KNTOTAL

TOTALINSIGHT Annual Report l No. 5 l December 2018 CONTENTS Goliath crane girder block being moved to loading port 2 Contents 01 Introduction 02 Domestic Transport of Main Boiler from Factory to Factory by SPMT and Barge 04 ‌ Transport of World Biggest Goliath Gantry Cranes Under Preparation 05 More than 2000Km Long Journey on Roads with Safety and Assurance 06 Commitment to Safe Delivery at Remote Land in Russia 07 News 3 01 : Introduction I am honored to welcome you to the fifth edition of the KNTOTAL’s annual report. 2018 was an intensive and remarkable year for our firm. We have developed

the valuable new business that could bring more opportunity for us. We worked together with all our staff and improved our vision. Since our company’s founding in 2009, we have grown to become a quality forwarding and logistics solutions provider. In many ways our company has changed over the years, but strong relationships with our customers and partners remains the most important part of our success. Our commitments to valuable customers lead us in delivering the highest quality service, demonstrating professionalism and striving for excellence beyond satisfaction. These values and

commitments are what earns the trust of our customers, and we should keep alive the spirit as always has been and in the future as well. As we’re celebrating our 9th anniversary in 2018, we now look to the next 10 years and beyond. In the coming year of 2019, KNTOTAL will mark a milestone and expand business sector into new opportunity of ultra-heavy cargoes transport, bigger and heavier than ever before. You can rely on our expertise and commitment to excellence to provide you with a customized solution for your transport challenge. Thank you for all your support. KIM KYUNG HEE CEO 4 Volga

river at Togliatti, Russia 5 KNTOTAL has recently successfully and safely handled the movement of a main boiler and stack pipes which required precise execution. It took detailed planning and extreme care to move the large piece from factory to final site and that's what the client counted on when they reached out to us. The main boiler was picked up on SPMT at the factory in Kunsan, Korea and transported to Kunjang new port, near the factory where it was loaded aboard a barge for transport to next port, Yoolchon Port for second loading of stack pipes, from which barge is to make a final

voyage. Due to its ultra-oversized cargo dimension, SPMT was selected as an optional solution through entire road section. The main boiler first needed to be transported out of the factory to port using 3 X 14 axle lines of SPMT. This giant cargo measured 19.2m(L) x 12.5m(W) x 15.6m(H)m and weighed 470 tons. It took almost 2 hours to move to port on SPMT and took another several hours to fully secure the cargo to the barge. Lashing was conducted with cargo on SPMT which will be with cargo through entire journey. The most difficult is, when SPMT moved onto the barge, the barge could easily

swing and tilt with the change of weight. It was the most key factor to keep balance. A steel ramp connected the barge to the quay. In a roll on, roll off operation, the SPMT drove along the barge, crossing onto the quay over a period of twenty to thirty minutes. During the whole process, the barge needed to always stay at the same elevation as the pier as the weight shifted from one to the other. This was carefully monitored and water was pumped in and out of the ballast tanks to continually adjust the elevation and maintain the balance. The barge was the biggest one in Korea with length of

76M and width of 24M, and its large size added safety assurance The route involved transporting 02 : Domestic Transport of Main Boiler from Factory to Factory by SPMT and Barge 6 "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..." the giant cargoes 8.6km on public roads, permits were required, therefore a route survey was carried out beforehand to identify all obstacles and street furniture, such as traffic signs and traffic lights, that had to be removed prior to the transport. Stack pipes measured 40m(L) x

4.7m(W) x 4.7m(H) and weighed 42 tons. Upon arrival at second port, Yoolchon, cargoes were transported out of factory for loading. SPMT solution was also selected using single 14 axle line. Safety considerations necessitated speeds as low as possible and the transporter made several stops on descents to allow for the cooling and inspection of axles and brakes. Upon arrival at the final port, careful precision was required to maneuver the SPMT through the narrow gates into installation site. Final leg of the journey was ahead of us. Extreme care had to be delivered to place cargoes onto the

foundation support beam for which margin of error allowed SPMT only 5cm. Although it was a challenging and gruelling enterprise, everything came together successfully and the consignee was impressed with the care and precision that resulted in the safe delivery of their equipment. For the safe and successful transport of special cargoes, a very clear view and good knowledge of the route that it will follow is definitely very important. The constant change of the outdoors conditions as well as the uniqueness of each cargo, require each time a complete route survey in order to decide whether the

transport is possible and under what particular circumstances. Traffic signs and traffic lights are being removed prior to the transport…. Main boiler is being moved on to barge on SPMT. Slow! Slow! Safely! Project summary 1. Main Boiler 19.20M(L) x 12.50M(W) x 15.60M(H), 470 tons,, 3744.00 cbm Stack Pipes 40.00M(L) x 4.70M(W) x 4.70M(H), 42 tons, 883.60 cbm 2. Kunsan factory / Unlsan factory 3. Period : 2018.10 7 03 : KNTOTAL with Challenging Operation of Boiler Plants Delivery Qeshm Island is located a few kilometers off the southern coast of Iran (Persian Gulf), opposite the port cities of

Bandar Abbas and Bandar Khamir. The island, which hosts a 300-square-kilometre free zone jurisdiction, is 135 km long, and lies strategically in the Strait of Hormuz, just 60 kilometres from the Omani port of Khasab, and about 180 kilometres from the UAE Port Rashid. Transport of a large industrial boiler can be quite challenging. Large dimensions and heavy weight pose unique requirements to ensure safe and efficient transport. KNTOTAL was awarded the contract to transport power generating equipment and its accessories with the largest unit weighing up to 90 tons as part of Qeshm Project. Due

to oversized dimension and heavy weight, the main body was manufactured in the factory adjacent to loading port. This meant that even special trailer could not be used to travel the entire route directly from factory to port, and the only suitable type of transport solution, which was able to carry such a heavy load along a few kilometers to port, was an SPMT (Self Propelled Modular Trailer). The main body were picked up from factory in Kunsan, Korea and moved by SPMT to Kunjang new port of Kunsan, where they were loaded aboard a vessel for onward transport to Qeshm. Part of cargoes made a

short journey to shipside for loading and at the same time two vessel cranes were positioned for lift. All necessary slings and shackles were attached to the cargoes and the lift began. The cranes lifted the cargoes over the fence and placed them below deck on the vessel. Since US sanctions on Iran were to be recovered from Nov. 05, time deadline was another risk factor we should challenge as well. Clients also carefully checked and got a loading permission in advance from government before shipments. Since the first shipment in February 2018 up to the final delivery of the third shipment in

November 2018, KNTOTAL has efficiently run the operation processes. 8 Kunsan Port is located near the Geumgang river estuary, which can be found at the center of the western coast of the Korean peninsula. Initially opened to transport grain produced in the Honam plains, the port eventually had its facilities upgraded and various equipment modernized thanks to the increased volume of transported goods, and since the 1990s more trade with China and Russia has led to the development of Kunjang Port shinhang (new port). Kunsan Port serves as a gateway into the mid-western region of Korea and will

become the driving force behind the West Coast era Project summary 1. -. 1st voyage(2018. Feb): 55 PKGS, 856,486.40 KGS, 3,631.90 CBM Max Length 18.95m, Max Weight 87.50Ton -. 2nd voyage(2018 Apr.): 91 PKGS, 422,763.10 KGS, 3,736.60 CBM -. 3rd voyage(2018 Oct.): 397 PKGS, 795,313.75 KGS, 3,356.06 CBM 2. Kunsan and Masan, Korea / Qeshm Island, Iran 3. Period : 2018. 02 ~ 2018. 10 4. Full liner term (hook/hook) 9 How do you transport gantry cranes weighing 10,000 tons and measuring 125 meters in height over sea? A challenge for which KNTOTAL should prove to be successful in 2019. Goliath gantry

cranes are the heart of shipyards. The largest of the shipyard cranes, they lift into place the massive assembly blocks that form the platform or hull of a ship. The importance of a Goliath crane cannot be overstated, as its lifting capacity determines the upper limits of a shipyard’s productivity. The greater a Goliath crane’s lifting capacity, the larger the hull blocks that the crane is capable of lifting. And the larger the blocks the crane can lift, the sooner the ship can leave the dry dock for completion of assembly. Over the years, Goliath gantry cranes have grown significantly in

size. The industry standard for a Goliath in the 1990s was a 600- ton lifting capacity. Capacities and dimensions have continuously increased since then. Today’s Goliath gantry cranes are capable of moving loads weighing thousands of tons. In addition they move loads hundreds of meters horizontally and more than a hundred meters vertically “Moving difficult cargo is an everyday occurrence at KNTOTAL. With outstanding service, various transport options and the ability to handle almost anything that comes our way we will prove ourselves to be successful to assist you…..” 04 : Transport of World

Biggest Goliath Gantry Cranes Under Preparation 10 Our client clinched a turn-key project for two of the cranes from major shipbuilding company of Singapore. Crane is under construction in Korea and as per schedule manufacturing will be completed within this year. After being delivered to Jurong Shipyard in February 2019, the cranes will be used to build offshore plant. With dimensions of 182m in length and 125m in height, each of the cranes weighs 10,000 tons. It is capable of lifting up to 15,000 tons of ship blocks or offshore plant modules. This year, KNTOTAL was contracted for the

transport and export of a Goliath gantry cranes from Korea to Jurong Shipyard in Singapore. Particularly, a consortium agreement has been agreed between KNTOTAL and Withlift-F, an engineering company. Two companies will provide a multitude of services throughout this project. These services will include Heavy Haulage for Module Transport, Ocean Transport, Installation(Erection), Testing and Commissioning. We are creating and developing a very deep and strongly bounded partnership wherein both companies will share facilities and infrastructures, and align sales and marketing efforts throughout

project market. By collaborating in such a manner, KNTOTAL and Withlift-F are producing an increase in value to all our clients in the form of reduced costs and improved services. By creating this new business model we can provide the optimum equation whereby 1+1 = 3 for all our clients. We are very excited about this new synergy and the new opportunities it will bring and genuinely look forward to passing these benefits on to our clients. KNTOTAL signed charter party with ZPMC of China for transport of Goliath Cranes. Cranes are being under construction at factory Project summary 1. 21,700

TONS, 306,000CBM 2. Korean ports / Juro