"K" Line

Kawasaki Kisen Kaisha, Ltd. (hereafter, “the Company”) will account following dividends income on Non-Operating Income of non-consolidated financial results for the fiscal year ending March 31, 2024.

1. Outline of dividends

Based on today’s resolution at the general meeting of the shareholders of OCEAN NETWORK EXPRESS PTE. LTD., the affiliate company accounted with the equity method, the Company will receive dividends of 616 million U.S. Dollars (Approx. 86.1 billion Japanese Yen) in the first quarter of the current fiscal year. The dividend is scheduled to be received on June 15, 2023.

2. Impact on The Company’s business performance

The Company will account aforementioned dividends income on Non-Operating Income of non-consolidated financial results for the fiscal year ending March 31, 2024.

There will not be impact on consolidated financial results at the period, as it is dividends from the affiliate company accounted with the equity method.

“K” LINE’s website URL:  https://www.kline.co.jp/en/index.html

Developing a Japanese-produced floating wind turbine to reduce the cost of offshore wind power

Electric Power Development Co., Ltd. (J-POWER),¹ Tokyo Electric Power Company Holdings, Inc. (TEPCO HD),² Chubu Electric Power Co., Inc. (Chubu Electric),³ Kawasaki Kisen Kaisha, Ltd. (“K” LINE),⁴ and Albatross Technology Inc. (Albatross),⁵ have entered into a joint research agreement for a next-generation (floating axis) offshore wind turbine demonstration project (the “project”).

The  Japanese government has announced the intention to maximize the adoption of renewable energy sources as part of the nation’s commitment to achieving carbon neutrality by 2050. Offshore wind power, in particular, is considered a vital part of the initiative to make renewables a primary source of power due to the potential for large-scale installation, lower cost, and economic ripple effects. In Japan, with limited shallow sea areas, there is growing interest in floating offshore wind power because it can be deployed in deep water. To promote the widespread adoption, it is essential to significantly reduce costs through technological development. In addition, increasing the ratio of domestic production (in Japan) is expected to create a strong economic ripple effect.

Against this backdrop, the five partnering companies in this demonstration project will jointly develop a small-scale (20kW) next-generation experimental floating axis wind turbine that is expected to reduce costs and increase the domestic production ratio.

The floating axis wind turbine (FAWT) is a concept under which a vertical-axis wind turbine is supported by a “rotating” cylindrical floating foundation. Its main features are as follows:

Cost Reduction

• The wind turbine can be tilted 20 degrees at maximum output, as it is designed to maintain effectiveness even when tilted. This allows for downsizing for the floating foundation and a significant reduction in equipment costs.
• The wind turbine section can be manufactured at low cost through continuous pultrusion,⁶ a molding process used to form composite materials into long shapes, with carbon fiber reinforced plastics (CFRP).
• By taking advantage of the characteristics to install vertical axis wind turbines close to sea level due to their specific characteristics, operation and maintenance costs for the major apparatus are also anticipated to be substantially lower.

Increase in Domestic Production Ratio

• The wind turbine blades can be manufactured in lengthwise sections with the same cross-sectional shape, eliminating the need for large-scale manufacturing facilities. Additionally, this design makes sections easier to transport, and is therefore suited for domestic production.
• Japanese companies hold approximately 80% of the market share for carbon fiber, the raw material used in the carbon composite for the wind turbine.

J-POWER, Osaka University’s Graduate School of Engineering and Albatross are jointly conducting initial studies of the FAWT concept. Embarking on the tests signifies the next step under a new framework. For the project, small-scale experimental versions of the FAWT will be installed in Japanese waters. After confirming the validity of the analysis and design method, this will lead to an even larger scale (megawatt class) offshore demonstration project.

The five companies involved in the project will use their individual expertise to jointly develop the FAWT, which is anticipated to be a “game changer” in floating offshore wind power generation. Through this collaboration, we aim to make offshore wind power generation the primary source of electricity and contribute to the realization of a carbon-neutral society.

Goals of participating companies:

Cooperating Organizations

The wind turbine section of the small-scale experimental units will be developed by Fukui Fibertech Co., Ltd. (Aichi Prefecture), and the floating section will be developed by Mirai Ships Inc. (Miyagi Prefecture). The carbon composite material molding technology will be developed in partnership with the Innovative Composite Center (ICC) at the Kanazawa Institute of Technology, and the motion analysis technology will be developed in partnership with Osaka University’s Graduate School of Engineering.

Notes:

1. Electric Power Development Co., Ltd. (headquartered in Chuo-ku, Tokyo; President: Toshifumi Watanabe)
2. Tokyo Electric Power Company Holdings, Inc. (headquartered in Chiyoda-ku, Tokyo; President: Tomoaki Kobayakawa)
3. Chubu Electric Power Co., Inc. (headquartered in Nagoya City, Aichi; President: Kingo Hayashi)
4. Kawasaki Kisen Kaisha, Ltd. (headquartered in Chiyoda-ku, Tokyo; President: Yukikazu Myochin)
5. Albatross Technology Inc. (headquartered in Chuo-ku, Tokyo; CEO: Hiromichi Akimoto)
6. A molding method for continuously manufacturing components with the same (fixed) cross-section by solidifying the resin and fibers as they are drawn through a mold

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce the signing of a 15-year long-term time charter contract (with an option to extend the contract up to 10 additional years) with Mitsubishi Corporation subsidiary Diamond Gas International Pte. Ltd. (DGI) on May 12th. “K” LINE has also concluded a shipbuilding contract with Samsung Heavy Industries Co., Ltd. (Samsung) for a 174,000 m³ LNG carrier.

This is the first long-term time charter contract between DGI and “K” LINE involving a newly built vessel. The plan is for this new vessel to be engaged in LNG transportation around the world beginning in the second half of 2026. This vessel will be equipped with an ME-GA*¹ engine and achieve the reduction of environmental impact through the reduction of fuel consumption during operation.

In the 40 years since the delivery of the first Japanese LNG carrier, Bishu Maru, in 1983, “K” LINE has been establishing its expertise in LNG transportation and developing a worldwide network. The signing of the new contracts is a successful result of “K” LINE’s abundant experience supervising vessel construction, its high-quality ship management, and its ability to boast the highest level of safety in its commercially optimized operations.

In our Medium-Term Management Plan published in May 2022,*² “K” LINE has positioned the LNG business as one of its top priority areas for future investment. “K” LINE will continue to expand its long-term contracts and accommodate the growing demand for energy by responding to the diverse needs of its customers.

*1 ME-GA Engine: a low-speed dual-fuel engine using low-pressure gas

*2 Medium-Term Management Plan (Released on May 9th, 2022)

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

Vessel Specifications

Please be advised that “K” Line Tokyo Head Office issued the following press releases today, which is an up-dated version of the press release distributed yesterday.

Please refer to the attached PDF documents for details. This press release is also available on the website both in English and Japanese. 

https://www.kline.co.jp/en/

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) announced today that “K” Line Maritime Academy has renewed the content of its ship handling simulator training and obtained certification in the maritime training sector*¹ from Nippon Kaiji Kyokai (ClassNK) for its new training course, Ship Handling & Maneuvering Simulator (Master) Training Course.

The ship handling simulator training course for masters and deck officers, for which the certification was granted, complies with the STCW Code*², which is an international convention on training of seafarers, and the Model Course 7.01*³, guidelines established by IMO. The training course also conforms to SIRE 2.0*⁴, an updated edition of Ship Inspection Report Programme established by OCIMF*⁵, an industry association of cargo owners.The Ship Handling & Maneuvering Simulator (Master) Training Course is the first to be certified by ClassNK among training courses complying with the corresponding parts of IMO Model Course 7.01, STCW Code, and SIRE 2.0.

“K” LINE has set the enhancement of its initiatives on safety, the environment, and quality as its business policy for improving its corporate value. Therefore, the development of maritime professionals who support safety in navigation and cargo operations is an important task. “K” LINE will continue to provide high-quality training and drive safety in navigation and cargo operations as well as environmental conservation, aiming to lead such efforts to the provision of higher-quality marine transportation.

*¹ Certification of Maritime Education & Training:

Certification in the maritime training sector, which is aimed at enhancing and strengthening seafarer training in response to the technical advancement of ship operation itself reflecting technological innovations in recent years.

https://www.classnk.or.jp/hp/en/authentication/maritime/

*² STCW Code:

International Convention on Standards of Training Certification and Watchkeeping for Seafarers

*³ IMO Model Course 7.01:

One of the IMO Model Courses that covers Chapter II, Section A-II/2 of the STCW Code, which includes requirements on the ship handling training of masters.

*⁴ Ship Inspection Report Programme (SIRE):

The Ship Inspection Report Programme (SIRE), formulated and managed by OCIMF, has been revised and is expected to start being operated as “SIRE 2.0” around the end of 2023.

https://www.ocimf.org/en/? view=article&id=1348:17-23&catid=28

*⁵ The Oil Companies International Marine Forum (OCIMF):

A major association of cargo owners, which sets forth its own safety guidelines, aiming to drive best practices in the structural design and operation of oil tankers, liquefied gas tankers, and offshore vessels and in their interfaces with onshore terminals.

https://www.ocimf.org/about-ocimf

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that its Thailand-based group company K LINE CONTAINER SERVICE (THAILAND) LTD. (KCST) will commence the operation of a new warehouse in the Bang Na district of Bangkok on April 1st.

The new warehouse is situated in a prime location 30 km from Bangkok’s city center, the largest consumption area in Thailand. It is designed to handle e-commerce products, and instead of dispatching products on a per-pallet or per-case basis as before, is able to dispatch products on a per-item basis more swiftly. Multi-level racks that take advantage of the 15 meter-high ceiling have been installed for this purpose. With the installation of a 15 meter-wide canopy that can store a large variety of products in small quantities, the warehouse has been fully equipped with an all-weather cargo entrance and exit. Additionally, KCST has obtained four ISO certifications (ISO 9001, ISO 14001, ISO 45001 and ISO 28000) at its existing warehouses and plans to obtain those same certifications for the new warehouse within the year.

Overview of the New Warehouse

Name: K LINE CONTAINER SERVICE (THAILAND) LTD.

Address: No. 191/1 Moo 9 T. Bangchaloang A.Bangplee, Samutprakarn 10540.

Service Launch Date: April 1st, 2023

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

Total Floor Area: 10,638 m²

“K” LINE has been operating regular warehouses and freezing and refrigerating warehouses with close ties to the community in Thailand for over three decades. We have provided logistics services by situating each warehouse in a prime location, such as on the outskirts of Bangkok, within an industrial zone with a high concentration of Japanese companies, at Suvarnabhumi Airport and near Laem Chabang, one of Thailand’s major ports.

In addition, BANGKOK COLD STORAGE SERVICE, LTD. (BCS), another Group company located on the same premises, is in the process of constructing a new freezing and refrigerating warehouse which is due to open this summer (expected in August 2023).

In its management plan, “K” LINE has positioned the logistics business as a major business contributing to stable revenue. Going forward, “K” LINE will continue to provide high-quality logistics services and solutions to meet increasingly diverse customer needs and growing demand, with a focus on Southeast Asia, which will continue to show remarkable economic growth.

Overview of Warehouses in Thailand

Reference Link

Announced May 9, 2022: Medium-term Management Plan

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

Related Press Release

Announced November 17, 2021: “K” LINE Group Companies Establish New Cold and Dry Warehouses in Thailand

https://www.kline.co.jp/en/news/logistics/logistics4947569946710464310/main/0/link/211117EN.pdf

Please be advised that “K” Line Tokyo Head Office issued the following press releases today.

Completion of Acquisition of Shares in Atlas Corp. by a Consortium Including an Equity Method Affiliate

This press release can be viewed on the following website both in English and Japanese. 

https://www.kline.co.jp/en/

Please be advised that “K” Line Tokyo Head Office issued the following press releases today.

Notice Regarding Completion of Cancellation of Treasury Stock

This press release can be viewed on the following website both in English and Japanese. 

https://www.kline.co.jp/en/

The launch ceremony for the liquefied CO2 transportation demonstration test ship was held today, 28th March 2023 at the Shimonoseki Shipyard of Mitsubishi Shipbuilding Corporation (Mitsubishi Shipbuilding”).

At the launch ceremony, participants from related organizations including the Ministry of Economy, Trade and Industry, NEDO (the New Energy and Industrial Technology Development Organization) and the ship owner, Sanyu Kisen were on hand to offer their congratulation for the safe launch of the ship. The ceremonial rope was cut by Mrs. Noriko Ishizaki, the wife of the Nippon Gas Line Co., Ltd. (NGL, in charge of management and operation of the demonstration test ship) representative while all participants looked on.

This demonstration test ship hull will be equipped with the liquefied CO2 tank system researched and developed by the Engineering Advancement Association of Japan (ENAA). After completion, the demonstration test ship will be engaged in liquefied CO2 transportation for the CCUS R&D and Demonstration Related Project, the Large-scale CCUS Demonstration in Tomakomai, the Demonstration Project on CO2 Transportation, the R&D and Demonstration Project for the Marine Transportation of CO2 (hereinafter the “Demonstration Projects”) which have been conducted by NEDO since June 2021.

ENAA, Kawasaki Kisen Kaisha, Ltd. (“K” LINE), NGL, and Ochanomizu University will accelerate their research and development of the LCO2 transportation technology and contribute to the reduction of the cost of CCUS technology and realization of LCO2 safe large-scale long-distance transportation.

ENAA has been engaged in research and development towards the operation of a demonstration ship equipped with a liquefied carbon dioxide ship tank system, and it will continue to be responsible for the planning, analysis and supervision of the demonstration test.

“K” LINE carried out a risk assessment of the demonstration test ship in the safety evaluation in 2022 and will contribute to the development of an operation manual for the demonstration vessels.

NGL is proceeding with the planning of the management and operation of the demonstration vessel. In addition, NGL is conducting a case study of its own LPG vessel in preparation for the measurement of data related to the temperature, pressure, flow, etc. of the CO2 on the demonstration vessel.

Ochanomizu University conducts fundamental research on the control of the state of carbon dioxide (phase changes) and provide the information necessary for safe transportation studies.

ENAA, “K” LINE, NGL, and Ochanomizu University will contribute to the realization of a carbon neutral society through this demonstration project.

General Specifications

Cargo tank capacity:        1,450 m³

Overall length:                   72.0 m

Breadth:                               12.5 m

Draft:                                    4.55 m

Related releases

June 22, 2021: Participation in R&D and demonstration project for CO2 marine transportation

https://www.kline.co.jp/en/news/carbon-neutral/Liquefied_gas8511561127992992679/main/0/link/210622EN.pdf

February 2, 2022: NEDO Demonstration Project: The World’s First Demonstration Test Ship for Liquefied CO2 Transportation to be Built

https://www.kline.co.jp/en/news/carbon-neutral/Liquefied_gas-7680599579843084358/main/0/link/220202EN.pdf

October 7, 2022: NEDO Demonstration Project: Demonstration Test Ship for Liquefied CO2 Transportation has broken ground

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-239031784827641936/main/0/link/221007EN.pdf

“K” Line Tokyo Head Office issued the following press releases today:

https://www.kline.co.jp/en/

This press release is available on the website both in English and Japanese.