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preface |
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History chart |
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The "K"Line Ship Successfully Weathering Many a Turmoil during the Period from '90 |
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Reviewing new-year messages from 1990 through 1999 |
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Upvaluation of the Japanese Yen |
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Management Plans for Reinforcement of Fundamental Structure of "K" Line: Costomer-Satisfaction Campaign, Target 10, K.R. Program, K.R. Phase II & New K-21 |
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CS(Customer-Satisfaction) Campaign (Apr.1990-Mar.1994)
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Target 10(Dec.1992-Sep.1993)
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K.R. Program(Oct.1993-Mar.1996)
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K.R. Phase II(Apr.1996-Mar.1998)
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New K-21(Apr.1998-Mar.2003)
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Historical Picture of the Company's Business in Brief |
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111. Liner Business (Container Business)
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222. Bulk Carrier & Car Carrier Business
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Capitalization/Recapitalization to Put Part of Overseas Agents under the Direct Management by "K" Line |
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Plans and Implementation for Information Age |
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"GLOBALINK"
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"KINGS"
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SR
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Office Automation & Network PCs at Workplace
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MENU |
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The euro was born on Jan. 1, '99, one year prior to the 21st century. The U.S. is evenly matched with the EU, each of which has a 20% share of world economic output. Japan is following them into a tripolar global village. Existing at this future village,"K" Line is making utmost efforts for economic survival and contribution to human-beings in the field of transportation and logistics. |
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1990 Let's Challenge with the Teamwork We Take Pride in. |
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1991 All Staff should Take Part in Management. |
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1992 Globalized Insight and Synergies |
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1993 Teamwork at Workplace & Slash of Costs and Expenses |
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1994 We Will Carry on a Reengineering Program to Innovate the Company. |
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1995 This Year We Firmly Perceive Possible Creation of a New "K" Line. |
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1996 K.R. Phase II Set Up towards the 21st Century |
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1997 Achieving a Corporate Structure That Will Enable Stable Payment of Dividends |
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1998 Going Forward with a Positive and Reinforced "K" Line Spirit |
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1999 Let's Challenge Higher Targets Carrying Dreams towards the 21st Century |
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1990 Let's Challenge with the Teamwork We Take Pride in. |
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by former president Mr. H. Matsunari Last year, a huge change leading to collapse of Communism stroke a blow to the areas from the Soviet Union to East Europe. It is a big and expansive wave of "Liberalization." I believe that all through the 1990s, this wave is expected to bring possibility of new development to Japan through abundant supply of labor, expansion of consumption markets and further creation of new investment markets. In the Asia-Pacific Economic Zone, the observed movements are: the Japanese currency Yen being most appreciated against the US$ since the Plaza Accord, the U.S. suffering from a deficit in balance of trade and a horizontal trade developing between Northeast and Southeast in Asia where products are being exchanged. With reference to the Shipping, I would like to say that we are assigned to accomplish a new way of management creating high-added values. |
 Hibiya Central Building by night |
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1991 All Staff should Take Part in Management. |
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Towards the 21st century, the Japanese businesses are going to expand their activities all over the world in pursuit of "globalization." The Japanese shipping companies are expected to comprehensively or widely deal in transportation or logistics as an international transportation entity. The Customer-Satisfaction (CS) campaign the Company is staging is aimed to create "K" Line's remarkable and strong points with its services. It is necessary to positively utilize and bring up any creative idea for differentiation of services. To sophisticate such idea we have to tide over taboos prevailing within the Company. |
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1992 Globalized Insight and Synergies |
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by former president Mr. H. Matsunari Development and expansion of the Japanese economy makes it indispensable for chief executives on management of a company to judge the trends on the landscape with an international or global view or insight. It is perceived that without this insight, anybody is likely to make a vital mistake in management. |
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1993 Teamwork at Workplace & Slash of Costs and Expenses |
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by former President late Mr. S. Nagumo The recession we are experiencing at present is more serious in nature and expansive in dimensions as compared with after the Oil Shock. Severeness in business environment, however, gives us a good opportunity for looking back at what and how businesses should be. With mental concentration and guts, let's turn misfortune to a blessing. In this way of action the business environment will change for the better. What counts most is to strengthen teamwork at workplace and to reduce costs and expenses. All of us equally have the legacy from our senior members, so-called the "K" Line Spirit. |
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1994 We Will Carry on a Reengineering Program to Innovate the Company. |
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by former President late Mr. S. Nagumo Last August, the exchange rate of the Japanese currency against the US$ continued to closely approach ¥100 per US$. Now, it is thought to be commonsensical that all the Japanese corporations, regardless of business sectors, are required to overview their past activities, and restructure/reengineer themselves to survive in the era of ¥100 per US$. The Company started on October 1, 1993 the ""K" Line Reengineering Program" called the K.R. Program following the previous all-the-Company movement of the "Target 10."; |
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My understanding on the terminology of "Reengineering" is to thoroughly review the conventional business performance or process in an attempt to provide customers with excellent services. The goal of the K.R. Program is to transform the Company into a competitive corporation performing on the global markets by means of thorough shift of jobs to overseas and reduction of costs and expenses overall so that we may build up a corporate structure in which in the era of ¥100 per US$, we can provide customers with higher CS (customer satisfaction) services and create profits in a constant and stable manner. |
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1995 This Year We Firmly Perceive Possible Creation of a New "K" Line. |
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by present President Mr. I. Shintani Through the KR Program the Company is having intention to provide its customers with competent service even in the era of ¥100 per US$. "K" Line has been reborn to a potent company which is possessed with steady foresight into 5 years or 10 years ahead of now. To construct such company each and every one of us should think seriously what to do in daily business. |
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1996 K.R. Phase II Set Up towards the 21st Century |
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by present President Mr. I. Shintani The US economy has been so excellent so far. The European begins to show a mild development. The Asian is making high-level growth. The Japanese has continued with a zero-digit growth consecutively for four years since bust of the bubble. Before we enter the next century we must lift our profitability to the extent of shareholders or investors being pleased. From this viewpoint the K.R. Phase II has been launched following the K.R. Program, a fiscal-two-year period-1996 & 1997 set for completion of this ambitious program. |
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1997 Achieving a Corporate Structure That Will Enable Stable Payment of Dividends |
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by present President Mr. I. Shintani There are two absolute imperatives for accomplishing the K.R. Phase II. First, reforming the present entire cost structure, we must still reconstruct "K" Line into as competitive an entity as other Asian shipping lines. Second, in all business divisions, we must build an aggressive sales structure. |
 A PCC anchored in Yokohama Port |
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Simultaneously, we will never fail to remember that safe operation of our fleet is always an essential factor of our services trusted by customers. Attention should be paid to the fact that safety standards are becoming higher and stricter as shown by the new STCW Convention, incorporation of ISM code into SOLAS, etc. Let's renew our determination to accomplish a corporate structure for stable payment of dividends. |
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1998 Going Forward with a Positive and Reinforced "K" Line Spirit |
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by present President Mr. I. Shintani The Company has surely been in a position of accomplishing payment of a dividend at the closing fiscal year 1997 (end-Mar. 1998). Emphatically, we believe that the Programs, having started originally as an urgent countermeasure for survival, are going to finish up with more and better achievements than expected. One of the important issues we have not yet realized is to lift the Container Business into the black. |
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1999 Let's Challenge Higher Targets Carrying Dreams towards the 21st Century |
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by present President Mr. I. Shintani Celebrating the 80th anniversary of the foundation of the Company we expect to record highs in operational revenues and ordinary profit, leading to continuation of payment of a dividend. To survive in a head wind hitting the major parts of the globe, the minimum condition for businesses is to have the strong legs and loins which are attained through enduring efforts. Let's accomplish our higher dreams in pursuit of a business image on the New K-21 landscape. I would like you to understand the four columns of the management direction: 1. globalization of management 2. importance given to consolidated management 3. revitalization of organizations 4. safety in navigation |
 VLCC Large-Scale Oil Spill Response Drill  |
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In September,1985 when the Plaza Accord came to an agreement, the exchange rate of Yen against US$ was ¥260. Two years later, a financial turbulence called "Black Monday" hit the world economy incurring a steep drop in stock prices on the markets over the world. Since that day, the japanese currency continued to ride on the upward move. It rose to ¥100 in 1994 when the two Germanys were united, and went on up to ¥79.75, a historical record high in 1995. Such huge appreciation of Yen gave seriously minus impacts to the Japanese shipping companies and exporting businesses. Against the backdrop of the above trend in currency situation, "K" Line doubled up its efforts to transfer costs and expenses into $-denominated from Yen, done through a shift of jobs to outside Japan in addition to cost slash in general. The highly influential blow of upvaluation drove the Company in part to stage a series of all-the-company-level campaigns or well-planned projects to change and reinforce the Company's fundamental structure. |
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CS(Customer-Satisfaction) Campaign (Apr.1990-Mar.1994) |
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Target 10(Dec.1992-Sep.1993) |
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K.R. Program(Oct.1993-Mar.1996) |
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K.R. Phase II(Apr.1996-Mar.1998) |
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New K-21(Apr.1998-Mar.2003) |
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CS(Customer-Satisfaction) Campaign (Apr.1990-Mar.1994) |
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 "HUSKY TERMINAL" |
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Second, a plan for upgrade of customer satisfaction (CS) section-wise which was
named "One-for-All Campaign." Third, making rules for betterment of respective jobs Fourth, implementing a model approach. It is estimated as a significant experment in view of having an effective motivation to change the conventional Company's culture for something new through a change of ondividual valuation and psychological consciousness. |
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Target 10(Dec.1992-Sep.1993) |
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 "SETO BRIDGE" |
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The campaign was featured by: |
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on a top-down order basis |
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to turn present thinking/view back into a zero position and renewedly see what is regarded as natural or commonsensical |
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more specifically, to review all the costs and expenses to reduce them by 10% (Target 10 is originated from this 10%.) |
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to shape up the Company's body against possible competition. |
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K.R. Program(Oct.1993-Mar.1996) |
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 The FOREST PRINCESS |
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The program was designed to restore "K" Line's international competitiveness, and had five objectives: to shift selective land-based operations and marine divisions overseas; to drastically reduce administrative expenses; to improve financial cash flow; to reorganize low-margin businesses; and to rationalize the entire "K" line Group. Most important, all "K" Line Group people also participated in implementing the K.R. Program with intensity. What we learn and do through the Program has become a permanent part of corporate culture of the entire Group. |
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K.R. Phase II(Apr.1996-Mar.1998) |
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The Phase II was launched in succession th
the K.R. Program. It was aimed to complete some pending themes of the K.R. Program. Another way of recognition was to recognize that the given two years be a period in transit for realization of stable payment of devidends and management on a consolidated basis. The two K.R. Program were completed by the close of fiscal 1997(Mar.'98). Both of then have been taken over by the living New "K" Line Spirit for Century 21 named in short "New K-21." |
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New K-21(Apr.1998-Mar.2003) |
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 Kawamoto Senior |
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To give top priority to pursuit of profitability in our basic policy while trying to expand scale of business |
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To carry out shipping business globally with customer-oriented attitude |
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To make sure the entire "K" Line Group is fully committed to challenge with courage |
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To carry out every project for safety in navigation |
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Mention should be made that every business effort has been carried out to provide "K" Line's customer with "quality," "economical" & "safety-secured" services anytime and anywhere. This concept will be common and consistent among all the business sectors. |
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111. Liner Business (Container Business) |
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222. Bulk Carrier & Car Carrier Business |
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111. Liner Business (Container Business) |
 DST |
 "Humber Bridge" |
 "AKASHI BRIDGE" |
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In an effort to come out of the red, all people concerned are making desperate efforts to drastically slash both operating and general expenses as well as to secure and increase profitable cargoes on a global market with dynamic volatility. When container service started 30 years ago, it was said that the share of the Japanese cargoes reached some seventy percent in the trade from Asia to the U.S.A. Other Asian cargo increased greatly at a faster speed as a powerhouse of the world economy while Japan's cargo share went down to some 20% or less. Against the backdrop of equalization or upgrade of various techniques in Asia and changes/advances in logistics, Asian shipments have rapidly become competitive in the export markets. Naturally, the Asian carriers started to participate in the maritime markets from 1970 to 1980 and have been growing and enlarging their market shares during the past 10 years. To the contrary, competitiveness of Japan-made merchandise, general goods in particular have lost their competitive power price-wise. The trend was accelerated due to great upvaluation of the Japanese Yen after the Plaza Accord in Sep., 1985. The Shipping Act of 1984 gave strong and widespread impact upon business practice. According to the U.S. anti-trust spirit the existence of freight conferences concerned with the U.S. became much less dominant, unleashing more competition, causing a drastic drop in ocean freight rates and reducing service lines in number by some 50 percent. With strong and forward-looking judgment the "K" Line Ship could toughly survive this hardship.
With closer business cooperation with China Ocean Shipping (Group) Company & Yangming Marine Transport Corporation, in addition to the Company's own efforts and action, the Company has been steadily and successfully developing the new service route between U.S.A. and Europe as well as the traditional service routes between North America, Europe and Asia. Facing up to the realities, the Company never ceases to hold on to "K" Line's own way, following the management principle of independence under its own responsibility and endeavoring to provide its customers with differentiated services of high-degree CS (customer satisfaction). |
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222. Bulk Carrier & Car Carrier Business |
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"K" Line's management made public in 1998 that the Company had decided to increase the proportion of non-liner business to 55-60% in terms of operational revenues. Strenuous efforts have been under way to increase and firmly maintain the Company's share of the Japanese markets, meanwhile people concerned have been also trying to extend our position in the cross-trades. The Company has been investing in newbuildings of PCCs (Pure Car Carriers- this technical name was invented by our late chairman Mr. S. Nagumo), bulk carriers, LNG carriers, etc. to meet customer needs and consequently increase our market share. In vehicle transportation business, activities are deploying with a commitment to quality service composed of safe cargo handling, use of updated technologies and time-sensitive operations. Its activities are being globalized including Japan, U.S., Europe, Asia and Latin America. In terms of bulk carrier services, business has been growing steadily during the past ten years. When mention is being made on the Tanker & Energy Transportation Services, the Bishu Maru, the first LNG carrier of Japan, has never experienced any accident since it entered the transportation world of LNG in 1983. It contributed to "K" Line in founding a high degree of confidence among users including power and gas companies. As to imports of steaming coal for power companies, the Company has recently been trying to increase overall tonnage. We have become a first-class level of steaming coal carrier with seven vessels. With respect to oil tankers the Company has attained to possessing a great variety of carriers ranging from 260,000-ton crude oil tankers to 80,000-ton-class clean petroleum product tankers and 79,000-cubic-meter LPG tankers. Such a great development has been achieved owing to patient market research and introduction of the most updated technologies at respective stages. The Company is the first Japanese ship owner of two large-sized tankers for clean petroleum products. "Safety in navigation" has been the very motto for the past decade and will be so for the next millennium. It also must be so regarding the Container Business Sector. With on-going contrivance and efforts based on knowledge and experience, "K" Line has a brighter and promising business perspective in the era of "globalization". |
 "SHENANDOAH HIGHWAY" |
 "SUIREI MARU" |
 "CAPE ROSA" |
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The past ten-year period has played an important role to get through to the new Century 21 when information is expected to be more vital than ever for human activities in all fields. The company has been following new technologies to improve efficiency in corporate operation, in particular, in once-labor-intensive office work and to provide better services for our Customers. |
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"GLOBALINK" |
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"KINGS" |
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SR (System Re-engineering) |
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Office Automation & Network PCs at Workplace |
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"GLOBALINK"
(mainframe-based system) => right-sized system withnetworked PCs |
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The grand design of Globalink was to make any information interchangeable not only
within Japan but between Asia, Australia, Europe and U.S. However, during the development
period of Globalink system and right after its implementation, PCs were adding more
capacities day-by-day and became as equally powerful as most traditional mainframe-based
systems and were being recognized as the most user-friendly business tools with Windows
application software and Network technologies improvement. |
 Fremantle |
 TAIPEI |
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"KINGS"
("K" Line Intelligent Global Network System) => Intranet/Internet on frame-relay |
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KINGS was deployed as an international high-speed digital circuit linking most of
"K" Line's major offices in the world in late 1980s to integrate data, telex,
voice and FAX and greatly contributed to cut communication costs. Starting mid-1990, PCs/Servers and Network had become the mission critical platform for corporations in accordance with Email expansion and rapid explosion of the Internet usage. In such an environment, change led us to the direction of right-sizing of Information and Communication systems together with the deregulated economy where we can get better service at lower cost. |
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SR
(System Re-engineering) |
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SR started in June 1995. It was aimed to reengineer the whole Information and Communication Systems with the latest and most cost-effective information technologies. The goals and objectives were:
The company is aggressively moving toward the new era of Internet and Electronic Commerce taking advantage of SR projects. |
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Office Automation & Network PCs at Workplace |
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The training for and implementation of office automation carried on by the Company
has greatly contributed to restructuring & reengineering within the corporation
together with our challenging "K" Line spirit. With the network PCs in place, such a skillful workforce is expected to make individual work more efficient and productive, and to totally forge an efficient and information-oriented organization surviving and prospering in the Information Age. |