Annual Report 2012


>> P.27

OVERVIEWOFFISCAL2011INSHORTSEABUSINESS,WHILETRANSPORTVOLUMESINTRAMPSERVICESROSEYEARONYEARTHANKSTOROBUSTDEMANDINTHOSECOUNTRIESWITHDEVELOPINGECONOMIES,TRANSPORTVOLUMEOFSTEELPRODUCTSINLINERSERVICEDECREASEDDUETOTHEIMPACTOFTHESTRONGYENANDALSOFROMLASTYEAR’SFLOODINGINTHAILAND.INCOASTALSERVICESBUSINESS,TRAMPSERVICESMAINTAINEDAGENERALLYSTEADYOPERATINGRATE,ANDALTHOUGHLINERTRANSPORTWASADVERSELYAFFECTEDBYTHEEXTENSIVEDAMAGEINCURREDLASTYEARBYIBARAKIPORT,APORTONTHELINERROUTE,WEWEREABLETOSECURETRANSPORTVOLUMEEXCEEDINGTHEPRIOR-YEARLEVEL.INFERRYTRANSPORTASWELL,ALTHOUGHWETEMPORARILYCHANGEDPORTSOFCALLDUETODAMAGETOHACHINOHEPORT,TRANSPORTVOLUMEROSEYEARONYEAR.FISCAL2012BUSINESSOUTLOOKINSHORTSEATRAMPSERVICES,WEWILLPROCEEDWITHflEETDEVELOPMENT,FOCUSINGONCOALTRANSPORT,ANDSEEKTOEXPANDOPERATIONSINTONEWMARKETSANDDEVELOPASTABLEPROfiTSTRUCTUREBYPROVIDINGCOMPETITIVETONNAGE.INSHORTSEALINERSERVICES,WEWILLSTRIVETOENSURESTABLETRANSPORTVOLUMESOFSTEELMATERIALSANDWOODPRODUCTSSHIPPEDFROMJAPANANDAPPROPRIATEFREIGHTRATESASWELLASSEEKTOINCREASEPROfiTABILITYBYACTIVELYENGAGINGINOFFSHORETRANSPORTINTHEASIAREGION.INCOASTALTRAMPSERVICES,WEWILLSEEKTOCONTINUESTABLETRANSPORTOFLIMESTONETOSTEELANDCEMENTCOMPANIESANDCOALTOELECTRICPOWERCOMPANIES.INCOASTALLINERSERVICES,WEWILLSEEKSTABLEPROFITSBYINTRODUCINGASTATE-OF-THE-ART,ENERGY-EFFICIENTLINERONTHETOMAKOMAI-HITACHINAKAROUTE.INFERRYSERVICES,WEWILLSTRIVETOINCREASETRANSPORTVOLUMEBYOPERATINGFOURVESSELS,INCLUDINGTHESILVERPRINCESS,PUTINTOSERVICEINAPRILTHISYEAR.INSHORTSEASERVICES,WEWILLSTRIVETOIMPROVEPROfiTABILITYBYINCREASINGVOLUMEOFCARGOTRANSPORTEDBOTHEX-JAPANANDWITHINASIA.INCOASTALSERVICES,WEWILLENHANCETRANSPORTSERVICESANDMEETADDITIONALCUSTOMERNEEDSANDSIMULTANEOUSLYINCREASEFUELEFfiCIENCYTOPRESERVETHEENVIRONMENTBYDEPLOYINGSTATE-OF-THE-ARTVESSELS.INFERRYSERVICES,WEWILLFOCUSONLONG-TERMBUSINESSCONTINUITYTOMAINTAINOURFOUR-VESSELOPERATINGSTRUCTUREINORDERTOINCREASETRANSPORTVOLUMESANDADHERETOOURRESPONSIBILITYFORMAINTAININGSERVICEROUTESVITALTOPEOPLE’SLIVES.MANAGINGEXECUTIVEOFfiCERTOSHIYUKISUZUKIMANAGINGEXECUTIVEOFfiCERTOSHIYUKISUZUKIINITIATIVESINTHENEWMEDIUM-TERMMANAGEMENTPLANINITIATIVESINTHENEWMEDIUM-TERMMANAGEMENTPLANSHORTSEAANDCOASTALBUSINESSLOGISTICSBUSINESSINTHENEWMEDIUM-TERMMANAGEMENTPLANWEFORECASTANINCREASEINLOGISTICSDEMANDINASIA.WEWILLBOLSTERANDEXPANDASTABLEEARNINGSBASETHATISRESISTANTTOBUSINESSDOWNTURNSBYEXPANDINGLOCALLY-BASEDTOTALLOGISTICSSERVICESSUCHASWAREHOUSINGANDTRANSPORTINGFINISHEDVEHICLES.“K”LINEHASPOSITIONEDTHELOGISTICSBUSINESSASASUSTAINEDGROWTHSECTORANDWILLCONTINUETOVIGOROUSLYENGAGEINAIRFREIGHTANDOCEANFREIGHTFORWARDINGBUSINESSES*1ANDINBUYERSCONSOLIDATIONBUSINESS*2.*1FREIGHTFORWARDING:THESHIPMENTOFCARGOBETWEENTHECARGOOWNERANDCARRIERANDPROVIDINGINCIDENTALSERVICESATTHETIMEOFCARGOTRANSPORT*2BUYERSCONSOLIDATION:CONSOLIDATION-DISTRIBUTIONSYSTEMINWHICHSINGLEBUYERUSESANAGENTTOCOLLECTPRODUCTSFROMMULTIPLELOCALMANUFACTURERSTHATARECO-MINGLEDINTOCONTAINERSFORTRANSPORTTODESTINATION,PROVIDINGGREATERSHIPPINGEFFICIENCYANDREDUCTIONINCOST,LEADTIME,INVENTORYANDWAREHOUSEWORK.OVERVIEWOFFISCAL2011INLOGISTICSSERVICESASAWHOLE,BOTHREVENUESANDPROfiTSINCREASEDYEARONYEAR,SUPPORTEDBYPROfiTSFROMTHEAIRFREIGHTANDOCEANFREIGHTFORWARDINGBUSINESSESANDDOMESTICWAREHOUSEOPERATIONS.REVENUESANDPROfiTSROSEINTHEINTERNATIONALLOGISTICSBUSINESSONHIGHEREXPORTVOLUMEFROMJAPAN,CHINAANDOTHERASIANCOUNTRIESANDHIGHERDEMANDFOREMERGENCYAIRCARGOFORSUPPLYCHAINRESTORATIONAFTERTHEflOODINGINTHAILANDANDINTHEDOMESTICLOGISTICSBUSINESSONHIGHERWAREHOUSEDEMANDACCOMPANYINGEARTHQUAKEDISASTERRECONSTRUCTION.INTHEBUYERSCONSOLIDATIONBUSINESS,EARNINGSIMPROVEDACCOMPANYINGGRADUALBUSINESSRECOVERYINTHEUNITEDSTATES.FISCAL2012BUSINESSOUTLOOKINLOGISTICSBUSINESS,THE“K”LINEGROUPWILLENGAGEINLOCALLY-BASEDTOTALLOGISTICSSERVICESWITHAIRFREIGHTANDOCEANFREIGHTFORWARDINGANDBUYERSCONSOLIDATIONASTHECOREBUSINESSESUSINGANAPPROACHCHARACTERIZEDBYUNIQUEPROPOSAL-DRIVENSELLING.EXAMPLESOFTHISARETRIPLEDECKERMOTORCYCLECARRIERSDEPLOYEDINASIAANDLOGISTICSMANAGEMENTSYSTEMSDEVELOPEDBYTHE“K”LINEGROUP.WEHAVEOBTAINEDORAPPLIEDFORPATENTSINfiVECOUNTRIESINCLUDINGINDONESIAFORTRIPLEDECKERMOTORCYCLECARRIERS,WHICHCONTRIBUTETOLOGISTICSCOSTREDUCTIONANDCO2EMISSIONREDUCTION.ATGROUPCOMPANIESENGAGEDINOTHERLOGISTICSBUSINESSES,WEWILLUPGRADEANDEXPANDEXISTINGBUSINESSES,PRINCIPALLYLANDTRANSPORTATIONANDWAREHOUSING.INCHINA,WEPLANTOSTARTOPERATIONOFALARGEWAREHOUSE(APPROX.40,000M2)INASUBURBOFSHANGHAI.(ABOVEILLUSTRATION)27ANNUALREPORT2012


<< | < | > | >>