Japan's First Ship JOLCO Project Involving JBIC and NEXI Takes Off
In a groundbreaking move, the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) have jointly participated in Japan's inaugural ship leasing project under the JOLCO (Japanese Operating Lease with Call Option) framework. This project encompasses the leasing of four container ships that are set to be constructed at domestic shipyards, receiving support from several commercial banks providing domestic financing. NEXI will also be offering insurance for the financing provided by these banks.
This initiative is primarily aimed at strengthening the competitiveness of Japan's domestic shipbuilding industry. By tapping into the support schemes set up by JBIC and NEXI, this project marks the first time these institutions have taken part in a ship JOLCO project, highlighting their commitment to fostering growth in the maritime sector.
The container ships targeted in this project are equipped with outstanding environmental performance capabilities, making them candidates for the 'Advanced Low-Environmental Impact Vessel' certification established by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Additionally, they have received recognition under the 'Plan for Securing Ocean-Going Vessels Certification System' which aims to promote stable ownership of vessels by domestic shipowners. Thanks to these certifications, the project qualifies for a special depreciation system that allows for an increased depreciation rate for the initial acquisition year of the vessels.
As per the plans, the leasing fund business will commence upon the delivery of these vessels, which are scheduled to be handed over sequentially beginning in October 2025. Consequently, this project will not impact the firm's earnings forecast for the fiscal year ending September 2025, allowing for a well-managed transition into the operational phase of the leasing project.
With the motto "Expanding the Future through Finance," the company is committed to actively promoting leasing fund initiatives that contribute to the global transition towards a carbon-neutral society. It also aims to bolster Japan's international competitiveness in the shipbuilding industry. By aligning with our clients who are taking on challenging projects, we strive to create a robust and prosperous society, enhancing the value and efficiency of our operations in the maritime sector.
These initiatives within the maritime industry serve not only to uplift domestic production but also signify a step towards a more sustainable future, balancing economic growth with environmental responsibility. The involvement of JBIC and NEXI in the JOLCO project advocates for environmentally friendly practices while assuring financial support for the shipbuilding industry’s evolution. As we advance, the collaboration with our partners will be integral to the success of these ambitious endeavors. The strategic deployment of resources towards eco-efficient vessels reflects our dedication to sustainability, underscoring the importance of innovation in achieving a green economy.
This project is a testament to Japan’s enduring commitment to the maritime industry and its responsiveness to both domestic and international economic demands. With challenges like climate change on the horizon, initiatives like the JOLCO project are crucial for fostering a competitive and environmentally-prudent maritime industry that can thrive in today’s ever-evolving market landscape.
This initiative is primarily aimed at strengthening the competitiveness of Japan's domestic shipbuilding industry. By tapping into the support schemes set up by JBIC and NEXI, this project marks the first time these institutions have taken part in a ship JOLCO project, highlighting their commitment to fostering growth in the maritime sector.
The container ships targeted in this project are equipped with outstanding environmental performance capabilities, making them candidates for the 'Advanced Low-Environmental Impact Vessel' certification established by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Additionally, they have received recognition under the 'Plan for Securing Ocean-Going Vessels Certification System' which aims to promote stable ownership of vessels by domestic shipowners. Thanks to these certifications, the project qualifies for a special depreciation system that allows for an increased depreciation rate for the initial acquisition year of the vessels.
As per the plans, the leasing fund business will commence upon the delivery of these vessels, which are scheduled to be handed over sequentially beginning in October 2025. Consequently, this project will not impact the firm's earnings forecast for the fiscal year ending September 2025, allowing for a well-managed transition into the operational phase of the leasing project.
With the motto "Expanding the Future through Finance," the company is committed to actively promoting leasing fund initiatives that contribute to the global transition towards a carbon-neutral society. It also aims to bolster Japan's international competitiveness in the shipbuilding industry. By aligning with our clients who are taking on challenging projects, we strive to create a robust and prosperous society, enhancing the value and efficiency of our operations in the maritime sector.
These initiatives within the maritime industry serve not only to uplift domestic production but also signify a step towards a more sustainable future, balancing economic growth with environmental responsibility. The involvement of JBIC and NEXI in the JOLCO project advocates for environmentally friendly practices while assuring financial support for the shipbuilding industry’s evolution. As we advance, the collaboration with our partners will be integral to the success of these ambitious endeavors. The strategic deployment of resources towards eco-efficient vessels reflects our dedication to sustainability, underscoring the importance of innovation in achieving a green economy.
This project is a testament to Japan’s enduring commitment to the maritime industry and its responsiveness to both domestic and international economic demands. With challenges like climate change on the horizon, initiatives like the JOLCO project are crucial for fostering a competitive and environmentally-prudent maritime industry that can thrive in today’s ever-evolving market landscape.
Topics General Business）
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