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Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce publication of “K” LINE REPORT 2022.
In the “K” LINE REPORT, we explain from both financial and non-financial information with the goal of helping all stakeholders, including shareholders and investors, better understand our efforts to improve corporate value over the medium to long term.
Kawasaki Kisen Kaisha, Ltd. (“K” Line) announced today that, together with ITOCHU Corporation, Nihon Shipyard Co., Ltd., Mitsui E&S Machinery Co., Ltd., and NS United Kaiun Kaisha, Ltd., has obtained an Approval in Principle (AiP) from Classification Society, Nippon Kaiji Kyokai for the design of an ammonia-fuelled ship (200,000 deadweight ton class bulk carrier and hereinafter “the Vessel”).
The vessel, which recently received an AiP, was developed by Nihon Shipyard as the part of the “Integrated Project for the Development and Social Implementation of Ammonia Fuelled Ships” which was jointly adopted by “the Green Innovation Fund Project / Development for Next-Generation Ships / Development of Ammonia Fuelled Ships” of the New Energy and Industrial Technology Development Organization (NEDO) (Note1).
At this time, there are no international guidelines for the use of ammonia as marine fuel, so ““K” Line and partners are looking toward obtaining Alternative Design Approval (Note 2) for the shipbuilding of the Vessel. A risk assessment (Hazard Identification Study – “HAZID”) was recently conducted on the safety of using ammonia as marine fuel, and the basic design of the Vessel was evaluated as “capable of ensuring the same level of safety as ships operating with existing fuel”.
The acquisition of the AiP is an important milestone for the implementation of ammonia-fuelled ships, a new challenge for the maritime industry, and also an important step toward the further promotion of the “Integrated Project” being facilitated by ITOCHU Corporation. “K” Line and partners will proceed with the development of the Vessel based on the basic design for which the AiP has been obtained, and aims to take delivery of the Vessel and begin its social implementation in 2026.
“K” Line has revised a part of its long-term environmental guideline, “K” Line Environmental Vision 2050 (Note3) in Nov 2021 and has set a new goal for 2050 “to achieve net zero GHG emissions”.
As a comprehensive logistics group based on the shipping industry, “K” Line Group will continue to work to reduce its environmental impact in order to realize a sustainable society and increase its corporate value, based on its corporate philosophy of “contributing to the enrichment of people’s lives”.
(Note1）Announced on 26th October 2021:
Joint project on “Development of Ammonia-fuelled ship” adopted as Green Innovation Fund
（Note2） Alternative Design Approval is to prove that the ship is as safe as a ship built in accordance with existing international regulations and to obtain approval from the competent authorities when the ship is designed without any international guidelines. Ships designed in accordance with ClassNK guidelines, such as the vessel, may use ammonia as a marine fuel if they are approved by the competent authorities in accordance with the SOLAS Convention (International Convention for the Safety of Life at Sea) and are built according to an approved alternative design.
(Note3) “K” LINE Environmental Vision 2050 can be seen in below link:
https://www.kline.co.jp/en/csr/environment/management.html#002
PT. “K” Line Mobaru Diamond Indonesia (KMDI), an affiliated company of Kawasaki Kisen Kaisha, Ltd. (“K” LINE), has completed land transportation of electronic vehicles (EV) for G20 summit held in Bali, Indonesia on 15th and 16th November.
Total of 860 electric vehicles were provided for G20 summit by multiple manufacturers that produce finished vehicles locally. The vehicles are transported by carrier car from each plant in Java island to Jakarta port and Jakarta port to Bali island by domestic vessel. KMDI was responsible for the carrier car transportation of approx. 40% of the vehicles.
While the Indonesian government is working to build up EV supply chain in Indonesia against the backdrop of rich natural resources such as nickel, it adopted various policies to implement more EV such as promoting governmental organization to use EV. The vehicles that are used for G20 summit are battery electric vehicles (BEV) only.
In our Medium-Term Management Plan published in May 2022 (Note1), we have defined logistics business as the role of contributing by enhancing profitability and are working to strengthen and expand our automotive logistics business. KMDI owns more than 300 car carriers and has the biggest share in Indonesia. While we continue to strengthen the business in Indonesia where stable growth in finished car production and sales is expected, we will keep contributing to the Indonesian government’s target to achieve carbon neutral by 2060.
(Note 1) Medium-Term Management Plan (Released on May 9, 2022)
Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce the execution of five long-term Time Charter contracts through joint venture companies (Note 1) with QatarEnergy (Note 2). The joint venture companies have concurrently executed Shipbuilding contracts for 174,000m3 LNG carriers with Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. “K” LINE has already concluded seven long-term Time Charter contracts with QatarEnergy in August this year (Note 3), making the total number of twelve vessels.
QatarEnergy is one of the world’s largest LNG producers and will allocate the newbuilding vessels to transport LNG around the world.
The newbuilding vessels will be equipped with X-DF 2.1 iCER (Note 4) which will contribute to reduction of GHG emissions and realize the ease of environmental impact by lower fuel consumption in operation.
Since the delivery of “Bishu Maru” in 1983 as the first Japanese LNG carrier, “K” Line has been establishing expertise on LNG transportation and developing its worldwide network for nearly 40 years. The new contracts have been executed as a successful result of supervision of vessel’s construction with abundant experience, the high-quality ship management, and the highest level of safe and commercially optimized operation.
“K” LINE and QatarEnergy have had long-term relationship through several existing projects. The new five Time Charter contracts, in addition to seven contracts executed in August 2022, will further strengthen the business relationship.
In our Medium-Term Management Plan published in May 2022(Note 5), “K” LINE has placed LNG business as one of the top priority areas in the future investment. “K” LINE will further expand long-term contracts and accommodate growing energy demands by responding to various customers’ needs.
(Note 1) It is sponsored by “K” Line together with Nippon Yusen Kabushiki Kaisha, China LNG Shipping (Holdings) Limited., and MISC Berhad through its wholly-owned subsidiary, Portovenere and Lerici (Labuan) Pte Ltd.
(Note 2) QatarEnergy is a state energy company of Qatar.
(Note 3) “K” LINE enters into Long-Term Time Charter with QatarEnergy for Seven Newbuilding LNG vessels (Released on August 10, 2022)
https://www.kline.co.jp/en/news/lng/lng186104931235583220/main/0/link/220810EN.pdf
(Note 4) X-DF 2.1 iCER is a low speed dual-fuel engine with gas at low pressure.
(Note 5) Medium-Term Management Plan (Released on May 9, 2022)
https://www.kline.co.jp/en/ir/management/strategy.html
Main Particulars of the Vessel
| Shipyard | Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. |
| Delivery | From 2025 through 2026 |
| LOA | About 299m |
| Beam | 46.4m |
| Tank Capacity | 174,000m3 |
| Propulsion System | X-DF |
| Speed | 19.5knt |
We are pleased to announce the grand opening ceremony of our new in-house ship management company, K Marine Ship Management Pte. Ltd. (“KMSM”), in Singapore was held on 26th October 2022 at 79 Anson Road, #06-01, Singapore 079906. The grand opening ceremony was attended by the key management from Kawasaki Kisen Kaisha, Ltd and KMSM together with the key industry leaders of Singapore’s Maritime Industry and distinguished guests.
The establishment of KMSM is in line with our “K” LINE Group’s plan to further enhance the “K” LINE Group’s value and presence in Asia and in Singapore. Being one of the global bases of the “K” LINE Group, KMSM will be supporting our “K” LINE Group’s Asia businesses, which has been identified as one of the future growth markets under our “K” LINE Group’s New Medium-Term Management Plan.
KMSM aims to provide high-quality and trusted ship management services and establish a customer-oriented support organization rooted in the region, and flexibly respond to diversifying needs. With this, it is KMSM’s intention to strengthen our global functional strategy structures of marine technology, organizations, human resources including ship management companies.
We look forward to the success of contribution from KMSM to the global shipping industry.
Related News Release
* May 09, 2022: Restructures of Safety and Quality Control Organization
～Challenge to establish an optimal organization for diversifying needs～
https://www.kline.co.jp/en/news/csr/csr3347564231945932575/main/0/link/220509EN.pdf
Kawasaki Kisen Kaisha, Ltd, (“K” LINE) is pleased to announce that it has received a certificate of appreciation from Ofunato City in Iwate Prefecture, Japan, at the ceremony to commemorate the 70the anniversary of the City, held on October 13, 2022. The certificates have been presented to companies, organizations, individuals, and local governments that have contributed to the development of municipal administration and its reconstruction from the Great East Japan Earthquake, and “K” LINE is among them.
In September 2011, “K” LINE donated five 20-foot reefer containers to the City, which suffered devastating damage from the earthquake and tsunami, as part of its support activities for disaster-stricken areas, especially for the early recovery of the fishery industry, a major industry in that area. Since our support activity was appreciated to have contributed to the recovery and reconstruction of the city that was severely damaged by the earthquake, “K” LINE was awarded the certificate on the occasion of the 70th anniversary of the City’s incorporation.
“K” LINE prays for the further reconstruction of Ofunato City and its further development in the future.
On October 6th, 2022, “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 a PCC operated by “K” Line collided with a ferry boat when she was transiting in west coast of Japan. We confirmed a series of emergency response process by setting crisis-management headquarters upon receiving an incident report, establishing communication channel with Ship Owner, Ship Management company and conducting a mock press conference at the end of the exercise.
Online tools were effectively used on the assumption that many concerned members were working remotely in response to the COVID-19 outbreak to enhance our communication by using online tools during an emergency response and then identified the points and tasks to work and improve on.
A mock press conference was held both at the press room and online simultaneously. Many questions were raised by the attendees as media reporters that made the event more realistic and momentous.
“K” Line enhance organization system which covers safety and quality management both world-wide marine transportation businesses and regional businesses. Under the slogan of “Never Leave a Ship Alone,” we aim to build a system to support the safety of our vessels around the world by providing constant support to ships at sea, regardless of time difference, from onshore bases.
While growing interest on safety and environmental load reduction over the world, we are preparing for any unexpected and unforeseen circumstances through the “Emergency Response Exercise”.
Furthermore, we promote safety in navigation, environmental conservation, and quality enhancement, which are important to fulfill social responsibility while establish a system to monitor and support the safety of our vessels from shore, in addition to maintaining the safety of individual vessels, and strengthen our global functional strategy system of maritime organizations, personnel, and bases.
A groundbreaking ceremony for the hull of the demonstration test ship for liquefied CO2 transportation was held today, 7 October 2022 at the Shimonoseki Shipyard of Mitsubishi Shipbuilding Corporation (Shimonoseki, Yamaguchi; hereinafter ‘Mitsubishi Shipbuilding’).
This hull of demonstration test ship will be equipped with the liquefied CO2 tank system which is researched and developed by Engineering Advancement Association of Japan (hereinafter ENAA). After the completion, the demonstration test ship will be engaged in liquefied CO2 transportation for the purpose of “CCUS R&D and Demonstration Related Project / Large-scale CCUS Demonstration in Tomakomai /Demonstration Project on CO2 Transportation / R&D and Demonstration Project for CO2 Marine Transportation” (the demonstration projects) which have been conducted by New Energy and Industrial Technology Development Organization (NEDO) since June 2021.
At the groundbreaking ceremony, Mitsubishi Shipbuilding prayed for safety during the construction period and completion without accidents with the attendance of Sanyu Kisen Kaisha, which was contracted to provide the demonstration vessel for the project.
Nippon Gas Line Co., Ltd. (hereinafter NGL) and Kawasaki Kisen Kaisha, Ltd. (hereinafter “K” Line) also present the ceremony.
ENAA, “K” Line, NGL, and Ochanomizu University will accelerate R&D of the LCO2 transportation technology and contribute to cost reduction of CCUS technology and LCO2 safety, long-distance and large-scale transportation.
ENAA has been promoting research and development towards the operation of a demonstration ship equipped with a liquefied carbon dioxide ship tank system, and will continue to be responsible for planning, analysis and supervision of demonstration test.
“K” Line is planning to carry out a risk assessment of the demonstration test ship for the safety evaluation this year and will contribute to the development of an operation manual of the demonstration vessels.
NGL is proceeding with planning for management and operation of the demonstration vessel. In addition, NGL is conducting a case study on an own LPG vessel in preparation for data measurement of CO2 temperature, pressure, flow, etc. on the demonstration vessel.
Ochanomizu University conducts fundamental research on the control of carbon dioxide state (phase change) and provide the information necessary for safe transportation studies.
ENAA, “K” LINE, NGL, and Ochanomizu University will contribute to realizing the carbon neutral society through this demonstration project.
Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has begun trials of a next-generation onboard service cart called “Beecle” which has “zero” CO2 emissions, provided by N.Y. Co., Ltd. (“N.Y.”), with a view of switching from present service car in the future.
Used mini truck is loaded on car carriers operated by “K” LINE and it is used for material transportation, cleaning and maintenance work. The mini truck, called service car, is gasoline-powered and there are some issues such as limited port to supply gasoline, limited location to store of gasoline on board.
The “Beecle” would solve the above issues because the cart is converted from a used electric golf cart and it is powered by a recycled lead-acid battery. Moreover, there is “zero” CO2 emissions at the process of recharging the battery onboard, which will be contributed to reduce environmental impact.
“Beecle” has been loaded onto the SIRIUS HIGHWAY operated by “K” LINE in the end of August and vessel crew use it for 3 months until November as the trial. Through the trial, we will obtain feedback from vessel crew and reflect to the next Beecle.
“K” LINE will continue its efforts to reduce environmental impact.
Introduction movie of “Seawing”,an automated kite system,was posted on “K” LINE’s YouTube channel.
“K” Line Environmental Vision 2050 sets forth the goals of improving CO2 emission GHG net-zero for 2050 by introducing actively more environmental-friendly fueled vessels and various technology to preserve global environment. “Seawing” reduces at least 20% in CO2 emissions. We are aming to achieve 2030 goal by combining efforts low-carbon fuel and eco-friendly solution such as “Seawing”.
“Seawing” harnessing natural wind power and can be installed on any type of vessel, including existing ones, to all vessels. No energy production or supply facilty is required.
On July 20, we announced signing of technology development agreement to maximize the performance of “Seawing” by integrating “K” LINE’s ship operational technology with utilization of “Kawasaki Integrated Maritime Solutions” and AIRSEAS’s “Seawing” development technology.
In the Medium-Term Management Plan which announced in May, we are committed to smoothly switch to other forms of energy for our company and society toward realization of a low-carbon/decarbonized society.We will continuously strive to contribute to the sustainable development of the society and global environment through the active collaborations and partnership with AIRSEAS.
Press Release about “Seawing” installation
* July 20, 2022: Signing of Additional Purchase Agreement and Technology Development Agreement for Automatic Kite Systems
https://www.kline.co.jp/en/news/drybulk/drybulk-9043961692524114904/main/0/link/220720EN.pdf
* July 20, 2021: Signing of a Long-term Consecutive Voyage Charter for our first LNG-fueled Capesize Bulk Carrier with JFE Steel Corporation
https://www.kline.co.jp/en/news/drybulk/drybulk8599282089888261624/main/0/link/210720EN.pdf
* June 7, 2019: Installation of “Seawing”, an automated kite system utilizing natural energy
~ Social contribution by reducing environmental load ~
https://www.kline.co.jp/en/news/csr/csr7510328279625406497/main/0/link/190607EN%20.pdf