NYK clinches 25-year coal shipping contract

NYK clinches 25-year coal shipping contract

Japanese shipping major NYK has secured a 25-year contract with Van Phong Power Company, a wholly owned subsidiary of Sumitomo Corporation, for the transport of coal for the Van Phong coal-fired power project to be constructed in Vietnam.

NYK is expected to transport up to 3.4m tons of coal annually for the project from 2023.

The coal will be transported mainly from Australia and Indonesia to the power plant in the Van Phong Special Economic Zone.

The group said it is meticulously controlling its exposure to market conditions by maintaining and expanding long-term contracts in the dry bulk division, in accordance with its medium term management plan Staying Ahead 2022 with Digitalization and Green.

“NYK will continue its effort to contribute to reliable energy supplies through safe transportation and the expansion of business that generates stable revenue and is resistant to volatile market conditions,” the company said in a release.

NYK owns a bulker fleet of 140 vessels with another two on order.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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