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.
