On September 1, a naming ceremony was held at Shin Kurushima Toyohashi Shipbuilding Co. Ltd. for a pure car and truck carrier (PCTC) capable of navigating oceans with only LNG as the ship’s main fuel. The vessel, which was ordered to Shin Kurushima Dockyard Co. Ltd. and is scheduled to be delivered in October 2020, will be the first large LNG-fueled PCTC to be built in Japan. Beginning with this ship, NYK will proceed with the replacement of vessels in its PCTC fleet with next-generation eco-friendly ships.

The ceremony was attended by Yoji Matsuyama, Deputy Chief Officer of Purchasing Group of the Toyota Motor Corporation (head office: Toyota city, Aichi prefecture; president: Akio Toyoda); Tetsuya Yagi, Parliamentary Vice-Minister of the Ministry of the Environment; Masamune Wada, Parliamentary Vice-Minister of Land, Infrastructure, Transport and Tourism; Hitoshi Nagasawa, president of NYK; and a number of related parties. The ship was named “Sakura Leader,” taking its name from the Japanese word for “cherry blossoms,” the national flower of Japan, with a wish for realizing and passing on a flourishing environment to the next generation through eco-friendly transportation.

This ship will be one of the world’s largest PCTCs, capable of transporting approximately 7,000 units (standard vehicle equivalent) per voyage, beginning with vehicles produced by the Toyota Motor Corporation.

The IMO (International Maritime Organization) has agreed on an ambition to reduce GHG emissions from shipping by at least 50 percent by 2050, and NYK has been making a proactive effort to realize environment-friendly transportation by reducing GHG emissions. In fact, in 2015 Japan’s first LNG-fueled ship, the tugboat Sakigake, was delivered, and in 2017 the world's first purpose-built LNG bunkering vessel entered operation, which allowed NYK to expand its range of business to include LNG-fuel supply and sale. In the field of large cargo ships, NYK is positioning LNG fuel as one of the bridge-solutions until future zero-emission ships are realized. Sakura Leader takes the lead in NYK’s plan to switch its operating ships to LNG-fueled vessels.

By switching fuel to LNG and modifying vessel design, ships can become about 40% more energy efficient (by reducing CO2 emissions per unit of transport). These new LNG-fueled vessels are also expected to reduce sulfur oxide (SOx) emissions by approximately 99% and nitrogen oxides (NOx) by approximately 86% compared to ships using conventional heavy oil–fired engines. Accordingly, LNG-fueled ships can meet the below requirements, including those that will become effective in the future:

 

1. SOx Global Cap regulations* that were strengthened effective January 2020

2. EEDI phase 3 requirements** for ships whose construction contracts will be concluded after January 1, 2025

 

Sakura Leader was selected as a model project by Japan’s Ministry of Environment and Ministry of Land, Infrastructure, Transport and Tourism, and will receive support from the ministries for technical verification of CO2 emission reductions during actual voyages.

NYK plans to switch all its future newly built PCTCs to next-generation eco-friendly ships, such as LNG-fueled ships, and aims to lead the construction of a clean transportation mode in the maritime industry. In fact, a second LNG-fueled PCTC will be delivered in 2022, and an LNG-fueled coal carrier will be delivered in 2023.

In accordance with its medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” the NYK Group has incorporated environmental, social, and governance (ESG) criteria in the company’s business strategies, and seeks to enhance the company’s corporate value as well as contribute to sustainable development of society through business activities. Promoting replacement to next-generation eco-friendly ships in the PCTC fleet is one of the group’s activities.

From left, Tetsuya Yagi, Parliamentary Vice-Minister of the Environment; Hitoshi Nagasawa, president of NYK; Yoji Matsuyama, Deputy Chief Officer of Purchasing Group of Toyota Motor Corporation; Masamune Wada, Parliamentary Vice-Minister of Land, Infrastructure, Transport and Tourism; Tetsushi Soga, president of Shin Kurushima Dockyard Co. Ltd.

* SOx Global Cap regulations
SOx emission regulations based on the 2008 amendment of the 1997 protocol on ship pollution prevention (Annex VI of the MARPOL Convention). From January 1, 2020, the allowable limit of sulfur in ship fuel oil was reduced from 3.5% to 0.5%.

** EEDI requirements
Regulations on the energy efficiency of ships based on the 2013 revision of the International Convention on the Prevention of Ship Pollution 1997 Protocol (Appendix VI to the MARPOL Convention). EEDI (Energy Efficiency Design Index) is the number of grams of carbon dioxide (CO2) required to carry 1 ton of cargo for 1 mile, and the reduction rate from the baseline (baseline) will be gradually enhanced. Car carriers are required to implement reductions of 5% by 2015 (Phase 1), 15% by 2020 (Phase 2), and 30% by 2025 (Phase 3).

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- The NYK Group is dedicated to achieving the SDGs through its business activities, and this low carbonization of marine fuel is one of the group’s initiatives.

NYK has extended measures to work from home to prevent the spread of Covid-19 and ensure the safety of company employees.

- Outline of Extended Remote Work Plan
Eligible Employees: Head office and branch office employees
Workstyle: The company has ordered all staff to work from home during this period. Only essential or critical staff, as approved by NYK, may work at the office so far as sufficient infection-prevention measures are taken.

The NYK Group considers prevention of the spread of Covid-19 and the health and safety of the company’s employees to be of utmost importance and will continue to operate vessels safely to ensure stable transportation of energy, resources, and materials that support people's lives.

The company deeply appreciates the understanding and cooperation of customers and other concerned parties

NYK has concluded a contract with Shin Kurushima Dockyard Co. Ltd. to build a second LNG-fueled pure car and truck carrier (PCTC). With this new vessel, NYK will be able to provide more customers with a low-carbon transportation mode, and the company will continue its efforts to reduce its environmental load and contribute to the realization of a sustainable society.

1. Background

NYK aims to integrate ESG principles into management strategies by making efforts to reduce CO2 emissions per voyage through full use of the company’s technological capabilities, such as the development of energy-saving technologies and the optimization of operations through the use of digitalization and big data (e.g., autonomous navigation technologies).

NYK has also positioned LNG fuel as one of the bridging technologies to realize future zero-emission ships. The company aims to have a clean transportation mode that will reduce the environmental burden of the entire PCTC fleet.

2. Signing Ceremony

The shipbuilding contract was signed at NYK’s head office on January 31.

NYK has concluded a contract with Shin Kurushima Dockyard Co. Ltd. to build a second LNG-fueled pure car and truck carrier (PCTC). With this new vessel, NYK will be able to provide more customers with a low-carbon transportation mode, and the company will continue its efforts to reduce its environmental load and contribute to the realization of a sustainable society.

Front row, from left; Yoji Morimoto, president of Shin Kurushima Toyohashi Shipbuilding Co. Ltd.; Hitoshi Nagasawa, NYK president; Tetsushi Soga, president of Shin Kurushima Dockyard Co. Ltd.
 

3. LNG-fueled PCTCs

The vessel is scheduled to be delivered in 2022 and will become NYK’s second LNG-fueled PCTC.

The first vessel NYK announced on September 24, 2019, was selected as a model project by Japan’s Ministry of Environment and Ministry of Land, Infrastructure, Transport and Tourism, and will receive support from the ministries for technical verification of CO2 emission reductions during actual voyages.

Vessel Particulars
Length overall: about 199.95 meters
Breadth: about 38.00 meters
Total car capacity: 7,000 units
Gross tonnage: 73,500 tons
Flag: Japan

 
NYK’s Shift to LNG-fueled vessels

The company is making a proactive effort to shift to LNG-fueled vessels as one solution to environmental concerns. In addition to these LNG-fueled PCTCs, an LNG-fueled coal carrier will be delivered in 2023.

Additionally, in 2015 Japan’s first LNG-fueled ship, the tugboat Sakigake, was delivered, and in 2017 the world's first purpose-built LNG bunkering vessel entered operation.

Further, NYK is making use of the expertise and know-how the company has obtained through LNG transportation over the years to expand its range of businesses to include LNG-fuel supply and sale.

 


- The NYK Group is dedicated to achieving the SDGs through the group’s business activities and its medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” and this low carbonization of marine fuel is one of the group’s initiatives.

 

 

NYK is delighted to announce the commencement of a new direct RORO service from Europe to South America West Coast.

This new service will start in April 2020 and have a monthly frequency, with ports of call being Vigo, Southampton, Bremerhaven and Zeebrugge in Europe and Callao, Iquique & San Antonio in South America.

The service will be covered by a 6,000 car capacity tonnage with a ramp capacity of 150 tons, so will be able to accept both a wide mix of self-driveable and static cargo.

Phil O’Reilly, Marketing Director of RORO at NYK commented: “’The current transit time being offered to South America on this service is the quickest in the market, with Iquique being reached in around 23 days. We look forward to receiving all cargo enquiries on this new trade lane.’’

 

NYK, together with Bolloré Africa Logistics (Bolloré) and Toyota Tsusho Corporation (Toyota Tsusho), has signed an agreement with the General Authority for the Suez Canal Economic Zone to set up and operate a dedicated automotive terminal at East Port Said in Egypt.

The automotive market in Egypt is expected to expand along with population growth and economic development, and the Alexandria port, which currently handles almost all of Egypt’s vehicle imports, is a multipurpose port that sees a variety of cargo and lacks storage space. Therefore, the new dedicated automotive terminal to be developed and operated by the consortium will be favorably received.

The new terminal will be Egypt’s first exclusive RORO terminal, and it will have a wharf area that allows two large Pure Car and Truck Carriers (PCTC) to berth simultaneously. The terminal will additionally offer sufficient vehicle storage space to address increasing future demand.

The knowledge and experience that Bolloré has accumulated through its port operations in Africa will be utilized together with the achievements and know-how that Toyota Tsusho has acquired in a wide range of businesses inside Egypt and the skill and expertise that NYK has gained in its automotive transportation and terminal operations throughout the world, resulting in a rather valuable service from the three companies.

In accordance with its medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” NYK is making efforts to optimize its supply chain and create new value through digitalization and green initiatives. The group will continue its efforts to provide high quality, competitive auto-logistics services, making use of its considerable expertise and global network.

■ Overview of Port Operation Business

Location East Port Said, Arab Republic of Egypt
Wharf Approx. 600 meters
Site area Approx. 21.2 hectares (Parking Slots: about 10,000 units)
Commencement of commercial operations End of 2021 (planned)

■ Location of East Port Said

Signing ceremony held on December 19, 2019, in Cairo, Egypt