Communications are the press relations consultancy for the Shipping and logistics industry
30 April 2014
Please be advised that “K” Line has released the following press statements today, which are attached as PDF documents:
・Financial Highlights for FY2013 – http://bit.ly/1iBDO4R
・Payment of Dividends – http://bit.ly/1mbouzU
These statements are also available from their Website both English and Japanese.
For further information, please contact:
Kiyoshi Tokonami
General Manager, IR & PR Group
Tel: +81-3-3595-5189 Fax: +81-3-3595-5001
Kawasaki Kisen Kaisha, Ltd. (“K” Line)
Grand Race, Pure Car Carrier (PCC) operated by “K” Line, rescued 199 refugees in Mediterranean Sea north of Tripoli at request to rescue refugee by MRCC Italy(*). In compliance with the request, the vessel immediately headed for the position and successfully rescued 199 refugees at 5:50 (local time) on April 9. Once refugees were onboard, the vessel crew served a light meal to them and treated some of them who were slightly injured. They safely disembarked at Pozzalo port in Italy on April 10 before dawn.
About “Grand Race”
Captain：Willy A. Doruelo
Flag ：Panama
Crew：20 (Filipinos)
Gross Tonnage：50,309 tons
Type of Vessel：Pure Car Carrier
(*)MRCC Italy : Maritime Rescue Coordination Centers Italy
For further information, please contact:
Jitsuo Narita
Manager, Information & Public Relations Team, IR & PR Group
Kawasaki Kisen Kaisha, Ltd. Tokyo
TEL: +81-3-3595-5083 FAX:+ 81-3-3595-5001
On September 6, 2012, the Japan Fair Trade Commission (the “JFTC”) investigated KAWASAKI KISEN KAISHA, LTD. (“K” Line) due to a suspected violation of the Antimonopoly Act of Japan regarding ocean shipment of automobiles. Since then, “K” Line has fully cooperated with the relevant JFTC investigations.
”K” Line announced today that the JFTC has issued cease-and-desist orders and administrative surcharge payment orders to the Company for violating Article 3 (Unreasonable Restraint of Trade) of the Antimonopoly Act of Japan.
We express our sincere regret for the concern this matter has caused to our customers, shareholders and concerned parties.
1. Outline of Cease-and-Desist orders
“K” Line was ordered, among other things, to confirm that it has discontinued acts that are in violation of Article 3 (Unreasonable Restraint of Trade) of the Antimonopoly Act of Japan, to comply with guidelines concerning the observation of the Antimonopoly Act of Japan and to implement periodic training for its employees and periodic audits.
2. Outline of the surcharge payment
Amount of surcharge: 5,698,390,000 yen
3. Response
“K” Line regards the situation with the utmost gravity and will take comprehensive measures to ensure strict compliance with all applicable laws and regulations.
In light of the seriousness of this matter, the CEO, and the Directors and the Executive Officers who are in charge of the concerned sector, have decided to return voluntarily 10-30% of their monthly remuneration for three months.
4. Impact on results
“K” Line has already recorded an extraordinary loss related to the Antimonopoly Act of Japan of 5.721 billion yen as a reverse of provisions in conjunction with the third quarter of the fiscal year 2013.
February 28, 2014
KAWASAKI KISEN KAISHA, LTD. (“K” Line) is pleased to announce new JASECO services to enhance our service network between Japan and Philippines, Vietnam, Singapore and Indonesia.
The new services will contribute to the more enhanced intra-Asia service network and schedule stabilization, and also increase the service frequency to/from Japan/Vietnam and improve its transit-time.
The new services will succeed the name of ongoing ones known as JASECO-4/JASECO-5 which will be suspended at the start of the new services.
Details of the service are as follows:
New JASECO-4: Tokyo – Yokohama – Nagoya – Kobe – Singapore – Jakarta – Singapore – Ho Chi Minh – Tokyo
New JASECO-5: Osaka – Yokkaichi – Nagoya – Shimizu – Tokyo – Yokohama – Kobe – Manila – Ho Chi Minh – Singapore – Manila – Osaka
New JASECO-4 SB: 12th of March ETA Singapore
New JASECO-5 NB: 17th of March ETA Singapore
KAWASAKI KISEN KAISHA, LTD. (“K” Line) is pleased to announce new JASECO services to enhance our service network between Japan and Philippines, Vietnam, Singapore and Indonesia. The new services will contribute to the more enhanced intra-Asia service network and schedule stabilization, and also increase the service frequency to/from Japan/Vietnam and improve its transit-time.
The new services will succeed the name of ongoing ones known as JASECO-4/JASECO-5 which will be suspended at the start of the new services.
Details of the service are as follows:
New JASECO-4: Tokyo – Yokohama – Nagoya – Kobe – Singapore – Jakarta – Singapore – Ho Chi Minh – Tokyo
New JASECO-5: Osaka – Yokkaichi – Nagoya – Shimizu – Tokyo – Yokohama – Kobe – Manila – Ho Chi Minh – Singapore – Manila – Osaka
New JASECO-4 SB: 12th of March ETA Singapore
New JASECO-5 NB: 17th of March ETA Singapore
Kawasaki Kisen Kaisha, Ltd., Tokyo, (hereafter called “K” Line) is proud to announce the delivery of “CORONA SPLENDOR”, an 88,000 DWT-type special coal carrier at Marugame Shipyard of Imabari Shipbuilding Co., Ltd., Japan on February 25th, 2014.
CORONA SPLENDOR is the same type as “K” Line’s specialized fleet for the transport of thermal coal known as the “Corona-series”. The Corona-series, which “K” Line originated and continues to develop, consists of epoch-making coal carriers equipped with wide beam and shallow draft, which are the most suitable type to enter ports of domestic Thermal Power Stations to discharge cargo.
With this new latest deployment, the Corona-series has consisted of 17 carriers.
“K” Line takes pride that its Corona-series has been so favourably evaluated for always ensuring customers steady and reliable thermal coal transport service with maximum safety.
Vessel’s Specifications:
LOA: 229.98M
Beam: 38.00M
Depth : 19.90M
Full Draft : 13.904M
Deadweight Tons : 89,006MT
Gross Tons : 49,720T
Net Tons : 28,533T
Hold/Hatch : 5/5
COSCO, K LINE, YANGMING, HANJIN and EVERGREEN LINE are pleased to announce that the five parties have agreed in principle to establish a shipping alliance. To be operational only on the trades between Asia and Europe, including the Mediterranean region, it will be called the CKYHE Alliance.
The lines intend to formally begin the new Alliance as of 1st March 2014 subject to compliance with the relevant regulations. The CKYHE will commence operations in mid April with six joint services operating between Asia and Northern Europe and four loops dedicated to the Asia-Mediterranean route.
The members of CKYHE have agreed to continuously review services on the Asia-Northern Europe and Asia-Mediterranean trades in order to optimize their efficiency and to enhance their service quality in terms of network coverage. The lines’ customers will benefit from a better quality of service in terms of transit times and service frequency.
Operational efficiencies will also strengthen the Alliance members’ effective environmental stewardship. The lines have a commitment to cleaner shipping, which they understand their customers value highly. The Alliance will continue to pursue measures to minimize bunker consumption via ‘eco-slow steaming’ and to reduce CO2 emissions.
January 6, 2014
Completing the “Bridge to the Future” , our 3-year Management Plan
Let me start by wishing our stakeholders and all the members and their families of the “K” Line Group a Happy New Year. As we embark on a new chapter in 2014, I would like to take this time to reflect on the past year and offer a look forward to the challenges ahead.
In 2013, the global economy modestly trended toward recovery, driven by the more developed economies, mainly the US. Although consumer spending did not make a full-fledged recovery, the US housing market and automobile sales exhibited their highest levels of growth seen in the past five years, and the stock market climbed to an all-time high. Meanwhile, the EU’s economy, after enduring prolonged sluggishness, touched bottom at long last, returning to positive growth for the first time in three years. Emerging economies, such as China and India, which provided catalysts for global economic recovery after the collapse of Lehman Brothers, experienced some slowdown from their previous high level of growth. After undergoing a correction phase, these emerging economies are expected to switch to a stable and sustainable growth trajectory.
Looking at economic trends in Japan, the yen underwent some correction from its excessive strength owing to bold monetary easing policies and flexible fiscal policies implemented by the Abe administration, which took office at the end of 2012. In addition, the Tokyo stock market recorded the highest annual growth among global stock markets. These were the first positive signs for the Japanese economy in a long time. Moreover, news of Tokyo’s successful bid to host the 2020 Olympic Games, a major topic in 2013, reinvigorated Japan’s enthusiasm, which had been somewhat dampened since the Great East Japan Earthquake.
We plan to announce our 3Q FY2013 financial results and 4Q estimates at the end of January. The structural reforms, which have been underway since 2012, are gradually delivering favorable outcomes. We also saw larger-than-expected benefits from a reduction in fuel costs as a result of company-wide initiatives to expand eco slow steaming. Since FY2012, we have achieved current account to surplus owing to the fruits reaped from these types of companywide measures. Our earnings have now recovered to a level such that in FY2014, the final year of our Bridge to the Future plan, we expect them surpass levels posted in the past two years.
In our current three-year management plan, I outlined management’s commitment to protecting the company from a collapse of the marine transport market. However, from this point onward, I want to focus on policies for taking the steps necessary to move from a protective to an offensive approach. Global political and economic scenes are undergoing major transformations each year. In the same way, various industries cannot avoid reforms in technology and intensified competition. Kawasaki Kisen is no exception. We are exposed to relentless international competition on a daily basis. In light of these factors, it is crucial that we make radical changes to our traditional structure and methods to remain in the race. I hope to leverage your strengths and competencies to take our company in a better direction starting in 2014.
As a first step in our offensive management strategy, we decided to resume investments in our strengths in 2013. We announced plans to build eight car carriers, with a maximum capacity to carry 7,500 cars. In the Dry Bulk Business, we are positively moving forward with the construction of a large iron ore carrier and coal carrier, which has a 25% improved fuel economy, in comparison with existing ships. In the Energy Transportation Business, we acquired contracts for three LNG carriers in 2013, and in the New Year, we are expecting to secure contracts for a shale gas-related transport project that is currently under negotiation. In the Containership Business, in the first half of 2013, we decided to build five 14,000 TEU ULCVs (Ultra Large Container Vessels). We placed our orders at the best time possible. These cutting-edge vessels will all be in the water from 2015 to 2016, and I am confident they will contribute to a major recovery in earnings.
Also, in our new management plan, we prioritize the fortification of our logistics business in Asia and Oceania, and the offshore energy E&P support business, in regions such as the North Sea and Brazil. The logistics business takes time to generate profit but we believe that, coupled with demand in Asia, where growth is pronounced, we can develop this into a core business in ten years by expanding operations in accordance with a long-term strategy.
In the offshore energy E&P support business, we plan to establish a structure that will facilitate the active entry into fields that require a high level of technology and expertise—offshore support vessels, drillships, FPSOs, and subsea construction vessels. In this manner, we are determined to never remain content with our present situation, and we are constantly moving forward, forging ahead step-by-step.
Last but not least, I would like to end my New Year’s message by emphasizing the following.
From 2013, the “K” Line Group has engaged in the work-life balance movement to eliminate long work hours. At this stage, we have yet to see any positive results. All the executives of the “K” Line Group share in the idea that the sense of fulfillment one gains from attaining a healthy work-life balance is the source of one’s energy and vitality. In the new fiscal year, I would like to take this movement to the next level and produce results without fail. Although this too is a very basic issue, it is also extremely important. I would once again like to ask that everyone make sure they fully adhere to legal compliance mandates. There are those statutes and regulations that should be obeyed as an adult. However, I am referring to laws and social standards, including those which regulate competition and prevent corrupt business practices, that must obeyed by all means in the course of conducting your work duties. I have previously spoken about this on several occasions but would like to mention it once again. Please undertake your tasks without forgetting to conform to laws and regulations, in other words compliance, which is the fundamental requirement for all corporate activities.
In closing, I wish all the members of the “K” Line Group and their families good health and happiness, and pray for the safe passage of all our ships.
President & CEO
Jiro Asakura
KAWASAKI KISEN KAISHA, LTD. (“K” Line) is pleased to announce it has just decided to order four (4) additional new next generation car carrier vessels on top of its recent identical 4-vessel shipbuilding contracts placed with Shin Kurushima Dockyard Co. Ltd and Japan Marine United Corporation. In total, each company will be building four new “K” Line next generation car carriers, respectively, with delivery starting in 2015 and continuing through the first quarter of 2017.
By adding this series of eight new ships with better stability of the vessel and better fuel efficiency, we continue to deliver value added efficiency and capability of handling an even wider variety of cargo mix to assure our services successfully meet the needs of our valued customers in order to be best suited for not only passenger cars but also other RORO cargoes.
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Existing Large size PCC |
Next Generation PCC |
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L.O.A |
about 200 m |
about 200 m |
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Beam |
about 32.2 m |
about 37.0 – 38.0 m |
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Cargo Capacity |
about 6,200 units |
about 7,500 units |
Kawasaki Kisen Kaisha Ltd.
Nippon Yusen Kabushiki Kaisha
Mitsui O.S.K. Lines Ltd.
The Shipping Corporation Of India
“K” Line, NYK, MOL, and SCI Reaches LNG Long-term Time Charter for one LNG Carrier with Petronet LNG
-Contract for Construction of a Carrier for Gorgon LNG Project-
A consortium comprising Kawasaki Kisen Kaisha, Ltd.(“K” Line), Nippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines, Ltd. (MOL), and the Shipping Corporation of India (SCI) has announced an agreement with Delhi–based Petronet LNG Limited (PLL) for a long-term time charter of a new liquefied natural gas (LNG) carrier having a capacity of 173,000 m3. At the same time, the consortium concluded an agreement with Hyundai Heavy Industries Co. Ltd. (Headquarters: Ulsan, South Korea) to build the vessel.
PLL is India’s first importer of LNG, and since 2004 has imported 5 million tons of LNG a year from Qatar, and an additional 2.5 million tons per year since 2009, using three LNG carriers. The new LNG carrier will be employed in the Gorgon LNG Project.
The four-company consortium that won the contract for the new carrier also operates the three vessels already in service, and will continue to ensure a steady supply of LNG to India, where energy demand continues to grow.
Outline of Charter Contract
| Date and place of contract signing | December 2, 2013; Delhi, India |
| Owner | India LNG Transport Company (No. 4) Private Limited (Headquarters: Singapore), new JV by “K” Line, NYK, MOL, and SCI |
| Charterer | Petronet LNG Limited |
| Charter period | 19 years after launch of the new LNG carrier (September 2016) |
| Vessel | One new membrane-type LNG carrier (173,000 m3) |
| Shipbuilder | Hyundai Heavy Industries Co. Ltd. |
| Ship management | SCI |
(Reference) Outline of Petronet LNG Project
| Buyers: | Petronet LNG Limited (PLL)
(Main shareholders)
*The remaining percentage (about 35%) is publicly held
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Seller: |
Ras Laffan Liquefied Gas Company Ltd. II (RasGas II) Gorgon LNG Project (sales contract with ExxonMobil holding 25% of stock) |
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LNG purchasing volume/period: |
(RasGas II)
5 million tons per year, 2004–2027 2.5 million tons per year, 2009–2034 (Gorgon LNG Project) 1.44 million tons per year, for 20 years after the beginning of supplying
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| LNG discharging port: | Dahej Port, Gujarat State of India
Kochi Port, Kerala State of India |