Oct 4, 2016

YKIP targeting 4.25 million TEUs in handlings in FY2020

The Port of Yokohama, Minami Honmoku pier, MC-3 terminal

Yokohama-Kawasaki International Port Corp. (YKIP) on Sept. 29 unveiled its 5-year medium-term management plan that covering fiscal 2016 up to fiscal 2020. Under the plan, YKIP aims to boost its container handlings to 4.25 million TEUs by fiscal 2020, from the current 2.9 million TEUs, as well as increase its trunk routes to more than 10 routes from the current eight. As for port facility development, YKIP aims to open D-1 terminal at Honmoku Pier by 2018, and promote the development of MC-3 east side and MC-4 at Minami-Honmoku, planning to kick off operation of these terminals at an early stage. Further, YKIP claimed that it will map out a development plan as soon as possible for the New Honmoku Pier.

Under the midterm plan, YKIP laid out its management principle of making sure that Yokohama and Kawasaki ports will contribute to the revitalization of Japan's industries as international hub ports in Eastern Japan, as well as help in creating a dynamic regional society. The plan also calls for the development of advanced container terminals (CT) capable of coping with ships' enlargement, along with expanding and retaining trunk route services and collecting container cargoes from inside and outside Japan.

Specifically, it has a three-pronged management policy, comprising (1) reinforcement of competitive edge for CT, (2) contribution to the sustainable development of society through its business activities, and (3) sustainable and evolutionary business operations.

With regard to the reinforcement of functions of its CTs, YKIP aims to frontload operation startup of MC-4 terminal at the deep-water berth of Minami-Honmoku Pier in cooperation with the government and port administrators, and also map out a development plan for SHC-1 terminal at New Honmoku Pier early on. It intends to develop its terminals in order to cope with demand for ship enlargement. As for existing CTs, it will upgrade specifications of their stevedoring machines and promote improvements in order to address the issue of equipment deterioration at these terminals.

Port facilities will be made earthquake-proof and base isolation will be implemented on gantry cranes so that they can withstand massive earthquakes. YKIP is engaged in active activities aimed at reducing environmental burden.
With regard to efficient operation of CTs, YKIP will create a system to promote mutual use of piers and gantry cranes at its consecutive berths. It will also work on the proper layout and upgrades of port-related facilities in hinterlands of CTs, as well as reinforcement of access to the terminals.

In software side for cargo collection, YKIP will continue to actively engage in port sales in Japan and overseas, as well as attract new routes and promote ship enlargement via its route reinforcement support programs. Further, YKIP intends to beef up its moves to take in cargoes from various Asian countries by carrying out individual proposal-type freight collection support schemes. As for cargo collection from wide areas in Japan, it will partner with oceangoing ship operators, coastal ship operators and railway operators,. On top of these, YKIP intends to venture into reefer cargoes by utilizing frozen/refrigerated warehouses at the back of its CT at Kawasaki port.

In the area of reinforcing its financial foundation, YKIP plans to team up with the government and port administrators in securing funds and boosting its creditworthiness. It will also regularly create/update simulations on medium-/long-term loss/gain standings and financial management.

In organizational front, YKIP will create a cross-sector business unit system for integrated and efficient operation of Yokohama and Kawasaki ports, as well as advance partnerships with Yokohama Port Corp., Kawasaki Rinko Soko Futo Co., and port administrators. YKIP will also promote personnel exchanges and training programs with overseas port operators that have become models in strategic port operation.

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