Tokyo: Koji Miyahara, president of Nippon Yusen Kaisha (NYK), announced a new three-year management plan beginning in fiscal 2008 at a news conference held in Tokyo on March 27, reports the Kaiji Press. The plan, dubbed "New Horizon 2010", calls on the group to accelerate its business evolution in India and other emerging markets, and actively expand its integrated logistics services through combination of land, air and sea transport modes. It envisages Y220 billion in group ordinary profit and Y145 billion in net profit on sales of Y3.2 trillion for the final year fiscal 2010.
The plan mentioned "growth", "stability" and "environment" as its keywords. It projected that the strong dry cargo rates, which have helped to boost the profitability of shipping operators over the past years, will fall to roughly half the current levels in fiscal 2010. Miyahara said, "The dry bulk market will enter a phase of downward adjustment in/after fiscal 2008. The number of Capesize bulker newbuildings due for completion is estimated at slightly more than 80 vessels in fiscal 2008 and 100-120 units in fiscal 2009. More than 160 vessels are expected to be completed in fiscal 2010 even if Chinese shipyards should fail to complete their ships as planned. A bottoms shortage created by a steep expansion of demand will be removed in fiscal 2010."
Under its new business plan, NYK will aim to become one of the world's top five logistics service providers.
On environmental responsiveness, Miyahara said, "As a business group, we will aim to become a runaway leader in the world in this area." He said that beginning in April 2008, the group will carry out its "NYK Cool Earth Project", a six-year initiative pushed under his direct control. This requires the group to cut its carbon dioxide (CO2) emissions by at least 10% by fiscal 2013 from the fiscal 2006 levels in terms of primary unit (moving a 1-ton cargo over a mile). At least Y70 billion will be spent over the next six years to push various R&D projects, including development of an ultra energy-saving ship.
Also incorporated in the business plan were steps aimed to reinforce the group's corporate foundation, such as intensified approaches toward navigation safety, human resource development and corporate social responsibility (CSR). [31/03/08]
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