According to MANA, MITSUI OSK Lines, one of Japan’s three shipping majors, has embarked on another round of reorganisation following earlier set-ups of its dry bulker and energy transport units last year.
The group is aiming to combine its car carrier, liner shipping, port and logistics businesses into a new segment, dubbed the product transport business unit, effective on April 1, 2017, according to a press release.
In addition, the nascent unit will also include a new division specialising in creating new business in ferry and domestic shipping.
“[The product transport unit is] to create the cross-sectional system ‘One MOL’ to promote businesses in the product transport field and further meet customer needs,” MOL said.
The Tokyo-based shipping giant established the dry bulker and energy transport units in April last year in an attempt to weather the market downturn.
Before the restructuring, MOL’s container shipping operation was an independent unit, while the dry bulker and car carrier businesses were put together into a ‘bulk segment’.
Late last year, the company agreed to integrate its boxship fleet with those of the other two Japanese lines, NYK and K Line, in a joint venture between the three.
In addition to the product transport unit, the company will also make some adjustments in the energy transport unit.
A bunker business office will be established under the unit to replace the bunkering group of the original tanker division.
The office will not only be responsible for the company’s bunker oil and lubricant procurement, but will also accelerate initiatives to use alternative fuels such as liquefied natural gas.
At the same time, MOL has decided to transfer the Yamal LNG project from its offshore division to the LNG carrier division, making the former more focused on offshore business expansion.
Moreover, a business strategy execution office in the corporate planning division will be established to work on cross-segment business promotions.
MOL reported a 43% year-on-year rise in net profit for the nine months to December 31, 2016, to ¥19bn ($167.7m), although the improvement was due mainly to strong gains from the sale of shares of subsidiaries and associates.