INTERVIEW: Japan's MOL sees Southeast Asia as long-term growth engine

Japan's Mitsui O.S.K. Lines sees Southeast Asia entering a new phase of growth opportunities as the group expands beyond traditional shipping into energy infrastructure, logistics, and wider supply-chain businesses across the region, the company's senior managing executive officer Tomoaki Ichida told Platts, part of S&P Global Energy.

The company, which has longstanding operations across Southeast Asia, is shifting from an initial market development phase into a period focused on business execution and expansion, said Ichida, who also heads MOL Chemical Tankers.

"I hope that we can see very unique businesses in each country, from Indonesia, Thailand, the Philippines, everything," he said.

Ichida said the company is not prioritizing any single Southeast Asian country but sees structural growth opportunities across the region as economies expand and populations continue to rise.

"Asia will definitely become the center of the global economy," he said. "Southeast Asia is a driver for this growth."

In particular, demand for chemical logistics in Southeast Asia should continue to grow alongside regional industrialization and rising living standards, noted Ichida.

"Chemical is kind of like a mother of innovation," he said. "We have a very important role to safely transport and deliver the chemical to our customer."

As MOL taps into the region's growth, Ichida said the company established its Singapore sub-headquarters last year, as the city-state continues to build its maritime ecosystem, attracting more shipping business and capital.

"This country creates a market... Singapore is very attractive to those working in the maritime industry," he added.

Ichida said MOL expects the Singapore office to play a larger regional role over time, including supporting business continuity functions if disruptions affect headquarters operations in Japan.

Energy security drives opportunities

As the Middle East war exposed the region's dependence on energy imports, Ichida said such continued reliance on imported fuels could create additional demand for energy storage and reserve infrastructure as governments place greater emphasis on energy security.

He highlighted that floating storage and regasification units, or FSRUs, as one area where the company sees growth potential.

He said that among Japanese shipowners and operators, MOL is currently the only shipping company operating FSRUs in Asia, citing projects in Hong Kong, in addition to operations in Europe and Africa.

"We definitely can contribute to the customers' demand... to supply energies to society," he said.

MOL announced a long-term time charter contract for one newbuilding FSRU with SLNG in October 2024, and, in a separate interview with Platts, MOL said it is expected to start operations in 2029.

Ichida also outlined a future concept combining floating data centers, LNG supply, power generation ships, and FSRUs into an integrated offshore infrastructure model that addresses data centers' constraints on land availability and power supply, particularly in dense urban and coastal markets.

"We already started developing a floating data center," he said. "This is kind of another supply chain."

Growth beyond traditional shipping

Ichida said the company is targeting a strategic portfolio shift under which 60% of earnings would come from shipping businesses and 40% from non-shipping activities.

"Shipping is midstream of the supply chain... MOL is trying to expand our business in upstream and downstream as well," Ichida said, adding that those adjacent businesses include downstream logistics such as warehousing and storage infrastructure, as well as upstream energy production.

He said Southeast Asia remains attractive because both traditional shipping demand and adjacent infrastructure demand continue to expand alongside regional economic growth.

"We will be a service provider in the whole supply chain of some commodities," he added, noting that such an integrated model could be applied to chemicals, food, and other sectors.

Decarbonization a long-term strategy

Ichida reaffirmed the company's commitment to achieving net-zero emissions by 2050, while acknowledging that balancing sustainability goals with financial returns remains critical.

"It is necessary to achieve both financial returns and strategic returns in order to drive sustainability," said Ichida, adding that MOL's commitment to achieving net zero by 2050 has not changed.

Based on MOL's corporate management plan, Blue Action 2035, released end-March, the company aims to reduce greenhouse gas emissions by 60% from the 2019 baseline in 2050 through the adoption of alternative fuels, with 30% reduction achieved through improved fuel efficiency.