MOL initiatives in the Americas; interview with Managing Executive Officer

2023.07.20

Leveraging Experience in New Business Development, Business Intelligence, and Sales Headquarters, aiming for “Ambidextrous Management” through “Deepening” and “Exploration”

After more than 100 years of using fossil fuels, we are now at the tipping point in the use of clean energy. Mitsui O.S.K. Lines, which aims to achieve net zero emissions by 2050, has formulated Environmental Vision 2.2, which sets forth goals and actions to be taken for the conservation of the marine and global environment, one of the important initiatives in its management plan, BLUE ACTION 2035, and is working to resolve environmental issues. Tomoaki Ichida, Managing Executive Officer, who has been in charge of the Americas region since April 2023, is vigorously pursuing new business models for next-generation clean energy as well as deepening existing businesses in the region. We asked Mr. Ichida about the status of activities and future initiatives of the Mitsui O.S.K. Lines Group in the Americas region, which is home to a variety of global companies, from venture and startups to traditional companies.

Deepening the potential of the Americas

---What are your aspirations when you became an executive officer in charge of the Americas?

Ichida

When I joined the company, I was in charge of recruitment in the Human Resources Division, and six months later I was transferred to the Containership Sales Department, where I was put in charge of North American shipping. Also, my first overseas trip as a student was to the United States, so it was my desire to live there one day, but I did not think it would ever happen. However, fate led me to be transferred to North America to be put in charge as the Chief Regional Representative, giving me a sense of destiny. The vast area covered by North and South America has a big impact on Mitsui O.S.K. Lines’ business, so a great deal of responsibility goes with my position. Nevertheless, what we want to do is clear: we are aiming for ambidextrous management, that is deepening our existing businesses whilst exploring new ones.

---"Deepening" and "exploring" are the key words here. First of all, what activities are you doing to "deepen" existing businesses?

Ichida

Major businesses in the Americas region include transportation and logistics operations, including automobile, dry bulk, chemicals, and energy.

In the Americas, in particular, automobile transportation is our main business and we transport nearly 900,000 completed vehicles annually, both as imports and exports. This is equivalent to about 150 vessels on the basis of a PCTCs (pure car and truck carriers) which can transport about 6,000 standard passenger cars at once, so we recognize this as a very large market. In dry bulk, copper concentrate transportation from Chile and chemical products transportation from Texas and other coastal areas of the Gulf of Mexico are also important hubs. In the oil and gas business, we are expanding LNG transportation from North America and offshore operations off the coast of Brazil. In the logistics business, MOL Logistics has offices in various parts of the Americas, each of which is developing a business closely related to the region. The expatriates and local staff at each division have shown excellent teamwork, and I would like to continue supporting this situation.

MOL Group map Americas area

MOL group office in North America

We also believe that existing businesses are likely to generate new business seeds and are growth drivers. It has been reported that electric vehicles (EVs) will enter the business mainstream in the United States in the future, and an IEA report predicts that 60% of new vehicle shipments will be EVs by 2030. This will lead to knock-on changes such as a higher demand for copper due to increased use of components for battery production and renewable energy. The global supply chain is also changing in terms of logistics and we expect to see an increase in logistics based on local production for local consumption due to the trend toward energy efficiency optimization and decarbonization. In addition to physically transporting goods, it is also important to consider how to add value to transportation. For example, if raw materials can be loaded at point A and processed on board or in the car before reaching point B, new value can be created. Now that logistics has matured, we are wondering how we can add further value during the physical travel time.

Evolve into a social infrastructure company by "exploring" next-generation energy businesses

---So, what about "exploring" new businesses?

Ichida

We will continue to develop our transformation into a marine clean energy business in the Americas, which we have been working on since our days in the Energy Business Strategy Division.

First, regarding upstream investment in the next-generation energy business, we will be involved in the production and supply of ammonia and e-methanol, which are seen as potential alternative fuels for ships. By investing in the production and supply of alternative fuels, we will gain a firm grasp of the manufacturing process, cost structure, and quality, and will not only ensure the supply of fuel, but also ensure safety measures. The energy transition will also create new value chains. Seizing this as a business opportunity, we hope to build a clean energy business in collaboration with various partners through our company's participation in the entire value chain, upstream and downstream, in addition to the traditional shipping business. Through these activities, we hope to establish a foothold for Mitsui O.S.K. Lines to emerge as a social infrastructure company using next-generation energy.
Second is investing in startups and ventures. We will invest from the early stages in the development of technologies that will surely be needed in the future, and aim for business opportunities from a long-term perspective. For example, new manufacturing technologies for next-generation energy could be one of the investment targets. Invented at the beginning of the 20 Century, the "Harbor-Bosch process" is a revolutionary production method for ammonia synthesis that has brought many benefits to mankind, but it requires a large amount of energy, which is a challenge. Recently, research on alternative manufacturing technologies has been progressing and we are keeping a close eye on them.
(Related blog) 5 things you should know about ammonia that will draw attention
As part of our efforts to achieve net-zero emissions, CCS* and CCUS*, which capture, store and utilize CO2, have attracted a great deal of interest. Discussions are taking place on the various ways to utilize the recovered CO2 after its capture and recovery, such as creating carbon credits by returning it to the ground and storing it, and reacting the recovered CO2 with hydrogen derived from renewable energy to produce e-methanol. Research is also active in the United States on Ocean CDR (Carbon Dioxide Removal), a technology that uses the ocean's ability to absorb CO2 to store it in the ocean.
(Related blog)
What CCUS is Expected in a Carbon-Neutral Age (Part 1) (Part 2)
In May of this year, we established MOL Switch to invest in start-up companies developing businesses related to decarbonization technology, and I became its President. Switch is a name that implies changing to a new stage that aims to commercialize environmental value. Taking advantage of our location in Silicon Valley, we hope to build a network with universities and research institutes as well as venture startups.

*CCS ...: Carbon dioxide Capture and Storage. The separation and recovery of CO2 emitted from various industries and its storage and injection into the ground.

*CCUS ... "Carbon dioxide capture, utilization and storage."

---What are your plans for the South American region?

Ichida

I want to build a "Glocal” business model, one that fuses both global and local. South America, with its unique culture, has business opportunities that we don't yet see. We will use Mitsui O.S.K. Lines’ network of offices around the world to develop community-based businesses that fit each region while sharing best practices from other regions.

---New ideas keep popping up. What is the source of these ideas?

Ichida

Just as taking the four corners is important in the game of Othello to gain an advantage, it is important in business to identify the points to be held. When I want to make something happen, I always keep my eyes open to gather information while remaining aware of what is missing and what I need to fill in. But I'm not doing anything particularly difficult, and I'm interested in small changes in daily life and value introspection which enables me to notice them. Newspapers and the Internet alone inevitably tends to present biased information. I am inspired by meeting and talking with people from all walks of life, and I am grateful for all the people I have met so far and all the people I will meet in the futurefor opening my eyes to new possibilities.

Closely monitor political and economic developments and link them to management plans

---What topics are you focusing on these days in the Americas?

Ichida

Currently I am thinking about next year's presidential election. Now, with the country under a Democratic administration, we are focusing on environmental initiatives and the IRA (Inflation Reduction Act) is spending about $370 billion in the area of "energy security and climate change" through tax credits and subsidies. Financial support for environmental businesses has flourished, including tax breaks for clean power and support for manufacturing industries that support the introduction of clean power. Therefore, there are many start-ups with technologies related to climate change countermeasures, and we would like to utilize the various systems in the United States and link them to the achievement of our management plan. On the other hand, a major policy shift could occur depending on the outcome of the presidential election, so we are keeping a close eye on what changes could possibly occur.

In addition, amid rising geopolitical and geoeconomic risks such as U.S.-China relations and Russia's invasion of Ukraine, we are closely watching the political and economic trends in the United States because of its significant impact on the global economy. On the economic front, there is a theory that the economy will enter a recession in the second half of this year, so we will gather information that is available only in the United States and monitor developments closely.

Health comes first! Enjoying life with the thought of "one day is a lifetime"

---I know you are busy every day, but is there anything you keep in mind while working in what is considered to be a temporary post?

Ichida

Let's see, I have been in charge of the Americas region for exactly two months, and I am constantly in a different time zone because I often travel around the region on business trips. I can't seem to get rid of jet lag, but my strength is that I can sleep anywhere, so I always try to find a little break to take a nap.

After I arrived here, I started running again. I run 7-8 km on weekdays and about 15 km on weekends along the Hudson River. Running refreshes me and gives me the time to come up with new ideas which may help me professionally. I also like to cook, so I cook for myself and eat what I like. I try to take care of my health by giving myself a ‘liver rest-day’, something I have never done before. When I was first stationed overseas, my boss told me "The most important things to keep in mind, when stationed overseas, are; health first, family next, and work last." So I believe that health for myself and my family is more important than anything else, and as a result, this will lead to a job well done.
When I work overseas, I try not to forget that I am working in another country. Even though it is a Japanese company I am working for, its overseas subsidiaries are made up of staff that include local employees. I hope to create new added value in the region and help local staff to continue working for a company that they can be proud of.

The saying "one day a lifetime" is a quote by Yusai Sakai, a Tendai sect Buddhist monk, which means to live a day as if it were your whole life. I hope to live by this saying and to cherish and positively enjoy my days in the Americas, a region with diverse faces that cannot be described in just a few words and which continues to evolve dynamically.

■Profile
Tomoaki ICHIDA
Managing Executive Officer
MOL (Americas) Holdings, Inc. President

Born in Tokyo. Mr. Ichida graduated from the Faculty of Commerce of Keio University in 1992 and joined Mitsui O.S.K. Lines in the same year. Previous responsibilities include working in the Human Resources Division, the North America Department, the Tanker Division, etc. He was stationed in Thailand from 1997 to 2001 and in London from 2011 to 2016. From 2016 to 2018 he was Group Leader of Product in the Tanker Division, and from 2018 to 2020 transferred to Asahi Tanker. In 2020 he was head of the Energy Strategy Division. From April 2022, he also worked in the Fuel Division and Unit 1 of the Liquefied Gas Business Group (LPG/ammonia business). In April 2023, he was appointed as executive

officer in charge of the Americas. He joined MOL Switch as a representative on May 19th while establishing e5 Lab, Inc., a shipping solutions provider aiming to electrify and digitize ships, and became CEO (currently serving as Executive Advisor)