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"K" Line

Publication of “K” LINE REPORT 2021

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce publication of “K” LINE REPORT 2021.

URL:https://www.kline.co.jp/en/ir/library/report.html

In the message from the CEO, we state our mission to continuously improving corporate value together with society and the global environment conservation by providing safe, environmentally friendly and high-quality service, while fulfilling its social mission as a shipping company to continue providing an indispensable piece of social infrastructure that supports people’s lives.

In the special features, as examples of providing new value, we present roundtable discussions with employees involved in construction of our first LNG fueled car carrier, efforts toward carbon neutrality and exploration of growth markets, and improvement of safety, environmental performance and quality with digital technologies.

We also explain sustainability management, efforts for safety in navigation and environmental protection, human resource management and corporate governance as a basis of sustainable growth.

Launching of a 90,000-dwt Bulk Carrier “LIN MIARAK”

On this day, November 18th, 2021, at the Tadotsu Shipyard Co., Ltd., which is part of the Imabari Shipbuilding Group, the 90,000DWT bulk carrier “LIN MIARAK” has been completed and delivered.

The vessel will be regularly engaged in coal transportation for Kobe Steel, Ltd. under a long-term consecutive voyage charter contract (CVC).

The ship was designed and built to be TierⅢ compliance under Regulation 13 of MARPOL Annex VI. By reducing the amount of Nitrogen Oxide (NOx) emitted into the air as state-of-the-art environmentally friendly ship, she will be complying with the regulations published by the International Maritime Organization (IMO) and will be expected to greatly contribute to the conservation of the global environment.

As a member of the international community, “K” LINE offers its customers a unique range of transport services while striving to promote environmental conservation measures. “K” Line will remain committed to flexibly and actively responding to diversifying needs for shipments.

Vessel Particulars

LOA                :        249.99M

Width             :        43.00M

Depth             :        18.70M

Deadweight   :        90,991T

Gross Ton       :        57,963T

Main Engine   :        MITSUI–MAN B&W 6S60ME-C10.5-EGRBP

Class               :        NK

Flag                :        Panama

Builder           :        Tadotsu Shipyard Co., Ltd.

“K” LINE Group Companies Establish New Cold and Dry Warehouses in Thailand

November 17, 2021

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that our group company in Thailand, BANGKOK COLD STORAGE SERVICE, LTD. (BCS) and K LINE CONTAINER SERVICE (THAILAND) LTD. (KCST), will establish new warehouses in Bang Na district near Bangkok.

Currently, BCS is operating 2 freezing and refrigerating warehouses in 2 locations where are Thepharak district and Bang Na district, and KCST is operating 10 dry warehouses in 3 locations where are Bang Na district, Amata City Chonburi district and Bangpra district.

“K” LINE has decided to build new warehouses for supporting the expanding distribution demand in Thailand and the diverse needs of our customers. Both of BCS and KCST have been operating warehouse businesses for more than 30 years in Thailand, “K” LINE continues to provide high-quality services to meet the customer’s sophisticated demands with new cold and dry warehouses.

In addition to above, new warehouses will be located near the city center of Bangkok, Suvarnabhumi International Airport, and Laem Chabang Port. “K” LINE believes that they will enhance their function as storage and distribution base in Bangkok area.

New warehouses overview

1. BCS freezing and refrigerating warehouses

Name              : BANGKOK COLD STORAGE SERVICE LTD.(BCS)

Location          : 192 193 Moo 9, Bangna-Trad Km.19 Road, T.Bangchalong, A.Bangplee, Samutprakarn 10540

Starting date   : May, 2023

Main Business : Freezing / refrigerated cargo storage, food processing, distribution processing, packaging, etc.

Equipment details

 Floor space(m2)Cargo storage capacity(Ton)
Freezing storage(-25℃)2,0804,800
Refrigerated storage (0~15℃)1,4001,600
Constant temperature storage(+25℃)1,6802,150
Handling place2,0800
Total7,2408,550

BCS aims to be one of the world leading energy-saving freezing and refrigerating warehouses by minimizing the amount of operating power and supplying 50% of the required power with solar power generation. The warehouse complies with HACCP (Note 1), GMP (Note 2), and GDP (Note 3), which are standards for food and drug storage.

2. KCST dry warehouse

Name              : K LINE CONTAINER SERVICE(THAILAND) LTD. (KCST)

Location          : 192 193 Moo 9, Bangna-Trad Km.19 Road, T. Bangchalong, A.Bangplee, Samutprakarn 10540

Starting date   : Dec, 2022

Main Business : General cargo storage, distribution processing, packaging, etc.

Equipment details:

 Total floor area(m2)Dock leveler
Total floor area12,0006 units

KCST aims to be compatible with e-commerce products, by installing high storage racks to increase the number of storage locations, it will be a warehouse that can store small quantities of various types. We also have a cargo entrance / exit which is corresponding to all weather.

Planned construction site for new warehouse

Planned construction site is located with good access from each base, about 30km from downtown Bangkok, about 35km from Bangkok Port, about 100km from Laem Chabang Port, and about 23km from Suvarnabhumi International Airport.

In our management plan, we position the logistics business as a main business that contributes to stable profits. We will continue to promote the development of the logistics business, mainly in Southeast Asia, where economic growth is remarkable.

(Reference) Disclosed our Management plan on May 10th, 2021 as a Rolling planning.

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

(Note 1) HACCP (Hazard Analysis and Critical Control Point)

In order for food business operators themselves to understand the hazards such as food poisoning bacteria contamination and foreign matter contamination, and then eliminate or reduce those hazards in the entire process from the arrival of raw materials to the shipment of products.

It is a hygiene management method that aims to ensure product safety by controlling processes that are particularly important for food poisoning.

(Note 2) GMP (Good Manufacturing Practice)

Standards for manufacturing control and quality control in pharmaceutical manufacturing plants.

(Note 3) GDP (Good Distribution Practice)

It is a standard (standard for proper logistics) aimed at ensuring the quality of pharmaceutical products in the transportation and storage process.

“K” Line Listed on the Dow Jones Sustainability Asia Pacific Index, a Leading Index for ESG Investing for 11 consecutive years

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been selected again as an Asia Pacific Index component of the Dow Jones Sustainability Indices (DJSI), one of the leading global indices for ESG investing, for the 11th consecutive year since 2011.

DJSI, the index provided by S&P Dow Jones Indices, measures the performance of companies in terms of economic, environmental and social criteria, through a corporate sustainability assessment, and only includes companies with remarkable performance. Among those indices, Asia Pacific Index selects 153 companies in the Asia-Pacific developed region (including 77 Japanese companies) as components, as a result of sustainability assessment of 609 largest companies in the region. Launched in 1999, DSJI is one of the first global sustainability benchmarks for investors which integrate sustainability consideration into their portfolios.

We have been addressing sustainability as a priority issue of our corporate management, and are making full-scale efforts to contribute to the resolution of social issues, including climate change. For example, we plan further expansion of the introduction of next-generation environmentally friendly car carriers fueled by LNG, the first one of which was launched in March this year. In addition, from FY2022 to 2023, we plan to introduce a capesize bulk carrier equipped with Seawing, an automated kite system using wind power, and a very large gas carrier (VLGC) mainly fueled by LPG. At the beginning of this month, we have revised our 2050 environmental target to “The Challenge of Achieving Net-Zero GHG Emissions”. With this new target, we will not only reinforce initiatives for reducing our in-house GHG emissions by introducing zero-emission vessels powered by new fuels, but also actively support projects aimed at a decarbonized society, including support vessels for projects related to the renewable energy field, such as offshore wind power, as well as transportation of new energy sources, such as hydrogen and ammonia. 

Through our sustainability management, we will continue to contribute to the realization of a sustainable society, as well as strive to promote our own growth strategy and improve our corporate value.

“K” Line Press Release : Announcement of Financial Highlights for 2nd Quarter FY2021

・Financial Highlights for 2nd Quarter FY2021

・Notice on Revised of Financial Results for the full Fiscal Year ending March 2022 and Dividend policy (No Interim Dividend, Year-end dividend policy)

・Notice of occurrence of Non-Operating Income by dividends income

Please see the full press release at https://www.kline.co.jp/en/

“K”LINE Press release – Notice on Filing of Applications for Delisting of the Company’s Shares from the Nagoya Stock Exchange and the Fukuoka Stock Exchange

Please see the full press release at https://www.kline.co.jp/en/

“K”LINE Press release -The Challenge of Achieving Net-Zero GHG Emissions

Revision of 2050 Targets for “K” LINE Environmental Vision 2050

Please see the full press release at https://www.kline.co.jp/en/

“K” Line Starts Joint R&D on Integrated Navigation Support System Using AI and Other Cutting-edge Technologies

Initiative for Expediting Implementation of Autonomous Ships

As a part of an initiative to expedite implementation of autonomous ships, Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has entered into a joint R&D agreement with Japan radio Co.,Ltd.(JRC) and YDK Technologies Co., Ltd. (YDK) to develop an integrated navigation support system that utilizes artificial intelligence (AI) and other cutting-edge technologies for assisting maneuvering in making safety maneuvering decisions. This joint R&D project aims to develop a system that will prevent serious maritime accidents such as ship collisions and groundings and that will lead to autonomous ship operations by combining “K” Line’s maneuvering knowledge and experience in safe ship operation over many years, JRC marine equipment’s knowledge and advanced radio technology developed, and YDK’s steering and propulsion control technology.

This system is expected to meet Degree 1(*1) of the International Maritime Organization (IMO) standard for development stages of autonomous ships and is an initiative to follow the global trend of the development of autonomous ships and further expedite the project.

An overview of this initiative and the joint R&D structure is shown below. The aim is to develop a comprehensive system that will further improve the safety of ship operations by utilizing the knowledge and technologies of the three partners in each process from situation awareness by the seafarer to manoeuvring control of the ship, combined with the most advanced technologies provided by Groke Technologies(*2), Fujitsu Limited(*3), and Forum8 Co.(*4).

Overview of Initiative and Joint R&D Structure

Starting from April 2023, demonstration at sea will be conducted on various ship types and routes, both domestic and international, with the aim of full-scale commercial implementation in the future. “K” Line, JRC, and YDK will continue to develop the system to further improve the safety of ship operations by providing more advanced support and reducing the burden on seafarers and to assist in implementing autonomous ships.

This R&D is a part of our efforts to develop a crew support system for navigation and engine part. The aim is to prevent serious marine accidents under congested water such as collision and grounding by providing safety information to navigator and supporting their decision-making through this Integrated Navigation Support System that utilizes advanced technology. We will continue to accelerate development to improve safety, transportation quality and environmental performance that including the basic technologies required for future autonomous ships in view of cooperation with various partners.

*1: IMO’s Development Level for Automated Ships (Degree 1)

Degree 1 is defined as a state where part of the ship’s operation is automated, but the crew is still on board. This requires that human operators be ready and able to take control if any unforeseen circumstances arise.

https://www.imo.org/en/MediaCentre/HotTopics/Pages/Autonomous-shipping.aspx

*2: Groke Technologies

Groke Technologies was established in 2019 by founders from the Rolls-Royce Ship Intelligence Team, the pioneers in the development of autonomous navigation technology today, with the investment backing from Mitsubishi Corporation. They are a provider of intelligent navigation solutions with extensive background in autonomous maritime systems. Groke Technologies has extensive expertise in maritime sensor fusion, machine vision and artificial intelligence solutions.

*3: Fujitsu Limited

Since 2018, Fujitsu Limited has been conducting joint performance testing with the Maritime and Port Authority of Singapore to verify the effectiveness of Fujitsu’s AI-based ship collision risk prediction technology in actual sea conditions. Starting from 2019, performance tests of this technology have also been conducted at the Tokyo Bay Maritime Traffic Center, Japan Coast Guard.

https://pr.fujitsu.com/jp/news/2018/04/16-1.html

https://pr.fujitsu.com/jp/news/2020/04/15.html

https://pr.fujitsu.com/jp/news/2021/09/28.html

*4: Forum8 Co., Ltd.

Forum8’s CG-based VR simulation technology has already been used in a wide range of fields such as civil engineering and transportation, and recently, Forum8 has also been working on CG-based simulations of ships and marine traffic and has the technology to properly simulate the environment surrounding an operating ship.

https://www.forum8.co.jp/

Initiated Co-Development of Marine Machinery Operation Support System utilizing AI

~ For the Future with Maritime Autonomous Surface Ships ~

Kawasaki Kisen Kaisha, Ltd. (“K” Line) and Kawasaki Heavy Industries, Ltd. (KHI) announced that they have concluded a co-development contract for “AI (Artificial Intelligence)-based Marine Machinery Operation Support System” (hereinafter referred to as “the System”) that is expected to be part of the core technology to achieve autonomous vessel operation in the future.  The System will have such functions as failure prediction/ diagnostics, CBM (Condition-Based Maintenance), and optimum operation support, based on the data analytics of marine machinery operation data using AI. 

In view of safer operations at sea, improvement of working environment for seafarers, and higher pressure for industrial competitiveness, the expectations for autonomous operations for ships is increasingly growing these days. Through this co-development project, they aim to complete the System by combining “K” Line’s extensive data on vessel operation and marine machinery operation collected from Kawasaki-Integrated Marine Solutions*1 and its years of experiences in operation and maintenance of onboard machinery, and KHI’s technology and expertise in building ships and propulsion plants, and by having AI learn these data and knowledge.

The System manages not only a specific piece of equipment but marine machinery onboard as a whole, including main engine and power generator.  In developing the System, we will first target those vessels with diesel propulsion plants, and then those with various types of propulsion systems such as steam turbines and electronic propulsion systems in the next phase.  The System will be beneficial for crew onboard as well as ship management personnel on land, providing useful information on failure predictions and failure diagnostics. This not only enables users to prevent major engine troubles from occurring but also assists planning effective maintenance schedule and advises optimum engine operation based on the condition of plants, ultimately to improve fuel consumption and to contribute to the greenhouse gas reduction.

Preferred Networks, Inc.*2 known for their cutting-edge technologies on deep-learning and machine-learning, is joining us in developing the “Marine AI,” the core of the System that executes failure prediction and operation condition diagnostics.

The Marine AI will be implemented both onboard and in the cloud system. The one onboard learns the vessel’s operation data and uses them to diagnose on a real-time basis. The one in the cloud system periodically collects the data accumulated on each vessel, and centrally uses them for further learning, allowing itself to become smarter and offer failure prediction and diagnostics as well as optimum operation support for any type of vessels.  A proof-of-concept has been established for the core technology of the Marine AI for failure prediction and diagnostics.  With abundant data collected from various ships via Kawasaki-Integrated Marine Solutions, as well as such data obtained from the latest sensors that were not available before, “K” Line and KHI will further proceed on developing the Marine AI that is versatile enough to be applied for any types of vessels. 

Marine Machinery Operation Support System (conceptual diagram)

Both “K” Line and KHI are innovators, fully utilizing their expertise in maritime transport and shipbuilding, collaborating with entities from other industries with their special knowledge and technologies to accelerate system development so that they will achieve autonomous vessel operation for the future. “K” Line and KHI will contribute to accomplish safer operations at sea, improved working environment for seafarers, and higher competitiveness in the marine industry.

Notes

*1. Kawasaki-Integrated Marine Solutions is an ICT system for vessels that allows ship operation management, condition monitoring, performance analysis, and others from management office on land, using ship-land communication network.

Released on June 28, 2016: Joint development project of “K-IMS”; Integrated vessel operation and performance management system

https://www.kline.co.jp/en/news/other/other3295047094663452046.html

Released on December 4, 2019: Completed Additional Development (Phase-2) of “Kawasaki Integrated Maritime Solutions”

https://www.kline.co.jp/en/news/other/20191204EN/main/0/link/20191204EN.pdf

*2. Preferred Networks, Inc. was founded in March 2014, and has been making progressive advancement to achieve the application of machine learning and deep learning to industry in collaboration with leading companies of many different fields, including transportation system, manufacturing industries, and bio-healthcare since then.  As part of the areas of machine learning/ deep learning application, Preferred Networks has been employing their cutting-edge technology for failure prediction of industrial equipment based on anomaly detection using time-series data and operation optimization of factory plants. 

“K” LINE and IBM Japan, Field Trial Utilizing IoT and AI Conducted to Improve Safety and Quality of Car Carrier Cargo Handling

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and IBM Japan, Ltd. (IBM Japan) have conducted a field trial with the objective of improving work quality by strengthening the safety management of cargo handling. Internet of Things (IoT) devices and artificial intelligence (AI) were utilized to collect and analyze information on driving of vehicles during operation in cargo holds, positional information of vehicles and workers, and vital information of workers.

The field trial verified the restriction of driving speed of vehicles, prevention of contact between vehicles and workers, prevention of collisions of vehicles, and collection of vital information of workers. Specifically, with the cooperation of a stevedoring company, beacons (positional information sensors), surveillance cameras, and speed measurement equipment were installed on the cargo deck to collect data. Furthermore, AI-based image recognition technology (Note*) was used to separate vehicles and workers based on camera images to determine the status of their proximity. In addition, heart rates data were obtained from wearable devices (Note*) and based on analyzed data by algorithm to ascertain trends in driver stress. The aim is to improve work quality by strengthening the safety management of cargo handling by analyzing this diverse and complex data and visualizing the number and condition of speed violations and near-miss incidents in the vessel.

Monitoring by using AI-based Camera on the cargo deck.

IBM Cloud, which is secure and has a track record in many companies as a data platform, was used for data analysis. IBM Japan created IBM®︎ Maximo Monito, a solution for remote monitoring, on IBM Cloud to provide real-time visualization of large data sets, AI-based anomaly detection, and a configurable dashboard. This solution enabled the collection, management, and analysis of sensor information, and data scientists played a central role in supporting tasks such as IoT application design and data analysis.

“K” LINE will conduct further verification aimed at practical implementation based on the results of this field trial.


Acquisition of biometric information obtained as heartbeats of stevedores using wearable devices.  (Wearable IoT solution from Mitsufuji.)

“K” LINE aims to establish a world-leading safe operation system, with contribution to people living well and prosperously under its corporate philosophy as an integrated logistics group. In order to further strengthen safety management in the car carrier business, “K” LINE believes it is important to further utilize digital technologies such as IoT and AI.

“K” LINE has also been engaged in strengthening communication infrastructure. The “CENTURY HIGHWAY GREEN,” a next-generation environmentally friendly car carrier, was delivered to “K” LINE in March 2021, equipped with significantly improved facilities for communication within the vessel and between the vessel and land. By adopting a variety of environmental measures and digital technologies, “K” LINE will remain committed to the improvement of safety, the environment, and quality as a key issue it faces.

Reference

March 12, 2021 release: Delivery of Next-generation Environmentally Friendly Car Carrier Fueled by LNG “CENTURY HIGHWAY GREEN” https://www.kline.co.jp/en/news/car/car753727087818379669/main/0/link/210312EN1.pdf