K Line wants to have zero-emission ships by 2030
Japanese shipping company Kawasaki Kisen Kaisha (K Line) revealed plans to have zero-emission vessels by 2030.
“We … aim to introduce zero-emission vessels as early as possible by the end of the second half of the 2020s,” Yukikazu Myochin, President & CEO at K Line, announced in the New Year Message delivered on 4 January 2022.
In November last year, the company partially revised the K Line Environmental Vision 2050, its long-term policy on environmental measures, replacing the goal of halving emissions by 2050, which was the same as the goal of the International Maritime Organization (IMO), with the new goal of achieving net-zero GHG emissions by 2050.
As specific measures, K Line decided to build eight new LNG-fueled car carriers in addition to the one that had already joined the company’s fleet, and order one LNG-fueled Capesize bulk carrier and one LPG-fueled LPG carrier.
According to K Line, sustainability initiatives and environmental action need to be perceived as growth opportunities and further focused upon. Many of the company’s customers are already aiming to reduce GHG emissions throughout the entire life cycle of products and are also considering rebuilding the value chain.
“In order to realize greenhouse gas reductions not only in the manufacturing process but also in the transportation process for materials, parts and finished goods, we must offer optimal solutions with higher added value to customers. Changes in energy structure aimed at the realization of carbon neutrality also provide medium- to long-term opportunities,” Myochin said during his speech.
“As demand for the transportation of materials required for the development of renewable energy such as offshore support for offshore wind energy generation, for the transportation of new forms of energy such as hydrogen, ammonia, and for the transportation of liquefied CO2 are expected to expand, the provision of services for supply chain creation and transportation present us with substantial growth opportunities.”
Performance in 2021
In the first half of 2021, K Line achieved the highest earnings on record. The contribution of Ocean Network Express (ONE), an equity-method affiliate based in Singapore, was significant, but the company’s own business also improved significantly, K Line explained.
Recoveries in dry bulk and product logistics segments other than containerships, such as car carrier and the logistics business, — with performance significantly affected due to the decline in transportation demand caused by the spread of COVID-19 — are also driving improvements this fiscal year.
Last fiscal year, the company decided on a policy to optimize its fleet by reducing approximately 50 uneconomic and aged vessels mainly made up of dry bulk and car carriers. Of these, the car carriers were completed in the first half of the current fiscal year, and optimization of the dry bulk fleet is being brought forward to within the current fiscal year, which is expected to have the effect of further improving revenue from the next fiscal year.