From Ship Trading to Offshore Wind Power: Sumitomo Corporation's Maritime Business Supporting Global Maritime Transport

Could you give us a brief history of Sumitomo Corporation's ship business?

TanakaSumitomo Corporation's ship business began with trading in the 1950s. In 1973, together with partners, we established Oshima Shipbuilding (hereinafter "Oshima"), entering the shipbuilding business. In 1985, we commenced our ship owning business, and in 2004 we established Triton Navigation in the Netherlands, expanding into owning and operations.

BambaSumisho Marine was established in 1996 as a back-office and administrative support company for the ship financing operations handled by Sumitomo Corporation. Since 2021 it has embarked on a new chapter as an operating company and profit center that consolidates and carries out the ship-trading business previously handled by Sumitomo Corporation. Working closely with Sumitomo Corporation, we provide end-to-end services ranging from newbuilding, sale and purchase, chartering brokerage and financing arranegement to ship operation support.

What are the strengths of Sumitomo Corporation's ship trading business, the foundation of your operations?

BambaOur greatest strength is that we are the only integrated trading company with a domestic shipyard in our group. Oshima builds nearly 40 bulk carriers per year, ranking among Japan's top producers. In the small- and mid-size segments, it commands about 15% of the global market share.

Leveraging this network, we have also expanded into other vessel types such as large bulkers and tankers, as well as secondhand ships and financing arrangements, enabling us to transact with a wide range of shipowners and shipyards. This network also supports the growth of our ship owning business, diversifying our portfolio in an industry known for its volatility.

How are customer needs and market trends changing today?

BambaWith global population growth, demand for maritime transport is expected to rise. At the same time, shipping is a single global market, making it extremely competitive and exposed to geopolitical risks. Recently, we've seen shifts that were rare a decade ago – such as heightened China risk under the Trump administration, rising newbuilding prices driving up demand for bareboat charters*, and European shipbrokers – who function similarly to trading companies – opening Tokyo branches to compete in a traditionally stronghold market for trading firms.

To adapt to market shifts and diversify our business, Sumisho Marine has increased its European presence. We now have four representatives stationed in London, Amsterdam and Athens, working closely with colleagues in Tokyo.

*Where shipowners provide only the vessel, and charterers handle operations and management.

Decarbonization remains another major topic, as we understand.

Could you tell us about your initiatives in offshore wind power, one of your new business areas?

TanakaWe are engaged in two main businesses in offshore wind. The first is developing floating structures for larger, mass-produced offshore wind turbines. Floating offshore wind is attracting attention as next-generation renewable energy, but the technology is still developing and the supply chain for floating structures is not yet established.

To address this, Sumitomo Corporation is partnering with the general engineering firm JGC Corporation to build a supply chain for rapid mass production and transportation of floating components. As part of this effort, at Oshima's Koyagi Shipyard, we are considering a system to manufacture components for floating foundations and, in the future, assemble and mass-produce complete units.

We also collaborate with the Steel Group internally, which is likewise engaged in offshore wind supply chain development. Their global network and expertise provide valuable support in information gathering and business model design.

And the second business?

TanakaThe second involves investing in support vessels for offshore wind construction. In 2023, through a joint venture with a Dutch company, we established a business operating vessels specialized in transporting wind turbine components. In 2024, we invested in Norway's IWS Fleet, which owns, manages and operates CSOVs (Commissioning Service Operation Vehicles) that provide accommodation and safe transportation for engineers working on offshore wind turbines.

Sumitomo Corporation has long been in the ship business, yet in the European support-vessel sector we had very few connections and little expertise. We started from scratch – beginning with market research, even contacting potential partners via the inquiry forms on their websites. The IWS investment only came through after three offers, and negotiations and internal approvals had to proceed simultaneously within an unusually short timeframe. It was a series of challenges.

Did your past experiences help you when facing such difficulties?

Tanaka This may sound a bit philosophical, but I was encouraged by words once shared by a senior colleague in my trading days, a quote from Toshio Doko*: "Once you have decided what must be done, pursue it with relentless determination. It's not an issue of limited ability, but lack of resolve." In trading, a general trading company stands between parties, but unless you act with strong ownership, customers will not recognize your value. When problems arise, the mindset of "I will solve this, I can solve this" is essential.

What do you find most rewarding in this business?

BambaHaving spent my career in shipbuilding, I am drawn to the scale of the business – handling vessels worth four to five billion yen each, often several a year, alongside my manager. What moves me most are the naming ceremonies, where we name and send vessels off after deals that we worked hard to close, and everyone involved shares the joy of completion. In these moments I realize how glad I am to be doing this job. Many shipping companies are family-owned, and the fate of the company can hinge on a single vessel, which sharpens your ability to gauge trustworthiness. Over the years, this industry fosters both expertise and human qualities through relationships built on trust.

TanakaShipbuilding and shipping are infrastructure businesses that support daily life and contribute to achieving a decarbonized society. The pressure is high, but so is the sense of purpose. Another interesting aspect is the industry culture: across East and West, people place more importance on "what you say" and "what you can do" than on titles and positions. If you perform well, you gain recognition not only internally but also from clients.

Finally, could you share your outlook for the future?