Feature - IINO LINES - 飯野海運株式会社 IINO eport 2014 28 Iino Kaiun Kaisha, ... typically spent their free time together playing Japanese chess ... and Myanmar. One of the

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28I I N O R e p o r t 2 0 1 4

Iino Kaiun Kaisha, Ltd. (Iino Lines) celebrates its 115th anniversary in July 2014.

Our history and traditions date back more than 100 years to 1899, when

Torakichi Iino founded Iino Shokai in Maizuru, Kyoto Prefecture.

Japan’s modern infrastructure was under construction, such as first

long-distance telephone networks connecting Tokyo, Osaka, and Kobe, and the

building of Tokyo’s waterworks, when Founder Torakichi Iino launched a coal

shipping and stevedoring business. His credo has been passed down into the

IINO Group Philosophy and Code of Conduct practiced by the Iino Group today.

“Always act for the community and for people.”

With a vision for the future, Iino Lines is continually changing in anticipation of

the needs of the next generation. At the same time, we carry on our founding

credo to make contributions to society.


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〜 The Changing and the Enduring 〜

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Founder Torakichi Iino, the keystone of our 115-year historyTorakichi Iino was born in Nogata, Fukuoka Prefecture.

Filled with entrepreneurial spirit, he started his career

selling coal in Osaka City. In 1899, he relocated to Maizuru,

Kyoto Prefecture, where the former Imperial Navy had just

opened a naval base, and founded Iino Shokai as a cargo

handling company. Iino Shokai became the origin of

today’s Iino Group.

By 1918, the business was flourishing, and Iino Shokai

was converted into a stockholding company, Iino Shoji

Kaisha,Ltd. In 1922, the company expanded into the

shipping business with the establishment of Iino Kisen

Kaisha, Ltd. Iino Shokai’s ocean transport business was

taken over by the new company.

In the 1920s, the Imperial Navy followed the lead of other

leading nations of the age in switching its ship fuel from

coal to oil and so began storing heavy oil. At the request

of the Imperial Navy, Iino Kisen also entered the tanker

business in 1929 with the launch of “TAKATORI MARU No. 1

(1,226DWT)”, our �rst tanker.

Iino Kisen Kaisha, Ltd. then expanded its tanker business

to support the Imperial Navy’s policy of building and

protecting a superior tanker �eet. “FUJISAN MARU

(13,586DWT)” was built in 1931 as Japan’s �rst full-�edged

oceangoing tanker.

Over the next decade, Iino Shoji Kaisha,Ltd. and Iino Kisen

Kaisha, Ltd. continued to expand their businesses. After

a merger in 1941, the company name was changed in

1944 to the current Iino Kaiun Kaisha, Ltd (Iino Lines). At

that time, however, Japan became involved in wars with

foreign nations. As a result, the nation’s shipping industry

su�ered severe losses, and many of Iino Lines’ vessels were

destroyed and crews perished in the oceans they voyaged.

In Gratitude for the Home Port of MaizuruJapan’s shipping business was adrift immediately after

the Second World War, having lost its sense of purpose.

Shipping companies struggled to survive, including

Iino Lines. In December 1945, however, a decision was

made to transform the Maizuru Naval Arsenal into a

civilian operation, and as a respected local company,

Iino Lines was requested to participate in the civilian

operations. Torakichi Iino was enthusiastic about the

civilian development of his home port of Maizuru. With

the encouragement of the local citizens, he declared

that Iino Lines owed its existence to the former Imperial

Navy and city of Maizuru, and that taking over the civilian

operations was a way of repaying that debt of gratitude.

In April 1946, Iino Lines hired some 2,500 former

employees of the arsenal and established the Iino Sangyo

Kabushiki Kaisha, Ltd. Maizuru Shipyard.

Growth and Contraction

In 1950, Iino Lines built Japan’s first large tanker of

the postwar era, “RYUHO MARU (14,717DWT )”. We also

actively expanded business through liner routes to New

York and other destinations.

In the late 1950s, Japan’s economic development

accelerated with the shift to a manufacturing model

centered on heavy and chemical industries. Shipping

companies temporarily enjoyed the so-called “Suez

boom” in 1956 after Egypt nationalized and closed the

Suez Canal. During the boom, freight rates soared amid

a supply shortage as shipping companies were forced

to navigate around South Africa’s Cape of Good Hope.

The next year, however, freight rates plunged with the

prospect of the reopening of the Suez Canal, and the

entire shipping industry suffered a severe slump as

competition intensified again.

In this circumstance, Iino Lines launched its first

liquefied petroleum gas (LPG) tanker, the TOYOSU

MARU (22,974DWT ), in 1963. It was during this period,

Founder Torakichi I ino (left) ; TAKATORI MARU No.1 (upper right); FUJISAN MARU (lower right)


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30I I N O R e p o r t 2 0 1 4

however, that the administration of Prime Minister

Hayato Ikeda passed “Kaiun Saiken Niho” -The Two

Laws for the Reconstruction of the Sipping Industry,

intended to consolidate the shipping industry by

eliminating excessive competition and rightsizing

their businesses. As a result of these measures, Iino

Lines divested its liner division in 1964 and the

company assumed its present-day structure.

A Leap Forward with the Iino Building

Today, Iino Lines has not only a Shipping Business

but also a Real Estate Business. The Shipping Business

has endured since the company’s founding, while

the Real Estate business was added to provide a new

pillar of stable profit. The origin of this business was

the construction of the old Iino Building (gross floor

area of 76,808.82m2). Iino Fudosan Kaisha Ltd. was

established in 1953 to manage the real estate business

and construction on the old Iino Building began in

December 1958. We moved our headquarters to the

new building when it opened in 1960.

Located in the Uchisaiwaicho district of Chiyoda,

Tokyo, the old Iino Building offered easy access to

public transportation. The visitors have fondly known

the building, as a office building with its state-of-the-

art design, at the time, and a hub for cultural activities

hosted at the Iino Hall. For more than 40 years, the Iino

Building stood witness to steady change both in Tokyo

and Japan. In 2008, we began a rebuilding project with

the aim of providing even safer, more comfortable

offices, commercial facilities and Iino Hall.

.

In October 2011, the new Iino Building (gross floor area

of 97,918.93m2) opened. To establish a “connection”

between the old and new buildings, a wall relief by

modern artist Masanari Murai which adorned the entrance

of the old Iino Hall was relocated to the new Iino Hall on

the fourth floor. Marble from the passageways of the old

building was also reused in the new Iino Building.

In this way, the old Iino Building marked a leap forward for

the Real Estate Business as a new earnings pillar alongside

the Shipping Business.

Global Vision Spurs Self-reform

Iino Lines has consistently reformed its business structure

to adjust to social change.

Although Japan had emerged as the world’s second-

largest free-market economy in the 1970s, its shipping

RYUHO MARU built in 1950

Relief by artist Masanari Murai

The old Iino Building opened in 1960


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industry was put to the test amid severe changes in the

business circumstance.

In August 1971, the so-called “Nixon shock” precipitated the

end to the $1=¥360 �xed exchange rate and a revaluation of

the yen. Japan and other leading nations adopted �oating

exchange rates and the yen continued to appreciate. The

Plaza Accord in 1986 set exchange rates at around ¥150 to

the dollar, marking further yen appreciation.

For Japanese shipping companies booking revenues mainly

in dollars, the yen appreciation was a major blow to their

business. In this circumstance, Iino Lines took the initiative in

launching its own structural reforms.

At the time, Japanese vessels were manned exclusively by

Japanese seamen, but Japanese shipping companies began

considering the hiring of non-Japanese seamen to o�set the

impact of yen appreciation on the global competitiveness.

In 1974, Iino Lines was quick to establish Iino Marine Service

Co., Ltd. to accelerate the hiring and development of non-

Japanese seamen, and in 1975 we began the �rst voyages

with a multinational crews of Japanese and non-Japanese

seamen. Iino Lines was the pioneer among Japanese

shipping companies, as the other companies didn’t start

using multinational crews until several years later.

Multinational crews

A vessel’s crews comprise many seamen.

When Japanese were the only crews aboard a vessel, they

typically spent their free time together playing Japanese chess

or tossing a ball back and forth to communicate e�ectively. The

cooks were also Japanese then, and the ships raised their own

vegetables onboard so the cooks could make fresh, delicious

Japanese meals. In fact, seamen from other shipping companies

often praised the meals onboard an Iino Lines vessel.

Today, with multinational crews, the ratio of non-Japanese

seamen has increased and there are many opportunities

to enjoy multicultural exchange. Most of our non-Japanese

seamen hail from South Korea, the Philippines, and Myanmar.

One of the key management themes is encouraging close

communication among the multinational crews in order to

facilitate safe vessel operations.

Iino the Tanker Company

Energy transport is Iino Lines’ main strength. Our energy

transport business is built around VLCC (Very Large Crude

oil Carrier) transporting crude oil, gas tankers transporting

LPG and lique�ed natural gas (LNG), and coal carriers

transporting coal to electric power plants.

In 1950, we built Japan’s �rst large tanker in the postwar era,

“RYUHO MARU” as stated before. A half-century later, in 1999,

“RYUHO MARU” was relaunched as our �rst double-hull VLCC

and began shipping operations. Currently, the vessel primarily

transports crude oil from the Middle-East to Japan.

The LPG tanker “TOYOSU MARU”, built in 1963, was named

after the Toyosu Pier in Tokyo Bay, where it discharged

cargo at an LPG terminal. The third-generation “TOYOSU

MARU”, built in 1997, transports LPG around the world,

mostly from the Middle-East to Japan.

In 1991, we took part in LNG development projects in

Indonesia and Qatar, while collaborating with other

shipping companies to become a joint LNG tanker owner.

In 2003, we built “SK SUNRISE” to realize our long-awaited

goal of pursuing the LNG transport business with a self-

owned tanker.

In 1979, Iino Lines started the transportation of

petrochemicals by chemical tankers which grew to the

current pillar of our shipping business today. A chemical

tanker has multiple tanks and a variety of products can be

transported together. However, the advanced quality control

of cargo, such as preventing contamination by foreign

substance, is needed for the transportation.

As a result of our having repeated safe transports on di�cult

conditions, Iino Lines has a �eet of the world's largest scale

and prides itselfon the top share of the petrochemical

transportation from the Middle East to Asia now.

RYUHO MARU built in 1999 (VLCC )


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The transportation of these resources to Japan from

overseas is a crucial lifeline for economic activity

and daily life for Japan, which lacks its own natural

resources. Iino Lines provide energy transport services

not only to Japan, but to other countries as well. We

have come to be known as “Iino the tanker company”

for our long-established reputation to anticipate

society ’s needs and constantly ask ourselves how we

can satisfy these needs through our transport services.

In this way, we have developed a history as an energy

transport specialist.

In addition, I ino Lines offers not only a tanker but

the transportation by other types of vessels. The dry

bulk carriers which transport coal, grain, and steel

products, and the wood chip carriers which load the

wood chip as basic ingredients of paper, satisfy the

needs of the customer who ask for safe and stable

transportation.

In addition to international energy transport, we have

a strong presence in Japan. In 2007, we established

Iino Gas Transport Co., Ltd. as a domestic transport

specialist. Iino Gas Transport leverages its expertise

to provide transport services matching the needs

of its customers. The company has also begun LPG

and petrochemical regional transport among Asian

countries.

The entire Iino Group will continue striving to support

marine transport services worldwide and in Japan.

Global-minded Employees

Iino Lines has established Group companies and other

sites around the world.

In the seafaring nation of Singapore, IINO SINGAPORE

PTE. LTD. began chemical tanker operations in 2006.

IINO SHIPPING ASIA PTE. LTD. was also established in the

country in 2008. These two companies have a combined

workforce of about 30 employees, comprising Japanese

expatriates and local Singaporeans.

Besides Singapore, the Iino Group has regional offices

in Dubai, United Arab Emirates, and Dalian, China,

along with a UK local subsidiary, IINO UK LTD., and

a joint venture in the United States. The Shipping

Business enjoys close business relations with many

foreign companies, and our employees strive to deepen

relations by conducting business locally with these

partners.

Never content with past achievements, our employees

leverage this international network to strive daily to

realize our future vision.

SK SUNRISE (LNG Carrier) CHEMROUTE PEGASUS（ Chemical Tanker）

JP CORAL（ Coal Carrier）


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A Leap Forward for the Real Estate BusinessIn 1997, Iino Kaiun Co., Ltd. and Iino Fudosan Kaisha

Co., Ltd. merged with a new future vision for the future

development of the Shipping Business and the Real Estate

Business. Iino Fudosan had built a solid foundation for the

Real Estate Business through the opening of four office

buildings in central Tokyo, including the old Iino Building.

In the same year, the rental photo studio company Iino

Media Pro Co., Ltd. was established and the “Hiroo Studio”

opened. The company currently operates rental photo

studios in Hiroo and Minami-Aoyama, Tokyo.

In 2006, we completed our first skyscraper, the Shiodome

Shiba-Rikyu Building (gross floor area of 32,702.37m2),

with 21 floors above ground and three floors below

ground. The new Iino Building was then opened in

October 2011. The Real Estate Business had successfully

met society’s need for office space and commercial

facilities and achieved a leap forward as a core business

with stable earnings.

The new Iino Building was designed to be a cherished landmark for a century to come

The old Iino Building featured a stately but modern

design which made it a familiar Tokyo landmark.

The old Iino Building was constructed at a time when

convenience was a priority. As times changed, society

developed a heightened awareness of the need for

improved security, environmental consciousness, and

emergency responsiveness. We made a decision to rebuild

the Iino Building with the realization that a transformation

was needed to meet emerging needs of the future.

At the same time, we also ensured a “connection”

between the old and the new by re-exhibiting a

distinctive wall relief and reusing the marble from the old

Iino Building.

Construction on the new building began in 2008 and was

completed three years later, when the new Iino Building

opened for business in October 2011.

In February 2014, two and a half years after opening, the

new Iino Building was awarded the Sustainable Building

Award, Institute for Building Environment and Energy

Conservation Institute President Award, by the Institute

for Building Environment and Energy Conservation

Institute (IBEC). The award recognizes both superior

architecture as well as outstanding achievements in

promoting energy conservation and low impact on

environment. The Iino Building also earned the highest

ranking of “S” for domestic leased buildings under

IBEC ’s Comprehensive Assessment System for Building

Environmental Efficiency (CASBEE). Furthermore, we

won the technical prize which the Society of Heating,

Air-Conditioning and Sanitary Engineer honors publicy

to excellent facility engineering etc.

In December 2014, “Iino Forest” will rise next to the Iino

Building. Connecting with surrounding green spaces, the

forest will feature about 160 trees and plants, including

Shokowa and Garyu cherry trees from Takayama City,

while exhibiting works of art.

In this way, the new Iino Building is designed to meet

the social needs of any generation, and it is our hope the

building is cherished 100 years into the future.

“Always act for the community and for people.”Our 115-year legacy is grounded on the enduring credo

of founder Torakichi Iino: “Act for the community and for

people.” We will honor this credo by continuing to meet

the needs of society and sustaining our legacy through

steady daily endeavors and a vision for the future.

The Society of Heating, Air-Conditioning, and Sanitary Engineers of Japan Award


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1899

1929

1931

1944

1949

1960

1964

1970

1974

1991

1997

1999

2001

2003

2004

2006

2007

2011

The I ino Group's H is tory

Torakichi Iino founded Iino Shokai in Maizuru, Kyoto. (the company began transporting and stevedoring coal by barge).

The group’s first tanker, TAKATORI MARU No.1 was delivered.

Japan’s first oceangoing tanker, FUJISAN MARU, was delivered.

Iino Kaiun Sangyo Kaisha, Ltd., was renamed Iino Kaiun Kaisha., Ltd. (Iino Lines), its present name.

The company’s stock was listed on the Tokyo Stock Exchange.

The old Iino Building was completed. (the head o�ce was move there and Iino Hall went into operation within).

In conjunction with shipping industry rebuilding, the Liner Service Department was split o� into newly established Iino Kisen Kaisha, Ltd.

The group’s �rst Panamax Bulk Carrier, ZENKOREN MARU No.5, was delivered.

Iino Marine Service Co., Ltd. was established as a vessel management company.The next year, it launched the �rst system in Japanese history that allowed Japanese and foreign sailors to work aboard the same vessel.

The group participated in an Indonesian LNG project and began transporting LNG (the group became co-owner of its �rst LNG Carrier, LNG VESTA, the next year).

Photo studio-operating company Iino Mediapro Co., Ltd. was founded.

The group’s �rst double-hull tanker, RYUHO MARU, was delivered.

The group took part in the world’s largest methanol production project in Saudi Arabia (operations began in 2004).

SK SUNRISE, the �rst LNG Carrier operated by the group, was delivered.

Simultaneously acquired ISO 9001 and ISO 14001 certi�cations for the shipping business (the o�ce leasing business followed suit the next year).

Iino Singapore Pte. Ltd. began ship operating and chartering activities.

The Small Gas Carrier Division was split o� and integrated into Iino Gas Transport Co., Ltd.

The new Iino Building was opened.

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Feature - IINO LINES - 飯野海運株式会社 IINO eport 2014 28 Iino Kaiun Kaisha, ... typically spent their free time together playing Japanese chess ... and Myanmar. One of the