 18PKGS, 381.36CBM, 13.5TON(MAX WEIGHT) 2. POL/POD : MASAN, KOREA / VERACRUZ, MEXICO 3. PERIOD : 2017.10 ~ 12 4. WORKSCOPE : FROM VENDER’S SHOP IN KOREA TO UNDER HOOK VERACRUZ, MEXICO "Veracruz, officially known as Heroica Veracruz, is a major port city and municipality on the Gulf of Mexico in the Mexican state of Veracruz. The city is well known to most of the

Koreans since Hyundai Motor Co., Ltd. launched a new CUV in Korea and got its name from the state’s name in 2006." 12 KNTOTAL BY SEA 1. VOLUME : 4.8MTS, 4PKGS, 1.2TON(MAX WEIGHT) 2. POL/POD : LONGBEACH, USA / QINGDAO, CHINA 3. PERIOD : 2017.10 ~ 11 4. WORKSCOPE : FROM VENDER’S SHOP IN USA TO FOT JOBSITE IN KAZAKHSTAN BY AIR 1. VOLUME : 4.8MTS, 4PKGS, 1.2TON(MAX WEIGHT) 2. POL/POD : CHICAGO O’ HARE, USA / ALMATY, KAZAKHSTAN 3. PERIOD : 2017.10 4. WORKSCOPE : FROM VENDER’S SHOP IN USA TO FOT JOBSITE IN KAZAKHSTAN 05 Time Sensitive Cargo Flied from USA to Kazakhstan 13 The time frame and last

minute urgency of the shipment meant that all the stops had to be pulled out to get this cargo accepted and loaded for the relevant vessel or plane. It was very time sensitive cargo, covering the road, sea, rail and air transport, and everything had to be timed to perfection in order to avoid any waiting time. This difficult and complex multimodal shipment was collected from Tulsa shop, USA and the cargo had to be discharged from the trailer for container stuffing at Long beach, LA. The shipment ran smooth with our local agent taking care of the customs documentation and ensuring all cargo

passed for inspection at the port and loaded to the vessel. The shipment started a long journey to Qingdao, China. Upon arrival in the Qingdao, China, the shipment was taken by rail to the delivery point 5,300km away in Kazakhstan after careful journey over 20 nights. The cargo was safely transported to Shymkent job site in Kazakhstan where the burners were unloaded from wagon. Mission had not been completed. The first shipment was part of a newly constructed Kazakhstan oil refinery modernization project. Another part of shipment is waiting for us with biggest challenge. KNTOTAL picked up the

cargo in Tulsa shop in USA, and transported 4 burners by road to the Chicago airport where the cargo was to be loaded for air shipment to Almaty, Kazakhstan via Frankfurt of Germany. Once at the port of Almaty, Kazakhstan the cargo was loaded on trucks and each piece of machinery was cased and secured to the trucks for safe road travel to Shymkent. The burners were finally unloaded in bright sunshine and safely placed on the site, as everyone breathed a sigh of relief for the completion of this mammoth job. Despite the numerous obstacles involved, not to mention the weight, KNTOTAL managed to

successfully deliver the