Kawasaki Kisen Kaisha, Ltd. (“K” LINE) signed a service contract agreement on port expense settlement services with DIABOS Global (DIABOS) in July 2023. DIABOS is a company in the JM Baxi Group, which is “K” LINE’s business partner in India. Based in Mumbai, its expertise is contracted services for port expense settlement, serving a large number of shipping companies around the world. With an abundance of practical experience, it has accumulated a great deal of related data.

“K” LINE is pressing ahead with digital transformation from five perspectives specified in its DX Strategy*¹, namely DX ashore, DX at sea, DX of data, DX of human resources and security that supports DX. As an initiative for DX ashore and for DX of data, it is set to introduce the VESON IMOS Platform (VIP) in 2024. It is a platform provided by Veson Nautical (Veson) to cover a series of ship operation management processes including charter contract conclusion, financial management and fuel management. Today, “K” LINE operates the tramp service business -*² globally. The agreement is aimed at increasing “K” LINE’s business efficiency and budget management accuracy and broadly improving its business quality by outsourcing to DIABOS port expense processing operations, including assessment and journalizing of port expenses that occurs in huge numbers every day and data entries into the VIP system.

At “K” LINE, digitalization is underway as a functional strategy for realizing the business strategy in the medium-term management plan announced in May 2022. With the use of data and digital technologies, “K” LINE will enhance the core values of safety, the environmental conservation and quality in a bid to boost its competitiveness and corporate value.

*¹DX Strategy 2023 (announced on December 22, 2022)
https://www.kline.co.jp/en/sustainability/dx_strategy.html

*²Car carrier transport is excluded.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has been selected as a constituent of the “FTSE4Good Index Series”, one of the leading global indices for ESG investing, for the second year straight and 19^th time in total. “K” LINE has also been listed as a constituent of “FTSE Blossom Japan Index” for six years in a row and “FTSE Blossom Japan Sector Relative Index for the second consecutive year respectively, since those indices were initially launched.

Created by the global index provider FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company), the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices, selecting 1,074 companies from developed countries including 226 Japanese companies, and 566 companies from emerging countries. On the other hand, FTSE Blossom Japan Index and FTSE Blossom Japan Sector Relative Index reflect the performance of Japanese companies that demonstrate strong ESG practices (310 companies and 605 companies are selected respectively out of 1,424 constituents of FTSE Japan All Cap Index). These indices have been adopted as a benchmark of ESG investing by Government Pension Investment Fund (GPIF) in Japan. Those indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

“K” LINE has been addressing sustainability as a priority issue of its corporate management, and advancing various initiatives to respond flexibly to various needs. These include not only changing customer needs, but also the needs of nations and the global community, especially for the achievement of the UN Sustainable Development Goals, and measures to mitigate climate change. Going forward, “K” LINE will continue to pursue greater corporate value, creating both economic and social values sustainably, through proactive sustainability efforts.

We will participate in the Joint Technological Development Program for the Demonstration of Fully Autonomous Ships under the MEGURI 2040 Fully Autonomous Ship Project* (hereinafter MEGURI2040) administrated by the Nippon Foundation, as a member of the Designing the Future of Fully Autonomous Ships Plus consortium (hereinafter DFFAS+)** consisting of 51 companies in Japan.

On July 20, the Nippon Foundation held a seminar*** on the MEGURI2040. At the seminar, an overview of the second stage of MEGURI2040 and the project’s initiatives were presented.

This program is positioned as the second stage of MEGURI2040, which started in 2020, and aims for full-scale commercialization of fully autonomous ship technology by 2025, which was developed in the “Joint Technological Development Program for Demonstration of Fully Autonomous Ship,” which was carried out as the first stage, in cooperation with the Nippon Foundation.

In addition to designing next-generation ships that will support the coastal shipping industry in the future, a demonstration of ship-land operations will be conducted to simulate the future coastal shipping industry that will be supported by fully autonomous ship. The demonstration will use four different types of ships (a newly built full package container ship; with fully autonomous operation system, an existing container ship, a RORO cargo ship and a remote island route ship; with some autonomous operation system) and two Fleet Operation Centers.

• Standardization of developed technologies

To refine the fully autonomous ship technology developed in the first stage, and by standardizing these technologies into international standards, to strengthen Japan’s maritime industry and lead the international competition in fully autonomous ship technology.

• Reinforcement of development process infrastructure

Based on the development process infrastructure established in the first stage, reinforce it further by upgrading simulation technology, generalizing risk assessment, etc.

• Social Implementation

To commercialize an autonomous navigation system (including land-based monitoring system) and to establish a certification scheme necessary to commercialize the system.

In addition, to improve the environment for social implementation, we will utilize our knowledge of technological development to establish international and domestic rules for fully autonomous ships, examine human resource requirements and training methods to accommodate new working styles, study the use of deregulation and other methods to ensure the continuous commercial use of fully autonomous ships, and examine insurance and freight rates for fully autonomous ships.

Our Approach

We, Kline, are collaborating with Kawasaki Kinkai Kisen Kaisha, Japan Radio Co., Ltd., and YDK Technologies Co., Ltd. to retrofit the existing RORO cargo ship ‘Hokuren Maru No.2’ (operated by Kawasaki Kinkai Kisen Kaisha) with unmanned and autonomous navigation capabilities.

By leveraging our expertise in safe operations, we are developing a system that replicates the sequence of piloting actions—namely ‘perception, information processing, analysis, planning, and execution’—that were previously carried out by humans, using cutting-edge AI technology and other advancements. Our goal is to further enhance the safety and quality of transportation provided by our operated vessels.”

In order to solve social issues in Japan’s coastal shipping industry, such as reducing labour shortages and the workload, preventing maritime accidents, and maintaining remote island shipping routes, and to support stable domestic logistics and transportation infrastructure, the Nippon Foundation, DFFAS+ participating companies, and domestic and international partner organizations will continue to work together toward the commercialization of fully autonomous ships by 2025.

*A subsidization scheme to cultivate further momentum for technological development in the field of crewless maritime autonomous surface ships, promoting changes in logistics, economies,  and social infrastructure in Japan, and supporting such technological development through the success of the world’s first crewless autonomous operation trials by domestic coastal vessels.

** Companies participating in the DFFAS+ project include Japan Marine Science Inc. (project leader); Akasaka Diesels Limited; IKOUS Corporation; Imoto Lines,Ltd.; Weathernews Inc.; Uyeno Transtech Ltd; EIZO Corporation; SK WINCH CO.,LTD.; MTI Co., Ltd.; NX Shipping Co.,Ltd.; NTT Communications Corporation; Kawasaki Kisen Kaisha, Ltd.; KAWASAKI KINKAI KISEN KAISHA,LTD.; KANDA DOCKYARD Co., Ltd.; KYOKUYO SHIPYARD CORPORATION; Kinkai Yusen Kaisha Ltd.; Kokusai Ryobi Ferry Co.,Ltd.; Sunflame Co., Ltd.; Sanwa Dock Co., Ltd.; JRCS Co.Ltd.; JAPAN HAMWORTHY CO.,LTD.; Japan Marine United Corporation; Mitsui O.S.K. Lines, Ltd.; SKY Perfect JSAT Corporation.; Suzuyo Marine Co., Ltd.; Space Compass Corporation; TERASAKI ELECTRIC CO.,LTD.; Tokio Marine & Nichido Fire Insurance Co., Ltd.; TOKYO KEIKI INC.; TST CORPORATION.; MIRAI R＆D (Research & Development);Nakashima Propeller Co., Ltd.; Nabtesco Corporation; NIHON SHIPYARD CO.,LTD.; Japan Radio Co., Ltd.; NYK Line; The Hanshin Diesel Works, Ltd.; BEMAC Corporation; pluszero, Inc.; FUJIWARA SHIPBUILDING CO.LTD.; FURUNO ELECTRIC CO., LTD.; Honda Motor Co., Ltd.; Honda Heavy Industries Co., Ltd.; Marindows Inc.; Marubeni Corporation; MIURA CO.,LTD.; Mitsui E&S Shipbuilding Co., Ltd.; Mitsui Sumitomo Insurance Company, Limited; Mitsubishi Research Institute, Inc.; Mitsubishi Shipbuilding Co., Ltd.; YDK Technologies Co.,Ltd.

*** Presentations on technologies and rules for fully autonomous ships and a panel discussion on expectations and challenges for the commercialization of fully autonomous ships.

The Nippon Foundation Fully Autonomous Ship Project MEGURI2040 Seminar on Fully Autonomous Ship

The “K” LINE Group companies conducted worldwide simultaneous cleanup activities, during a period before and after World Oceans Day on June 8.

More than 450 employees and their families from 14 group companies around the world participated in the activities as volunteers, to collect garbage on land, which is said to be the source of 7~80% of marine plastic, at beaches, the area around offices, mountain forests, canals and rivers. The amount of garbage collected amounts to about 7,800 liters.

These days, threats on ocean environment such as plastic pollution are becoming hot issues, while protection of oceans is set as one of Sustainable Development Goals (SDGs) , namely, “Conserve and sustainably use the oceans, seas and marine resources for sustainable development.” For the “K” LINE Group, whose corporate principle is “as a logistics company rooted in the shipping industry, we help make the lives of people more affluent”, the oceans are essential for our business activities, and as an opportunity to reconsider marine environmental issues together with Group employees, we conducted the cleanup activities during the period before and after World Oceans Day, from late May to early July this year.

Going forward, the “K” LINE Group will continue to make every effort to realize one of Values the “K” LINE Group prizes, “Contributing to the global environment and a sustainable society”, by raising employees’ awareness of environmental conservation through such activities.

(*）World Oceans Day was officially designated by the United Nations in 2009 to raise global awareness of the benefits humankind derives from the ocean and our individual and collective duty to use its resources sustainably. On that day, awareness-raising events such as ocean cleanup are held over 100 countries every year.