"K" Line

In March “K” LINE Australia, in partnership with “K” LINE Thailand, voluntary transported one unit of Bush Fire charity vehicle free of charge onboard MV Tianjin Highway, PCC(Pure Car Carrier), from Port Kembla to Fremantle to support charity organization, Anglicare Australia’s effort to support of people in Western Australia who have suffered from recent summer bush fire tragedies. 

“K” LINE Australia was able to work side by side with McPhee Freight Pty Ltd, who also donated free of charge and arranged all landside transport delivery & collection charges from terminals in Port Kembla and Fremantle. Qube Stevedores also contributed to the effort providing stevedoring of the unit free of charge.

We would like to express our deepest sympathy to those in the disaster areas and sincerely wish for the earliest recovery from these most unfortunate events.

Please be advised that, “K” Line Tokyo Head Office, made the following press release today, please refer to the attached PDF file.

It is also available on our Web site both in English and Japanese.

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

On March 12, the “CENTURY HIGHWAY GREEN”, a car carrier fueled by LNG (liquefied natural gas) that had been under construction at Tadotsu Shipyard Co., Ltd., part of the Imabari Shipbuilding Group, has been delivered to “K” LINE.

She is a next-generation environmentally friendly vessel expected to reduce emissions of carbon dioxide (CO₂), which is a greenhouse gas (GHG) by 25% to 30%(*1), emissions of sulfur oxides (SOx), which cause air pollution, by almost 100%, and emissions of nitrogen oxides (NOx) by 80% to 90% with the use of Exhaust Gas Recirculation (EGR) in addition to the use of LNG fuel, compared to conventional vessels using heavy fuel oil. The launch of “K” LINE’s first LNG-fueled car carrier realizing transportation with a low environmental impact is an important milestone for achieving the targets set forth in the “K” LINE Environmental Vision 2050(*2).

In addition, a remote naming ceremony was carried out on March 3, ahead of the vessel’s delivery. Four locations in Aichi, Kagawa, Okayama, and Tokyo were connected online, with attendees including Toyota Motor Corporation (head office: Toyota-city, Aichi; President and Representative Director: Akio Toyoda) Chairman and Representative Director Takeshi Uchiyamada and his wife, Ministry of Land, Infrastructure, Transport and Tourism Maritime Bureau Director-General Shinichiro Otsubo, Ministry of the Environment Chugoku-Shikoku Regional Environmental Office Director Kenji Kamita, Imabari Shipbuilding Co.,Ltd. President Yukito Higaki and “K” LINE President and Representative Director Yukikazu Myochin. The vessel was named by adding the word “GREEN” evoking images of harmony with the planet and the environment to the traditional name of “CENTURY HIGHWAY” that has been used in four of “K” LINE’s car carriers in the past.

The vessel utilizes a variety of environmental measures and digital technologies in an effort to improve safety, environment, and quality that are important issues for “K” LINE

Overview of the Vessel

Length of over all  : 199.98 meters

Beam : 37.2 meters

Maximum number of cars loaded : 7,080 vehicles

Gross tonnage : 73,515 tons

LNG fuel tank capacity : 2,439 cubic meters

Registry  : Japan

• Environmental Specifications of the Vessel　
• The vessel uses a dual fuel main engine and auxiliary engines (generator, boiler) capable of operating on either LNG or Marine Gas Oil (MGO). The main engine uses a high-pressure type ME-GI engine, reducing emissions of methane slip (unburnt gas), which is a greenhouse gas.
• The main engine utilizes EGR and the generator utilizes Selective Catalytic Reduction (SCR), clearing NOx Tier III regulations when using either LNG and MGO fuel.
• The construction of the vessel received support of the “Model Project for Measures to Reduce Emissions of CO₂ from Vessels Utilizing Alternative Fuels” that is a joint project by the Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism.
• Part of the construction funding for the vessel was procured from Mizuho Bank, Ltd. and Sumitomo Mitsui Trust Bank, Limited through Japan’s first climate transition loans.

Please see <Related Links>.

• The vessel is equipped with training vessel specifications to promote the spread of LNG-fueled vessels and the reduction of greenhouse gases. An issue for the expansion of LNG-fueled vessels is the acquisition of IGF(*3) qualifications by the captain, chief engineer and all engineers. The requirements of IGF include on-board training on an LNG-fueled vessel, and this vessel has been designed from the outset with a maximum crew of 50, which is one of the largest crew capacities in the world, to enable many crew members to train on board.
• Digital Technologies Installed on the Vessel
• Expansion of on-board Wi-Fi

In addition to residential area, Wi-Fi has been installed on the cargo deck and in the engine room and LNG fuel-related equipment compartment with the aim of improving efficiency of operations such as remote monitoring of the vessel interior.

• Installation of cameras inside the vessel

Several web cameras have been installed on the cargo deck and in the engine room, enabling real-time monitoring via PC or mobile phone within the vessel via the on-board Wi-Fi. Recording is also possible, enabling monitoring of the conditions on board from land via the Internet.

• Utilization of mobile devices

On-board Wi-Fi can be used to share audio, video, text communication, and electronic files using smartphones and smart glasses, enabling the improvement of operational efficiency, reduction of workload, and strengthening of communication among crew members. These devices are also utilized for ship-to-shore audio and video communication.

• Dual fuel generator preventative diagnosis system

The vessel is equipped with “ClassNK-CMAXS” made by Nippon Kaiji Kyokai as the generator status diagnostic system for preventing serious failures based on the early detection of engine anomalies.

(*1)            Based on EEDI (Energy Efficiency Design Index), the vessel is expected to reduce CO₂ by approximately 45% ,which is higher than Phase-3 target of more than 30% reduction applied for new vessels with contract date after 2025.

        About EEDI : https://www.kline.co.jp/en/csr/environment/regulation.html

(*2)            “K” LINE Environmental Vision 2050 is a long-term vision on the environment established by “K” LINE in 2015. It was revised in June 2020 to set the target of “improving CO₂ emission efficiency by 50% compared to 2008” which exceeds the International Maritime Organization (IMO) target for 2030 of “40% improvement,” and “introduction of LNG-fueled vessels” was set forth as an action plan for achieving this.

(*3)            The “International Code of Safety for Ships Using Gases or other Low-flashpoint Fuels” (IGF Code) established by the International Maritime Organization (IMO).

Today, “K” LINE’s car carrier “CENTURY HIGHWAY GREEN” completed by Tadotsu Shipyard Co., Ltd., the Imabari Shipbuilding Group, became the world’s first newly-built vessel to obtain Nippon Kaiji Kyokai (ClassNK) notation certifying that the ship is adapted for remote surveys(*1).

A remote survey uses digital technology on vessel to remotely perform the inspection surveys of facilities within a vessel that has previously been performed by a class inspector on site.

Use of the remote surveys will enable “K” LINE to perform inspections without being constrained by location, and also enables surveys to be conducted while lowering the risk of infection of the crew during the COVID-19 pandemic because it is not necessary to visit the vessel. It is expected that safe operation will be enhanced through the appropriate and timely implementation of surveys.

In February 2021, ClassNK published guidelines for appropriate operation of remote surveys using information and communication technology (ICT). The “Guidelines for Remote Surveys” (Ver. 2.0) summarizes the judgment standards for ensuring reliability equivalent to conventional witness surveys with transparency in the application of remote surveys. The guidelines also include class notation requirements for the vessel with reliable telecommunications equipment and is adapted for remote surveys.

CENTURY HIGHWAY GREEN has significantly enhanced on-board and ship-to-shore telecommunications equipment compared to conventional vessels and obtained the remote survey class notation in recognition of this point.

Examples of Enhanced Telecommunications Equipment

1. Expansion of on-board Wi-Fi: In addition to living quarters, efficiency of vessel operations has been improved by installing Wi-Fi on the cargo deck and in the engine room and LNG fuel-related equipment compartment.
2. Introduction of wireless communication equipment supporting explosion-proof areas: Explosion-proof LCX wireless communications equipment has been introduced in explosion-proof areas to ensure communications.
3. Introduction of 4G/LTE: The communication environment with relevant personnel and operational efficiency has been improved by utilizing high-speed broadband communication on a land cellular phone network while docked(*2).

We are pleased to announce to establish a new department focusing on businesses and projects for carbon neutrality including renewable energy effective on April 1^st, 2021.

The requirement of de-carbonization is rapidly growing in the world and it accelerates the expectation for business field of carbon neutrality, such as Renewable Energy projects including offshore wind, Carbon dioxide Capture, Utilization and Storage projects, Energy Transition projects (LNG value chain related) and Carbon Emission Trading.

For the purpose of proactively responding such needs, “K” Line will establish “Carbon Neutral Promotion Group” and facilitate business development for net-zero CO2 emission along with related parties and companies of “K” Line group.

“K” Line group will continue to contribute to people’s living and prosperity throughout the world as an integrated logistics company grown from shipping business, and aim at realizing a sustainable society.

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, 2021.

1) Outline of dividends

The Company will receive dividends of about 155 million U.S. Dollars from OCEAN NETWORK EXPRESS PTE. LTD., the affiliate company accounted with the equity method in the fourth quarter of the current fiscal year.

2) Impact on The Companyʼs 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, 2021.

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.

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

Please be advised that “K” Line Tokyo Head Office made the following press release announcement today.

To read this press release in its entirety, please see the attached PDF document or visit “K” Line website where it is available in English and Japanese.

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

〜 Confirmed high accuracy on ship performance evaluation〜

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has decided to adopt Artificial Intelligence (AI) developed by Bearing, Inc. (Note 1) for the ship ICT system “Kawasaki Integrated Maritime Solutions” (Note 2) on 300+ ships under our operation for the purpose of improving performance evaluation accuracy. By combining the high-quality data collection technology that we have made over 20 years with the world’s most advanced AI technology of Bearing, Inc., we will realize higher accuracy of performance evaluation and reduce environmental load by economical and safe navigation.

Accurate evaluation of vessel operational performance in the actual sea area is highly important for enhancing economical operations and environmental friendly measures. With existing IoT technologies, certain level of operational performance evaluation with a certain accuracy using big data obtained in real time is still possible, but further improvement in accuracy is necessary in the shipping, shipbuilding, and marine equipment industries.

For many years, we have focused on “collection of high-quality data” and “advanced data analysis technology” and have made various efforts to improve the accuracy of performance evaluation technology. As a part of this, from the end of 2019, we have conducted a demonstration experiment to verify and evaluate data analysis technology by AI developed by Bearing, Inc.. As a result, we have confirmed that we could see the result with significantly higher accuracy compared with existing performance evaluation technology.

According to Bearing, Inc. other reason of successful result by the AI adoption is high quality operational data which “K” LINE has been piling up as our long-standing efforts, which makes Bearing, Inc’s AI analysis more accurate, and it can be said that our long-standing efforts have paid off.

In the future, by utilizing Bearing, Inc.‘s technology and high quality operational data, we will not only accurately grasp the operational performance of each vessel in the actual sea area and use it for operational management, but also accurately evaluate various fuel reduction efforts in both software and hardware, improve operational performance and advance ship management.

“K” LINE pursues safety, environment and quality as priority initiatives for our value creation in the management plan and accelerate those issues by DX utilizing big data and AI technology.

(Note 1) Bearing, Inc.

Bearing, Inc is one of the portfolio companies backed by the AI Fund and MITSUI & CO. LTD. The AI Fund was founded by Dr. Andrew Ng who is a leading pioneer for AI in the world. Bearing, Inc has access to the latest AI technologies developed in the world’s most advanced AI research labs and the best-known machine learning practices used in the industry.

https://www.bearing.ai/

(Note 2) Kawasaki Integrated Maritime Solutions

Announcement 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

On February 9^th, 2021, Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Ocean Network Express (ONE) conducted a joint crisis management drill as a part of optimum training on emergency response, preparedness for any kind of major maritime accidents.

The scenario of the drill developed when ONE’s chartered vessel from “K” LINE encountered

main engine failure and ran aground on the Elbe River in Germany after losing control. Containers on deck were collapsed and part of them including hazardous materials fell into the river. A small amount of fuel oil leaked from the ship was observed at the surface of the river.

Participants from “K” LINE, ONE headquarters in Singapore, ONE regional headquarters in London, and “K” Line Ship Management (Singapore) Pte Ltd confirmed executing procedures, reviewing possible responses, and examining emergency measures with utilizing online communication tools.

“K” LINE principle and vision calls for enhancing “Safety”, “Environment” and “Quality”. We are preparing for any unexpected and unforeseen circumstances through the “Emergency Response Drill”. Furthermore, we promote safety in navigation and environmental conservation and quality enhancement in corporation with charterer and concerned parties.

“K” LINE is pleased to announce that the company was recognized as ”Supplier Engagement Leaderboard” for three consecutive years, the top rating, on “Supplier Engagement Rating” from CDP, which is a non-profit global organization (NGO) engaging in activities for investigating and disclosing environmental information, on February 9.

“Supplier Engagement Rating” evaluates the companies initiatives for climate change and greenhouse gas emissions throughout the supply chain and ranks the companies in line with their efforts. Our strategies and initiatives were evaluated on “Supplier Engagement Rating”.

This year 396 companies, including 83 Japanese companies, out of 5,640 companies were awarded as ”Supplier Engagement Leaderboard” worldwide.  

Last June, we revised the “K” LINE Environmental Vision 2050 in order to further refine the Group’s strengths of “safety”, “environment”, and “quality” and tackle the initiatives for “Decarbonization” and “Reduce an environmental impact on the sea and air”.  As an environmental front runner, we will continue to provide environmentally low-impact and high-efficiency marine transportation to as many people as possible around the world, and aim at realizing a sustainable society.

Related Links:

Please see the following for details of our “K” LINE Environmental Vision 2050.

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

December 9, 2020

“K” LINE Awarded CDP’ s “A List 2020” on Climate Change

https://www.kline.co.jp/en/news/csr/csr3596442103013453625/main/0/link/201209EN.pdf

January 15, 2021

Posted CEO Message for CDP2020 “A List” award

https://www.kline.co.jp/en/news/csr/csr-612440896952966589/main/0/link/210115EN%20.pdf