"K" Line

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) signed a service contract agreement on port expense settlement services with DIABOS Global (DIABOS) in July 2023. DIABOS is a company in the JM Baxi Group, which is “K” LINE’s business partner in India. Based in Mumbai, its expertise is contracted services for port expense settlement, serving a large number of shipping companies around the world. With an abundance of practical experience, it has accumulated a great deal of related data.

“K” LINE is pressing ahead with digital transformation from five perspectives specified in its DX Strategy*¹, namely DX ashore, DX at sea, DX of data, DX of human resources and security that supports DX. As an initiative for DX ashore and for DX of data, it is set to introduce the VESON IMOS Platform (VIP) in 2024. It is a platform provided by Veson Nautical (Veson) to cover a series of ship operation management processes including charter contract conclusion, financial management and fuel management. Today, “K” LINE operates the tramp service business -*² globally. The agreement is aimed at increasing “K” LINE’s business efficiency and budget management accuracy and broadly improving its business quality by outsourcing to DIABOS port expense processing operations, including assessment and journalizing of port expenses that occurs in huge numbers every day and data entries into the VIP system.

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

*¹DX Strategy 2023 (announced on December 22, 2022)
https://www.kline.co.jp/en/sustainability/dx_strategy.html

*²Car carrier transport is excluded.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has been selected as a constituent of the “FTSE4Good Index Series”, one of the leading global indices for ESG investing, for the second year straight and 19^th time in total. “K” LINE has also been listed as a constituent of “FTSE Blossom Japan Index” for six years in a row and “FTSE Blossom Japan Sector Relative Index for the second consecutive year respectively, since those indices were initially launched.

Created by the global index provider FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company), the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices, selecting 1,074 companies from developed countries including 226 Japanese companies, and 566 companies from emerging countries. On the other hand, FTSE Blossom Japan Index and FTSE Blossom Japan Sector Relative Index reflect the performance of Japanese companies that demonstrate strong ESG practices (310 companies and 605 companies are selected respectively out of 1,424 constituents of FTSE Japan All Cap Index). These indices have been adopted as a benchmark of ESG investing by Government Pension Investment Fund (GPIF) in Japan. Those indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

“K” LINE has been addressing sustainability as a priority issue of its corporate management, and advancing various initiatives to respond flexibly to various needs. These include not only changing customer needs, but also the needs of nations and the global community, especially for the achievement of the UN Sustainable Development Goals, and measures to mitigate climate change. Going forward, “K” LINE will continue to pursue greater corporate value, creating both economic and social values sustainably, through proactive sustainability efforts.

We will participate in the Joint Technological Development Program for the Demonstration of Fully Autonomous Ships under the MEGURI 2040 Fully Autonomous Ship Project* (hereinafter MEGURI2040) administrated by the Nippon Foundation, as a member of the Designing the Future of Fully Autonomous Ships Plus consortium (hereinafter DFFAS+)** consisting of 51 companies in Japan.

On July 20, the Nippon Foundation held a seminar*** on the MEGURI2040. At the seminar, an overview of the second stage of MEGURI2040 and the project’s initiatives were presented.

This program is positioned as the second stage of MEGURI2040, which started in 2020, and aims for full-scale commercialization of fully autonomous ship technology by 2025, which was developed in the “Joint Technological Development Program for Demonstration of Fully Autonomous Ship,” which was carried out as the first stage, in cooperation with the Nippon Foundation.

In addition to designing next-generation ships that will support the coastal shipping industry in the future, a demonstration of ship-land operations will be conducted to simulate the future coastal shipping industry that will be supported by fully autonomous ship. The demonstration will use four different types of ships (a newly built full package container ship; with fully autonomous operation system, an existing container ship, a RORO cargo ship and a remote island route ship; with some autonomous operation system) and two Fleet Operation Centers.

• Standardization of developed technologies

To refine the fully autonomous ship technology developed in the first stage, and by standardizing these technologies into international standards, to strengthen Japan’s maritime industry and lead the international competition in fully autonomous ship technology.

• Reinforcement of development process infrastructure

Based on the development process infrastructure established in the first stage, reinforce it further by upgrading simulation technology, generalizing risk assessment, etc.

• Social Implementation

To commercialize an autonomous navigation system (including land-based monitoring system) and to establish a certification scheme necessary to commercialize the system.

In addition, to improve the environment for social implementation, we will utilize our knowledge of technological development to establish international and domestic rules for fully autonomous ships, examine human resource requirements and training methods to accommodate new working styles, study the use of deregulation and other methods to ensure the continuous commercial use of fully autonomous ships, and examine insurance and freight rates for fully autonomous ships.

Our Approach

We, Kline, are collaborating with Kawasaki Kinkai Kisen Kaisha, Japan Radio Co., Ltd., and YDK Technologies Co., Ltd. to retrofit the existing RORO cargo ship ‘Hokuren Maru No.2’ (operated by Kawasaki Kinkai Kisen Kaisha) with unmanned and autonomous navigation capabilities.

By leveraging our expertise in safe operations, we are developing a system that replicates the sequence of piloting actions—namely ‘perception, information processing, analysis, planning, and execution’—that were previously carried out by humans, using cutting-edge AI technology and other advancements. Our goal is to further enhance the safety and quality of transportation provided by our operated vessels.”

In order to solve social issues in Japan’s coastal shipping industry, such as reducing labour shortages and the workload, preventing maritime accidents, and maintaining remote island shipping routes, and to support stable domestic logistics and transportation infrastructure, the Nippon Foundation, DFFAS+ participating companies, and domestic and international partner organizations will continue to work together toward the commercialization of fully autonomous ships by 2025.

*A subsidization scheme to cultivate further momentum for technological development in the field of crewless maritime autonomous surface ships, promoting changes in logistics, economies,  and social infrastructure in Japan, and supporting such technological development through the success of the world’s first crewless autonomous operation trials by domestic coastal vessels.

** Companies participating in the DFFAS+ project include Japan Marine Science Inc. (project leader); Akasaka Diesels Limited; IKOUS Corporation; Imoto Lines,Ltd.; Weathernews Inc.; Uyeno Transtech Ltd; EIZO Corporation; SK WINCH CO.,LTD.; MTI Co., Ltd.; NX Shipping Co.,Ltd.; NTT Communications Corporation; Kawasaki Kisen Kaisha, Ltd.; KAWASAKI KINKAI KISEN KAISHA,LTD.; KANDA DOCKYARD Co., Ltd.; KYOKUYO SHIPYARD CORPORATION; Kinkai Yusen Kaisha Ltd.; Kokusai Ryobi Ferry Co.,Ltd.; Sunflame Co., Ltd.; Sanwa Dock Co., Ltd.; JRCS Co.Ltd.; JAPAN HAMWORTHY CO.,LTD.; Japan Marine United Corporation; Mitsui O.S.K. Lines, Ltd.; SKY Perfect JSAT Corporation.; Suzuyo Marine Co., Ltd.; Space Compass Corporation; TERASAKI ELECTRIC CO.,LTD.; Tokio Marine & Nichido Fire Insurance Co., Ltd.; TOKYO KEIKI INC.; TST CORPORATION.; MIRAI R＆D (Research & Development);Nakashima Propeller Co., Ltd.; Nabtesco Corporation; NIHON SHIPYARD CO.,LTD.; Japan Radio Co., Ltd.; NYK Line; The Hanshin Diesel Works, Ltd.; BEMAC Corporation; pluszero, Inc.; FUJIWARA SHIPBUILDING CO.LTD.; FURUNO ELECTRIC CO., LTD.; Honda Motor Co., Ltd.; Honda Heavy Industries Co., Ltd.; Marindows Inc.; Marubeni Corporation; MIURA CO.,LTD.; Mitsui E&S Shipbuilding Co., Ltd.; Mitsui Sumitomo Insurance Company, Limited; Mitsubishi Research Institute, Inc.; Mitsubishi Shipbuilding Co., Ltd.; YDK Technologies Co.,Ltd.

*** Presentations on technologies and rules for fully autonomous ships and a panel discussion on expectations and challenges for the commercialization of fully autonomous ships.

The Nippon Foundation Fully Autonomous Ship Project MEGURI2040 Seminar on Fully Autonomous Ship

The “K” LINE Group companies conducted worldwide simultaneous cleanup activities, during a period before and after World Oceans Day on June 8.

More than 450 employees and their families from 14 group companies around the world participated in the activities as volunteers, to collect garbage on land, which is said to be the source of 7~80% of marine plastic, at beaches, the area around offices, mountain forests, canals and rivers. The amount of garbage collected amounts to about 7,800 liters.

These days, threats on ocean environment such as plastic pollution are becoming hot issues, while protection of oceans is set as one of Sustainable Development Goals (SDGs) , namely, “Conserve and sustainably use the oceans, seas and marine resources for sustainable development.” For the “K” LINE Group, whose corporate principle is “as a logistics company rooted in the shipping industry, we help make the lives of people more affluent”, the oceans are essential for our business activities, and as an opportunity to reconsider marine environmental issues together with Group employees, we conducted the cleanup activities during the period before and after World Oceans Day, from late May to early July this year.

Going forward, the “K” LINE Group will continue to make every effort to realize one of Values the “K” LINE Group prizes, “Contributing to the global environment and a sustainable society”, by raising employees’ awareness of environmental conservation through such activities.

(*）World Oceans Day was officially designated by the United Nations in 2009 to raise global awareness of the benefits humankind derives from the ocean and our individual and collective duty to use its resources sustainably. On that day, awareness-raising events such as ocean cleanup are held over 100 countries every year.

Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC HD), Kawasaki Kisen Kaisha, Ltd. (“K” LINE), and JFE Steel Corporation have agreed to conduct a joint evaluation aiming to establish the CCS (Carbon Capture and Storage) value chain originated from Japan (hereinafter “the Evaluation”), aligned with the joint study*¹ on CCS in Malaysia with Petroliam Nasional Berhad (PETRONAS), and concluded a Memorandum of Understanding (MOU) among the four companies on June 19.

JAPEX, JGC CORPORATION (JGC), an operating company of JGC HD for overseas EPC (engineering, procurement, and construction), and “K” LINE, has been proceeding with the joint study (hereinafter “the Study”) with PETRONAS, including study on suitable sites for CO₂ storage in Malaysia and its technical evaluations, CO₂ capture and transport from the PETRONAS’s LNG complex in Bintulu, and potential of transportation from outside Malaysia including Japan. As part of this study, the three companies also have worked on the investigation and dialogue with potential candidate emitters, considering CO₂ transportation from Japan. As a result of the dialogue with the candidates, the four companies have found that their future direction of the Study aligns with the one of JFE Steel, which has been considering reduction of CO₂ emission from their operations. Therefore, the four companies signed the MOU to conduct the Evaluation.

The four companies will conduct the Evaluation to establish the CCS value chain, from CO₂ separation and capture at JFE’s steelworks in Japan, to marine transportation of liquefied CO₂ to the receiving point(s) in Malaysia, including estimation of required facilities and costs. The Evaluation will also be appropriately aligned with the study of CO₂ receipt and storage in Malaysia within the scope of the Study with PETRONAS.

By the establishment of the international CCS value chain through the Evaluation, JAPEX, JGC HD, “K” LINE, and JFE Steel aims to contribute for the realization of carbon neutrality by 2050, including the realization of de-carbonized society in Asia targeted by Asia Energy Transition Initiative (AETI)*².

*1: Please refer a joint press release “JGC CORPORATION and Kawasaki Kisen Kaisha, Ltd. Joins CCS Study in Malaysia” on July 29, 2022.

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral7943232713056097109/main/0/link/220729EN.pdf

*2: The Japanese Government’s initiative announced in May 2021, which aims to achieve sustainable economic growth and carbon neutrality simultaneously in Asia.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that K LINE MARINE & ENERGY PTE. LTD. (KME) was established on June 7th in Singapore.

In May 2022, “K” LINE set up a new company in Singapore to satisfy ever-diversifying needs for high-quality ship management services, the establishment of a community-based support structure, the adaptation to new fuels and other needs, in an effort to improve our global safety and quality management structure encompassing ship management companies and other maritime technology organizations, human resources and operational sites. As a measure to strengthen our organization, KME was established to develop ship safety and quality management, securement and development of crew members capable of handling new fuels and new technologies and other functions that are currently handled by the Tokyo head office, with the goal of strengthening our global structure for safety and quality management, including maritime technologies.

KME will also function as a commercial hub for the transportation of energy resources such as LNG carriers, oil tankers and carbon neutrality-related ships (e.g. LNG/ Ammonia fuel supply ships, liquefied CO₂ carriers, etc).

“K” LINE considers Asia to be a growing market. In particular, Singapore is home to the business locations of many resource majors and is a place where business and information accumulate. The city has become an important location for us to meet the needs of customers and expand our businesses.

We will facilitate the evolution of our community-based, organizational operating capabilities including our capabilities connected to energy resource transport in Asia, think outside-the-box in seeking the solutions our customers desire and demonstrate organizational operating capabilities integrating the sales and technical divisions. In this way, we will meet the needs of various customers in reducing their environmental impact and other areas. Moreover, we will pursue continued growth by continuing to strengthen our partnerships with customers.

[Overview of the New Company]

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) hereby announces that the following change of responsibilities of Executive Officer were resolved at the Board of Directors Meeting held today.

Change of Responsibilities of Executive Officer as of July 1, 2023

Please see below the list of responsibilities of Executive Officers as of July 1, 2023.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has participated in the GX League, which will begin full-scale operation from this year.

Based on the goal of our Environmental Vision of “The Challenge of Achieving Net-Zero GHG Emissions by 2050,” we have formulated a growth strategy that regards contributing to the realization of a low-carbon and decarbonized society as a business opportunity.

In the latter half of the 2020s, we will contribute to the realization of low-carbon and decarbonization of marine transportation in our customers’ value chains through our own efforts to reduce GHG emissions, aiming to introduce zero-emission ships using new fuels.

Furthermore, by responding to the demand for support vessels for projects related to the renewable energy field, such as offshore wind power, transportation of new energy sources, such as hydrogen and ammonia, and carbon capture and storage (CCS) transportation, we will leverage the strengths we have cultivated to date and actively engage in businesses that contribute to the low-carbon and decarbonization of society.

Through our participation in the GX League, we aim to be a company that continues to be chosen by all stakeholders by further accelerating these initiatives, reducing environmental impact, and continuously improving corporate value toward the realization of a sustainable society.

“K” Line Group Environmental Awards 2023 Ceremony held on June 12, 2023.

The awards were established to honor and give recognition to outstanding environmental-preservation-contributive activities undertaken by both executives and employees working throughout the “K” Line Group according to the direction developed in “K” Line Environmental Vision 2050. This year marks the 9th awards ceremony since establishment of the awards in 2015. We accepted many entries from our group companies both in Japan and overseas. The activities of five companies — one “Grand Award” , four “Excellence Award” and one “Special Award” —  were selected from such standpoints as “originality,” “challenge level,” “degree of contribution,” “continuity” and “potential for pervasiveness”, and they received the awards from our President and CEO, Yukikazu Myochin.

The “K” Line Group will continue to broadly share environmental preservation activities being addressed within our Group companies via the presentation of these annual “K” Line Group Environmental Awards in order to demonstrate the environmental preservation activities by the entire Group. Through this emphasis on continuing to aggressively contribute to environmental preservation and biodiversity protection, we will successfully accomplish our mission, i.e., “Passing on a sustainable society and this blue and beautiful ocean to the next generation” as expressed in “K” Line Environmental Vision 2050.

Awardees of the “K” Line Group Environmental Awards are as follows:

GRAND AWARD

• Reducing fossil fuels and CO2 emissions by using EV cars, installing solar carports and storage batteries at the Daikoku Car Carrier Terminal

Daito Corporation

The Daito Corporation considered ways to contribute to CO2 emissions reduction at the Daikoku Car Carrier terminal, and decided to convert company cars to EVs and install solar carports that can charge EVs. The solar carport can be used to charge EVs, and a portion of the surplus power can be supplied to the guardroom office or can be stored in storage batteries for use at night or in times of disaster.

The amount of electricity generated during the first four months of operation has been 1581.9 kwh since it started operating in November 2022, resulting in a reduction of approximately 1140.55 kg of CO2 emissions.

EXCELLENCE AWARD

• Restoring the ecosystem through dam building

“K” Line (Thailand) Ltd.

The water storage will increase in forests by building check dams in national parks and we can restore the ecosystems of surrounding organisms.

• Improvement of business operations through the introduction of RPA

Nitto Total Logistics Ltd.

We can improve work efficiency and reduce copy paper usage.by Introducing RPA (Robotic Process Automation) into daily operations,

• Use of “ECOPLA WOOD” as a substitute for wood dunnage

“K” Line Marine Solutions Co., Ltd.

We can reduce wood usage by changing the part of the dunnage (cargo bedding material) used for curing and protecting cargo and hold decks from wood to “ECOPLA WOOD”, which is Recycled Plastic Products.
Entering into World’s first full scale CCS project with Northern Lights for two liquefied CO2 vessels/CO2 reduction through CCS/liquefied CO2 transportation Carbon-Neutral Promotion Group (Kawasaki Kisen Kaisha, Ltd.)

We participated in the world’s first full-scale Carbon capture and storage value chain project in Norway by two liquefied CO2 carriers.
(Special Award) : Accumulation 10 entries

• “K” Line (Thailand) Ltd.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) received the Gold Award in the Magazine Advertising Category for the 44th 2023 Japan BtoB Advertising Awards hosted by the BtoB Association Japan. The award was given for four advertisements in “K” LINE’s environment series, entitled, “Full ahead to carbon neutral”, and the award ceremony was held on June 9th.

The Japan BtoB Advertising Awards is the only comprehensive contest for BtoB advertising works in Japan, started by the BtoB Association Japan in 1980. The Awards are divided into 15 categories, including the Product Catalog Category, the Poster Category, and the Newspaper Advertisement Category, and the purpose of the Awards is to commend the creative results of business advertising in Japan and to acknowledge and offer evaluations of excellent BtoB advertising by experts in creating advertisements and marketing. This was the first award in any of the categories for “K” LINE.

“K” LINE established the long-term “K” LINE Environmental Vision 2050*¹ policy on the environment, defining a 50% reduction in CO2 emissions by 2030 compared to 2008 and establishing the goal reaching net zero in GHG (GreenHouse Gases) by 2050. In the Medium-Term Management Plan released in May 2022, “K” LINE established a long-term management vision to commit to a smooth energy transition for both the company and society and to promote activities aimed at realizing a low-carbon and decarbonized society. “K” LINE’s environmental advertising, entitled, “Full Steam Ahead to Low Carbon and Decarbonization”, was created based on specific initiatives and each of the four advertisements features a different model: an LNG-fueled pure car and truck carrier, a main measure to reduce GHG emissions by 2030; SEAWING, an automatic kite system to reduce CO2 emissions by more than 20% by utilizing wind power; a zero-emissions ammonia-fueled pure car and truck carrier aiming to achieve net-zero emissions by 2050; and a ship supporting offshore wind power generation that is expected to become popular in the future.

Going forward, “K” LINE will continue to strive to contribute to sustainable economic and social development and enhance corporate value while actively and flexibly responding to customers’ needs, including environmental responses which are expected to grow, and preserving the environment through business activities based on the “K” LINE Environmental Vision 2050.

*¹: “K” LINE Environmental Vision 2050:-Blue Seas for the Future-

https://www.kline.co.jp/en/sustainability/environment/management.html#002