"K" Line

Please be advised that “K” Line Tokyo Head Office made the following press releases today.  Please refer to the attached PDF documents.

This information is also available on the Website both in English and Japanese.

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

• Notice Concerning Setting Record Date for Voting Rights at Extraordinary General Meeting of Shareholders

• Notice Concerning the transition to the “Company with Nominating Committee, etc. “.

Kawasaki Kisen Kaisha, Ltd.

Kawasaki Kinkai Kisen Kaisha, Ltd.

“K” Line Wind Service, Ltd.

EGS Survey Pte Ltd

EK Geotechnical Survey LLC

EK Geotechnical Survey LLC (EKGS), which is a joint venture between “K” Line Wind Service (KWS, a joint venture between Kawasaki Kisen Kaisha Ltd. (“K” LINE) and Kawasaki Kinkai Kisen Kaisha Ltd. (“K” LINE KINKAI)) and EGS Survey Pte. Ltd. (EGS) held an unveiling event for the marine geotechnical survey vessel EK HAYATE at Hiroshima Port during the last week of November. Around 120 visitors toured the vessel, mostly comprising representatives from the offshore development sectors of wind power generation, carbon capture and storage (CCS) and marine infrastructure construction.

Geotechnical survey can clarify the subsurface structure of the seabed, to determine feasible areas for the implementation of offshore wind power and consider the layout planning and design of the facilities. The Japanese-owned and flagged vessel is currently based in Hiroshima and is available for forward booking for geotechnical survey campaigns in 2025. The twin tower drilling apparatus has an established track record with EK HAYATE’s former sistership which proved invaluable for securing early confirmation of compatibility between vessel and deck operations.

Sampling, in-situ testing and laboratory test services are coupled with stable station-holding capabilities to deliver an efficient survey program.

In addition to EK HAYATE, EKGS will continue to provide high-quality marine survey services by utilizing “K” LINE Group’s and EGS Group’s respective vessels to meet demand in this busy sector.

KWS

KWS is a joint venture between “K” LINE and (“K” LINE KINKAI) and has been functioning, since its establishment in 2021, as a business platform of “K” LINE Group for any vessel and transportation business servicing Offshore Wind projects in order to contribute to the offshore wind development to reach carbon neutrality in Japan by 2050. KWS will continue to provide offshore support vessel services with “K” LINE Group’s fleet and further expand the expertise to various types of offshore wind vessels.

EGS

EGS Survey Pte Ltd is part of the EGS Group. Founded in 1974, EGS is a marine survey company with offices around the world, including Asia, Australia, Americas, Europe and the Middle East. EGS provides marine geological survey services for offshore infrastructure development including renewable energy, oil and gas and telecommunications and has a strong reputation for professional integrity in data acquisition, analysis and reporting. In Japan’s coastal waters, EGS has over 20 years of track record of survey services for submarine telecommunication cables.

Related Release

October 3, 2024: ESTABLISHMENT OF A JOINT VENTURE FOR OFFSHORE GEO-SURVEY
―Delivery of geo-survey vessel EK HAYATE to Japan―

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20241003.html

“K” Line Pte. Ltd. (KLPL), a Singapore-based subsidiary that is wholly owned by Kawasaki Kisen Kaisha, Ltd. (“K” LINE), carried out “the Emergency Response Drill” on December 10, 2024, assuming a maritime accident involving an oil tanker operated by K Marine Ship Management Pte. Ltd. (KMSM). The drill was based on a scenario where the vessel ran aground after an engine malfunction during anchoring operations at the port of Kikuma, at which time it began leaking oil and some of its crew were injured. KLPL established an accident response task force, discussed the response with KMSM, coordinated with internal and external parties and confirmed the information sharing system in order to verify the emergency response framework.

Safety in navigation and cargo operations is “K” LINE Group’s top priority as a shipping company, requiring thorough, ongoing efforts of this nature. In its Medium-Term Management Plan, the “K” LINE Group has positioned “Safety and Ship quality management” as its strength. Moving forward, the Group will continue to contribute to society by preparing for unforeseen circumstances through “the Emergency Response Drill” and by ensuring daily safe operations of its vessels.

Related link

Learn more about “K” LINE’s initiatives for safety in navigation and cargo operations at the following link:

https://www.kline.co.jp/en/sustainability/social/safety.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that it has participated as sponsors of the Museo del Galeón*¹, a maritime museum being built in Pasay City in the Philippines with its business partner in the Philippines, Rayomar Management, Inc. (Rayomar).^*2 It aims to support the cultural contribution to the maritime industry in the Philippines that this museum, along with Rayomar, aspires to achieve.

On November 29, a presentation ceremony was held in Manila to donate model galleons to the museum. The ceremony was attended by Chairperson Carlos C. Salinas and Director Gerardo A. Borromeo from the museum, President Garcia from Rayomar, and President Yukikazu Myochin from “K” LINE. Galleons were large sailing ships used by Spain and Portugal from the 16th to the 18th centuries.

The museum will showcase the history of the galleon trade^*3, during which galleons were used, that took place between the Philippines and Mexico from 1565 to 1815. The museum is scheduled to open to the public on October 8, 2025.

By supporting this initiative, “K” LINE hopes to contribute to the promotion of the maritime industry in the Philippines, which provides more seafarers than any other country.

*1.         It is a non-profit organization accredited by the Bureau of Internal Revenue (BIR), the Philippine Council for NGO Certification (PCNC), and the National Commission for Culture and the Arts (NCCA).

Museo del Galeón Inc.: https://museodelgaleon.org/

*2.         In 1989, we established a joint venture to create a staffing agency for Filipino seafarers. We are engaged in the recruitment and placement of Filipino seafarers, providing stable staffing for our operating vessels. Additionally, in 2017, we established a joint venture to create a finished vehicle logistics company, becoming an important partner in “K” LINE’s logistics business.

Rayomar Management, Inc.: https://www.rayomar.com.ph/

*3.         Galleon trade route, known as the Manila-Acapulco galleon trade, played a vital role in connecting Asia, America, and Europe during the colonial period. This trade not only promoted commerce but also facilitated the exchange of culture, ideas, and goods. The museum is scheduled to open to the public on October 8, 2025. The galleon trade had strong ties to Japan as well. In the late 16th century, Japan was one of the world’s leading silver-producing countries, making silver a key commodity in the galleon trade. This silver was shipped to Spain via Mexico and exchanged for goods in Europe and other Asian countries.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce the execution of a long-term time charter contract through the ship-owning company established in Singapore with GAIL (India) Limited (GAIL)¹ and signing ceremony was held in India. The ship-owning company 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 GAIL and “K” LINE involving a newly built vessel. The plan is for this new vessel to be engaged in LNG transportation for GAIL beginning in 2027.

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. This agreement is part of our strategy “Acquiring opportunities in future growth markets such as Asia” identified in our Medium-Term Management Plan. “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 GAIL(India) Limited is India’s largest state-owned natural gas company.

https://gailonline.com/ABGailstory.html

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

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

Vessel Specifications

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) held a global IT conference in mid-November with the goal of promoting its digital transformation (DX) strategy and strengthening security.

21 IT/DX specialists from 11 countries and regions representing major bases of “K” LINE’s global network came to Japan for a conference attended by a total of 42 people, which also included the Chief Information Officer (CIO) of “K” LINE and relevant people from the Digitalization Strategy Group and “K” Line Business Systems Co., Ltd., a “K” LINE Group IT company. For two days, they participated in workshops and energetically discussed more than 20 agenda items including solid IT infrastructure to enable the more than 5,600 employees of the “K” LINE Group to work with a feeling of security, advanced and reliable security measures for customers and solutions, DX-related projects introduced at different bases, and other topics.

The scale of business and IT varies from country to country and from base to base, but “K” LINE believes that sharing the results of IT and DX efforts should help improve its customer services in each country and region. They realized that facilitating efforts to leverage IT/DX to maintain “K” LINE’s core values, safety, environmental consciousness and quality, will result in the enhancement of the “K” LINE Group’s corporate value. They also recognized that the head office and business locations of the global network should collaborate more closely and accelerate the improvement and enhancement of the IT/DX environment in many regions.

“K” LINE is driving digitalization as a functional strategy for achieving its business strategy under the Medium-term Management Plan announced in May 2022. It will continue to strive to be a group of reliable professionals in maritime transportation that its stakeholders can trust, and together with “K” LINE’s IT family, it will contribute to enhancing corporate value and solving social issues in the fields of IT and DX.

Reference
DX Strategy of “K” LINE announced in December 22, 2022
https://www.kline.co.jp/en/sustainability/dx_strategy.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) held a global meeting for the car carrier business at the company’s head office in mid-November.

Twenty-six local staff members and representatives from five major overseas offices participated in the meeting, which was divided into themed sessions: the sales and strategy were held in the three-day period from November 11 to 13, and the operation and transportation quality held over two days, November 14 and 15.

The sales and strategy sessions were attended by about 30 people in total, including local staff members and representatives from major overseas offices and head office staff. A growth strategy leading to environmental actions and business reinforcement was openly discussed on the basis of a theme, Deep-Diving Competitive Position Analysis and “K” LINE’s Growth Strategy.

A total of about 25 people, including the local staff members and representatives assigned to operation control and procurement at each location and head office staff, attended the operation session and confirmed the sharing of roles and responsibilities between the different offices to achieving optimal operations and procurement. They had a lively discussion about the specific actions that should be taken by each location, with safety and compliance with laws as the foundation for optimal operations, and quality and sustainability as the foundation for optimal procurement being major focuses.

A total of 26 people, including local staff members and representatives from overseas offices and head office staff, attended the transportation quality sessions. They discussed specific examples of accidents and problem solving at each location and reviewed the current cargo handling procedures with the goal of ensuring the increased quality of our transportation services for customers. Moreover, a new scheme for revising the procedures in a timely manner for safe transportation was established.

Through these regular global meetings, the different offices will pursue sustainable business activities by sharing ideals and cooperating with each other. “K” LINE is committed to the development and sustainable growth of the car carrier business and to its social mission of supporting the supply chain of the automotive industry.

From October to November, six typhoons (From typhoon No.20 to No.25) had made landfall in the Philippines one after another, causing significant damage in various regions.  We would like to pray for the repose of the souls of those who lost their lives and express our deepest sympathy to those affected by the disaster.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has decided to donate 2 million yen through The Rayomar Outreach Foundation, Inc. (ROFI*), a charitable organization established by the Rayomar Group, our business partner in the Philippines, in order to help everyone affected by the disaster as well as to support disaster recovery efforts in the affected areas. In addition, since a large number of seafarers from the Philippines are on board the vessels operated by “K” LINE, we will consider to provide seafarers and their families with financial support.

We sincerely wish for the earliest recovery of the disaster-stricken areas.

*ROFI: a charitable organization to support a livelihood, medical care and education, as well as to as to collect donation and to support volunteering activities.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE), along with JERA Co., Inc. (JERA), Nippon Yusen Kabushiki Kaisha (NYK), and other partners, collaboratively operates an LNG bunkering business for LNG-fueled vessels in the Chubu region through joint venture companies*¹.

On November 5, 2024, approximately four years after the launch of business operation in October 2020, the LNG bunkering vessel “Kaguya”*² owned by the joint venture achieved its 100th ship-to-ship *³ LNG bunkering operation *⁴ in Mikawa Bay.

The joint venture is striving to expand its bunkering service to meet increasing demand of LNG as marine fuel in the Chubu region, arising from ever-growing global fleet of LNG-fueled vessels including “K”LINE’s “CENTURY HIGHWAY GREEN”*⁵, an LNG-fueled car carrier. By promoting the use of LNG as marine fuel through this project, “K” LINE contribute to reducing environmental load to the society.

In “K” LINE Environmental Vision 2050 -Blue Seas for the Future-*⁶, “K” LINE has set the 2030 interim target of improving CO2 emissions efficiency by 50% compared with 2008, surpassing the IMO target of a 40% improvement. Furthermore, “K” LINE sets its new target for 2050 as “The Challenge of Achieving Net-Zero GHG Emissions.” As an action plan, “K” LINE will continue to support the low-/decarbonization  of ourselves and society.

(*1)       Central LNG Shipping Japan Corporation and Central LNG Marine Fuel Japan Corporation
https://central-lng.com/en/

(*2)       Kaguya
This is the first LNG bunkering vessel operating in Japan, having commenced operation in October 2020. The name of the vessel is inspired from the “The Tale of the Bamboo Cutter,” considered the oldest story in Japan. It also reflect the aspiration for the LNG bunkering market to grow as tall and endure like bamboo.

(*3)       Ship-to-Ship Bunkering
A method of supplying LNG fuel in which an LNG bunkering vessel comes alongside an LNG-fueled vessel to supply LNG while it is moored at a quay or pier or anchored at designated location.

(*4)       Characteristics of LNG as marine fuel
Compared to heavy fuel oil, it is expected to cut sulfur oxide (SOx) and particulate matter (PM) emissions by about 100%, nitrogen oxides (NOx) by up to 80%, and carbon dioxide (CO₂) by about 30%. It is held to be a promising marine fuel that can replace heavy fuel oil in response to tightened international ship emission regulations.

(*5)       CENTURY HIGHWAY GREEN
A next-generation eco-friendly car carrier delivered on March 12, 2021. It continues to reduce greenhouse gas (GHG) emissions by using LNG as fuel.
https://www.kline.co.jp/en/news/car/car-20210312.html

(*6)       “K” LINE Environmental Vision 2050: Blue Seas for the Future
The revision in November 2021 sets CO2 reduction milestones for 2030, in excess of the IMO target, and includes “introduction of LNG-fueled vessels” and “commercialization of LNG bunkering” in the action plan.
https://www.kline.co.jp/en/sustainability/environment/management.htm

[Related Press Release]

September 18, 2020: Naming Ceremony Held for Japan’s First LNG Bunkering Vessel

https://www.kline.co.jp/en/news/Liquefied_gas/Liquefied_gas-20200918.html

March 16, 2021:Ship-to-ship Bunkering to the LNG-fueled Vessel CENTURY HIGHWAY GREEN

https://www.kline.co.jp/ja/news/Liquefied_gas/Liquefied_gas-20210316.html

November 15, 2024

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) held a global meeting for the dry bulk business at the company’s head office over a two-day period from November 7 to 8. The meeting gathered not only the members of the dry bulk team at the head office but also 26 national staff and representatives from 11 major overseas offices, with about 100 people engaging in lively discussions in either operation or sales sessions.

At the meeting, Masatoshi Taguchi, Managing Executive Officer (responsible for the Dry Bulk Carriers Unit) explained the role of the dry bulk business in “K” LINE’s portfolio, how to manage reasonable exposure to market risks, and the importance of initiatives to motivate customers to keep choosing “K” Line, including the polishing of “earning power” through vessel assignment optimization, after which everyone affirmed that they will work in unison to continue making efforts to further grow the dry bulk business and increase corporate value.

This year’s theme was “Evaluation of activities since last year’s meeting and future action plans!”

The KPIs identified in the previous fiscal year, such as safety/efficiency in navigation, profitability,  low-carbon/decarbonization efforts for CO2 emissions reduction, were analyzed and reflected on during the operation sessions, with frank discussions taking place about increasing safety and profitability in navigation and cargo operations as well as environment and DX challenges.

At the sales sessions, the participants analyzed and planned initiatives for achieving sales targets this year and expanding the revenue base in the future as well as were updated on challenges and progress related to the environment, both at “K” LINE

and with customers. Moreover, they checked the business structure for maintaining high-quality services and otherwise debated ways to enhance “K” LINE’s strengths through the concerted efforts of the Tokyo head office and overseas locations.

Going forward, “K” LINE will regularly hold global meetings and share KPIs globally, thereby improving customer-oriented service quality while also creating a sense of unity among our employees and strengthening teamwork. Our dry bulk business will realize sustainable profitability growth while at the same time growing and expanding the business together with customers, further developing its business network on a foundation of global diversity and adding environmental reaction to the advanced transportation knowhow accumulated over many years.