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

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.

On October 27, NYK changed the name of LLC Rolf Logistic, which was made a wholly owned subsidiary in July, to LLC NYK Auto Logistics (Rus).

Within the Russian Federation, the company provides comprehensive finished-vehicle logistics services that include inland transportation of finished vehicles, port terminal operations, and storage services.

In 2012, NYK entered into a joint venture agreement with the Rolf Group to provide customers with comprehensive finished-vehicle logistics services that included sea transportation and inland logistics within Russia.

NYK has made now LLC Rolf Logistic a wholly owned subsidiary and changed its name to LLC NYK Auto Logistics (Rus) to strengthen the NYK Group’s finished-vehicle logistics business under a united NYK brand within Europe and Central Asia to meet the continuing strong demand for finished-vehicle transport in Russia and support inland cross-border transportation and car-parts logistics.

In accordance with its medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” the NYK Group is making efforts to optimize its supply chain and create new value through digitalization and green initiatives. The Group will continue to utilize its considerable expertise and global network to develop competitive automotive logistics services that meet the various logistics needs of our customers.

Overview of LLC NYK Auto Logistics (Rus)

CEO: Alexander A. Larin
Capital: 4,219,900 Russian rubles
Headquarters: Moscow, Russia
Business:
(1) Inland transportation of finished vehicles by trailers and railroad
(2) Operation of inland terminal that provides storage and PDI services* for finished vehicles
(3) Operation of port terminal that features storage, cargo handling, and a shipping agency business
(4) Customs clearance business

* PDI (pre-delivery inspection): Services for finished vehicles such as final inspections, repairs, and parts application before delivery to car dealers

At the end of September NYK's Zenith Leader loaded the first shipment of Xpeng G3 Electric Vehicles to the European Market from China.

The vehicles arrived in Zeebrugge on the 3rd November at ICO's Terminal.

With a fleet of 111 RORO vessels and terminals already well equipped to receive electric vehicles, the NYK Group is ready to support the changing market conditions with the increase in demand for electric vehicles.  

- Remarkable Step Towards CO2 Reduction Target in 2050 -

On October 28, NYK took delivery of Sakura Leader, a pure car and truck carrier (PCTC) capable of navigating oceans with only LNG as the ship’s main fuel. This delivery marks a remarkable step toward achieving NYK’s environment management target, which is to reduce CO2 emissions per ton-kilometer of transport by 50% by 2050. The vessel was built at the Shin Kurushima Dockyard of Shin Kurushima Toyohashi Shipbuilding Co. Ltd.

The ship is the first large LNG-fueled PCTC to be built in Japan. Vessel modification and the switch to LNG will make the ship up to approximately 40% more energy efficient (by reducing CO2 emissions per unit of transport) compared to ships using conventional heavy oil fired engines. The vessel is 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. The vessel will be contributing to clean marine transport by carrying vehicles produced by the Toyota Motor Corporation and other car manufacturers.

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 is positioning LNG fuel as one of the bridge-solutions until future zero-emission ships are realized. NYK plans to switch all its newly built PCTCs to LNG-fueled vessels about a decade in the future, and is aiming to further advance to zero-emission vessels utilizing low-emission marine fuels such as hydrogen and ammonia from around the mid-2030s.

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 the 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.