NYK Group Aims to Stay Ahead 2022 with Digitalization and Green

NYK president Tadaaki Naito in his New Year’s speech required the employees to execute the medium-term management plan “Staying Ahead 2022 with Digitalization and Green” announced in March of last year.

He chartered out  the three basic strategies in the medium-term management plan.

Under the first step of “Optimizing the business portfolio,” the fundamental revision of the dry bulk business and success of the integrated container shipping line ONE have been set forth as the two key elements.

In the dry bulk business, through the hard work of everyone involved and a favorable shift in the market situation, the business is showing steady improvement. On the other hand, ONE was unfortunately forced to significantly lower its business forecast in October of last year.

"A number of initiatives to improve the situation have been taken, and I want the company to link these initiatives to recovering trust within the market," he said.

Next, under the second step of “securing stable-freight-rate businesses,” strengthening the logistics business, the car carrier / auto logistics business, and the LNG/offshore business has been set forth. In the logistics business, Yusen Logistics is advancing the initiatives aimed at achieving success and growth as a core part of the NYK Group, he noted.

He pointed out that in auto logistics, the decision has been made to build a dedicated finished car logistics terminal and establish a company that specializes in shipping finished cars by rail. In the LNG/offshore business, a stable-freight business has steadily been secured by concluding new time charters for LNG carriers and shuttle tankers with customers in Japan and overseas.

"Going forward, I want those involved to continue working to establish a stable revenue structure with a focus on these growth-promoting businesses and the priority investment domains," Tadaaki said.

Under the last step of “increasing efficiency and creating new value,” “Digitalization and Green” initiatives, the subtitle of the medium-term management plan, have been set forth.

"2018 was a year in which advances were made in connecting our technology to business opportunities, such as the development of diagnostic software for the engine combustion chamber and a water-content alarm for the fuel oil in order to prevent mechanical failures."

"We had the first major updates in 25 years to the vessel safety management system. Consideration is being given to the commercialization of an onboard cashless system. Also, in May of last year, we were the first company in the ocean shipping industry to issue green bonds, which narrow down the use of the funds to projects that benefit the environment."

"I believe it was an opportunity for all stakeholders to recognize our stance towards the environment. Also, the environmental concept ship NYK Super Eco Ship 2050 announced in November brings together our knowledge and insights, and embodies our dream at the same time. While developing the environmental technology adopted by this ship and continuing to strive for actual applications on board the ships, we will aim to sustainably create corporate value and social value," he added.

"We should also recognize that our “Digitalization and Green” initiatives contribute to the SDGs (Sustainable Development Goals) promoted by the United Nations, the Federation of Economic Organizations, etc. Let’s walk half a step ahead while remaining highly motivated," he concluded.