| MOL set on container business return to profit |
| As the container business has been dragging down Mitsui OSK Lines' (MOL's) profits in recent years, its president, Koichi Muto, has expressed a determination to restore profitability to the sector in the coming financial year (FY). Speaking on the 131st anniversary of the establishment of Japan’s biggest shipping company, Muto said, “The containership business absolutely must return to profitability in FY 2015, as it underpins the mid-term management plan’s company-wide targets. We see this will not only eliminate transient factors that deteriorate profits, but also ensure progress in the automation of our cargo loading/unloading operations at the TraPac Container Terminal, which will increase the value that our terminal business adds to our shipping services. "I believe we can achieve our profit target, backed by the tailwinds of depreciating yen and lower bunker prices. I want to ask all liner division executives and employees to work as one to make sure this is the year of our successful counter-offensive and return to profitability.” TraPac is the container terminal division of MOL and runs terminals on the US West Coast. To boost its competitiveness against other rivals, MOL last month ordered six 20,000 teu container ships from Imabari Shipbuilding and Samsung Heavy Industries for delivery in 2017. Meanwhile, on 23 June Muto will become MOL chairman while Junichiro Ikeda will fill in as the company’s president. Muto said, “These massive new ships will reduce unit cost thanks to their superior fuel efficiency in combination with expanded capacity, further enhancing our business base towards 2020.” The container division’s poor performance in the midst of chronic oversupply is expected to prevent MOL from hitting its profit target for FY 2014. Notwithstanding the drive towards profitability, Muto said MOL staff must not stray from the company’s challenge, honesty, accountability, reliability, and teamwork (CHART) values. Muto urged them to take on challenges through insightful innovation while complying with ethical standards, in addition to gaining customers’ trust, providing safe transportation, and fostering the next generation. |