“K” LINE TARGETS BULK CROSS-TRADES FOR FUTURE GROWTH

“K” LINE TARGETS BULK CROSS-TRADES FOR FUTURE GROWTH

“K” LINE TARGETS BULK CROSS-TRADES FOR FUTURE GROWTH

   The Japanese shipping group “K” Line is targeting shipping markets for bulk and liquefied natural gas cargoes outside Japan for future growth, as it forecasts poor growth prospects in its home market.
   “The Japanese economy is still so fragile,” said Takefumi Araki, senior managing director of “K” Line in charge of bulk and energy transport. “Rapidly increasing cargo movement to Japan is not expected,” he added.
   Commenting on the Asian dry bulk shipping market, Araki said that China is now the largest importing country for iron ore. It will import about 160 million tons of iron ore this year.
   Power consumption in Japan is rising by only 1.5 percent a year, thereby stifling prospects for significant increases in business volumes in the energy transport business.
   To internationalize its business and enter cross-trade shipping markets, “K” Line has set up bulk and energy shipping operations in London and in Singapore.
   Araki said that London-based “K” Line (Europe) is exploring business opportunities in dry bulk and LNG shipping on transatlantic and other European routes.
   The “K” Line group will transfer to its “K” Line Pte Ltd., based in Singapore, several tankers, some of which will fly the Singaporean flag. The Japanese group will also transfer three or four vessels to “K” Line (Europe) in early 2003.
   “We intend to expand in the Europe and Singapore areas (through) self-sustained shipping companies,” Araki said.
   At present, the bulk, tankers, LNG and thermal coal shipping activities of “K” Line are dominated by imports into Japan.