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Message from President
- Takao Suzuki
President and
Chief Executive Officer
Hitachi Transport System had recorded increases in both sales and profit for six consecutive years from FY2003, achieving record service revenues and record operating income in the previous fiscal year. Although FY2009 brings declines in both sales and profit for the first time in seven years, we see it as the start of a new period of growth, aiming to attain service revenues of \500 billion and operating income of \25 billion in FY2012.
Viewing the global recession as an opportunity to differentiate itself and grow, the Company will take on challenges this year with a focus on the following three policies.
Aiming to expand our global logistics by linking group companies for synergy as the primary goal
In April last year, we established a joint venture, Hitachi Xinxin Global Logistics (Hunan) Co., Ltd. in Zhengzhou, Henan Province, China, with two local Chinese companies. In October, J. P. Holding Company, Inc. headquartered in Indiana, the United States, became a Group company. Together with ESA s.r.o in the Czech Republic, which joined our Group in 2008, Hitachi Transport System Group now has major transport companies in the principal regions of North America, Europe, China.
We have aggressively expanded our sales bases in Japan as well, for instance by adding the logistics subsidiary of Uchida Yoko Co., Ltd. to our Group. Despite the recession, the potential needs for global 3PL—an area of specialization for us—are growing. I would like not only sales but also companies both domestic and overseas to take advantage of the synergy with these newcomers, actively propose advanced logistics services that best characterize Hitachi Transport System, and take action to expand order volumes.
Differentiating itself from competitors by promoting green logistics as the secondary goal
The new government led by the Democratic Party of Japan has announced a plan to reduce greenhouse gas emissions by 25% from 1990 levels by 2020. Setting aside the quantitative discussion, this is a challenge facing the entire world, and the logistics industry has its share of responsibility.
We have also practiced environmental management, recognized for instance by our number-one ranking in the transportation category of "Nikkei Environmental Management Survey" in 2009. We set up a Green Logistics Committee in April 2008 and have pursued activities such as the expansion of platform operations, the introduction and greater availability of eco-cars, and the expansion of the modal shift. Above all, we pioneered the industry platform operations in the industry and have already taken initiatives in the pharmaceutical and toiletry industries, aided by the understanding of our customers.
Last year, we also identified ways to expand the fields of cosmetics, office furniture and shoes.
Going forward, I would like to further differentiate our Company through our commitment to green logistics, by expanding initiatives not only in the industry platform operations but also in many other fields.
Further enhancing the Company’s brand value as the tertiary goal
This year is the 60th anniversary of the founding of the Company. I heard that sales at the time of foundation 60 years ago were small and the Company could barely afford to hire new recruits. Now, the Company is in a very fortunate position, as order volumes are exceeding expectations despite this recession, and we are carefully selecting new recruits from among a number of applicants.
These show that the Company’s brand value is high. A high brand value is essential for any company seeking to develop on a permanent basis. The current brand has been established as a result of the recognition for the efforts made by a number of predecessors and employees in the 60 years since foundation. Our mission is to continue to enhance our brand value.
This 60th anniversary marks the end of a chapter as well as the start of a new chapter. On this occasion, to get the year off to a vigorous start for the next 60 years, I would like to once more reaffirm our customer-first principle and our corporate philosophy of "always working to provide high quality services that will help make the world a better place for mankind and nature."
