Annual Report 2000

(For year ended March 31,2000)

Business Review

Coastal Shipping (Kawasaki Kinkai Kisen Kaisha, Ltd.)

"HOKKAIDO MARU" honored with Nikkei’s Award

 

Kawasaki Kinkai Kisen Kaisha, Ltd. Main Financial Data Years Ended March 31

	Millions of yen
	2000	1999	1998	1997	1996
Total assets	¥26,298	¥25,915	¥24,534	¥22,368	¥21,080
Operating revenues	24,066	23,828	25,701	25,126	23,821
Net income	464	543	448	474	705
	Yen
Shareholders’ equity per share	¥333.95	¥314.03	¥302.12	¥294.43	¥285.73
Cash dividend per share	5.00	5.00	5.00	6.00	6.00

 

Kawasaki Kinkai Kisen Kaisha, Ltd. posted ¥24,066 million, (a 1.0% up as compared with last fiscal year) in operating revenues, with net income ¥464 million, a 14.5% down as compared with last fiscal year.

 

The near-seas marine transport sector operating revenues fell in fiscal 1999. The cargo market was worsened by the lingering dull imports by Japan due to its stagnating economy.      In terms of the domestic transport sector, operational revenues increased. Reasons are analyzed into a decrease of ships in number according to a governmental policy and the company’s success in opening new service. During this fiscal year cargo movement of paper was greatly reduced due to inventory adjustment and general rationalization by paper makers, while specialized carriers for limestone, coal, etc. could reach somewhere beyond their targets in business results.      In the domestic cargo ferry sector, operational revenues increased as compared with last fiscal year.      There was an epoch-making event that will definitely go down in the histories of not only Kawasaki Kinkai Kisen Kaisha, Ltd. but also Japan’s shipping industry.      In September 1999, the company and its partner Blue Highway Line Corporation restructured their joint service linking Tomakomai with Tokyo. Each placed a newly- built roll-on/roll-off cargo ferry with a world top speed of 30 knots. Its super-fast ferry is named the HOKKAIDO MARU. The transit time was reduced from 30 hours to 20 hours. For safety in high-speed navigation, professional experts with the support of updated navigational technologies are operating the ship with greater attention given to the super speed.      The HOKKAIDO MARU is earning its owning company and Japan’s shipping industry the benefits of speedier transport service, participation in larger share of domestic logistics by sea as well as accomplishing cleaner means of transportation.      Shorter lead time is likely to motivate customers to change conventional traffic routes, shifting to marine transportation from trucks, particularly in medium-range distances. Shift towards sea to a proper extent is the goal of the national policy of "Modal Shift" promoted by the Japanese government. Emissions of carbon dioxide can be reduced through decreasing dependence on trucks for domestic transportation.      For this challenging new service by two super-speed ferries, Nihon Keizai Shimbun, Inc. bestowed both companies with its "Nikkei* Superior Products and Services Awards in 1999," selecting them from among over 10,000 competitors.      Regarding outlook for fiscal 2000, the key target of management practices is upgrading corporate value, reinforcing corporate infrastructure. To be the most competent possible in the market, Kawasaki Kinkai Kisen Kaisha, Ltd. must grapple with perfection of cost management practices and supply customers with deeply-considered transport services. A newbuilding is due in July 2000 for transport of coal in the near-seas transport sector. *The Nikkei is a major financial newspaper in Japan, more familiar brand name overseas being the "Nikkei Weekly."

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