NYK’s decision of liner integration with two other Japanese companies will have far-reaching impacts on its business, stressed NYK’s president Tadaaki Naito, addressing the group’s employees, on the occasion of the company’s 132nd anniversary, on 2 October.
According to Mr Naito, the decision to integrate the liner business from April of next year was made in order to achieve the necessary competitive strength by securing critical mass in terms of operational scale and ensure the business survives.
“The new joint-venture company will utilize the best practices of the three companies and everything will be created from scratch, and this will require significant effort. For us, getting the new company off to a smooth start will initially be the most important issue. Following this, it is my expectation that the business will be able to achieve stable profits,” he said.
Once the integration is complete, it will be necessary for the remaining divisions to take over the functions that are currently performed by the liner business division, including fostering international personnel, acting as an antenna for new business opportunities and information, and serving as the point of contact for customers, business partners, and government agencies, he added.
In addition, Mr Naito noted that, while the new joint-venture company will focus on increasing its competitive ability and overtaking the competition, the businesses that are peripheral to and affiliated with the liner business — such as domestic terminals and harbor transport within Japan, tugboat services, inland transportation, and ship management — need to further refine their capabilities and achieve even higher competitive strength in order to survive in the new era.
“The changes in the business environment are pummeling the company with significant strength whether we like it or not, and both the scale and impact are increasing. Starting with the liner integration, we will overcome these transformations, and in order to survive into the next era, we will introduce a business portfolio for the group businesses that can be expanded and contracted to match both the environment and current era.”
