"K" Line

KAR Logistics Perú S.A.C. (KAR Peru), a 50-50 joint venture company between Kawasaki Kisen Kaisha, Ltd. (“K” Line) and Agencias Universales Perú S.A. (AGUNSA Peru), has started full scale automobile logistics business around Lima, Peru in June 2021. Although there was a temporary decrease in sales due to the COVID-19, we anticipate that automobile sales and imports will improve and expand in the medium to long term. In order to meet the increasing demand for services associated with the transportation of finished vehicles, KAR Peru will provide comprehensive logistics services for finished vehicles to importers and dealers.

In 2017, we established KAR Logistics S.A., a joint venture with local logistics company Agencias Universales S.A.( AGUNSA) which handles total logistics services in Chile(R1) and other South and Latin America, to start automobile logistics business in Chile. By utilizing the experience and know-how gained in Chile, “K” Line established KAR Peru with AGUNSA Peru, a subsidiary of AGUNSA to expand our business in South and Latin America.

“K” Line Group places “Logistics Business” as a stable profit-making sector in its “Management Plan,”(R2) and by following this strategy, “K” Line is further enhancing its Automobile Logistics Business that is already in operation in Indonesia, Thailand, Vietnam, Philippines, Singapore, Australia, Brazil, Mexico and Chile. “K” Line will continue to make every effort and do its best for achieving maximum customer satisfaction by utilizing its many years of experience and know-how in sea transportation by Pure Car Carrier vessels.

Rayomar Group, business partner of Kawasaki Kisen Kaisha, Ltd. (“K” Line) in Philippines, (Note1), started COVID-19 vaccinations for its employees and staff at “K” Line Maritime Academy Philippines (Note2) with approval from Department of Health (DOH) and Pasay City.

Vaccinations are mainly conducted by “K” Line Clinic operated by a member of Rayomar Group which provides medical services for “K” Line seafarers in Philippines.

In Philippines, vaccinations are slowly progressing. But in order to ensure a stable supply of seafarers to sustain maritime transportation that supports the infrastructure of our daily lives, “K” Line will continue to promote vaccinations for seafarers on managed vessels and staffs working at affiliated companies at sea and shore.

(Note 1) In 1989, “K” Line has established a manning company in Philippines as a joint venture with our business partner, RAYOMAR MANAGEMENT INC, to recruit Filipino seafarers and provide to our fleet.

Raymor Management Inc Web Site　：　https://www.rayomar.com.ph/

(Note 2) “K” Line Maritime Academy Philippines, “K” Line Group’s training facility for seafarers in Philippines, accepts a total of 10,000 trainees a year, and as one of the major pillars supporting “safe ship operation and environmental protection”, which is the foundation of our business, “K” Line is securing and training high-quality seafarers on a stable basis.

Kawasaki Kisen Kaisha, Ltd. (hereinafter ”K” LINE) and Chubu Electric Power Co., Inc (hereinafter Chubu Electric Power) have entered into a Joint Development Agreement (JDA) with DP Energy, a renewable energy developer headquartered in Ireland, for the Uisce Tapa Tidal Energy project (hereinafter the Project) in Nova Scotia, Canada.

This project will be the first tidal energy project in which a Japanese company will participate overseas.  In this Project three underwater turbine generators are planned to be installed in the Bay of Fundy, Nova Scotia, Canada, with the aim to start operation of the first turbine in 2023. The project holds a 15-year Power Purchase Agreement of 530 CAD/MWh awarded with Nova Scotia Power Incorporated and is recipient of approximately 30 million CAD grant from Natural Resources Canada.

JDA is limited to contribution of development cost. After FID, the first turbine would be installed.

Chubu Electric Power will contribute to the realization of carbon-free society by developing renewable ocean energy and so on as one of the measures to achieve the “Zero Emissions Challenge 2050”.

“K” LINE Group is promoting its efforts to reduce greenhouse gas (GHG) emissions in accordance with its “K” LINE Environmental Vision 2050. In addition to promoting its own decarbonization, “K” LINE Group will contribute to the realization of a carbon-neutral society by supporting the decarbonization of society through developing renewable ocean energy.

Comments

“Uisce Tapa Tidal Generation would be a trigger Project to utilize ocean energy contributing to the global decarbonization.” said Hiroki Sato, Executive Officer, Corporate Planning & Strategy Division at Chubu Electric Power.

“Through this Project, “K” LINE aim to contribute to in the business that supports the decarbonization of society while utilizing our experiences accumulated in the field of international marine transportation together with partner companies.” said Satoshi Kanamori, Executive Officer, in charge of LNG, Carbon-Neutral Promotion at “K” LINE.

Project Information

(1) Tidal Power Generation

Power generation method which utilize the kinetic energy of the tidal current and generally converts it into rotational energy with a water wheel to generate electricity.

Uisce Tapa Tidal Energy project

*1　The Bay of Fundy is one of the largest tidal range in the world. The maximum difference of tidal marks is approximately 16meters.

(3) About DP Energy

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

Please see the attached PDF documents or click the following website links to read the reports.

・Financial Highlights for 1st quarter FY2021

・Notice on Differences between Consolidated Financial Forecasts for the Fiscal Year ending March 2022

https://www.kline.co.jp/en/ir/library/presentation.html

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been selected again as a constituent of the FTSE Blossom Japan Index, one of the most recognized ESG (Environmental, Social, Governance) index developed by FTSE Russell, wholly owned subsidiary of London Stock Exchange Group, for five years in a row since the index was launched in 2017.　

The FTSE Blossom Japan Index selects Japanese companies that demonstrate strong ESG practices, and as of June 2021, 229 companies have been selected as constituents from among the 1,391 Japanese companies that constitute the FTSE Japan All Cap Index. The index has been adopted as a benchmark of ESG investing by Government Pension Investment Fund (GPIF) in Japan, the world’s largest public pension fund.

We have been addressing sustainability issues, mainly the environmental, and our initiatives are moving into full swing, with the reform of the organization and the promoting system to strengthen our sustainability management, with effect from April 1, 2021, so as to contribute to the solution of social issues, including climate change, thus to fulfill our mission as a lifeline that will support people’s lives and economies in the future.

Specifically, in March 2021, we have launched a next-generation environmentally friendly car carrier fueled by LNG (liquefied natural gas). Part of the construction funding for the vessel was procured through Climate Transition Loan as a first case in Japan.

Furthermore, earlier this month, we have signed a long-term consecutive voyage charter regarding the upcoming new built capesize bulk carrier (210,000 DWT), who will also be fueled by LNG and is scheduled to be delivered in 2024. The vessel aims to further reduce the environmental burden by installing an automated kite system, utilizing wind power, called “Seawing”.

Through our sustainability management, we will continue to contribute to the realization of a sustainable society, as well as strive to promote our own growth strategy and improve our corporate value.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has signed a long-term consecutive voyage charter with JFE Steel Corporation regarding the upcoming new built capesize bulk carrier (210,000 DWT) fueled by liquified natural gas (LNG)

The construction of our first LNG-fueled bulk carrier will be ordered to NIHON SHIPYARD CO., LTD. and the vessel is scheduled to be delivered in 1^st half of 2024.

The vessel is called a “next-generation vessel” coping with environmental issues. It will reduce the emissions of CO₂, by 25 to 30 %, SOx by almost 100%, and NOx by around 85% with the use of LNG instead of conventional heavy fuel oil. Moreover, the vessel reaches more 40% of CO₂ emission reduction in the Energy Efficiency Design Index (EEDI) which fully aligns with the reduction target of the International Maritime Organization (IMO). ^*1“K” LINE will also install “Seawing”^*2, an automated kite system utilizing wind power supplied by Airseas, to increase the effects of decarbonization.

“K” LINE has been promoting a corporative policy of “sustainable management” in terms of environment, society, and economy to satisfy global needs concerning climate change and SDGs continuously now and future. The introduction of the next-generation vessel is one of the projects within this sustainable management approach. It will be a significant step for us to stimulate the well-being of society as an integrated logistics company.

With “K” LINE Environmental Vision 2050^*3, “K” LINE will flexibly and proactively listen to customer demands including environmental issues and find the best solution to contribute to the sustainable development of the society.

Outline of the Vessel

Dimension    ：   approx. LOA 299.99 meters x Breadth 50.00 meters x Depth 25.00 meters x Draft 18.40meters

D/W          ： approx.210,000 tons

G/T           ： approx.110,800

(^*1)   EEDI and Regulations of SOx and NOx

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

(^*2)   June 7, 2019 release:

Installation of “Seawing”, an automated kite system utilizing natural energy.

https://www.kline.co.jp/en/news/csr/csr7510328279625406497/main/0/link/190607EN%20.pdf

(^*3)   “K” LINE Environmental Vision 2050 “Blue Seas For the Future”

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

Kawasaki Kisen Kaisha, Ltd. (hereinafter ”K” LINE), Nippon Gas Line Co., Ltd. (hereinafter NGL) and Ochanomizu University will participate in the New Energy and Industrial Technology Development Organization (NEDO) project, “CCUS R&D and Demonstration Related Project / Large-scale CCUS Demonstration in Tomakomai / Demonstration Project on CO2 Transportation” on consignment from Engineering Advancement Association of Japan (hereinafter ENAA) and promote the development for social implementation of liquified CO2 maritime transportation.

CCUS (Carbon dioxide Capture, Utilization and Storage) is a technology that can capture, effectively utilize and store the CO2 emissions from fossil power generation and industrial processes. CCUS is expected to play a key role in contributing to the achievement of Carbon Neutrality by 2050. “K” LINE, NGL, Ochanomizu University and ENAA will jointly develop technologies for liquefied CO2 marine transportation and contribute to the realization of long-distance / large-scale CO2 transportation enabling cost reduction through the development of CCUS technology in the demonstration project.

“K” LINE has a long history and diversified track-record in ownership and technical management of liquefied gas carriers. Utilizing our expertise in liquefied gas (LNG/LPG) transportation business and know-how accumulated over many years, we are committed to the safe operation of liquefied gas carriers and professional handling of liquefied gas cargoes. Additionally, “K” LINE is participating in “CO₂-Free Hydrogen Energy Supply-Chain Technology Research Association” (HySTRA) and is cooperating in domestic demonstration test of the world’s first liquefied Hydrogen Carrier “SUISO FRONTIER”, as an initiative to realize a carbon-neutral society. Based on such extensive experience of safe navigation and cargo operation of liquefied gas carriers and demonstration project of HySTRA(R1), “K” Line will conduct a safety / environmental evaluation during navigation and cargo operation for the demonstration liquefied CO2 carrier and establish technical guidelines.

The “K” LINE Group is promoting its efforts to reduce greenhouse gas (GHG) emissions in accordance with its “K” LINE Environmental Vision 2050 and will contribute to the realization of a carbon-neutral society through this demonstration project of liquefied CO2 marine transportation.

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, 2022.

1) Outline of dividends

The Company will receive dividends of about 61 million U.S. Dollars from OCEAN NETWORK EXPRESS PTE. LTD., the affiliate company accounted with the equity method in the first quarter of the current fiscal year. The dividend is scheduled to be received on June 21, 2021.

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, 2022.

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 Group Environmental Awards 2021 Ceremony held online on June 4, 2021.

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 7th awards since establishment of the awards in 2015, and we also have accepted many entries from our group companies both in Japan and overseas. Activities of seven companies have been selected from such standpoints as “originality,” “challenge level,” “degree of contribution,” “continuity” and “potential for pervasiveness”, and have received the awards from our President and CEO, Yukikazu Myochin.

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

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

(Grand Award)

Recycling a shrink films to reduce cost , industrial wastes and CO2 emissions.

Nitto Total Logistics Ltd

At the CFS warehouse, when receiving loose cargo and/or unstable cargo, shrink film was wrapped around the cargo to prevent from cargo collapsing. It was peeled off during vanning and discarded as industrial waste.

In FY2019, they discharged plastic-based industrial waste seven times during the period from April to December, but by making it possible to recycle, the number of exports to industrial waste in FY2020 was reduced to three times.

(Excellence Award)

• ECO DRIVING TRAINING PROGRAM

(Training on how to drive a trailer that is environmentally friendly and reduces fuel consumption)

Prixcar Services Australia

• Raising employees’ awareness of environmental conservation by issuing environmental reports and participating in social and environmental conservation activities

”K” Line (China) Ltd.

• Raise the crew’s awareness of energy saving by distributing energy-saving stickers

Kawasaki Kisen Kaisha, Ltd.  Advanced Technology Group

(Special Award) 

SEAGATE CORPORATION（20 entries / Second Achievement Award since 2018）

Organizing a Future Vision for a Hydrogen Society and Quantifying Supply and Demand

The Kobe/Kansai Hydrogen Utilization Council (hereinafter, ”Council”), in which Kawasaki Kisen Kaisha, Ltd. (hereinafter ‘“K” LINE) participates as a member, has prepared a report entitled “Kobe/Kansai Hydrogen Utilization Council Report – Organizing a Future Vision for a Hydrogen Society and Quantifying Supply and Demand-”.

Overview　KobeKansai Hydrogen Utilization Council Report

The Council has formulated a future vision for the Kobe/Kansai area, and estimated the potential hydrogen demand, supply volume and price based on this vision. The Council subsequently quantified the hydrogen supply chain around 2030, identified potential issues, and formulated an action plan for realizing its vision.

Through the activities of this council, “K” LINE Group will promote social implementation of CO2 free hydrogen and contribute to the realization of carbon-free society.

COUNCIL MEMBERS

Electric Power Development Co., Ltd., ENEOS Corporation, Iwatani Corporation, The Kansai Electric Power Company, Incorporated, Kawasaki Heavy Industries, Ltd., Kawasaki Kisen Kaisha, Ltd., Kobe Steel, Ltd., Marubeni Corporation, Mitsubishi Power, Ltd., Obayashi Corporation, Panasonic Corporation, Shell Japan Limited (Alphabetized)

SECRETARIAT

Deloitte Tohmatsu Consulting LLC, Iwatani Corporation, Marubeni Corporation (Alphabetized)

Contact for Inquiries

LEADERS OF THE COUNCIL

Iwatani Corporation : Public Relations Dept. Tel：+81-6-7637-3468 (Direct)

Hydrogen Division Tel：+81-6-7637-3458(Direct)

Marubeni Corporation  : Corporate Communications Dept. Tel：+81-3-3282-2435 (Direct)

New Energy Business Development Dept. Tel：+81-3-3282-7896(Direct)

Member of the Council

Kawasaki Kisen Kaisha, Fuel Strategy & Procurement Group  Tel：+81-3-3595-5619 (Direct)