K Line subsidiary secures financing for electric tug project

Japanese shipping company Kawasaki Kisen Kaisha (K Line), through its consolidated subsidiary Daito Corporation, has secured financing from Japan's Mizuho Bank for the construction of a new electric tug.

The loan will utilise funds that have been provided as part of a financing framework established by the Port of Yokohama. The framework's goal is to promote technologies that will reduce carbon emissions at the port.

Development of the new tug will be undertaken in collaboration with Japanese shipbuilders Kawasaki Heavy Industries and Daizo Corporation.

The tug will be equipped with a 3.2MWh battery and will operate on green electricity. K Line expects the use of battery power will significantly reduce fuel consumption and CO2 emissions compared to conventional tugs fitted with heavy fuel oil engines.

The tug will be built at Daizo Corporation’s facilities while KHI will supply and integrate the control and propulsion systems. Following delivery in May 2027, it will provide towage services for vessels at the ports of Yokohama and Kawasaki.