TOKYO - Looking back on an eventful year in the shipping industry, Mitsui O.S.K. Lines (MOL) selected the following achievements to be the company’s top news stories for 2000:
Accelerating towards the goals of MOST21 - Phase 3 of MOL's Creative and Aggressive Redesigning
The company made major strides in Mitsui O.S.K. Lines' Strategy Towards 21 (MOST21), launched in April 1999. Over the past year, MOL strengthened its group-wide capabilities and resources, maximized synergistic effects throughout the organization, and maximized shareholder value.
At the end of the first half of fiscal year 2000 (September 30, 2000), MOL forecasted the following results for the fiscal year ending March 31, 2001: consolidated revenue of 890 billion yen (US$8,403 million), ordinary income of 46 billion yen (US$434 million), and net income of 8.5 billion yen (US$80 million), and non-consolidated revenue of 680 billion yen (US$6,420 million), ordinary income of 45 billion yen (US$425 million), and net income of 11 billion yen (US$104 million). In short, MOL is poised to achieve its three-year profit goals one year ahead of schedule
Implemented management restructuring plan (June)
MOL took several steps to strengthen its corporate governance and developed more effective management strategies to ensure faster decision-making. The company appointed outside directors, introduced the Executive Officer Program, set up a Corporate Visionary Meeting, established the Executive Committee as the top decision-making body, and transferred decision-making authority to executive officers at the operational level.
Takeo Shiina, Senior Advisor, IBM Japan, Ltd. And Toshiko Fukui, Chairman of the Fujitsu Research Institute and former Senior Deput Governor, The Bank of Japan, were nominated as outside directors.
New president (June)
Kunio Suzuki, formerly deputy president, was named MOL President in June, succeeding Masaharu Ikuta, who was appointed Chairman of the Board.
Established IR Office (April)
MOL established the Investor Relations Office to increase the transparency of management through more efficient, aggressive IR activities and to ensure a more accurate valuation of the company's shares in the financial community.
Established LNG Ship Management Division (June)
In a move to enhance the safety of LNG vessel operations and cargo handling, LNG carrier management operations previously handled by the Marine and Technical Divisions were combined under the LNG Ship Management Division.
Issued MOL Group Environmental Policy Statement and published
Environmental Report (September and October) underscoring the MOL Group's commitment to environmental protection was released. MOL announced a group-wide environmental policy to encourage all personnel in the MOL Group to take a more active approach to environmental protection programs and to establish common goals. MOL was also the first Japanese shipping company to publish an environmental report outlining the philosophy behind its environmental policy. In addition, MOL established a group-wide organization to promote environmental protection activities in the future.
Strengthened group management
MOL established the Combined Group Planning Department in the Corporate Planning Division to strengthen group-wide management. The task of the department is to develop ways to improve consolidated profits. Specific activities include the introduction of a Group Cash Management System and group human resources management policies. They also held segment subcommittee meetings to strengthen group-wide execution. The company took aggressive steps to unify and reorganize subsidiaries and affiliates whose business areas overlapped as a result of the merger with Navix Line.
Advanced Information Technology (IT) Strategies
In October, MOL opened a fuel auction internet site 'bunkerplaza.com', with the goal of holding down fuel price increases. This is the first world's full-fledged fuel auction site to be operated by a shipping company.
In December, MOL and nine other containership operators teamed up with a U.S. IT venture company in a business-to-business (B2B) initiative to market container shipping services online through a neutral, independent portal site.
In September, the company announced plans to equip all MOL-operated crude oil tankers with the Electronic Chart Display and Information System (ECDIS), which displays real-time information on ship position, radar readings, and data from Automatic Radar Plotting Aids (ARPA) equipment. This advanced technology will help reduce the risk of grounding and other marine accidents.
Fleet modernization
A total of 23 vessels - eight (8) pure car and truck carriers (PCTCs), seven (7) Cape-size bulkers, six (6) double-hulled very large crude carriers (VLCCs), one (1) LNG carrier and one (1) methanol carrier -- were launched to enhance the capacity of MOL's fleet and ensure continually improving levels of service. MOL also decided to launch five 6,000 TEU Over Panamax class containerships, as part of a fleet restructuring plan focusing on the North America route. In all, the total number of Over Panamax class containerships will be 13, including three to be launched in 2001 to serve Asia-Northern Europe routes.
For more information, please contact: Hidenori Onuki, Manager Publicity Office Publicity Team Tel: 81-3-3587-7015, Fax: 81-3-3587-7705, E-mail: pblmo@mail.mol.co.jp
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