] Safety in Ship Operation and Cargo Handling A fundamental direction of “K” LINE is securing safety of people, ships and cargo and preserving the earthly environment In accordance with this objective, the Company is endeavoring, together with its group companies, to develop and perfect safe ship/cargo operation management together with an integrated system for protection and conservation of the environment More specifically, the ISM Code has been applied to our entire fleet since July 2002 With this application in place, every ship is being operated in compliance with a common manual “Safety Management System” where all possible types of preparedness and responsiveness are described Concurrently, the “Committee for Promotion of Safe Ship Management” was established for the entire fleet, including charter-in carriers The Committee members consist of directors of “K” LINE and its group ship management companies At the Committee, various measures for safe ship/cargo operations are mapped out The Committee has responsibility for providing stable and quality transportation service to customers by visiting ships for safety verification purposes along “K” LINE’s own guidelines for ship quality, i.e KL-QUALITY Crisis Management When there is sea pollution by oil leakage or any marine accident, i.e., human injury or death, collision, fire and grounding, etc., “K” LINE 16 KAWASAKI KISEN KAISHA, LTD responds to it in an appropriate manner in order to minimize damage Directors in charge immediately call in an emergency response team organized along “Crisis Management System.” If an accident is large and serious, Company’s President, as the Chief, convenes an Emergency Headquarters in order to examine and carry out all-group-level response In order to achieve best execution of the above action, Company carries out anti-accident exercises on a regular basis During Fiscal 2002, exercises for large tankers, LNG carriers and car carriers were held We also positively adhere to various measures set out by the IMO Education/Training At “K” LINE, an employee educational system has been established The system is aimed at: Assuring that Company’s objectives for safety are best understood by all crewmembers Perfecting safety in ship management and cargo operations Continuous upgrading of marine technology and the accumulation of knowledge To effectively carry out the above system, education and training are being given to crews of multiple nationalities at “K” LINE Training Center in Tokyo and “K” LINE Maritime Training Corporation in Manila At both of these centers, a large number of training courses are prepared in which trainees are able to not only gain knowledge/skills theoretically but also experience practical discipline A variety of programs are available there to satisfy multiple needs In particular, importance is attached so that crewmembers can judge and behave in response to any unexpected emergency situation That is why simulated training courses are introduced with computerized technology Simultaneously, through use of public institutes, etc., various classes are held for our officers and engineers in Bridge Resource Management training, that is for improvement in administration of the ship’s bridge and ship maneuvering technology, crisis management training against an emergency and languages required for working in a global environment ] Preservation of the Environment ENVIRONMENTAL REPORT 2OO3 E NV ORT EP TA L R Prevention of Marine Pollution To prevent cargo (crude oil, etc.) from spilling due to ship hull damage, we are staging a campaign for introduction of double-hull tankers As of the end of March 2003, doublehull tankers occupied about 82% of all tankers in operation In the meantime, the Company is striving to totally abolish the use of paints con- Chlorofluorocarbons (CFC, R-12) As of the end of March 2003, about 70% of the Company’s own reefer containers were being operated with the refrigerant known as R134a (coefficient of depletion of the Ozone layer being zero) EN Policy, further efforts continue to be extended for acquisition of ISO 14001 certification by all group companies in order to come to grips with the environmental issue throughout “K” LINE and its group companies In that regard, “K” Line (Japan) Ltd joined us in our environmental campaign in July 2002, and both Kawasaki Kinkai Kisen Kaisha, Ltd and Nitto Total Logistics, Ltd joined in April 2003 Challenging Environmental Issues N IRO M The Company set forth “K” LINE Group’s Environmental Policy in May 2001 Among management objectives is our commitment to the reduction of environmental loads arising from “K” LINE’s activities We acquired ISO 14001 certification from Nippon Kaiji Kyokai (Class NK) in February 2002 and then established our Environmental Management System In keeping with “K” LINE Group’s Environmental taining Tributyltin (TBT) that has been identified as particularly hazardous to marine life As of the end of March 2003, about 93% of our own vessels were using non-fouling, tin-free paints Saving Resources and Energy We are endeavoring to perform ship operations in a manner that reduces CO gas, a contributor to global warming As of the end of March 2003, emission of CO per ton of marine cargo transport was reduced by about 17% as compared with 1990 Within our offices, we are tackling reduction in consumption of power, water service and paper Prevention of Air Pollution We adopted main engines that exhaust less NOx To reduce SOx, we are using bunker oil with lower sulphur content As of the end of March 2003, analytical data showed average percentage of sulfur about 2.7% Against depletion of the Ozone layer, we are also wrestling with complete abolishment of the use of Diminishing Waste Throughout “K” LINE it is promoted that paper used in offices/aboard ships and magazines published by the Company should use recycled paper At the same time, wastes originating in offices, aboard ships and at terminals should be thoroughly sorted out Appropriate disposition of wastes and recycling are being aggressively pursued Contributing to Society The Company is cooperating with many institutes by providing voluntary marine observation aboard vessels in our operating fleet ANNUAL REPORT 2003 17