Year: 2022

NYK and NYK Group company MTI Co., Ltd. (“MTI”), together with the American Bureau of Shipping (“ABS”) and Winterthur Gas & Diesel Ltd. (“WinGD”), have started joint research for optimization of ship design by utilizing a battery-hybrid system to aid ship propulsion and thus reduce GHG (greenhouse gas) emissions from vessels.

A vessel’s main-engine revolutions may increase significantly when a vessel tries to maintain its sailing speed during strong waves and winds. This phenomenon is called “load fluctuation.” The shaft generator may also increase the burden on the main engine. The shaft generator is connected to the ship’s propeller shaft to generate electricity within the ship as the main engine rotates.

The battery-hybrid system is a mechanism that decreases the burden that the shaft generator places on the main engine. This battery-hybrid system supplies electricity from the battery when the load on the main engine fluctuates. As a result, the power that the ship can use for its propulsion can be increased, and the operation of the main engine thus becomes more efficient. For these advantages, this system is being introduced to more oceangoing vessels. In addition, the use of the battery-hybrid system will lead to a reduction of GHG emissions since instead of a generator, which requires oil, it can supply electricity for the operation of onboard equipment during daily operations.

In this joint research, NYK, MTI, ABS, and WinGD aim to create an integrated simulation model of ships by combining the modeling technologies* of each company to maximize GHG emission reduction through use of this battery-hybrid system.

Specifically, an integrated model of an entire ship will be created by combining NYK and MTI’s modeling technologies for actual sea performance** and WinGD’s modeling technology for engine plants that include batteries. Then, using ABS’s advice on the evaluation of the effect of GHG reduction. NYK, MTI and WinGD will then jointly design a ship in digital space and together with ABS conduct simulations of navigation using a scenario that assumes meteorological conditions in actual seas. By considering the issues clarified within the simulation, NYK, MTI and WinGD will further improve the simulation model to optimize ship design. This joint research is an epoch-making initiative in the maritime industry that has the ship users, NYK and MTI, collaborating with the marine equipment manufacturer WinGD and with the advice of the marine classification society ABS develop a digital model of a ship, perform simulations, and build a ship. The ship model will be verified in accordance with a modeling and simulation framework to be developed by ABS.

Image of processing a simulation

In the future, NYK and MTI, together with ABS, WinGD, and shipyards, will improve the accuracy of the simulation by collating the simulation results, obtained through the joint research, with the performance data of actual ships in actual seas. NYK and MTI aim to nurture this simulation technology as a core technology in the shipbuilding plans of the NYK Group. NYK and MTI will also utilize simulations to optimize the method of operation and control of the battery-hybrid system. This joint research is the first step for such future-aiming initiatives.

On February 3, NYK released 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) through business activities. Conducting this joint research reflects the company’s initiative to provide an eco-friendly transportation mode through the improvement of ships (hardware) and ship operations (software), as well as the promotion of digitalization. To strongly promote ESG management, the NYK Group will encourage new value creation as a sustainable solution provider.

<Company Overviews>

Nippon Yusen Kabushiki Kaisha
Head office: 2-3-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
President: Hitoshi Nagasawa
Website: https://www.nyk.com/english

MTI Co., Ltd.
Head office: 2-3-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
President: Kazuo Ishizuka
Website: https://www.monohakobi.com/en/

* Modeling technology
Describing the act or specifications of an equipment mainly through mathematical formulas.

** Actual sea performance
The vessel’s performance, such as navigation speed or fuel efficiency, in actual sea conditions with waves, winds, etc.

*** NYK Group ESG Story
A guideline detailing concrete efforts to integrate ESG into management strategies of the NYK Group. Details: https://www.nyk.com/english/news/2021/esg-story_01.html

Full-scale operation of a finished-car logistics terminal in Turkey

On March 20, Selene Leader, a PCTC operated by NYK, made its first call at Port Yarimca, a finished-car logistics terminal that NYK participates in the operation of in the Republic of Turkey.

The terminal is Turkey’s first terminal based in the suburbs of Istanbul to be dedicated to finished cars. The terminal opened in November 2021 and is operated by a joint venture established by NYK and the port operating company of the OYAK Group, one of Turkey’s major conglomerates. It is a high standard terminal with multi-storey car park and value-added services such as PDI.*

NYK will utilize the accumulated know-how of finished-car transportation and finished-car terminal operation to meet the needs of customers, including automobile manufacturers, through the operation of the terminal.

In accordance with its medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” the NYK Group seeks to expand the entire auto-logistics business by building a global network and continue to provide high-quality and competitive services with the knowledge and experience cultivated all over the world.

Technical Specifications

Location: Yarımca, Kocaeli
Pier Length: 540 meters
Sea Depth: 12 meters
Total Yard Area: 235k sqm (MSCP 260k sqm)
Parking Slots: 18,000 units

Full view of Port Yarimca

Location of Yarımca Port　Source: Google Map

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

Overview of OYAK Group

Head Office: Ankara, Turkey
Chief Executive Officer: Süleyman SavaşErdem
Website: https://www.oyak.com.tr/home-page/

Reference

• Announcement on April 6, 2018, “NYK to Reinforce Logistics Base by Building Finished-car Logistics Terminal in Turkey”

NYK is pleased to announce that for a second consecutive year, CDP,* an international environmental non-profit organization, has recognized NYK as an “A-list” company for climate change.

CDP’s annual environmental disclosure and scoring process is widely recognized as the gold standard of corporate environmental transparency. In 2021, about 590 investors with over US$110 trillion in assets and 200 major purchasers with US$5.5 trillion in procurement spend requested companies to disclose data on environmental impacts, risks, and opportunities through CDP’s platform. Over 13,000 responded — the highest ever.

Of the approximately 12,000 companies worldwide that were assessed, 201 companies were selected for the A-list, out of which 55 are Japanese companies and 2 are shipping companies, including NYK. (As of December 8, 2021)

We believe that our selection as an A-list company, the highest rating, is a comprehensive recognition of our achievements as a global leader in reducing greenhouse gas (GHG) emissions and the following series of initiatives to mitigate the risks of climate change.

• The effective functioning of an EMS (Environmental Management System) 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 environment-related information, including GHG emissions and reductions
• Active involvement in various types of green finance, such as green bonds, green loans, and sustainability linked loans
• Proactive efforts to introduce and promote the use of LNG fuel and to reduce GHG emissions
• Active engagement in research and demonstration projects for the practical use of zero-emission fuels such as hydrogen and ammonia

On February 3, NYK released 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 through business activities.
Moreover, in September we set a long-term target of net-zero emissions of greenhouse gas (GHG) by 2050 for the NYK Group’s oceangoing businesses.
The NYK Group will continue to strive to disclose relevant information as a global leader in addressing climate change, and to create new value as a sustainable solution provider needed by society and industry.

* CDP
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 590 investors with over $110 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. Over 14,000 organizations around the world disclosed data through CDP in 2021, including more than 13,000 companies worth over 64% of global market capitalization, and over 1,100 cities, states, and regions. 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 provided insufficient information are marked with an F.

The full list of companies that made this year’s CDP A List is available at the link below, along with other publicly available company scores:

On March 24, NYK took delivery of Plumeria Leader, a pure car and truck carrier (PCTC) capable of navigating oceans with only LNG as the ship’s main fuel. The vessel was built at the Shin Kurushima Dockyard of Shin Kurushima Toyohashi Shipbuilding Co. Ltd. This is NYK’s second LNG-fueled car carrier following the Sakura Leader.

By vessel modification and the switch to LNG, Plumeria Leader 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.

A delivery ceremony was attended by Kyogo Onoue, Chief Officer, TPS Group of the Toyota Motor Corporation (head office: Toyota city, Aichi prefecture; president: Akio Toyoda); Takaya Soga, Senior Managing Executive Officer of NYK. The ship was named “Plumeria Leader” to express our wish to realize and pass on a rich global environment through environmentally friendly transportation and to leave beautiful flowers to the future.
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.

Fourth from left in front row; Kyogo Onoue, Chief Officer, TPS Group of the Toyota Motor Corporation
Fourth from right in front row; Takaya Soga, Senior Managing Executive Officer of NYK
※* Face masks were removed immediately prior to the photo.

NYK set a long-term target of net-zero emissions of greenhouse gas (GHG) by 2050 for the NYK Group’s oceangoing businesses.

NYK is positioning LNG fuel as one of the bridge solutions until future zero-emission ships are realized and plans to take delivery a total of 20 new LNG-fueled car carriers by 2028.
As soon as technological innovation progresses, NYK aim to switch zero-emission vessels utilizing low-emission marine fuels such as hydrogen and ammonia.

On February 3, NYK released 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 through business activities. On March 24, 2022, NYK announced the NYK Group ESG Story 2022, which introduces initiatives and measures of those activities and our sustainable growth strategy from a very long-term perspective.

To strongly promote ESG management, the Automotive Transportation Headquarters has set up the Sail GREEN project* to expand the network of environmental value chains at each company of the NYK Group and thus create new value as a sustainable solution provider.

<The NYK Group ESG Story>
A guideline detailing concrete efforts to integrate ESG into management strategies of the NYK Group.
Details: https://www.nyk.com/english/news/2021/esg-story_01.html

< The NYK Group ESG Story 2022>
A presentation that introduces initiatives for integrating ESG into management strategies as set forth in the “NYK Group ESG Story” and measures for the current fiscal year.
Details: https://www.nyk.com/english/news/2022/20220324_01.html

* Sail GREEN project
A project being promoted by NYK’s Automotive Transportation Headquarters to reduce CO2 emissions at all the transportation stages of vehicles and contribute to the eco-friendly supply chains of customers. The chief component of the project is a switch to LNG-fueled PCTCs, which emit less CO2 compared to conventional heavy-fueled vessels. In addition, reducing CO2 emissions at finished-car logistics terminals that NYK operates throughout the world, as well as during short sea and inland transportation, is also an important target of this project.

＜NYK’s PCTC Fleet Composition Transition Plan（2020～2050）＞（as of March 2022）

Again, with the execution of another two outstanding projects this month, NYK proved once more the innovation to provide solutions to their customers, that is both the foundation and the strength of the NYK RORO network. A global shipping line with local expertise and professionalism.

A long standing NYK client has entrusted NYK with the shipment of a Grove GMK 6300 – a 72 T mobile crane.  The journey began in Bauan, Batangas to Durban, South Africa.  All local arrangements, from the delivery of the main unit to the stuffing of the roll trailers and the transhipment via the NYK Hub in Singapore, has been closely monitored by the NYK team in Hamburg & Singapore.

Simultaneously on another continent, NYK effected the transport of five “oversized columns” from South Africa to Argentina. The project left Durban in June enroute to South America via NYK’s AFCON service.  NYK’s AFCON service offers a monthly frequency from South Africa. This innovative solution involved the transportation of the cargo via Europe, and then Europe to Panama for its last leg to the destination Zarate.

The shipment was effected on 4 x 40’ Roll Trailers, and NYK’s attention to cargo care and damage limitation techniques ensured that there was no additional cargo handling in Europe and delivering the safest way to transport this cargo safely to its destination.   

Globally connected, locally engaged professionals are another example of how NYK’s innovative solutions can add value to our customers supply chains.

 The regular sailings NYK RORO can provide, combined with the worldwide network of the NYK Group, guarantee that NYK will “sail the extra mile with our customers”.