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

NORDEN Publishes CSR Report

Dampskibsselskabet NORDEN A/S has published its Corporate Social Responsibility (CSR) report 2014. Entitled, “On track”, the CSR report presents an overview of NORDEN’s CSR strategy,

LISCR Appoints New Managing Director for Hong Kong

The Liberian Registry has appointed shipping executive Gerry Buchanan as managing director of its dedicated Hong Kong office, the registry announced today.      As

Wheelabrator Opens Ontario Location

Surface preparation company Wheelabrator Group (Canada) Ltd. celebrated its grand opening with a ribbon cutting ceremony and luncheon after moving to a new location and office complex in Burlington,

Bulk Carrier Trends

NORDEN Publishes CSR Report

Dampskibsselskabet NORDEN A/S has published its Corporate Social Responsibility (CSR) report 2014. Entitled, “On track”, the CSR report presents an overview of NORDEN’s CSR strategy,

Newlead Bags Panamax COA

NewLead Holdings Ltd. announced today that it has entered into a Contract of Affreightment for one of its dry bulk vessels, the Panamax Newlead Markela, for the transportation,

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

Finance

Ten Migrants Die in Mediterranean, a Thousand Rescued

At least 10 North African migrants died when their rubber boat overturned in the southern Mediterranean while almost a thousand more from a total of seven vessels

Access to Brazil's Itajai Port to Open as Truck Protest Ends

Protesters have agreed to open access to Brazil's main poultry exporting port of Itajai in Santa Catarina state, the port said on Wednesday, ending a lingering

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

 
 
Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.1729 sec (6 req/sec)