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NYK aims to pursue innovation to stay ahead of competitors

JAPAN's NYK Group plans to focus this year on strengthening its logistics offering through the acquisition of Yusen Logistics Co, expanding its activities in the renewable energies field, and on embracing "digitalisation" across the entire group, especially by making use of the Internet of Things (IoT).

The use of new technologies and digitalisation in practical operations will allow the group "to realise a wide range of ideas and further differentiate ourselves," NYK president Tadaaki Naito told staff recently at the Tokyo headquarters.

He highlighted that last year's establishment of the joint venture company Ocean Network Express Pte Ltd (ONE) for liner business integration with two other Japanese carriers, and the acquisition of Yusen Logistics Co Ltd (YLK) will shape the group's future.

He said that the "difficult work" of bringing ONE to life is continuing in preparation for its launch this April.

With regards to its logistics business, through YLK, Mr Naito hopes that logistics will be on "the frontline of the entire NYK Group through the utilisation of our global network to achieve closer relationships with our customers."

The automobile logistics business has continued to grow; and the president wants the group to work together with YLK to focus on terminals and overland transportation, and to utilise IT in these activities to increase the group's competitive strength.

He said that air freight cargo volumes remain strong, and said the group is preparing a system for operations with the jumbo freighter segment, a strength of Nippon Cargo Airlines (NCA).

Now that the dry bulk market is recovering, the plan is to advance structural reforms and deploy data and IT tools to increase the group's ability to respond to the developments in the market.

As for the liquid division, the group plans to identify new business opportunities in the renewable energy field in addition to transporting energy-related materials and supporting electric power businesses.

"LNG and the offshore business will be the mainstays of business with stable freight rates in the future," said Mr Naito. "The transport of oil and petroleum products is one area where the focus is expected to shift to Asia in the future," he said.

As the promoter of "creative solutions," the president is urging the group's technical headquarters to expand this activity across the entire NYK Group. "Promotion of digitalisation and new technology such as autonomous sailing has the potential to advance the next generation of safe vessel operations," he said.

Mr Naito concluded: "The business results for the group are showing signs of improvement. Of course, this is due in a large part to the improvement of the shipping markets, but it is also the result of the efforts made by all employees during the 'Beat the Crisis' internal activity carried out over the past two years."