MOL Founding Anniversary: 2013 Growth Strategy Outlined

Press Release
Monday, April 01, 2013

 Mitsui O.S.K. Lines (MOL) President Koichi Muto outlines business initiatives on his company's 129th anniversary.

Extracts from his recent overview follow:

In fiscal 2013, we will launch business initiatives based on a One-Year Management Plan designed to return the MOL Group to a growth trajectory.

Since the beginning of 2013, the business environment has started to show positive signs in some quarters, including a rebound in the U.S. economy and a weakening of the yen. In the marine transport industry, while vessel deliveries are projected to plummet from 2014 onward, we do not foresee any end to a vessel supply glut in fiscal 2013 because a large number of vessels continues to be scheduled for delivery during the fiscal year. Combined with persistently high bunker prices, the business environment will warrant continued vigilance in fiscal 2013.

In January 2013, MOL executed bold business reforms. We put a system in place to reshape our business structure by transferring our dry bulkers to Singapore, a key hub of customers and information. The move to Singapore has restored cost competitiveness to the dry bulker fleet, which had been operating at a loss, laying a strong foundation for restoring profitability. Based upon this new foundation, we formulated the One-Year Management Plan for fiscal 2013 with a view to accumulating additional cash flow.

Business model transformation lies at the heart of the One-Year Management Plan. During the years of sharply rising market conditions in the shipping sector from 2003 to the Lehman Shock of September 2008, the MOL Group generated large earnings through a business model that anticipated a bullish shipping market. However, given the continuing vessel supply glut at present, we need to return to basics and reaffirm the MOL Group Corporate Principles by rebuilding our sales structure to carefully support customer needs. We will accelerate business expansion from our hub in Singapore through business reforms designed to capture growth primarily in emerging markets. At the same time, we will enhance the quality of service for our Japanese customers, who have stood behind the MOL Group over the years, with the aim of upgrading our services further.

Moreover, we will execute bold reforms of unprofitable operations and non-core assets, leaving no stone unturned. Measures will extend to withdrawing from businesses and disposing of assets.
 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Shipping Confidence Hits 2.5 Year Low

Overall confidence levels in the shipping industry fell to their lowest level for two-and-a-half years in February 2015, according to the latest Shipping Confidence

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

All American Marine Delivers Ferry to Seattle

All American Marine, Inc. (AAM) today announced the delivery of a new passenger ferry that will serve the city of Seattle.    The vessel, MV Sally Fox, was dedicated

Bulk Carrier Trends

Shipping Confidence Hits 2.5 Year Low

Overall confidence levels in the shipping industry fell to their lowest level for two-and-a-half years in February 2015, according to the latest Shipping Confidence

Baltic Sea Freight Index Up on Higher Capesize Rates

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Tuesday, mostly on higher capesize rates.   The index,

Shipbuilding: Mitsui Delivers Bulk Carrier

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 56,000 dwt type bulk carrier M.V. Desert Osprey (MES Hull No. 1862) at its Chiba Works

Finance

Hermes Unit, Canadian Fund to Buy $2.4B Stake in UK Ports Group

The Canada Pension Plan Investment Board (CPPIB) and Hermes Infrastructure are prepared to buy a 30 percent stake in Associated British Ports for about 1.6 billion pounds ($2.

Baltic Sea Freight Index Up on Higher Capesize Rates

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Tuesday, mostly on higher capesize rates.   The index,

Direct Le Havre to Charleston LCL Import Service

CaroTrans has announced the addition of an expedited Le Havre, France to Charleston LCL import service.    This is the only direct, weekly Le Havre to Charleston LCL service available in the market.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1451 sec (7 req/sec)