Mitsui OSK Lines, the world's largest shipper in terms of fleet size, has revised down its business growth forecast for its Thai unit to 3% this year, from 10% earlier, reflecting the impact of the global slowdown on Thailand's exports. Takao Furukawa, the president of MOL (Thailand), said the forecast was in sharp contrast with the 16% growth in volume recorded in 2007 and 10% in 2006. MOL Thailand estimates its volume will reach 320,000 TEU (twenty-foot equivalent units) this year, compared with 300,000 last year. Mitsui OSK operates 875 vessels worldwide and controls about 6% of the import-export volume between Thailand and Japan, which totals 4.9 million TEU.
''We have revised our 2008 forecast to be more realistic after the actual figures started to drop in the second half after the strong growth of more than 10% in the first half,'' said Mr Furukawa.
Shipments of automotive products, especially parts and tyres, have declined considerably, along with electrical appliances such as refrigerators and washing machines, he added.
Nevertheless, Mitsui OSK has decided to expand its presence in Thailand by investing in its own container depot in Laem Chabang, Chon Buri.
The depot, the first of its kind for Mitsui OSK worldwide, would be completed in April next year and cover 47.4 rai or 75,800 square metres. The capital expenditure was not disclosed.
Mr Furukawa said the facility, located about 10 kilometres from Laem Chabang deep-sea port, would enable the company to supply the necessary containers to customers at anytime with efficient management of repairs and washing.
While saying that business outlook next year was still unclear, Mr Furukawa said the company expected some growth on expectations that Thailand's exports and imports would remain steady.
''Many Japanese automakers are expanding in Thailand's manufacturing centres. That could bring growth of import-export activities,'' he said.
The current boom in Japanese and western foods is also lifting imports of food and ingredients, he added.
Akimitsu Ashida, president of Mitsui OSK Japan, projects the business would remain poor next year, on expectations that the global economic recession would last two years.
The company has cut its earnings forecast for its fiscal year ending in March 2009 to 300 billion, unchanged from last year, from 350 billion projected earlier.
Demand for bulk carriers would be affected seriously as China is cutting its iron ore production by 20%, said Mr Ashida.
Mitsui OSK, however, has decided to build 70 more vessels this year in order to replace 70 ships retired from the global fleet. ''Some competitors might go bankrupt and we might see only major operators surviving and gaining more market share.''
''We have revised our 2008 forecast to be more realistic after the actual figures started to drop in the second half after the strong growth of more than 10% in the first half,'' said Mr Furukawa.
Shipments of automotive products, especially parts and tyres, have declined considerably, along with electrical appliances such as refrigerators and washing machines, he added.
Nevertheless, Mitsui OSK has decided to expand its presence in Thailand by investing in its own container depot in Laem Chabang, Chon Buri.
The depot, the first of its kind for Mitsui OSK worldwide, would be completed in April next year and cover 47.4 rai or 75,800 square metres. The capital expenditure was not disclosed.
Mr Furukawa said the facility, located about 10 kilometres from Laem Chabang deep-sea port, would enable the company to supply the necessary containers to customers at anytime with efficient management of repairs and washing.
While saying that business outlook next year was still unclear, Mr Furukawa said the company expected some growth on expectations that Thailand's exports and imports would remain steady.
''Many Japanese automakers are expanding in Thailand's manufacturing centres. That could bring growth of import-export activities,'' he said.
The current boom in Japanese and western foods is also lifting imports of food and ingredients, he added.
Akimitsu Ashida, president of Mitsui OSK Japan, projects the business would remain poor next year, on expectations that the global economic recession would last two years.
The company has cut its earnings forecast for its fiscal year ending in March 2009 to 300 billion, unchanged from last year, from 350 billion projected earlier.
Demand for bulk carriers would be affected seriously as China is cutting its iron ore production by 20%, said Mr Ashida.
Mitsui OSK, however, has decided to build 70 more vessels this year in order to replace 70 ships retired from the global fleet. ''Some competitors might go bankrupt and we might see only major operators surviving and gaining more market share.''