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Significantly reducing GHG emissions through clean fuel, accelerating the decarbonization of shipping

As part of its commitment to realizing a decarbonized society, NYK has commenced the continuous use of bio-LNG fuel on its LNG-powered car carriers. The bio-LNG is supplied by Titan Supply B.V. (Titan)* at the port of Zeebrugge in Belgium. The first vessel to receive the fuel was Daisy Leader on June 15, and the second was Sumire Leader on July 18.

Bio-LNG Fueling

What is bio-LNG fuel?

Bio-LNG, also known as liquefied biomethane, is purified liquefied methane gas (biogas) produced from biomass feedstock, such as animal manure and food wastes. By capturing methane that would otherwise be released into the atmosphere, greenhouse gas (GHG) emissions over the entire life cycle can be significantly reduced. The bio-LNG fuel supplied by Titan under the mass balance method* is recognized as carbon neutral in the whole process from production to consumption (well-to-wake) and is ISCC EU certified, an international standard for sustainability, ensuring compliance with EU regulations and traceability throughout the supply chain.

Future Prospects

NYK has long been at the forefront of efforts to decarbonize the shipping industry through the operation of LNG-fueled vessels and usage of biofuel. In November 2023, the NYK Group Decarbonization Story was released, outlining the goal of achieving net-zero GHG emissions by 2050. The expanded use of bio-LNG fuel is one of the key initiatives to achieve this goal. NYK remains dedicated to proactively utilizing bio-LNG and other environmentally friendly fuels to pave the way toward a sustainable future for marine transportation.

Comments from Titan CEO Niels den Nijs
I would like to express my sincere respect for NYK’s decision to start using bio-LNG fuel. Titan’s mission is to provide solutions to help the shipping industry transition to cleaner fuels. We are very pleased to be able to accelerate our decarbonization efforts together with NYK through this replenishment.

Comments from NYK Fuel Group General Manager Kaori Takahashi
We are very pleased to begin the continued use of bio-LNG fuel. Bio-LNG fuel is a highly effective option for decarbonizing the shipping industry, and we will continue actively promoting its use. This initiative will be an important step toward reducing our environmental impact further and achieving a sustainable future.

* Titan Supply B.V. is a Dutch company specializing in the supply of LNG fuel for ships. Operating primarily in Europe, Titan also supplies bio-LNG to promote the adoption of low-environmental-impact fuels.

** Mass balancing is an administrative system that tracks the environmental attributes of bio-methane fuel throughout the supply chain, allowing it to be blended with conventional LNG fuels while still crediting its emissions reductions.

Meeting the growing demand for automotive logistics in North Africa and the Eastern Mediterranean region

The Suez Canal Automotive Terminal (SCAT) — a joint venture among NYK, Africa Global Logistics (AGL)* and Toyota Tsusho Corporation (Toyota Tsusho)** — has officially opened Egypt’s first finished-vehicle logistics terminal.

Driven by Egypt’s robust population growth and economic development, the nation’s automobile market is expanding. With an anticipated increase in finished-vehicle imports and the forthcoming initiation of full-scale exports, SCAT is strategically positioned to address this growing demand. The facility features a quay capable of accommodating two large car carriers simultaneously, as well as extensive storage space that will be able to accommodate up to 10,000 vehicles. In addition, the terminal is equipped to support the rising need for cargo transshipment.

Suez Canal Automotive Terminal simulation photo from above

Suez Canal Automotive Terminal photo from above

Outline of the terminal

Name: Suez Canal Automotive Terminal (SCAT)
Location: East Port Said, Arab Republic of Egypt
Opening date: July 1, 2025
Planned operating period: 30 years
Site area: approximately 21.2 hectares
Storage capacity: 2,550 vehicles in the initial stage of operation, to be expanded to a maximum of 10,000 vehicles in the future

Outline of the joint venture

Company name: Suez Canal Automotive Terminal
Shareholders: NYK 25%, AGL 50%, Toyota Tsusho 25%
Representative: Ashraf Ossama
Business Overview: Automobile terminal operation under a 30-year concession contract (business operation consignment contract) with the General Authority for the Suez Canal Economic Zone

NYK Group operated terminal hubs in Europe for finished vehicles

SCAT will contribute to the development of the Egyptian economy by combining the knowledge that AGL has accumulated through its port operation business in Africa, Toyota Tsusho’s experience and insight into a wide range of companies in Egypt, and the expertise and technology in finished vehicle transportation and terminal operation that NYK has cultivated around the world. SCAT is well positioned to contribute significantly to Egypt’s development by capturing the increasing demand for automobile logistics in North Africa and the Eastern Mediterranean region.


* Africa Global Logistics (AGL) is French company under the MSC Group that operates logistics-related businesses in Africa.
** Toyota Tsusho Corporation is a general trading company within the Toyota Group with strengths in automobile-related businesses and operations in Africa.

Incorporate a Fully Automated Multilevel Parking Facility to Ensure Environmentally Friendly and Highly Efficient Operations

On May 7, NYK was awarded a 27-year concession from Port de Barcelona (Port of Barcelona, Spain) for a finished-vehicle logistics terminal at the port.

The new facility, scheduled to commence operations in 2027, will incorporate a fully automated multilevel parking system, and utilize renewable energy to provide an environmentally conscious and highly efficient option for automobile logistics. NYK aims to position the port of Barcelona as an international hub for finished-vehicle logistics, catering for current and future demands in the Western Mediterranean and North African regions.

Overview of Terminal Concession

• Location: Port of Barcelona, Spain
• Concession Period: 27 years
• Start of Operations: Scheduled for 2027
• Area: Approximately 101,058 square meters
• Projected Annual Throughput: Around 180,000 vehicles

NYK Group – operated terminal hubs in Europe for finished vehicles

Key Features of Terminal

①Fully automated multilevel parking system
NYK plans to collaborate with International Car Operators N.V. (ICO)* to develop and introduce a fully automated, multilevel parking system at the port of Barcelona. Through its careful and clever design, the automated system eliminates the need for on-site driving within the facility. This will result in the following:

Reduced Human Error: Automation will help to minimize the risk of accidents and other human-related errors.

High Efficiency: The compact, space-saving design will promote smooth and safe operations and increase overall throughput.

Enhanced Safety: Reduced manual handling and operations will result in a safer environment for workers and vehicles.

②Use of renewable energy
A solar power system will be installed at the terminal, with an annual power generation capacity expected to reach approximately 3,211 MWh. The electricity produced will be used directly within the terminal to help reduce the facility’s environmental impact and contribute to a cleaner form of logistics.

Outlook

NYK aims to continuously strengthen its presence at the Port of Barcelona, and more broadly across Spain and neighboring countries. Through such expansion, NYK can offer customers value-added services and inland logistics services including warehousing at inland storage yards, installation and inspection of auto parts as well as land transportation by truck and rail through close collaboration with its logistics partners.

* International Car Operators N.V. (ICO)
A wholly owned Belgian subsidiary of NYK, ICO operates finished vehicle terminals at the ports of Zeebrugge and Antwerp. The company also provides value-added services such as pre-delivery inspections and component/accessory installation.
Headquarters: Zeebrugge, Belgium
Website: http://www.icoterminals.com/en

NYK is pleased to announce that the international environmental non-profit organization CDP* selected NYK as an “A List” company for climate change for the fifth consecutive year as a global leader in climate change response.

CDP’s environmental disclosure and scoring process is widely recognized as the global standard for corporate environmental transparency. In 2024, over 24,800 companies worldwide responded to the CDP questionnaire, including more than 2,100 Japanese companies, representing over 70% of companies listed on the Tokyo Stock Exchange’s Prime market.

Being recognized as an “A List” company for five consecutive years reflects the comprehensive acknowledgment of our efforts in reducing greenhouse gas (GHG) emissions and our series of initiatives aimed at mitigating climate change risks, which include the following:


– The announcement of NYK Group ESG Story 2023 outlining growth strategies and non-financial targets centered on our Group’s materiality (key issues) of “safety,” “environment,” and “human resources,” along with the foundational aspect of “governance,” which complements our medium-term management plan “Sail Green, Drive Transformations 2026 — A Passion for Planetary Wellbeing”


– The release of the NYK Group Decarbonization Story , setting ambitious decarbonization targets and strategies to achieve the goals


– Adequate disclosure of information in addressing climate change in the four foundational areas — i.e., governance, risk management, strategy, and metrics and targets — in accordance with TCFD (Task Force on Climate-related Financial Disclosure) recommendations**


– The effective functioning of an Environmental Management System (EMS) based on a clear commitment by top management to climate change measures

– Appropriate recognition and assessment of “risks and opportunities” for environmental issues

– Highly transparent disclosure of GHG emissions and reductions

– Proactive efforts in various types of green finance, such as green bonds, green loans, and sustainability-linked loans

– Proactive efforts to reduce GHG emissions through the introduction and use of LNG fuels, active use of biofuels and methanol fuels, and various fuel-saving activities

– Active engagement in research and demonstration projects for liquefied CO2 marine transportation and the practical use of zero-emission fuels such as hydrogen and ammonia

– Proactive efforts to collaborate with diverse stakeholders and advocate for policy through various initiatives and industry associations

* CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states, and regions. Founded in 2000 and working with more than 700 Signature Financial Institutions with over $142 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources, and protect forests. In 2024, over 24,800 companies worldwide disclosed data through CDP questionnaires, making it one of the largest environmental disclosure platforms in the world. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable, and resilient economy. The CDP score is widely used around the world as a leading indicator in making sustainable investment and procurement decisions. Responding companies are allocated a score from A to D- depending on the comprehensiveness of their disclosure. Those that don’t disclose or provide insufficient information are marked with an F.

** NYK’s disclosure based on TCFD recommendations ​​​​​​​

Reference

• NYK Environmental Management

• NYK ESG Management

• NYK Report

On January 23, NYK received notification from Galaxy Maritime Ltd., the vessel owner based in the United Kingdom, that all 25 crew members of the car carrier Galaxy Leader have been released.
As the vessel’s charterer, we are deeply relieved to receive this news.
We would also like to express our gratitude to the relevant authorities and organizations for their outstanding efforts in this matter.

NYK has been recognized for the company’s participation in the 2023 Protecting Blue Whales and Blue Skies vessel speed reduction (VSR) incentive program along the West Coast of North America, a collaborative effort sponsored by the National Marine Sanctuary Foundation,* among others. For a second consecutive year, NYK achieved the Sapphire tier, the top ranking in the program.

This program encourages voluntary vessel speed reduction in the Santa Barbara Channel and the San Francisco Bay area to protect whales and cut air pollution. For about seven months from May 1 to December 15, 2023, the program’s partners analyzed each participating company’s automatic information system (AIS) data and evaluated the company’s adherence to the request that vessels transit at 10 knots or less through the VSR zones. More than 85% of NYK operating vessels maintained a navigation speed of less than 10 knots.

NYK will continue to work even more earnestly to preserve the marine environment and biodiversity as an integral part of our mission, as a company that operates in the world’s oceans, preventing air pollution and protecting marine life.

* National Marine Sanctuary Foundation
A non-profit organization founded in 2000 that works to protect species and their habitats and conserve marine resources.
Details: National Marine Sanctuary Foundation | Marine Conservation

Daisy Leader, NYK’s latest LNG-fueled RORO vessel, sailed into European waters on her maiden voyage this month.

NYK will introduce a total of 20 new LNG-fueled RORO vessels by 2028 as a bridge-solution to achieve net-zero emissions of greenhouse gas (GHG) by 2050 for the NYK Group’s oceangoing businesses.

Like NYK’s other LNG-fueled RORO fleet, the vessel was named after flowers with the desire to realize and pass on a healthy global environment through environment-friendly transportation.

NYK has established “Sail GREEN” as the company’s brand to emphasize NYK’s efforts to reduce GHG emissions through the transport of goods and contribute to the eco-friendly supply chains of customers, regardless of the mode of transport (e.g., by sea or land, through terminals, etc.). Completion of this vessel is an initiative of that brand.

NYK’s Agent, ICO NV (Bert Adriansens) together with Port Authorities (Jan Bosmans & Pepijn De Vreese from PoAB) handed over a plaque to the Master to celebrate the maiden call at Zeebrugge.

Aiming for introduction by fiscal 2026 to reduce GHG emissions by nearly 30%

NYK Line (hereinafter “NYK”), NYK Trading Corporation (hereinafter “NYKT”), and Rexxam Corporation (hereinafter “Rexxam”) have begun onboard testing of jointly developed prototype car lashing belts using recycled polyester fiber for use in car carriers.

Prototype car lashing belt

Aiming to reduce petroleum consumption and greenhouse gas (GHG) emissions, the three companies signed an agreement in 2022 to jointly develop a car lashing belt that uses recycled polyester fiber for the belt portion. On April 23, a hundred of these prototype belts were loaded for testing on the car carrier Cassiopeia Leader. Through onboard testing, we will repeatedly confirm that the strength and durability of the product meet the standards set by NYK, with the aim of officially introducing the completed product by fiscal 2026.

Prototype belts in use①

Prototype belts in use②

The GHG emissions from the weaving of these prototypes, which use 99.5% recycled raw yarn, are expected to be reduced by approximately 28.3% compared to existing products made from petroleum resources. If these prototypes are used in all car carriers operated by NYK (approximately 120 vessels), GHG emissions could be reduced by approximately 400 tons.

The three companies will continue to develop lashing belts that combine high quality and performance with consideration for the natural environment by increasing strength and durability through repeated performance evaluation and improvement.

Outline of each company

< NYK Line >
Head office: Tokyo, Japan
Representative: Takaya Soga, President and Representative Director
Website: https://www.nyk.com/english/
Contact: Media Relations Team, Corporate Communication Group, NYKJP.ML.MEDIA@nykgroup.com

< NYK Trading Corporation >
Head Office: Tokyo, Japan
Representative: Shinji Umehara, Representative Director and CEO
Website: https://www.nyk-trading.com/eng/
Contact: Public Relations Section
info@nyk-trading.com

< Rexxam Co., Ltd. >
Head Office: Osaka, Japan
Representative: Shinji Okano, President
Website: https://www.rexxam.co.jp/english/
Contact: Osaka Sales Office, 06-6262-0871

On April 6, NYK Line (“NYK”), NYK Trading Corporation (“NYKT”), Azbil Yamatake Friendly Co., Ltd. (”Azbil Yamatake Friendly”), and Kayama Kogyo Co., Ltd. (“Kayama Kogyo”) began recycling well-worn vehicle lashing belts that had passed their expiry for use on NYK operated RORO vessels.

Azbil Yamatake Friendly will collect and separate the lashing belts into metal parts and belts. Kayama Kogyo will then produce RPF fuel* from the plastic belts. Approximately 200,000 lashing belts are disposed of annually in the entire NYK operated RORO fleet. If all those belts are recycled, they can be converted into approximately 20 tons of RPF fuel.

When recycling started on April 6, about 27,000 used lashing belts were collected from the RORO vessel Sagittarius Leader at the port of Nagoya.

Recycling process

Previously, lashing belts that had passed their useful life based on NYK’s own safety standards were disposed of as industrial waste or sold as used products. From now on, specified discarded lashing belts will be recycled into RPF fuel and reused as an energy resource. Kayama Kogyo will contribute to further GHG emission reductions by using renewable energy sources for all electricity used in fuel production.

In addition to consideration for the natural environment, this initiative incorporates a process that welcomes diverse human resources. Employees with intellectual disabilities separate the metal and belts at Azbil Yamatake Friendly, and foreign technical interns are involved in RPF fuel production at Kayama Kogyo. To create a place where everyone can work with peace of mind, we have developed specialized cutting machines, promoted smooth communication through Japanese language education, and expanded prior training on work content.

The four companies will continue to promote corporate activities that respect the global environment and realize an inclusive society** in which people from various backgrounds can play an active role without distinction.


*RPF fuel (Refuse-derived paper and plastics densified fuel)
Solid fuel made mainly from recovered paper and waste plastics that are difficult to recycle, among other industrial waste. RPF fuel has a high calorific value and is used as a substitute for fossil fuels such as coal and coke.

** Inclusive society
A society that recognizes diversity in terms of gender, age, disability, nationality, religion, culture, etc.

Company Overviews

NYK Line
Head office: Tokyo
Representative: Takaya Soga, President
Website: https://www.nyk.com/english/

NYK Trading Corporation
Head office: Tokyo
Representative: Shinji Umehara, Representative Director and CEO
Website: https://www.nyk-trading.com/eng/

Azbil Yamatake Friendly Co., Ltd.
Head Office: Kanagawa Prefecture
Representative: Yasuo Otsuka, President
Website: https://ayf.azbil.com/

Kayama Kogyo Co., Ltd.
Head Office: Aichi Prefecture
Representative: Junichiro Kayama, Representative Director
Website: https://www.kayama-k.co.jp/english

Release 3 goes live on 3rd June 2024.

Import Control System 2 (ICS2) is the European Union’s new enhanced electronic safety and security screening system, enabling customs authorities to conduct targeted risk assessments, based on the expanded Entry Summary Declaration (ENS) data, prior to the arrival of goods in the EU.

To comply with this EU regulation, our customers will be required to provide additional, more detailed information, as part of their shipping instructions. Some of the changes will involve the provision of:

•            6-digit Harmonized System Code (HS Code)

•            A complete description of goods

•           EORI number of the consignee established in the EU

•            Detailed address of the consignee

•            Seller / buyer information

This new process will also enable provisions for the filing of ENS data by multiple parties (I.e., carrier / forwarder / consignee).

ICS2 is going to be launched during three stages. Under Release 3, all goods transported on maritime and inland waterways, roads, and railways, to or through the EU, Switzerland, Norway, and Northern Ireland, will be subject to new data filing requirements.

Poor data quality and inadequate declarations may result either in goods being delayed at the EU customs boarders, rejected or subject to customs authorities’ intervention, with possible sanctions imposed for non- compliance. For more information on the ICS2 Release 3, please follow the link to the European Commission’s website which details the roll-out plan:

(Image source: European Commission website, March 2024)