NYK to Transport Coal for Korea South Power Co., Ltd. Following Signing of Long-Term (5-year) Contract
May 20, 2005
Nippon Yusen Kaisha (NYK) has been awarded a contract by Korea South Power Co., Ltd. to be its new coal carrier. The contract, which was signed on May 12, 2005, follows international bidding.
Korea South Power is one of five electric power companies that have separated from Korea Electric Power Corporation (KEPCO). NYK negotiated a similar long-term contract in July 2004 with another KEPCO company, Korea East-West Power Co., Ltd. to transport Australian coal. This is the first time Korea South Power has entered into a long-term contract with a foreign shipping company.
Under the five-year contract, commencing July 2005, NYK's new bulk carrier (DWT. 87,000 tons) will transport around 800,000 tons of Indonesian coal annually. This coal will be used to meet an expected increase in Korean electric power demand as well as the coal needs of two new thermal power units scheduled to go into operation between 2007 and 2008.
NYK is continuing to develop its bulk and energy carrier business and, according to its medium-term group management plan "New Horizon 2007", which was announced in March 2005, intends to expand its shipping business by identifying and securing further long-term contracts with other companies.
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Outline of transport contract
| Period of contract: | 5 years |
| Volume to be transported: | Approx. 800,000 tons annually |
| Start of contract: | July 2005 |
| Operating vessel: | NYK-owned Panamax and Handysize bulk carrier (DWT. 87,000 tons) |