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Future-oriented, using "one on one  sparring mentality  (ぶつかり稽古（Butsukari-Keiko）a Japanese Sumo expression)" to strengthen the organization. Environment x Region x Portfolio Strategy to Achieve BLUE ACTION 2035

Nobuo Shiotsu, who has spent his career focusing on the dry bulk business, is now in charge of the East Asia, South East Asia, and Oceania regions as Senior Managing Executive Officer. As the head of the Mitsui O.S.K. Lines Group in Singapore, where many group companies are located such as ship management companies and operating companies, we asked him about the Southeast Asia and Oceania regions and how he sees the future in terms of business expansion. 

What are your beliefs at work?

---Tell us briefly about your career since joining MOL.

Shiotsu

• Shortly after joining MOL, I was assigned to the port branch office in Yokohama where I was introduced to the basics of the shipping industry, including sales. Next, I worked in the North American Division of the container business for about six years, including a stint in North America. Thereafter, I was involved in the dry bulk business for a long time and was in charge of a whole range of operations, until I became the officer in charge of the Iron Ore carrier division. During that time, I also served as the president of the MOL company in Chile, which oversees five countries on the west coast of South America. Since 2021, I have been stationed in Singapore and from this year, I have been placed in charge of the East Asia, South East Asia and Oceania regions.

MOL (Asia Oceania) Pte. Ltd.　Office

One of the most memorable moments I have ever experienced was an episode around 2002 when I was in the Iron Ore Carrier Division. At that time, our sales activities were focused on domestic customers, and we had only a few transactions with Chinese and Korean steel companies. Despite the headwinds from  many negative voices within the company, we were convinced that this market would grow tremendously in the future, so together with like-minded colleagues, I went to China frequently and persisted in this negotiation . As a result, we were able to secure long-term contracts with Chinese and Korean steel companies, perhaps a first  for a Japanese shipping company to do so. Of course, I suffered failures but with the  successes,  I felt the strong importance of believing in myself, forging new paths, and having the reassurances and necessity of friends who agree and cooperate with me. 

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• First, it is important to have frank exchange of opinions based on the company's future direction. It is like "one to one sparring  (in Japanese “Butsukari-Keiko”, a Sumo expression) in the positive sense of the word. I think it is important for superiors to accept their subordinates opinions and have future-oriented discussions with them, something akin to a Sumo wrestler “lending his chest” to a superior Sumo –wrestler, in way to be push to the limit to learn from his superior. In the past, I occasionally disagreed with my superiors, but they all accepted my opinions after  looking at it from a broadminded viewpoint.

• Second, you need to put yourself in the other person's shoes. If you are considerate to others, they will be more accepting of you. At the Singapore office where I am currently stationed, there are many staff members from various backgrounds unlike at the Head Office. This makes me keenly aware of the importance of understanding and accepting diverse values and moving forward together.

• Lastly, it is essential to move as quickly as possible. Market research and analysis play an important role of course, but if you are spending too much time on research you can  miss some opportunities. Once the general framework is set, it is important to set a timeline and act quickly, especially when developing new businesses.  Naturally there will be  staff members who prefer to exercise caution, so I think it is best if the project as a whole is well-balanced between more dynamic personnel and those that tend to be cautious, thus gaining the benefits from both approaches.

Town hall meeting at Singapore Office

Seize new business opportunities through a combination of Environmental Strategy, Business Strategy, and Portfolio Strategy

• MOL has formulated BLUE ACTION 2035 and Environmental Vision 2.2 to clearly show what the future should look like. BLUE ACTION 2035 aims to transform our business portfolio, increasing non-shipping business from approximately 25% to 40%.Since 2020 during the COVID-19 pandemic, we have been focusing our efforts on how to successfully turn the site around whilst implementing infection control measures, but at the same time we were steadily preparing for the start of the Environmental Vision 2.2 project. In addition, our Environmental Vision 2.2 sets specific target KPIs to introduce clean energy and create new business models to achieve net-zero emissions by 2050. We are focusing on how to incorporate these two goals into our business operations, and we are seeking to expand in multiple directions, including not only developing new businesses, but also cultivating new fields derived from them as an extension of our shipping business.
• Under the new business promotion structure, it is necessary to increase  the quality and speed of decision making, and to enhance the staff of each organization in order for regional organizations to collaborate with the head office in business development and management. 

[Southeast Asia] Collaborating with companies in various countries to promote decarbonization projects

• With regard to the utilization of next-generation fuels, MOL has been promoting the introduction of LNG-fueled vessels that can contribute to a reduction in GHG emissions. Utilizing this knowledge, we participated in the joint development of the ammonia fuel supply chain in Singapore, including the development of FSUs (floating storage units) and ammonia bunkering vessels. In June, we signed a memorandum of understanding (MoU) for a strategic alliance aimed at lowering the carbon intensity of the marine energy industry with Chevron, one of the world's leading integrated energy companies.
• In another recent development, we took a step towards building a CCUS value chain in the Asia-Pacific region by jointly developing liquefied CO2 vessels with PETRONAS, a Malaysian state owned oil company, and SDARI, a Chinese ship design organization.

See:　What is CCUS and how is it expected to be Carbon Neutral?
(Part 1) (Part2)

• In addition, in terms of decarbonization, Singapore plays a central role in efforts to achieve net-zero emissions by 2050, or 2060 in various other countries, including offshore wind power projects in the Philippines and Vietnam. Singapore is a regional hub, partly due to the fact that the headquarters of many global companies are located here and for the support given by the Singapore government. As a member of a large Singapore-based company, MOL has recently joined GCMD (*) as a strategic partner, and we will take this opportunity to make an even greater contribution to the global decarbonization drive originating from Singapore.
• GCMD (Global Centre for Maritime Decarbonization) *
  Strategically located in Singapore, the world's largest bunkering hub and second largest container port. GCMD aims to help the industry eliminate GHG emissions by shaping standards for future fuels, piloting low-carbon solutions in an end-to-end manner under real-world operational conditions, financing first-of-a-kind projects, and fostering collaboration across sectors.

【 Oceania 】 Looking ahead to growth in renewable energy in environmentally advanced countries

---What about the Oceania area?

Shiotsu

• Australia's major exports are iron ore, coal, and LNG, and the country also has a large impact on our company in the field of automobile transportation. We are looking to expand our business in this area as the country pushes forward with a national shift to renewable energy.
• For example, we are collaborating with Origin, a major energy company, to build a green ammonia supply chain. Green ammonia is ammonia made from hydrogen generated from renewable energy (green hydrogen). In July　2023 , the "Clean Energy District Construction Project" at the Port of Newcastle  started  earnestly, aiming to create a decarbonized society and local employment with the backing of the Australian government.

See: “Now in Australia　~Interview with MOL Australia~”

• Against this background, we established a new Chief Country Representative for New Zealand in April 2023. Going forward, we will further strengthen our efforts to develop new businesses, particularly in the renewable energy field, which will have a significant bearing on our core shipping business.
  I would like to further explore the possibilities of upstream investment in hydrogen, ammonia, and other next-generation energies, together with other new avenues for MOL.

MOL SHIPPING (AUSTRALIA) PTY LTD.

(Continued in Part II)

■Profile
NOBUO SHIOTSU
Senior Managing Executive Officer
MOL (Asia Oceania) Pte. Ltd. Managing Director, MOL Treasury Management Pte. Ltd. Managing Director Commissioned

Born in Kanagawa Prefecture in June 1963, in 1986, Nobuo Shiotsu graduated from the Department of Law, Faculty of Law, Keio University, and joined Osaka Shosen Kaisha Lines (present-day Mitsui O.S.K. Lines). In 2023, he became Senior Managing Executive Officer in charge of the East Asia, Southeast Asia, and Oceania regions.

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