‘K’ Line eyes ASEAN, diversification to drive growth in 2013

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Japanese shipping line Kawasaki Kisen Kaisha (“K” Line) said that it will focus on expanding its Southeast Asian network and exploring businesses beyond container shipping to raise earnings in 2013.

Jiro Asakura, president of “K” Line, said in his New Year message that for this year, “I would also like to give attention to ASEAN [Association of Southeast Asian Nations] countries,” in addition to the United States, China, and the BRIC nations.

He said that following a visit to Thailand last year, he saw for himself Thailand’s dynamism as a growth market.

He added, “Indonesia is also expected to experience further growth, and the Philippines is emerging as a driver of economic growth in Asia. The world has great expectations for other nations having high potential growth rates, such as Vietnam and Myanmar… I am confident that these markets will expand further going forward.”

While noting that the marine transportation industry is still facing an “unprecedented crisis,” Asakura said that this year the delivery of a large volume of newbuildings will turn a corner, and the supply pressure will ease up.

“It will take a certain period of time to narrow the existing gap between supply and demand, but we will undoubtedly be able to smoothly navigate after passing through such rough seas,” he added.

To do this, he said the company will “continue to reinforce all efforts to reduce costs and develop businesses that provide stable earnings.”

In particular, the group intends to engage in new businesses in the ASEAN region beyond its existing container ship business. These include coastal shipping, automotive and motorcycle land transport, logistics, and port management.

 

Photo courtesy of “K” Line