NYK has agreed to a memorandum of understanding (MoU) for the consecutive building of LNG-fueled PCTCs at Shin Kurushima Dockyard Co., Ltd. and Nihon Shipyard Co., Ltd. Twelve new ships are planned to be built, six ships each at the two shipyards. The newly built ships will be delivered successively from fiscal 2025 to fiscal 2028.

This consecutive building of LNG-fueled PCTCs is in accordance with the PCTC fleet replacement plan to achieve NYK’s environment management target, *which is to reduce CO2 emissions per ton-kilometer of transport by 50% by 2050. The use of LNG fuel, in addition to hull modification to improve fuel economy, will contribute to a reduction of CO2 emissions by approximately 40% compared to ships using conventional heavy fuel oil.

Through its “Sail GREEN” project,** NYK’s Automotive Transportation Headquarters has been promoting the transition of upcoming newly built PCTCs to vessels that are LNG-fueled, and this began with Sakura Leader, which was delivered in October 2020 and was the first LNG-fueled PCTC to be built in Japan. In fact, the company already has firm plans to launch eight LNG-fueled PCTCs by 2024. Including these additional 12 new vessels, NYK’s total number of LNG-fueled PCTCs will increase to 20 by fiscal 2028 through a total investment of about 200 billion yen.

NYK aims to further advance to zero-emission vessels utilizing marine fuels that have a lower environmental impact, such as hydrogen and ammonia, from around 2030. For the moment, NYK is positioning LNG fuel as a bridge solution until future zero emission ships can be realized.

On February 3, NYK released the NYK Group ESG Story, which aims to further integrate ESG into the company’s management strategy and promotes activities that contribute to the achievement of the SDGs (Sustainable Development Goals) through business activities. To strongly promote ESG management, the NYK Group will actively promote replacement of its PCTC fleet to next-generation eco-friendly ships and encourage new value creation as a sustainable solution provider.

Outline of vessels

Length overall: about 199.95 meters
Breadth: about 38.00 meters
Total car capacity: 6,800 – 7,000 units
Flag: To be decided

NYK Group ESG Story
A guideline detailing concrete efforts to integrate ESG into management strategies of the NYK Group. Details can be found in the following press release.

* NYK’s environment management target
Website: https://www.nyk.com/english/esg/envi/plan/

** “Sail GREEN” project
A project being promoted by NYK’s Automotive Transport Headquarters to reduce CO2 emissions at all the transportation stages of vehicles and contribute to the eco-friendly supply chains of customers. The chief component of the project is a switch to LNG-fueled PCTCs, which emit less CO2 compared to conventional heavy-fueled vessels. In addition, reducing CO2 emissions at finished-car logistics terminals that NYK operates throughout the world, as well as during short sea and inland transportation, is also an important target of this project.

 

Overview of each company

<Shin Kurushima Dockyard Co., Ltd.>
Head office: Tokyo, Japan
President: Tetsushi Soga
Website: https://www.skdy.co.jp/en/index.html

< Nihon Shipyard Co., Ltd.>
Head office: Tokyo, Japan
President: Yoshinori Maeta
Website: https://www.nsyc.co.jp/en/

Reference

NYK recently carried the first consignment of BMW iX3 units from Dalian, China into Bremerhaven. The Asia to Europe trade is supported with regular tonnage to support the launch of this exciting “all electric” vehicle.   This service reflects just part of the comprehensive network, which incorporates various other deep sea ports around the globe. Supporting BMW’S logistical requirements to carry these all electric vehicles, complements the widely publicised NYK environmental advancements, such as the launch of 4 new LNG powered RORO vessels to be delivered in 2022 & 2023, and also the provision of windmills at the Zeebrugge RORO terminal owned by NYK’s subsidiary, ICO.

 

NYK has concluded a ship-building contract with China Merchants Jinling Shipyard (Nanjing) Co. Ltd.* for four LNG-fueled PCTCs. These four vessels will be delivered from 2022 to 2023 and are planned to be assigned to transport vehicles mainly to/from Europe and/or to the Middle East.

On these vessels, WinGD’s X-DF2.0 iCER ** main engine will be utilized for the first time in the world. This engine consumes less gas and reduces GHG by cutting methane emissions from exhaust gas by approximately 50%. Further, the vessels will be equipped with battery hybrid technology, which will improve fuel efficiency by mitigating main engine and electrical generator load fluctuations through the support of batteries. The use of LNG fuel, together with these new technologies and other developments such as hull modification, will contribute to a reduction of sulfur oxide (SOx) emissions by 99% compared to ships fueled by heavy fuel oil. Likewise, nitrogen oxide (NOx) emissions will be cut by 96%, and CO2 emissions by approximately 40% or more (per unit of transportation).

Concluding this ship-building contract for these four vessels is in line with NYK’s plan to replace current vessels with around 40 newly built LNG-fueled PCTCs over the next decade to achieve NYK’s environment management target, which is to reduce CO2 emissions per ton-kilometer of transport by 50% by 2050. NYK aims to further advance to zero-emission vessels utilizing low-emission marine fuels such as hydrogen and ammonia from around the mid-2030s.

On February 3, 2021, NYK announced the NYK Group ESG Story,*** which aims to further integrate ESG into the company’s management strategy and promotes activities that contribute to the achievement of the SDGs (Sustainable Development Goals) by providing cleaner transportation services, including the introduction of next-generation eco-friendly ships within the PCTC fleet. To strongly promote ESG management, NYK will encourage new value creation as a sustainable solution provider through a business strategy that responds to climate change.

(Above: Image of LNG fueled PCTC to be built)

Outline of four vessels:

Length overall: about 199.90 meters
Breadth: about 38.00 meters
Total car capacity: 7,000 units
Gross tonnage: 72,800 tons
Flag: To be decided

Towards the realization of an eco-friendly green terminal

On February 5, 11 wind turbines started operation on the grounds of a finished-vehicle logistics terminal owned and operated by International Car Operators N.V. (ICO),* a wholly owned NYK subsidiary company operating in the port of Zeebrugge, Belgium. This installation is Flanders largest onshore wind farm project.

To operate the wind-power generation business at the finished-vehicle logistics terminal in Zeebrugge, ICO has established the joint-venture company ICO Windpark NV together with Portfineco and ENGIE. Portfineco is a subsidiary company of the Port of Zeebrugge,** and ENGIE*** is a worldwide reference group for carbon neutral energy and services.

The wind turbines were designed and installed with due consideration for the surrounding environment. The 11 units have a total capacity of 44 MW, which will cover the entire annual power demand at the terminal. Surplus power will be sold.

According to Svein Steimler, chairman of ICO and ICO Windpark, ICO wants to be not only the largest RORO terminal in the world but also the greenest terminal through initiatives such as the use of wind turbines, solar panels on the PDI centers, water-recovery systems for the car wash (washing 500 cars with only 20 liters of rainwater), heat pumps for heating buildings, LED lights for terminal lighting, EV shuttle cars, and at a later stage cold ironing for ships.

In the future, NYK will consider utilizing the knowledge cultivated at Zeebrugge for finished-vehicle logistics terminals operated by NYK Group companies throughout the world.

 

On February 3, 2021, NYK announced the NYK Group ESG Story, which aims to further integrate ESG into the company’s management strategy and promotes activities that contribute to the achievement of the SDGs (Sustainable Development Goals) through business activities, including the installation of wind turbines, which is part of the operation of "green terminals."**** To strongly promote ESG management, the NYK Group will encourage new value creation as a sustainable solution provider through a business strategy that includes expansion of its “green terminals” globally.

NYK Group ESG Story
A guideline detailing concrete efforts to integrate ESG into management strategies of the NYK Group. Details can be found in the related press release.
https://www.nyk.com/news/2021/esg-story_01.html (Japanese version)

NYK has been selected for the Dow Jones Sustainability Indices (DJSI),* the world's leading investment indexes for ESG (environmental, social, and governance) criteria, for an 18th straight year.

The DJSI, which is a major global index for companies engaging in ESG initiatives, is composed of selected sustainability-driven companies from over 3,500 worldwide companies invited to participate in a selection process consisting of an in-depth analysis of economic, environmental, and social criteria, such as corporate governance, risk management, climate change, and stakeholder relations.

In addition to the FTSE4Good Index for which NYK was selected for an 18th straight year and the FTSE Blossom Japan Index for which NYK was selected for a fourth straight year in July, the DJSI is an important selection standard for investors who value corporate social responsibility and sustainability.

NYK continues to fuse the Group’s growth strategy with ESG and promote various initiatives to solve social issues in order to achieve sustainable growth.

* Dow Jones Sustainability Indices (DJSI): The results of the annual DJSI review are announced by S&P Dow Jones Indices LLC, the world's largest global resource for index-based concepts and data, in cooperation with SAM, which is part of S&P Global and a specialist in ESG research and data.