SPOT LIGHT

"Success Is Never Final"

Mr Akimitsu Ashida, President, Mitsui O.S.K. Lines

IT is our intention to set the world standard for how a successful shipping company should be run," declares Mr Akimitsu Ashida. The President of Mitsui O.S.K. Lines Ltd (MOL) is positive and optimistic by nature. This is a man who regularly holds what he calls "Can-Do" meetings where executives and department managers get together for discussions. "It is at these meetings where I can express my thoughts directly to employees and hear their opinions," he explains. "To become a ‘Can-Do company’ we must continue strengthening communication between all employees and at all levels. Only then can the company grow in size and strength, and as an MOL Team we can overcome all obstacles. We want to be a company that is unafraid to meet any challenge, can achieve whatever we set out to accomplish, continually strives for improvement and growth, and does all this with enthusiasm and integrity."

The foundations for this were laid in MOL Advance, the company’s mid-term management plan for financial years 2007-2009. "Growth with enhanced quality" is the main theme of MOL Advance, now in its second year. This means sustainable growth with profits that meet stakeholders’ expectations. The company therefore places considerable emphasis on maintaining and reinforcing a strategic portfolio of ocean shipping activities. MOL, as an ocean transportation company with a full range of services, owns and operates various types of vessels in almost all sectors, including dry bulk ships, tankers and container vessels. This strategy goes a long way towards shielding the company from individual negative market changes. Furthermore, MOL has a stable profit base of over 120 billion yen annually. "We have set MOL on course to become an outstanding company in terms of quality and service, and in so doing intend to become a role model for other ocean shipping companies worldwide," says Mr Ashida. "The two key elements are the prioritising of safety and expanding the scale of our operations."

Establishing and reinforcing working practices to ensure safe operation is a top priority throughout the company, underpinned by an investment of about $350 million over the three-year period of MOL Advance. One of the most important change was the introduction of a vessel-centred ship management system accompanied by the fostering of a gemba, or on-the-spot decision making, attitude.

"High-calibre, well-trained seafarers are the foundation of our operations, and they play a critical role in operational safety," says Mr Ashida. "We started operating our own training vessel, Spirit of MOL, as our core seafarer educational institute. It is the only training vessel owned by a private shipping company. New seafarers of many nationalities, who represent the future of our company, receive on-the-job training on Spirit of MOL. In addition to providing them with the practical and technical skills they need to carry out their duties as seafarers, they also gain full understanding of the importance of safety in the day-to-day operation of a vessel."

In February this year, MOL introduced the world’s most advanced 360-degree bridge simulator at its India Training Centre (MANET-India) in Maharashtra. A second bridge has a 120-degree field of view. The new simulator allows practical training under realistic conditions with a first bridge and a second bridge, such as the simultaneous operation of two vessels. MOL’s global training network now includes overseas crew training centres in seven countries — India, Japan, the Philippines, Montenegro, Croatia, Indonesia and Russia.

In Mr Ashida’s eyes, concern for people extends to concern for the environment. "In April 2001, our company introduced the MOL Environmental Management System 21 (MOL EMS 21) to enhance safe operation and protection of the marine and global environment," he explains. "In January 2003, we adopted the system to cover all our operated vessels, and acquired certification under ISO 14001 international environmental standards. The MOL Group is well aware of the environmental burden generated by our business activities, and takes various measures to protect the environment, such as building and launching environment-friendly vessels, minimising the environmental burden of vessel operations, countermeasures for global warming, energy saving, waste reduction, countermeasures for air and water pollution, resource recycling, and the development and adoption of environmental technologies."

Specific examples include its Pure Car Carrier (PCC), which (because of its aerodynamically rounded and bevelled bow line and wind channels along the sides at the top of the garage deck) is able to maintain a straighter course than conventional PCCs due to reduced wind resistance. Then there is the MOL-developed Propeller Boss Cap Fins (PBCF) system; installed at the rear of the propeller hub, this can enhance propulsion efficiency by effectively breaking up the hub vortex, resulting in a 4 to 5 per cent improvement in fuel efficiency at the same speed.

Ballast water is a hot topic, and MOL exchanges ballast water in the open sea a specified distance offshore. "We are working proactively to develop ways to render ballast water harmless," explains Mr Ashida, "and we cooperate with manufacturers, researchers and others in the adoption of ballast water purification systems and onboard demonstrations." Alongside concern for the environment sits concern for our fellow men. In March 2005, MOL became the first Japanese ocean shipping company to participate in the United Nations’ Global Compact. The company offers grant-in-aid transport to the United Nations High Commissioner for Refugees (UNHCR), using its global network to transport aid and relief supplies to disaster-stricken areas as well as providing monetary donations. So what worries this optimistic man? "Currently, our concerns are the decline of the dollar against the yen and the steep rise in bunker prices," explains Mr Ashida. "In fiscal 2006, the exchange rate was 117.40 yen to the dollar, and the bunker price was $321 per ton. In 2007, the figures were 115.55 yen to the dollar and $409 per ton. These factors had an impact of over 30 billion yen on our business performance for fiscal 2007 compared to fiscal 2006.

"However, we did enjoy the benefit of a rising dry bulk market, and greatly exceeded our plan’s initial annual targets. We continue to face a severe business climate in which a declining dollar and skyrocketing rise in bunker prices are expected, but have raised our forecasts for the second and third year of MOL Advance. The main reasons for our positive forecasts are our continued fleet expansion, rising containership freight rates, and further cost reductions," he says.

"I occassionally use appropriate quotes when delivering a message to employees to make better my points. I am fond of using Sir Winston Churchill’s quote ‘Success is never final’ to encourage us to push forward towards even higher goals, and avoid becoming complacent." 

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