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HPC to optimize Rail Terminal of ALG Company in Kazakhstan

Hamburg, 19 October 2023 ALG Company (ALG), headquartered in Almaty, Kazakhstan, has taken a bold step towards optimizing their rail terminal capacity to meet the growing demands of the evolving trade landscape. In response to changing trade routes and the rerouting of cargo due to recent geopolitical developments, ALG has selected HPC Hamburg Port Consulting (HPC), a renowned intermodal terminal specialist, to review their current terminal concept and conduct a feasibility study for its optimization and development.

The ALG Terminal in Almaty currently plays a pivotal role in handling a diverse range of cargo, including 20 and 40-foot containers, cars, breakbulk, and large-size equipment. It also offers storage services in temporary storage warehouses and customs warehouses within a free zone. Recognizing the need to adapt to the shifting trade dynamics, ALG is committed to ensuring their terminal remains a major logistics hub.

Indira Tanirbergenova, CEO at ALG Company, underlines the importance of this collaboration, stating, “The changes in trade routes across the Middle Corridor connecting Asia with Europe overland, have led to increased demand for efficient rail trade infrastructure in Kazakhstan. We believe that by working closely with HPC, we can better position ourselves to meet these demands and contribute to the growth of our region’s trade activities.”

Due to the ongoing situation in Ukraine, the middle corridor is set to benefit significantly from increased volumes passing through Kazakhstan – which formerly were transported through Russia. This strategic location underscores the critical role that ALG can play in facilitating trade along the middle route. At the same time demand is increasing in the Almaty region as well as neighbouring countries.

HPC has been tasked with developing a comprehensive planning framework that includes a concept revision. This revision entails operational data analysis, market analysis, and volume forecasting. Furthermore, it involves a meticulous review of the current terminal concept, dwell times, train schedules, gate processes, loading and unloading processes, and storage capacities. Following this analysis, HPC has developed an operational concept that presents various development options and operational refinements to meet ALG Company’s evolving needs.

Frank Busse, Partner and VP Europe at HPC, emphasizes the significance of local context in their planning approach, stating, “Understanding the local framework conditions and existing planning is essential to develop viable concepts. Our goal is to provide ALG with a range of options that will empower them to make informed decisions regarding the future development of their rail terminal.”

HPC has a proven track record of developing intermodal rail terminals worldwide, having successfully completed approximately 130 projects in this specialized field. By leveraging their expertise in analysing, forecasting, simulating, and master planning environmentally friendly transportation infrastructure, HPC has consistently delivered innovative and efficient solutions. Their commitment to sustainable logistics aligns perfectly with ALG’s aspirations for their terminal’s future.

For more information on intermodal terminal consulting services, please visit the website: www.hamburgportconsulting.com

Contact

Steffi Karsten, HPC Marketing / PR, E-Mail: s.karsten@hpc-hamburg.de

About HPC

HPC Hamburg Port Consulting operates as a logistics consulting company, specialising in strategy and transformation services for the ports, terminals, and rail sectors. Since its establishment in 1976, the Hamburg-based consulting company has delivered approximately 1,800 projects across 135 countries spanning six continents along the entire port project development cycle. HPC employs about 100 domain experts with a background as terminal operators, software engineers, logistics managers, transport economists, data scientists and mathematicians. As a subsidiary of the Hamburg Port and Logistics Corporation (HHLA), HPC has its roots in port handling of container, breakbulk and multipurpose, as well as hinterland operations. www.hamburgportconsulting.com

HPC optimiert Bahnterminal der ALG Company in Kasachstan

Hamburg, 19. Oktober 2023 Die ALG Company (ALG) mit Hauptsitz in Almaty, Kasachstan, hat einen wichtigen Schritt zur Optimierung ihrer Bahnterminalkapazität unternommen, um den wachsenden Anforderungen der sich entwickelnden Handelsbeziehungen gerecht zu werden. Als Reaktion auf die sich ändernden Handelsrouten sowie die Umleitung von Gütern aufgrund der jüngsten geopolitischen Entwicklungen hat ALG den renommierten Spezialisten für intermodale Terminals, HPC Hamburg Port Consulting (HPC), mit der Überprüfung des aktuellen Terminalkonzeptes und der Durchführung einer Machbarkeitsstudie für dessen Optimierung und Entwicklung beauftragt.

Das ALG-Terminal in Almaty spielt derzeit eine zentrale Rolle beim Umschlag einer breiten Palette von Gütern, darunter 20- und 40-Fuß-Container, Autos, Stückgut und Großgeräte. Es bietet auch Güterlagerung und die Nutzung von Zolllagern innerhalb einer Freizone an. ALG erkennt die Notwendigkeit, sich den sich wandelnden Handelsbedingungen anzupassen, und setzt sich mit Entschlossenheit dafür ein, dass sein Terminal eine Schlüsselrolle in der Logistik behält.

Indira Tanirbergenova, CEO der ALG Company, unterstreicht die Bedeutung dieser Zusammenarbeit: “Die Veränderungen der Handelsrouten über den Mittleren Korridor, der Asien mit Europa auf dem Landweg verbindet, haben zu einer erhöhten Nachfrage nach einer effizienten Infrastruktur für den Schienentransport in Kasachstan geführt. Wir glauben, dass wir uns durch die enge Zusammenarbeit mit HPC besser positionieren können, um diese Anforderungen zu bedienen und zum Wachstum der Handelsaktivitäten in unserer Region beizutragen.”

Aufgrund der aktuellen Situation in der Ukraine wird der Mittlere Korridor erheblich von der Zunahme der durch Kasachstan geführten Transportmengen profitieren, die früher über die nördlichere Route durch Russland gesteuert wurden. Diese strategische Lage unterstreicht die entscheidende Rolle, die das ALG-Terminal bei der Erleichterung des Handels auf der mittleren Route spielen kann. Gleichzeitig steigt die Nachfrage in der Region Almaty und in den Nachbarländern.

HPC wurde mit der Erarbeitung eines umfassenden Entwicklungskonzeptes beauftragt, das auch eine Überarbeitung des bestehenden Konzeptes beinhaltet. Diese Revision umfasst eine Betriebsdatenanalyse, eine Marktanalyse sowie eine Mengenprognose. Darüber hinaus wurden die derzeitigen Leistungs- und Lagerparameter, die Zugfahrpläne, die Gate-Prozesse, sowie die Be- und Entladeprozesse analysiert. Im Anschluss an diese Analyse hat HPC ein Betriebskonzept entwickelt, das verschiedene Entwicklungsoptionen und betriebliche Verfeinerungen aufzeigt, um den sich entwickelnden Bedürfnissen der ALG Company gerecht zu werden.

Frank Busse, Partner und VP Europe bei HPC, betont die Bedeutung des regionalen Kontextes für den Planungsansatz: “Um tragfähige Konzepte zu entwickeln, ist es wichtig, die lokalen Rahmenbedingungen und bestehenden Planungen zu verstehen und zu berücksichtigen. Unser Ziel ist es, der ALG eine Reihe von Optionen an die Hand zu geben, die sie in die Lage versetzen, fundierte Entscheidungen über die zukünftige Entwicklung ihres Bahnterminals zu treffen.”

HPC kann auf eine langjährige Erfahrung in der Entwicklung von intermodalen Bahnterminals weltweit zurückblicken und hat bereits rund 130 Projekte in diesem Spezialgebiet erfolgreich umgesetzt. Durch die Nutzung ihrer Expertise in der Analyse, Prognose, Simulation und Masterplanung umweltfreundlicher Transportinfrastrukturen liefert HPC innovative und effiziente Lösungen. Das Engagement von HPC für eine nachhaltige Logistik deckt sich idealerweise mit den Zielen der ALG für die Zukunft ihres Terminals.

Weitere Informationen zu Beratungsleistungen rund um Intermodal- und Bahn-Terminals finden Sie auf der folgenden Website: www.hamburgportconsulting.com

Kontakt

Steffi Karsten, HPC-Marketing / PR, E-Mail: s.karsten@hpc-hamburg.de

Über HPC

HPC Hamburg Port Consulting ist ein global agierendes Logistikberatungsunternehmen, das sich auf Strategie- und Transformationsdienstleistungen für die Sektoren Häfen, Terminals und Bahn spezialisiert hat. Seit seiner Gründung im Jahr 1976 hat das Hamburger Beratungsunternehmen rund 1.800 Projekte in 135 Ländern auf sechs Kontinenten entlang des gesamten Entwicklungszyklus von Hafenprojekten durchgeführt. HPC beschäftigt rund 100 Experten aus den Bereichen Terminalplaner, Software-Ingenieure, Logistikmanager, Verkehrsökonomen, Datenwissenschaftler und Mathematiker. Als Tochterunternehmen der Hamburger Hafen- und Logistikgesellschaft (HHLA) hat HPC seine Wurzeln im Hafenumschlag von Containern, Stückgut und Massengut sowie im Hinterlandbetrieb.

GEODIS opens new Schiphol-Rijk temperature controlled facility

Global logistics provider GEODIS has officially started the operation of its new 5500 sqm site in Schiphol on October 6th. Services to the pharma and healthcare sectors will be provided.    

This new location is next to the existing site and will expand GEODIS’ footprint in pharma & healthcare, which is already well-established at the logistics operator’s Venlo site with a significant presence in contract logistics for customers in both sectors. The new Schiphol-Rijk investment will focus on freight forwarding and be part of GEODIS’ worldwide cross docking network for ambient and cold chain products.

The new location is TAPA-A rated for air freight and holds the appropriate CEIV Pharma certification1 for handling goods in the 15-25 °C and 2-8 °C ranges.

“Opening an additional specialized warehouse at Schiphol-Rijk enables us to offer customers a turnkey solution for pharma & healthcare logistics,” says Mark van den Assem, Managing Director GEODIS Benelux. “Increasing the synergy between our Contract Logistics and Freight Forwarding lines of business is a crucial part of our growth strategy and will have significant benefits to the supply chain needs of our customers”.  

1  CEIV Pharma Certification is a  globally consistent and recognized pharmaceutical product handling certification to ensure the international and national compliance to safeguard product integrity while addressing specific air cargo needs.

GEODIS – www.geodis.com    

GEODIS is a leading global logistics provider acknowledged for its expertise across all aspects of the supply chain. As a growth partner to its clients, GEODIS specializes in five lines of business: Supply Chain Optimization, Global Freight Forwarding, Global Contract Logistics, Distribution & Express, and European Road Network. With a global network spanning nearly 170 countries and more than 49,400 employees, GEODIS is ranked no. 6 in its sector across the world. In 2022, GEODIS generated €13.7 billion in revenue. GEODIS is a company owned by SNCF group. 

“K” Line : Disclosure of information based on the TNFD Framework

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has conducted a comprehensive assessment of risks and opportunities by introducing the LEAP approach* proposed by the TNFD to evaluate environmental risks and nature-related impacts of our business and consider appropriate responses as part of our information disclosure under the TNFD framework.

The final version of the TNFD’s formal framework was released in September 2023. Our current analysis of biodiversity is based on the beta version of the framework (versions 0.1 to 0.4) before the official version was issued. The LEAP approach was conducted under the supervision of SOCOTEC Certification Japan. The results of the assessment and analysis, as well as the measures taken, have been compiled and disclosed as information.

Our business is dependent on natural capital, mainly in the oceans, and we consider efforts to address not only climate change issues but also biodiversity conservation, mainly in the oceans, to be one of the important themes in our business activities.

Based on a comprehensive understanding of climate change and natural capital, we will continue to enhance our assessment, analysis, and disclosure of information in order to strengthen risk and opportunity management and build a sustainable future.

* It consists of four phases: Locate (discover points of contact with nature) Evaluate (assess dependence on and impacts on nature) Assess (evaluate significant risks and opportunities) Prepare (prepare responses and reporting), an integrated assessment process for managing nature-related risks and opportunities advocated by TNFD for information disclosure. Please refer to our website for details on LEAP analysis.

https://www.kline.co.jp/en/sustainability/environment/impact_mitigation.html

“K” Line Conduct an Emergency Response Exercise

On October 12th, 2023, “the Emergency Response Exercise” was carried out as a part of training of optimum emergency response prepared for any major maritime accidents. The scenario of the exercise developed that an LNG vessel owned by our subsidiary has run aground in Tokyo Bay while attempting to avoid a fishing vessel suddenly approaching in Uraga Channel. We confirmed a series of emergency response process by setting crisis-management headquarters upon receiving an incident report, establishing communication channel with Ship Management company and conducting a mock press conference at the end of the exercise.

Contact procedures including with online tools were confirmed as well, and a mock press conference on the accident was held simultaneously in person and online. During the press conference, journalists asked many questions, which made a tense atmosphere as if it were a real one.

While growing interest on safety and environmental impact reduction over the world, we are preparing for any unexpected circumstances through the “Emergency Response Exercise”. Furthermore, we will continue our commitment to safe operations to contribute to society by providing industry-leading safe and optimal services with putting our customers first.

TT Club appoints new Regional General Manager for Asia-Pacific

Kamel Tlili takes up the role of Regional General Manager Asia-Pacific for international freight and logistics insurer, TT Club based in its Singapore office from 3rd October. 

Kamel Tlili, Regional General Manager Asia-Pacific, TT Club

Tasked both with maintaining the strong market position the Club enjoys in the region and expanding its reach, particularly in the fast-growing logistics sector, Kamel has the necessary experience to tackle the challenge.  He joins TT after a successful period of six years leading British Marine’s P&I Underwriting Division in Asia at QBE.  During this time, he focused on the strategic development and diversification of the portfolio and was pivotal in the transformation of British Marine’s presence within Asia.

Kamel is well known in the marine mutual community, having previously spent a total of fourteen years at TT’s sister mutual, UK P&I both as an Underwriting Director and Claims Director. He also has sea-going experience at the start of his career after taking a Master’s Degree in Maritime Law at Aix-Marseille University.

In making the announcement Kevin King, TT’s Deputy CEO said, “We are excited to have Kamel join TT with his wealth of marine insurance experience and extensive contacts in the Asia Pacific markets. Kamel is leading a highly experienced, first-class team of underwriting and claims executives and will look to build upon the success the region has had in building and servicing its membership.”

“TT Club has a formidable reputation among industry leaders as well as specialist brokers for its in-depth knowledge of the prevalent risks, and an unequalled claims service,” commented Kamel.  “I welcome the opportunity presented by my new role at the Club to bring both of those attributes, as well an industry-leading loss prevention resource to a wider market within the Asia-Pacific region.”

UK P&I Club, also managed by Thomas Miller, has recently announced the appointment of Peter Jones to its newly created role of Underwriting Director in the region.  The new appointments combine to strengthen Thomas Miller’s resources in Singapore and underline its commitment to the Asia-Pacific region. 

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 97% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

https://www.ttclub.com

Mighty newcomers: SAL Heavy Lift strengthens its fleet with super modern deck carriers “Zhong Ren 121” and ”Zhong Ren 122”

SAL Heavy Lift is pleased to announce another pioneering addition to its fleet: The German heavy lift and engineering expert is chartering the two top modern semi-submersible deck carriers “Zhong Ren 121” and “Zhong Ren 122” on a long-term basis together with its partner Shanghai Salvage (China). Both ships will be delivered in Shanghai between December 2023 and February 2024 and marketed through the Jumbo-SAL-Alliance.

“We don’t use the term ‘milestone’ lightly – but, in this case, it’s more than appropriate. This project is extremely important to us as a group, both commercially and strategically,” says Dr Martin Harren, CEO of SAL Heavy Lift and the Harren Group. “Our combined MPP and heavy lift fleet, which currently comprises 54 units, is one of the world’s leading fleets. We offer our customers the most powerful heavy lift vessels in the world. However, the truth remains that the demands and requirements of our clients – especially in the offshore wind sector – are becoming increasingly extensive and complex. These two new additions give us the opportunity to meet and possibly even exceed these requirements. Customers will benefit from more choices and better solutions.”

Zhong Ren 122

SAL has been working intensively on the topic of semi-submersible deck carriers for years. In 2021, a special department was founded for this purpose. SAL has been acting as commercial agent for two Pan Ocean deck carriers since 2017, gaining valuable experience in the project-based chartering of external tonnage.

“‘Zhong Ren 121’ and ‘Zhong Ren 122’ will empower us to undertake cargo transportation and projects previously inconceivable with our existing fleet,” explains Matthieu Moerman, Director Chartering & Project at Jumbo-SAL-Alliance. “They will expand our capabilities, opening doors to new markets. By adding the two vessels, we can offer more marine transport solutions as a group.”

The key highlights of “Zhong Ren 121” and “Zhong Ren 122” include:

  • 169 m long, 39.8 m wide
  • Ability to carry floating cargo due to semi-submersible mode
  • Ultra-modern DP2 technology
  • DWT: 26,000 t
  • Cargo deck capacity of 5,300 m2
  • Outstanding deck strength of 25 mt/m2
  • Average sailing speed of 12 knots
  • Accommodation facilities for up to 59 people

Following delivery, SAL will have the opportunity to utilise the two vessels for cargo transports from Asia to Europe. Afterwards, they will be deployed for an offshore wind farm project in the USA.

Once the wind farm project has been completed, SAL intends to extend the charter contracts with Shanghai Salvage for an additional two to three years. Alberto Aguilaniedo, Manager Chartering & Projects at Jumbo-SAL-Alliance, states: “With our exceptional project and chartering team, I envision a vast potential for these vessels which further solidifies our strategic focus on the renewable energy sector.”

About SAL Heavy Lift: SAL Heavy Lift, a company of the Harren Group, and part of the Jumbo-SAL-Alliance, is one of the world’s leading carriers specialised in the sea transport of heavy lift and project cargo. The modern fleet of heavy lift vessels offers highly flexible options to customers both within project shipping as well as for offshore projects. With travel speeds of up to 20 knots, dynamic positioning systems, Fly-Jib, 1A ice class, up to 3,500 square metres of unobstructed main deck space and combined crane capacities ranging from 550 to 2,000 tons, the fleet is among the most advanced in the heavy lift sector.

As a leading global company in the heavy lift and project cargo segment, SAL meets the highest standards with regard to quality, technical innovation, health, safety and environment. With SAL’s latest investments in its newbuilding programme of Orca Class heavy lift vessels, the company takes an industry-leading step in applying green technologies to its fleet. The global outreach of SAL is ensured via own sales offices and exclusive agents spread across 23 countries.

About Jumbo-SAL-Alliance: Jumbo-SAL-Alliance manages the sea logistics of all types of heavy lift, breakbulk and project cargo in any market. Side by side, two of the most prominent and technically advanced heavy lift carriers combine their strengths and resources to deliver the best engineered heavy transport solutions to customers world-wide.

Two united teams and two specialised fleets operate as one shared fleet. Customers receive carefree service, an experienced crew and simplified commercial interaction. Jumbo-SAL-Alliance is in full control of all its assets, i.e. 30 dedicated project cargo vessels. With three DP2 vessels, two range-extending Fly-Jibs and eleven ice-class vessels, the Alliance can reach almost any location and handle the most demanding scopes.

Jumbo-SAL-Alliance provides a highly flexible shipping solution and a broad range of services which exceeds any other project cargo shipping service in the market space. With lifting capacities up to 3,000 t SWL, Jumbo-SAL-Alliance manages the largest fleet of vessels in the 800+ t lifting segment. This provides a commercial bandwidth that ranges from rapidly positioning vessels for smaller or larger single shipments to large-volume contracts to full scope solutions for complex projects – all under one roof.

Our experienced people – commercial, engineering, project management, QHSE – work closely with a combined network of agents and offices around the world. We provide clients, whether EPCs, brokers, forwarders, OEMs, energy companies or others, with a partnering mentality, expert advice and safely delivered goods. Jumbo-SAL-Alliance: stronger together.

GEODIS wins Best Logistics Service Provider – Project Cargo at the 2023 AFLAS Awards

GEODIS, a global leader in the transport and logistics sector, received the award for Best Logistics Service Provider – Project Cargo, at the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards hosted by Asia Cargo News, held in Singapore on 28th September.

GEODIS has expertise across core markets, including Renewable Energy, Oil & Gas, Power, Rail, Mining, Infrastructure, Aid & Relief and Marine Logistics, with a network of dedicated projects teams in 35 countries and pioneers initiatives in transporting such key infrastructure such as high voltage transformers, wind and solar energy projects.

“GEODIS maintains adaptability and innovation at the forefront of our customer-centric strategy. We have made notable investments in our infrastructure and logistical capabilities to ensure flexible and bespoke logistics solutions for complex projects. We are honored to have our efforts recognized and will continue to keep growing and incorporating cutting-edge engineering to meet our clients’ unique requirements,” said GEODIS APAC and Middle East Regional President and CEO, Onno Boots.

The annual Asian Freight, Logistics and Supply Chain (AFLAS) Awards are designed to honor leading service providers including air and shipping lines; airports and seaports; and logistics, 3PLs and other associated industry professionals for demonstrating leadership as well as consistency in service quality, innovation, customer-relationship management and reliability. 

GEODIS – www.geodis.com    

GEODIS is a leading global logistics provider acknowledged for its expertise across all aspects of the supply chain. As a growth partner to its clients, GEODIS specializes in five lines of business: Supply Chain Optimization, Global Freight Forwarding, Global Contract Logistics, Distribution & Express, and European Road Network. With a global network spanning nearly 170 countries and more than 49,400 employees, GEODIS is ranked no. 6 in its sector across the world. In 2022, GEODIS generated €13.7 billion in revenue. GEODIS is a company owned by SNCF group. 

“K” Line : Three Japanese Shipping Companies Partner to Establish Global Liquefied Hydrogen Supply Chain

Japan Suiso Energy, Ltd.

Kawasaki Kisen Kaisha, Ltd.

Mitsui O.S.K. Lines, Ltd.

Nippon Yusen Kabushiki Kaisha

On September 12 2023, Japan Suiso Energy, Ltd. (JSE)*, and three Japanese shipping companies, Kawasaki Kisen Kaisha, Ltd. (“K” LINE), Mitsui O.S.K. Lines, Ltd. (MOL), and Nippon Yusen Kabushiki Kaisha (NYK), have agreed to join JSE Ocean, Ltd. (JSE Ocean), a subsidiary of JSE. JSE remains the majority shareholder with 50.2% of stock, whilst the shipping companies hold 16.6% each.

Concept image of 160,000㎥ liquefied hydrogen carrier provided by
Kawasaki Heavy Industries, Ltd.

Hydrogen in Japan

The expectation for hydrogen as a clean energy is increasing worldwide as we strive to achieve a decarbonized society. Japan’s Basic Hydrogen Strategy, revised by the Japanese government in June 2023, identifies hydrogen as the alternative to fossil fuels as it targets decarbonisation. In the Strategy Japan commits to a target of 3 million tons/year of hydrogen by 2030, 12 million tons/year by 2040, and 20 million tons/year by 2050.

The target hydrogen supply cost is approximately JPY30 /Nm3 in 2030 and JPY20 /Nm3 in 2050 at the point of arrival in Japan. To achieve these price and volume targets, and create a secure global supply chain, transport by ship is crucial.

Background

In August 2021, Japan’sNew Energy and Industrial Technology Development Organisation (NEDO), allocated a grant from the Japanese government’s Green Innovation Fund to JSE, Iwatani Corporation and ENEOS Corporation for the “Liquefied Hydrogen Supply Chain Commercialization Demonstration Project”.

In this project, JSE will establish the world’s first large-scale hydrogen liquefaction and transportation technology, involving an initial 30,000 tons of hydrogen per year before upscaling. JSE will also demonstrate a comprehensive and reliable global liquefied hydrogen (LH2) supply chain, covering hydrogen production, liquefaction, export from Australia, marine transportation, and import.

About JSE Ocean

JSE Ocean was established in January 2023 to research the marine transportation of LH2 by using a large-scale LH2 carrier. JSE, and the three Japanese shipping companies with extensive knowledge and experience in the energy transport business, will establish the marine transport of LH2 at a commercial scale through JSE Ocean.

We will collaborate to explore the safety and efficient operation of the world’s first large-scale LH2 carrier by 2024, as well as develop a viable marine transportation business scheme. Furthermore, the LH2 carrier will be powered by hydrogen, significantly reducing CO2 emissions during operation.

* JSE was established in June 2021 with the main objectives of research, planning, management, and investment in the international supply chain of LH2. Current shareholder composition is Kawasaki Heavy Industries, Ltd. 66.6% Iwatani Corporation 33.4%.

Stock Holding Ratio

Overview of Each Company

JSE Ocean, Ltd.

Established: January 2023

Address: 14 5, Kaigan 1-chome, Minato-ku, Tokyo

Representative: Kenjiro Shindo, President and CEO

Japan Suiso Energy, Ltd.

Established: June 2021

Address: Toranomon Seiwa Building 10 F, 1-2-3 Toranomon, Minato-ku, Tokyo

Representative: Eiichi Harada, President and CEO

Kawasaki Kisen Kaisha, Ltd.

Established: April 1919

Address: Iino Building, 1-1, Uchisaiwaicho 2-chome, Chiyoda-ku, Tokyo

Representative: Yukikazu Myochin, Representative Director, President and CEO

Mitsui O.S.K. Lines, Ltd.

Established: May 1884

Address: 2-1-1 Toranomon, Minato-ku, Tokyo

Representative: Takeshi Hashimoto, President and CEO

Nippon Yusen Kabushiki Kaisha

Established: September 1885

Address: 2-3-2 Marunouchi, Chiyoda-ku, Tokyo

Representative: Takaya Soga, President and CEO

“K” Line : Acquisition of Third-Party Certification for CO2 Reduction Using Marine Biofuels and Completion of a Certificate Issuance System

Kawasaki Kisen Kaisha., Ltd. (“K” LINE) carried out a test operation of the “K” LINE-operated supramax bulker “ALBION BAY” using marine biofuels last year, with the cooperation of JFE Steel Corporation and Sumitomo Corporation. “K” LINE has now established a system for certifying the amount of CO2 reduction from marine biofuels and issuing certificates, in association with Nippon Kaiji Kyokai(ClassNK) and has now certified the amount of CO2 reduction (heavy oil comparison) achieved during this test operation and issued a certificate.

Going forward, “K” LINE will continue to enhance corporate non-financial information disclosure to respond the needs from stakeholders, which is increasing year by year, as an initiative to quantitatively indicate the degree of environmental contributions of our customers’ supply chains (Scope 3 emissions).

“K” LINE group will continue to promote our low-carbon/decarbonization and low-carbon/decarbonized society in order to realize a sustainable society and increase its corporate value, based on its corporate principle of “Trust from all over the world as a logistics company rooted in the shipping industry, we help make the lives of people more affluent.”

(CO2 reduction certificate issued by “K” LINE)

*1: August 26, 2022: “K” LINE Conducts Trial Use of Marine Biofuel for Decarbonization on Supramax Bulker

https://www.kline.co.jp/en/news/drybulk/drybulk-4419591465105910059/main/0/link/220826EN.pdf

“K” Line : Joint Development of AI-Powered Automatic Draft Survey Application

Kawasaki Kisen Kaisha, Ltd. (K LINE), TIS Inc. (“TIS”) and Miotsukushi Analytics Inc. (“Miotsukushi”) are pleased to announce that we have jointly developed a draft survey application. The application is designed to use artificial intelligence (AI) to recognize the water surface and the draft mark from the image captured with a smartphone and to display the accurate draft level with the impact of waves removed on the screen to help accurately measure the draft*1. At the end of July, the three companies jointly filed a patent application for this newly developed application.

The draft is measured to calculate the weight of cargo loaded onto dry bulk carriers. Today, it is done by crew members and surveyors using the naked eye. It is possible to survey the draft with the human eye. However, it is done at the anchorage, which in some ports may be susceptible to waves. There have been cases where draft measurements even by experienced maritime professionals display a greater margin of error than expected.

The jointly developed automatic draft survey application makes use of the “AI and data analysis service” offered by TIS and Miotsukushi and combines smartphones with the AI to supplement draft measurement that traditionally depended on the experience of maritime professionals with the AI. That helps equalize the degree of safety in navigation and cargo operations and maximize the cargo transportation volume.

At “K” LINE, digitalization is underway as a functional strategy for realizing the business strategy in the medium-term management plan*2 announced in May 2022. With the use of data and digital technologies, “K” LINE will enhance the core values of safety, environmental conservation and quality in a bid to boost its competitiveness and corporate value.

Schematic of the application

*1:The vertical distance from the bottom of the hull to the water surface when the vessel is afloat

*2: Medium-term Management Plan (announced on May 9, 2022)

https://www.kline.co.jp/en/ir/management/strategy.html

Reference

DX Strategy 2023 (announced on December 22, 2022)

https://www.kline.co.jp/en/sustainability/dx_strategy.html

About TIS Inc. (https://www.tis.com/)

TIS Inc., a member of TIS INTEC Group, is a business partner to more than 3,000 companies in various sectors, including finance, industry, public services, and distribution services. It provides IT to support growth strategies, tackling various management challenges faced by its customers. Leveraging the industry knowledge and IT development capabilities it has cultivated over more than 50 years, TIS aims to realize a prosperous society by providing IT services that have been cocreated with society and customers in Japan and Asian region.

About Miotsukushi Analytics Co., Ltd. (https://mioana.com/)

Miotsukushi Analytics is a consulting firm that specializes in data analysis that combines statistics, machine learning, data mining, mathematical optimization and many other approaches with a focus on solving business problems. As a group of specialists that bring value to big data, it has an advantage not only in analytical processes but also in creating benefits for clients through the application of data sciences to business.

Features of the application

  • A model of high-accuracy detection of the draft mark and the water surface with the use of deep learning technologies.
  • A coordinate computing algorithm developed for calculating the draft through image detection.
  • Finally calculating an accurate draft through different approaches including leveling of continuously measured draft levels.
  • Designed for smartphones, the app can be used at sea where Internet access is unavailable since the processing is completed locally at the terminal.