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

- 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.

 

On October 20, the LNG bunkering vessel (LBV) Kaguya supplied LNG fuel to an NYK pure car and truck carrier (PCTC) at the berth of Shin Kurushima Toyohashi Shipbuilding Co. Ltd. (head office: Toyohashi City, Aichi Prefecture) — the first time in Japan for LNG fuel* to be supplied to a vessel via Ship-to-Ship bunkering.**

Kaguya, Japan’s first LBV, is operated by Central LNG Marine Fuel Japan Corporation, which is a JV company among NYK, Kawasaki Kisen Kaisha, Ltd., JERA Co., Inc., and Toyota Tsusho Corporation. The vessel will be based at Kawagoe Thermal Power Station and will soon begin supplying LNG fuel to ships in the Chubu region using Ship-to-Ship bunkering.

Sakura Leader, the PCTC that received the LNG fuel, is the first large LNG-fueled ship to be built at a shipyard in Japan. The vessel is scheduled to be delivered in late October and will be one of the largest PCTCs in the world, capable of transporting approximately 7,000 units (standard vehicle equivalent).

The IMO (International Maritime Organization) has agreed on an ambition to reduce GHG emissions from shipping by at least 50 percent by 2050, and it is expected that many vessels using LNG as the main fuel will be constructed in the future. 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. In 2016, the world's first LNG-fueled PCTC in Europe launched. In 2017, the world's first purpose-built LNG bunkering vessel entered operation. And in 2023, the world's first large LNG-fueled coal carrier is scheduled to be delivered. NYK has been a leader in all these firsts and will continue to develop the LNG-fuel market in terms of LNG-fuel supply and sale, promote the conversion of marine fuel to LNG, and contribute to reducing shipping’s environmental burden.

 

Principal Particulars of LBV

LNG cargo tank capacity: 3,500 m3
Gross tonnage: 4,044 tons
Length overall: 81.7 m
Breadth: 18.0 m
Shipyard: Kawasaki Heavy Industries, Ltd., Sakaide Works

* Merits of LNG
Compared to heavy fuel oil, the use of LNG can reduce emissions of sulfur oxides (SOx) and particulate matter (PM) by approximately 100%, nitrogen oxides (NOx) by as much as 80%, and carbon dioxide (CO2) by approximately 30%.

** Ship-to-Ship Bunkering
A method of bunkering where an LNG bunkering vessel comes alongside an LNG-fueled vessel to supply LNG. This can be done at various locations, such as along the quay or pier or at anchor.

※In accordance with its medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” NYK Group has indicated its goal to integrate ESG principles into management strategies to implement green business initiatives and has been dedicated to achieving the SDGs through the group’s business activities. The Group will continue its effort to contribute to the worldwide spread of LNG bunkering for ships.

(Source: nyk.com)

On October 28, NYK-operated Sakura Leader, Japan's first LNG-fueled pure car and truck carrier (PCTC), was accredited by Nippon Kaiji Kyokai as the world's first Digital Smart Ship (DSS), a ship class code (notation)* confirming that the vessel is equipped with advanced digital technology.

Background

NYK’s medium-term management plan "Staying Ahead 2022 with Digitalization and Green," encourages the development of ship operation data-related systems such as SIMS** and LiVE for Shipmanager,*** in addition to participation in the i-Shipping project**** and the assurance of optimal safe, economical operations. This DSS acquisition applies to the latter.

Acquisition of DSS Notation

Nippon Kaiji Kyokai’s DSS notation was developed with the aim of supporting environmental conservation, safety improvement, and sustainable development at sea by promoting the expansion and development of new technologies. This particular accreditation was for DSS (Energy Efficiency), which applies to the analysis of energy consumption efficiency; DSS (Machinery Monitoring), which applies to engine monitoring, data processing on board, and data transmission to land; and DSS (Connected Ship).

The accreditation confirms that the vessel is making advanced efforts through the use of innovative technology. The acquisition of these three notations is more than just a concept-design recognition; in fact, Sakura Leader is the world’s first accredited ship to engage in actual operations.

With the support of Japan’s Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism's "Model Project for CO2 Emission Reduction Measures from Ships by Utilizing Alternative Fuels," this vessel will make maximum use of LNG fuel and demonstrate carbon dioxide (CO2) emission reduction in actual operations. Functions related to this DSS notation will also be utilized in measurement of emission reduction.

Future

The acquisition of this notation aims to further improve environmental protection and safety by making use of our technical know-how and utilizing it for future technological development. Through these efforts, we will strive to explore and create new needs for our customers.

Based on the business strategy formulated in NYK’s medium-term management plan, the Group will develop business for advanced safe operation through the digitization of ships, further improvement of efficiency, and reduction of environmental loads.


* Ship Class Code (Notation)
Codes given by each classification society to ships and systems that meet requirements

** SIMS (Ship Management Information System)
A system developed by the Group for timely sharing of detailed ship data such as operation status, fuel efficiency, and plant status between ships and shore

*** LiVE for Shipmanager
An application that gathers various operation data collected by SIMS and enables shipowners and ship-management companies to use it for optimal operation and safe operation with low fuel consumption

**** i-Shipping
A project launched mainly by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in response to rising expectations for the advanced safety of vessels that utilize IoT in the shipping industry. NYK and MTI Co. Ltd. are participating in projects such as "engine plant accident prevention" and "collision prevention and autonomous ship maneuvering."

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.