CO2 Reduction Efforts in Logistics

We transport approximately 14.7 billion ton-kilometers of steel and semi-finished products annually, and we have been working with logistics companies within the Group to improve transportation efficiency and improve fuel efficiency.

Logistics sector’s ton-kilometer1 achievements for FY2021

Transportation quantity:10,000 tons/year Million ton-kilometers/year (Reference)
g-CO2/ ton-kilometers
Ship 1,861
(56%)
13,407
(91%)
39
Railway 6
(0%)
39
(0%)
25
Truck and trailer 1,451
(44%)
1,266
(9%)
211
Total 3,318
(100%)
14,712
(100%)

1 Ton-kilometer: Total sum of the weight of load (ton) transported multiplied by transport distance (km). The reference amounts (in grams) of CO2 emissions per ton-kilometer travelled are the average for all industries (Ministry of Land, Infrastructure, Transport and Tourism)

Nippon Steel’s modal shift ratio

97%

Nippon Steel maintains a high modal shift rate2 of 97% and works at reducing CO2 emission by raising efficiency in logistics, such as by use of large vessels. As part of the efforts, we have begun to use “Utashima” — a hybrid-type cargo vessel, equipped with lithium-ion batteries. This vessel wasawarded the Small Cargo Vessel Award of the Ship of the Year 20193. In March 2022, our three cargo vessels were rated the highest in the Coastal Ship Energy Conservation Rating of the Ministry of Land, Infrastructure, Transport and Tourism.

We have also decided to introduce cargo vessels equipped with a hybrid propulsion system consisting of a natural gas-fueled engine and battery, for marine transportation of domestic raw materials.

We will continue to cooperate with relevant ministries, agencies, and organizations to promote use of ships utilizing alternative fuels, in order to reduce greenhouse gas emissions in marine transportation.

2 Modal shift rate: Modal shift means replacing a means of transport from trucks to trains and ships. The modal shift rate, according to the definition by the Ministry of Land, Infrastructure, Transport and Tourism, is a ratio of volume transported by trains and marine transportation (including ferries) in long distance transport of over 500 km.
3 Award by the Japan Society of Naval Architects and Ocean Engineers

Hybrid Cargo Ship “Utashima” equipped with lithium-ion batteries

Hybrid Cargo Ship “Utashima” equipped with lithium-ion batteries

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