This is the time for “Logistic Network”

Interview with Masao Tomohiro, senior resident representative of NYK Line Seoul office

Usually, good wines and strong friendships get better as time passes by. But in the case of Korea, development was a whirlwind of rapid change. Some things changed for the better just like a fine wine or good friend, but other things experienced a great deal of growing pain. In the technology sector, changes are even quicker, and the results are often even more pronounced. It seems that the only tradition left is change.
NYK (Nippon Yusen Kabushiki Kaisha) is a Japanese carrier with over 100 years of history. In 1885, it started its business as part of the Mitsubishi Group, which is now better refered to as a mega group. At that time, it was left in charge of carrying letters for the government, just as its Japanese name says: Nippon - Japan, Yusen : Postal, Kaisha : company. A hundred years went by and NYK grew up into a mega carrier, ranking first in the worldin its number of vessels (based on a March 31, 2001 count). Sheer numbers doesn't completely cover NYK; their fleet consists of numerous different vessels types, allowing customers to choose specific vessels suitable for their cargooes. The fleet includes bulk carriers from handy size to cape size, open hatch bulk vessels, coal carriers, timber carriers, car carriers, and refer cargo carriers. NYK's various vessels are one of of its greatest strengths, and they pride themselves in being able to handle any cargo whatever it is.
In January, 1996, when the Grand Alliance launched with its starting members of Hapag Lloyd and OOCL, NYK also participated in the alliance. The Grand Alliance maintained services together in North American, European, Asian and Australian trades.
I bring myself to devote my attention to my host when I see Mr. Tomohiro's new business card on his desk. I haven't seen it before. He explains that it is new and I'm the first to see it. He goes on to tell me that the logo represents NYK’s willingness to provide total integrated logistic services for land, sea and air. It resembles a fluttering feather of large white bird.

KSG: Would you like to explain the logo for me?

Mr. Tomohiro: (pointing to logo) The large blue feather represents the sky, the small feather also stand for the sky and the black characters ‘NYK LOGISTICS & MEGA CARRIER’ symbolize land. With this logo, NYK is showing its emergence as a total logistic company with warehouse companies, trucking companies and air cargo companies all over the world, as well as shipping companies.

-Specifically, when did Soyang shipping take charge of NYK operations in Korea?

“It goes back to August, 1973. The Korea Maritime Transportation Corporation (KMTC), one of the oldest shipping companies in Korea, became an agent for NYK. As Soyang Shipping was established about 1983 when maritime rationalization policy took effect, it then became the official NYK agent.”

- As a matter of fact, the overall maritime market performed poorly last year all over the world. Given that, are there any changes in your service calling at the ports of Korea and any new services planned?

“NYK vessels are calling at Korean ports 1,300 times per year. Amongst those, 700 are by container vessels, and the others by car carriers, LNGs, and tankers. The terrible maritime situation provoked some schedule changes in Pusan. As a total logistic company, we will continue to do our best in all of our service areas, just as we have been doing.”

Mr. Tomohiro said that NYK is seeking to provide a logistic network service And that it is time for shipping companies not to simply operate vessels but to provide all kinds of logistic services. If the whole logistic process is integrated, including trucking, warehousing, and stevedoring, it will be easier to save on costs at every stage in the process as well as shorten extra labor. He said that the idea is under consideration in Korea, even though not in public discussions.

-How long have you been in Korea and what is your main responsibility?

“Two years. The average stay for a representative is three years. But I would like to stay more if the situation allows. A representative is just like a coordinator. I have to coordinate the views between headquarters and the local agency on vessel operations.”

A little tension passes across his face. Things are not always easy, and there are sometimes sharply divided opinions between headquarters and the regional agency. It is not fresh news that Korea showed very low freight rates compared to its neighbor countries. For example, Korean freight rates are far behind China's. So, shipping companies generally wants try to ship light cargoes with high profit margins, rather than heavy cargoes with low profit margins.

Recently, after seeing Hyundai Merchant Marine (HMM) sell their headquarters building and some terminals connected with their parent group’s debt, Mr. Tomohiro felt sorry for them. Being proud of the shipping industry and its undertaking of a specific role, he expected that HMM would recover soon and there would be backing from industrial and governmental bodies.

-What is Korea like and how do you find the Korean people?

“Whenever I fly between Korea and Japan, nearly all of the stewardess say good-bye to me in Korean. That might, I think, prove that I look Korean. In my case, there are no difficulties to live in Korea except for my family in Yokohama, Nato and Umeboshi.
As a matter of fact, Korea and Japan are neighbors, aren’t they? Included in the same oriental culture, I think that we, Korea and Japan, seem to be 80% similar and 20% different. However, rather seeing the similarities, we always focus on the differences. I think it’s better to focus on our similarities than our differences.

Mr. Tomohiro's philosophy of life is ‘do your best’, ‘enjoy life’ and 'harmony’.
Everybody has that kind of philosophy. However, not everybody can carry that into practice; Mr. Tomohiro seems to do it. I think that his vigor and energy for life show in his face. His books on the filing cabinet could be an example of that life view he has.