News Releases in 2006
November 22 2006
CLP Guangxi Fangchenggang Power Company Limited
 Mr.Liu M.S. Benjamin, President of CLP Guangxi Fangchenggang (The fourth person from the left) Mr.Yuji Semba, Corporate Officer of NYK (The fifth person from the right) |
Nippon Yusen Kaisha (NYK; Head office: Chiyoda-ku, Tokyo; President: Koji Miyahara)* has secured a twelve-year charter contract with CLP Guangxi Fangchenggang Power Co. Ltd.** for the transport of coal from Bontang, Indonesia, to Fangchenggang, China. A signing ceremony was held on November 21 in Nanning, the capital of Guangxi province and was signed by Mr. Liu M.S. Benjamin, President of CLP Guangxi Fangchenggang and Mr.Yuji Semba, Corporate Officer of NYK. This new contract is the first ever among carriers not based in China for the transport of coal to a power plant in mainland China.
CLP Guangxi Fangchenggang Power Co. Ltd. is constructing a new thermal power plant in Fangchenggang, 180 kilometers south of Nanning, and NYK is currently set to begin the transport of coal from early 2007. The port of Fangchenggang has water-depth limitations, so a new post-Panamax carrier that complies with depth limitations will be used for this service. The new vessel will also be more economically efficient and offer an approximately 20,000-ton increase in loading capacity compared with regular Panamax-class coal carriers.
NYK has been working to strengthen business operations with overseas power suppliers and steel mills, and now has more than 20 long-term contracts with such companies. NYK recently succeeded in reaching a long-term agreement with ENEL in June for use of two post-Panamax carriers. The contract with CLP Guangxi Fangchenggang Power Co. Ltd. is the second contract for use of a post-Panamax vessel by an overseas power supplier.
Power suppliers around the world are giving more attention to power generation using coal, which is in greater supply and more economical than oil. Thus, coal transport is expected to continue to increase in the future. Using this contract as a step forward, NYK will continue its drive to develop business opportunities around the world.
---Outline of Charter Contract---
| Term of the contract | 12 years |
|---|---|
| Commencement | January 2007 |
| Carrier used | Mainly one newly built post-Panamax carrier (90,000 tons) |
*Nippon Yusen Kabushiki Kaisha (NYK)
**CLP Guangxi Fangchenggang Power Co. Ltd.
Nippon Yusen Kabushiki Kaisha is one of the world's leading transportation companies.The NYK Group operates approximately 700 major ocean vessels, as well as fleets of planes, trains, and trucks. The company's shipping fleet includes around 130 containerships, 210 bulk carriers, 40 wood-chip carriers, 100 car carriers, 25 reefer carriers, 55 tankers, 20 LNG carriers, and three cruise ships. NYK's revenue in fiscal 2005 was $16 billion, and as a group, NYK employs about 33,000 people worldwide. The company has offices in 240 locations in 27 countries, warehouses in every continent, and harbor operations in Asia, North America, and Europe. NYK is based in Tokyo, and has regional headquarters in London, New York, Singapore, Hong Kong, Shanghai, Sydney, and Sao Paulo.
Established on a 70:30 equity basis between CLP Group and Guangxi Water & Power Engineering (Group) Co. Ltd., CLP Guangxi Fangchenggang Power Co. Ltd. is the largest foreign investment power project in Guangxi province. Upon commissioning, it will meet the local demand for electricity, as well as supplement power demand in nearby provinces. CLP Group is one of the largest investor-owned power businesses in Asia.
