CO2 Reduction Efforts in Logistics

We transport approximately 11.8 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-kilometer achievements for FY2020

Transportation quantity:10,000 tons/year Million ton-kilometers/year g-CO2/ ton-kilometers
Ship 1,523
(50%)
10,653
(90%)
39
Railway 6
(0%)
43
(0%)
25
Truck and trailer 1,232
(45%)
1,146
(10%)
211
Total 2,761
(100%)
11,842
(100%)

1: Modal shift rate: A modal shift indicates the domestic freight transport shift from truck carrier to coastal shipping and railroad carrier as a countermeasure against global warming. A modal shift rate is a percentage of cargo volume transported over a distance of 500 km and more by rail or sea (including ferry) (as defined by the Ministry of Land, Infrastructure, Transport and Tourism).
2: 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

96.0%

Nippon Steel maintains a high modal shift rate of 96% and works on reducing CO2 emission by raising efficiency in logistics, such as by using large vessels.

As part of the efforts, we are introducing new measures, including introduction of “Utashima” —a hybrid-type cargo vessel, equipped with lithium-ion batteries (awarded the Small Cargo Vessel Award of the Ship of the Year 2019 ).

In addition, in cooperation with the Ministry of Land, Infrastructure, Transport and Tourism and various organizations, we are actively undertaking efforts to introduce ships utilizing new alternative fuels, such as hydrogen and ammonia, in order to reduce greenhouse gas generated by sea transport.

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

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

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