'K' Line to Shrink Container Fleet
Japan's third-biggest shipping company Kawasaki Kisen Kaisha ('K' Line) plans to beef up its LNG and bulker vessels over the next four years, while downsizing its container shipping fleet.
The group plans to reduce its fleet of container ships from 70 to 61; however, the TEU capacity will increase with the sale and scrapping of the smaller ships, and the introduction of 10 14,000 TEU boxships currently on order.
It also has revealed a new five-year plan to raise profit to more than JPY 60bn ($500.58m) as it readies a big new bond issue. The company has registered to issue bonds worth JPY 100bn in a shelf filing valid for two years.
The dry bulk carrier fleet will increase from 218 to 239 by 2019, as the group plans for this sector to bring 50% of all the revenue. A significant increase is planned in the LNG shipping sector. ”K” Line is planning to add 18 new LNG carriers to the existing fleet of 43 vessels.
The company, which targets to secure more long-term shipping contracts, also plans to boost its post-Panamax bulker fleet from the current 69 to 71 in FY 2017 and 75 in FY 2019. 'K' Line also wants to add two more ships to its car carrier fleet to bring it to 98 ships by FY 2019.
This would give it a total fleet of 564 vessels.
