"K" Line

31 May 2017

Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines, Ltd., and Nippon Yusen Kabushiki Kaisha have announced that their new joint venture (JV) will operate under the tradename “Ocean Network Express.” The establishment of this new JV, which will integrate the three companies’ container shipping businesses (including worldwide terminal operation businesses, excluding those in Japan), was previously announced in the “Notice of Agreement to the Integration of Container Shipping Businesses” released on October 31, 2016.

Establishment of a holding company is currently planned in Japan, and an operating company is planned to be incorporated in Singapore. In addition, regional headquarters of the operating company will be set up in Singapore, Hong Kong, United Kingdom (London), United States (Richmond, VA), and Brazil (Sao Paulo).

The move will allow Ocean Network Express to better meet customers’ needs by providing high-quality, competitive services through the consolidation and enhancement of the three companies’ global network and service structures.

Following the announcement on October 31, 2016, the three companies have been progressing towards their target of establishing the new JV. The establishment of new JV will officially be announced once all anti-trust reviews are completed. The service commencement date for Ocean Network Express is April 1, 2018.

Port rotations of 32 services finalized / First contingency mechanism of an alliance for case of financial distress of a partner / More safety for customers’ cargo

THE Alliance announced its final network after all needed preparations have been finalized. The product starting from April 2017 features fast transit times, a comprehensive port coverage and deployment of modern and most efficient ships. This is thanks to the “best ship for the loop principle” and a dedicated shuttle service design. More than 240 ships will be deployed in 32 services connecting over 75 major ports throughout Asia, North Europe, the Mediterranean, North America, Canada, Mexico, Central America, the Caribbean, Indian Sub Continent and the Middle East with a wide range of direct port-port-connections.

The final port rotations of the total 32 services will be as follows:

Asia and North Europe

FE 1:

Kobe – Nagoya – Shimizu – Tokyo – Singapore – Jeddah – Rotterdam – Hamburg – Southampton – Le Havre – Singapore – Kobe

FE 2:

Xingang – Dalian – Qingdao – Shanghai – Ningbo – Hong Kong – Yantian – Singapore – Tangier – Southampton – Hamburg – Rotterdam – Le Havre – Tangier – Jebel Ali – Hong Kong – Qingdao – Xingang

FE 3:

Hong Kong – Xiamen – Kaohsiung – Yantian – Rotterdam – Hamburg – Antwerp – London Gateway – Piraeus – Singapore – Hong Kong

FE 4:

Pusan – Ningbo – Shanghai – Rotterdam – Hamburg – Antwerp – Southampton – Shekou – Yantian – Pusan

FE 5:

Laem Chabang – Cai Mep – Singapore – Colombo – Rotterdam – Hamburg – Antwerp – London Gateway – Jeddah – Colombo – Singapore – Laem Chabang

Asia and the Mediterranean

MD 1:

Qingdao – Shanghai – Ningbo – Yantian – Singapore – Damietta – Barcelona – Valencia – Fos – Genoa – Damietta – Singapore – Shekou – Qingdao

MD 2:

Pusan – Ningbo – Shanghai – Kaohsiung – Yantian – Singapore – Jeddah – Genoa – La Spezia – Barcelona – Valencia – Singapore – Hong Kong – Pusan

MD 3:

Pusan – Shanghai – Ningbo – Yantian – Singapore – Jeddah – Ashdod – Piraeus – Istanbul (Ambarli) – Izmir/Aliaga – Mersin – Jeddah – Singapore – Kaohsiung – Pusan

Trans Pacific – West Coast

PN 1:

Qingdao – Shanghai – Nagoya – Tokyo – Tacoma – Vancouver – Tokyo – Nagoya – Kobe – Qingdao

PN 2:

Singapore – Laem Chabang – Cai Mep – Kaohsiung – Yantian – Tacoma – Vancouver – Tokyo – Kobe – Kaohsiung – Singapore

PN 3:

Hong Kong – Yantian – Ningbo – Shanghai – Pusan – Vancouver – Seattle – Pusan – Hong Kong

PS 1:

Kobe – Nagoya – Tokyo – Sendai – Los Angeles/Long Beach – Oakland – Tokyo – Nagoya – Kobe

PS 2:

Kobe – Nagoya – Shimizu – Tokyo – Los Angeles/Long Beach – Oakland –Tokyo – Kobe

PS 3:

Singapore – Laem Chabang – Cai Mep – Hong Kong – Los Angeles/Long Beach – Oakland –– Tokyo – Hong Kong – Singapore

PS 4:

Hong Kong – Yantian – Kaohsiung – Keelung – Los Angeles/Long Beach – Oakland – Keelung – Kaohsiung – Da Chan Bay – Hong Kong

PS 5:

Shanghai – Ningbo – Los Angeles/Long Beach – Oakland – Shanghai

PS 6:

Qingdao – Ningbo – Shanghai – Pusan – Los Angeles/Long Beach – Oakland – Pusan – Qingdao

PS 7:

Xiamen – Hong Kong – Yantian – Los Angeles/Long Beach – Xiamen

PS 8:

Dalian – Xingang – Qingdao – Pusan – Los Angeles/Long Beach – Oakland – Pusan – Kwangyang – Dalian

Trans Pacific – East Coast (via Panama and Suez)

EC 1:

Ningbo – Shanghai – Pusan – Tokyo – (Panama Canal) – Manzanillo – Savannah – Jacksonville – Charleston – Norfolk – Miami (Seasonal) – Manzanillo – (Panama Canal) – Balboa – Los Angeles/Long Beach – Oakland – Tokyo – Kobe – Ningbo

EC 2:

Qingdao – Ningbo – Shanghai – Pusan – (Panama Canal) – New York – Boston – Wilmington – Savannah – (Panama Canal) – Pusan – Qingdao

EC 3:

Kaohsiung – Xiamen – Hong Kong – Yantian – Shanghai – (Panama Canal) – Savannah – Norfolk – (Panama Canal) – Balboa – Pusan – Kaohsiung

EC 4:

Kaohsiung – Hong Kong – Yantian – Cai Mep – Singapore – (Suez Canal) – New York – Norfolk – Savannah – Jacksonville – Charleston – (Suez Canal) – Singapore – Kaohsiung

EC 5:

Laem Chabang – Cai Mep – Singapore – Colombo – (Suez Canal) – Halifax – New York – Savannah – Norfolk – Halifax – (Suez Canal) – Jebel Ali – Singapore – Laem Chabang

Trans Atlantic

AL 1:

Bremerhaven – Antwerp – London Gateway – Norfolk – Philadelphia – New York – Halifax – Bremerhaven

AL 2:

London Gateway – Le Havre – Rotterdam – Bremerhaven – New York – Charleston – London Gateway

AL 3:

Antwerp – Bremerhaven – Southampton – Charleston – Savannah – Port Everglades – Houston – Savannah – Norfolk – Antwerp

AL 4:

Southampton – Antwerp – Bremerhaven – Le Havre – Veracruz – Altamira – Houston – New Orleans – Mobile – Southampton

AL 5:

Southampton – Rotterdam – Hamburg – Antwerp – Le Havre – Savannah – Cartagena – Los Angeles/Long Beach – Oakland – Seattle/Tacoma – Vancouver – Oakland – Los Angeles/Long Beach – Balboa – Cartagena – Caucedo – Savannah – Southampton

AL 6:

Salerno – Livorno – La Spezia – Genoa – FOS – Halifax – New York – Norfolk – Savannah – Salerno

AL 7:

Barcelona – Tarragona – Valencia – Algeciras – Halifax – New York – Norfolk – Savannah – Valencia – Tarragona – Barcelona

Asia and the Middle East

AGX:

Pusan – Qingdao – Shanghai – Ningbo – Shekou – Singapore – Jebel Ali – Dammam – Jubail – Abu Dhabi – Port Kelang – Singapore – Ningbo – Pusan

Through this robust network, THE Alliance will offer a superior, reliable, efficient, and wide ranging product suite to shippers in the East/West lanes. The partners of THE Alliance will keep monitoring customers’ demand and will react to markets if needed.

Furthermore, the members of THE Alliance announced today a new and unique contingency plan in the unlikely event a member of THE Alliance suffers a bankruptcy. The five member lines will establish an independent trustee to manage funds to be used in the case there is insolvency within the group. It is envisioned that the fund will be used to continue alliance operations in the event of insolvency of one or more member lines. The independent trust fund shall safeguard that customers’ cargo on board of the affected members’ ships will be carried to the port of destination. “Customers’ reaction to the incident last summer showed a clear demand for such a safety net and the partners of THE Alliance are proud to present the first contingency plan of its kind in liner shipping”.

“K” Line (India) Shipping Private Ltd (KLISP), affiliated company of Kawasaki Kisen Kaisha Ltd., joined Indian National Shipowner’s  Association(INSA) at the end of January 2017.

KLISP was established in 2014 and actively participates in Indian Coastal Trade as well as International Trade business as an Indian Shipping company. In the same year, KLISP successfully entered into a long-term CVC contract with an Indian Charterer. From December 2016, KLISP acquired ownership of an Indian flag vessel, “GANGA K” (58,000DWT Bulk Carrier) for this contract, and by acquisition of this Indian flag vessel, KLISP was officially entitled to join INSA.

By becoming an INSA member, we anticipate this will enable us to become more actively engaged in the Indian Shipping industry as well as become even more deeply rooted in activities of the local market.

The long-term goal of the “K” Line Group is to consistently render the best and most reliable service possible that will also contribute to the quality of life of the people in India, and at the same time allow us to more actively participate in the local and continuously growing infrastructure and transportation system in India.

“K” Line’s CO2 reduction targets were approved to be scientifically consistent with the level achieving to the “Paris Agreement” set binding 2℃ goal ^*1 for rise of global temperature and obtained certification from an international initiative, Science Based Target Initiative (SBTi)^*2.

In March 2015, we introduced our long-term environmental vision,“K” LINE Environmental Vision 2050 “Securing Blue Seas for Tomorrow”^*3 and set an environmental target to reduce CO2 emissions from our operating ships by half before 2050 as one of our counter-measures against global warming. (see below diagram)

At this juncture, we set the interim target to reduce CO2 emissions by 10% for 2019 and successfully accomplished ahead of schedule the target in 2015 and set a new interim target to reduce CO2 emissions by 25% for 2030. At this time, this milestone has been certified with SBTi.

SBTi is a joint initiative established by CDP^*4 and other organizations in order to promote the achievement of science-based emission-reduction targets for greenhouse gases, and the existence of SBT is adopted as a part of evaluation item in CDP.

As of 13 Feb, 2017, 211 of the majour companies around the world have declared to set SBT, in their companies, including ”K” Line, of which 35 companies’ targets have already been certified by SBTi.

As a world–leading marine transport operator, “K” Line continues to aim at providing more environmentally-friendly and efficient transportation services for more people all over the world and is making every effort to improve its corporate value.

*1 the “Paris Agreement” set binding 2℃ goal

Paris agreement is a framework against global climate change which came into force on  4 Nov 2016, its achievement of “2℃ goal” for holding the increase in the global average temperature to well below 2℃ above pre-industrial levels, placed as the international issue.

*2 Science Based Target Initiative（SBTi）

It is an initiative about Science Based Target for greenhouse gas reduction and a joint initiative between CDP, UNGC (United Nations Global Compact), WRI (World Resources Institute) and WWF (World Wide Fund for Nature), which checks whether the compaines’ medium-term reduction targets (5-15 years) for green house gases are consistent with the level of necessary decarbonization for achieving the long-term “2℃ goal” based on their own science-based CO2 emission standard.

*3 “K” Line Environmental Vision 2050

http://www.kline.co.jp/en/csr/environment/index.htm

*4 CDP

CDP is an international non-profit organization (NPO) that surveys, evaluates and discloses companies’ environmental initiatives, and they disclose the evaluation results as global common indicators to measure corporate value. We have been selected for top assessment “A” list in “CDP 2016 Climate” and also selected for “Supplier engagement leader board” as an excellect company in CDP supply chain program.

ENDS

January 31, 2017

Kawasaki Kisen Kaisha, Ltd.

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

・Financial Highlights for 3rd quarter FY2016  – for details please access via the website:  http://www.kline.co.jp/en/

ENDS