Japanese

Initiatives for Safety in Navigation

and Cargo Operations

Establishing and maintaining safety in navigation and cargo operations, environmental preservation, and economically efficient operations are the permanent missions of the "K" Line Group in its shipping business. Above all, safe navigation and cargo operations are the foundation of our business. For this reason, we are committed to building a secure system for establishing and maintaining this foundation.

Positioning of Safe Navigation and Cargo Operations

"K" LINE Vision 100 and Safety Management System

Safe operation-the key element of a shipping business

In "K" LINE Vision 100, the medium-term management plan we developed in April 2008, we once again confirmed that a secure system for managing safety in navigation and cargo operations is at the core of all of our business activities. We subsequently reviewed the medium-term management plan and adopted "K" LINE Vision 100 KV 2010 in response to the financial crisis that occurred in the fall of 2008 and the subsequent changes to the business environment. In reviewing the Plan, we reconfirmed that establishing a system for safe navigation and cargo operations, while protecting the environment, was an absolutely critical and inalterable requirement.

Maintenance of International Logistics Infrastructure

Supporting industry and lifestyles

Among the many modes of transport, ocean transport plays an important role in international trade, as it ensures the economical transportation of large volumes of freight for long distances. In international trade to and from Japan, for example, ocean transport is used for as much as 99.7% of all cargo in terms of weight. Goods transported in this way include sources of energy such as crude oil, LPG, LNG, and coal, raw materials including iron ore, gypsum, feed, and grain, and consumables such as automobiles and home electric appliances. These goods are essential for people's lives and industrial activities. It is clear, then, that ocean transport is an extremely important part of the logistics infrastructure.

Activities for maintaining safe navigation and cargo operations are designed to deliver cargo safely and reliably to customers as well as to ensure the safety of crew members and ships. These activities are also essential for maintaining the international logistics infrastructure, and so constitute part of our social responsibility. We never forget this fact in our daily work.

"K"Line Group's System for Managing Safety in Navigation

and Cargo Operations

Management Systems for Safe Navigation and Cargo Operations

Establishment of the Ship Safety Promotion Committee

Ship safety as the pillar of management

The Ship Safety Promotion Committee embodies the comprehensive and systematic measures we take to ensure safety in navigation and cargo operations. It was established in 1983 as an internal committee, and its activities later encompassed Group companies responsible for ship management. The main tasks of this Committee, which meets every quarter, include aggregating problems during the period under review, analyzing their causes, and developing necessary responses. In addition, the Committee acts on all safety-related matters from every possible viewpoint, such as responding to international treaties, sharing new technical information, and considering new measures against piracy in the Gulf of Aden.

Safety Management System (SMS)

Using SMS to improve our system for managing safety

in navigation and cargo operations

SMS is a system required by law. It is aimed at securing safe systems and environments for work during ship operations, establishing preventive measures for all predictable dangers, and continuously improving the safety management skills of both shore staff and crew members, including skills in preparing for emergencies related to safety and environmental preservation. At the "K" Line Group, we not only comply with the provisions of SMS, but also make additional efforts to establish a system for managing safety in navigation and cargo operations through measures based on our own standard.

Establishment and Maintenance of KL−QUALITY

Aiming for a high-quality ship management system

In addition to fulfilling legal requirements, we have established "KL−QUALITY," our own standards that exceed the legal requirements. Our ship inspectors visit our ships to check that each of them complies with the standards. The inspectors also exchange opinions and talk with crew members, to improve and maintain the quality of the ships.

In addition, we have also created the "KL SAFETY STANDARD," a management system that brings together our own know-how, and the "KL SAFETY NETWORK," which aims at sharing information across the Group. In this way, we intend to establish a secure ship management system by improving our SMS and strengthening our onshore support system.

Emergency Response Drills

Always ready for emergencies

What should our Company or employees do if a ship has been involved in a collision and fuel oil is spilling, for example? We have set out the actions we need to take in such an emergency in our Emergency Response Manual. Based on this manual, we regularly conduct emergency response drills to maintain and improve the response capabilities of staff members and departments.

We conducted our latest drill in November 2009 by assuming a large-scale oil spill and confirmed the functions of the manual. We also discussed issues on the application of the manual at a meeting after the drill so that we could refine it. The Emergency Response Manual contains the know-how we have accumulated through drills, but we operate ships safely to help ensure that we never have to actually use the manual.

Campaigns for Safety in Navigation and Cargo Operations

Safety Report System

People make mistakes. Information about mistakes is important for ensuring safe navigation and cargo operations. That is why it is important to report and share information about any errors, no matter what their nature, and to provide feedback. To encourage errors to be reported without hesitation, we have also adopted a principle in which people who made errors will not be blamed, provided they report them.

Winter Season Safety and Environment Protection Campaign

From December 1 to January 31 of the following year, we conduct the "Winter Safety and Environment Protection Campaign" under the theme of "Safety and Environmental Preservation." During this campaign, our president, directors, and staff from the Operation Department and Marine Technical Department visit our ships and exchange opinions with crew members. These activities are aimed at raising awareness of safety in navigation and cargo operations among all staff on ships and on shore.

Cooperation with Shipowners and Ship Management Companies

Information sharing and feedback vital

Departments responsible for ships and engineering, as well as the Group companies responsible for ship management, play the key role in quarterly meetings of the ""K" Line Safety Measures Committee." At these meetings, they provide briefings on problems, study preventive measures, and consider any impact on sister ships, all with the aim of improving the quality of ship operations.

The information and measures are also reflected in the construction of new ships and are conveyed immediately to owners of chartered ships. Thus, information and measures are used to maintain a system for managing safety in navigation and cargo operations, thereby helping foster the Synergy for All relationship with stakeholders, including owners of chartered ships.

Specific measures for each type of ship also needed

We operate various kinds of ships, some of which require special measures.

Each operations department holds regular meetings with ship management companies and other stakeholders to discuss ways to prevent incidents. They study every possible measure for incident prevention, by sharing information and holding discussions, so that they can adopt effective initiatives.

Efforts for Eradicating Piracy

Resolutions and measures being taken by the international community

In recent years, heavily armed pirates have been attacking vessels passing through the waters off the coast of Somalia and in the Gulf of Aden, a vital link between Europe and Asia. They also appear in the Arabian Sea, the waters of which link the Persian Gulf and Asia and are critical for the transport of crude oil and other sources of energy.

In response, the United Nations Security Council passed a resolution that called for uncompromising action against the piracy. The International Maritime Organization has also passed a resolution, requesting that nations act to eliminate the problem. Based on these resolutions, international naval forces, including the Japan Maritime Self-Defense Force (MSDF), have begun to provide escort for ships passing through the area. Marine Safety Officers of Japan Coast Guard with police authority are onboard the MSDF escort ship to help counter the piracy.

In addition, P3C patrol aircraft of the MSDF conduct patrols of the affected waters to help increase security.

Our measures

In principle, we operate under the security provided by these forces. We have also developed guidelines for sailing near Somalia and in the Arabian Sea to ensure the safety of our ships. If we should encounter pirates, we take evasive actions following Best Management Practice in anti-piracy measures.

We are also in regular communication with the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Defense, and the Ministry of Foreign Affairs of Japan via the Japanese Shipowners' Association and we urge nations in the affected area to strengthen their own measures.

Area around the Gulf of Aden

Education and Training Programs

"K" Line Maritime Academy (KLMA)

Recruiting and training maritime technical personnel

who can ensure safe navigation and cargo operations

The KLMA is the aggregate of training facilities in Japan and overseas, providing educational, training, and development programs including crew training programs and career path programs. We train crew members to operate ships managed by the "K" Line Group based on the "KLMA Master Plan," a plan designed to pass on to the next generation the "K" Line Group's maritime technologies accumulated over many years. We strive to build an awareness of our safety standards, safety in navigation and cargo operations, and environmental preservation, improve maritime technologies, and pass them on to future generations.In addition, our Group companies are working together to recruit excellent crew members and advance their skills so as to maintain and improve "security, safety, and reliability"-the most important aspect of the "K" Line Group's activities.

The KLMA System

Education and Training Appropriate for the Career Path

A range of training programs, focusing on safe navigation

and cargo operations and environmental preservation

At the KLMA, the education and training of crew members are undertaken in accordance with the basic training matrix. They are provided as appropriate for the career path and regardless of crew nationality. One of the main training programs is the pre-boarding training, which includes safety instructions. Another example is training for crew members who will be working on a new type of ship or a ship with a new engine. In these sessions, the crew members learn how to load and unload cargo and how to handle the engine.

While the crew members are onboard, they receive on-the-job training from senior crew and teach themselves using computer-based educational programs. After disembarking, they come to our training center to learn how to handle problems using a simulator and receive other training to reinforce what they have learned and experienced onboard.

When crew members are promoted to more senior positions, they receive more advanced training, including education in leadership and stress management, as important skills for people in management positions. In this way, crew members master the maritime technologies that will enable them to operate ships with an emphasis on safe navigation and cargo operations and environmental preservation.

Acquisition of Knowledge and Technologies

Using new technologies safely

Advances in technologies have led to the computerization of ship equipment, electronic control of engines, the generation of higher-voltage power by power generators to accommodate the increasing size of ships, and the use of electronic marine charts, among many other changes. Crew members these days require new knowledge and response capabilities. In addition, the ability to use state-of-the-art equipment is essential for ensuring safe navigation and cargo operations.

Crew members are required to use equipment properly and safely while onboard. We therefore provide them with training to acquire the requisite knowledge and skills in new technologies before they board the ship. This prevents confusion onboard and ensures safe navigation and cargo operations.