MOT, New Capesize shipbuilding for 1st time in 14 yrs

MOT, New Capesize shipbuilding for 1st time in 14 yrs

For Japanese largest steel mill, Delivery in 2020

 

Mitsubishi Ore Transport Co., LTD (President Hiroyuki Nakamura) ordered a Japanese shipbuilder to build 200,000-dwt new Capesize bulker. MOT will put the vessel on the long-term contract with a Japanese customer after its delivery in 2020. On delivery basis, this newbuilding project is the first time for MOT in these 14 years. The company was established as an industrial carrier responsible for transporting iron ore from Chile’s Atacama Mine to Yawata Steel Works (now Nippon Steel & Sumitomo Metal Corporation). Presently putting their focus on managing a various type of vessel, MOT decided to replace self-operating iron ore carrier which symbolizes the company name, “Ore Transport”.

 

“SANTA LUCIA”, which is 177,000-dwt and has been put into the long term contract for the same customer, is succeeded by this new built ship, and in MOT fleet it becomes the largest vessel the owner ever had. The vessel will be equipped with Scrubber (exhaust gas purifier) in accordance with SOx emission control which is in effect from 2020.

 

Mitsubishi Ore Transport Co., Ltd. was established in 1959 by the six companies of the Mitsubishi Group as an industrial carrier responsible for transporting iron ore from Chile’s Atacama Mine to Yawata Steel Works (now Nippon Steel & Sumitomo Metal Corporation). Recently the company has four shareholders: Nippon Yusen Kabushiki Kaisha, Mitsubishi Corporation, Mitsubishi Heavy Industries, Ltd. and The Tokyo Marine and Nichido Fire Insurance Co., Ltd. Mr. Nakamura says, “In the beginning of the establishment, as a Mitsubishi group company MOT had the definite principle to support Japanese main industry by backing up the largest national steel company. After Atacama Mine had been closed, we have had set our focus on ship management business as a result that our forerunner searched for our business model as a shipping company. This shipbuilding project has the great significance on our company as the project enables us to continue our ore transport business which started at the same time from the establishment”.

 

Presently MOT fleets have 23 vessels including MOT-managing and co-ownership vessels. While Panamax bulkers account for 11 in 23, the following types of another eleven vessels are parts of our project vessels: Pure Car carrier, Wood chip carrier, and Coal carrier for power companies. Project vessels are chartered in long-term contract to the shareholders. On the other hands, Panamax bulkers are on average in less than one- year charter contract to European grain major, power and steel companies.

 

Foreign credible charterers have regularly chartered the Panamax bulkers. Before, the charter period was mid-term, but it has become shorter because of the stagnated dry-bulk market, forcing MOT to endure severe profit. With that being said, the market has gradually improved, and freight revenue per vessels per day is on average $1,500 higher than the estimate in this fiscal year, according to Mr. Nakamura. Now he thinks to change the present contracts to the longer ones in the right time.

 

MOT has worked on reviewing its business portfolio; it plans to increase the portion of Project vessels from the present 50 % to 80% of its entire fleet while decreasing the number of Panamax bulkers. The company has already decided to sell two of them. Conversely, it purchased Pure car Carrier the last year. This reflects the president’s idea to create the fleet that is not affected by the dry-market. It comes with reducing the amount of vessels exposed by the market. Mr. Nakamura says that we undertake the transportation for not only main Japanese customers but also excellent and closely-related foreign customers. He adds that we MOT strive for “multi-industrial carrier” making its utmost effort for multiple main customers. For the moment, the company aims for more growth by rearranging its fleet structure.

 

At the same time, MOT never underestimates the crew training program. The total number of crew is now about over 600; 20 of Japanese seafarers including land-based worker and about 600 of Filipino seafarers from MBM. One year ago the company started for Filipino crews the project called “Y-Project”; two Filipino experienced captains chosen as trainers give seminars to the compatriot crews when they are on vacation. Targeting the Japanese crews, on the other hand, the project named “J-Project” will be kicked off to make smooth the communication between Japanese and Filipino seafarers. Mr. Nakamura thinks “these steady efforts lead to maintain and improve our operation quality, contributing to the good reputation from foreign charterers for our ship-management”.

 

Now nine Super Intendents are working in MOT office: five Japanese and four Filipino. As a development program, Filipino Super Intendents that grew up in MOT vessels are expected to experience the work in both MOT and MBM office.

“We all MOT staff work on making envelops for the Japan braille library which is the library for people visually impairments and print disabilities. Those envelopes are made from sea-charts that have got unused as the digitalization goes on”, President Hiroyuki Nakamura says. Mitsubishi Ore Transport Co., LTD is committed to volunteer activities in connection with CSR. Sea-chart envelop have got good reputation for its design, and MOT staff usually make about forty to fifty envelops per one month. Mr Nakamura adds, “Companies should keep in mind social contributions while pursuing profit. We all do our best to make a good company culture that we perform what we can do for others”.