ENVALITH
東京汽船株式会社 logo

Tokyo Kisen Co., Ltd.

9193・Standard Market・Warehousing & Harbor Transportation Services

Official website
東京汽船株式会社 logo
Tokyo Kisen Co., Ltd.9193

Business

Tokyo Steamship, founded in 1947, is a marine services company specializing in the Tokyo Bay area. Centered on its Tugboat Business, it provides berthing assistance, escort, and bay-mouth pilot boat services for vessels at the ports of Yokohama, Tokyo, Yokosuka, and Chiba. In its Maritime-Related Business, the company has operated Crew Transfer Vessels (CTVs) for offshore wind power generation since 2013, participating in offshore wind projects both domestically and overseas. In its Passenger Ship Business, it operates the regular Car Ferry route between Kurihama and Kanaya, as well as the Sightseeing Boat Business (Yokohama Port) through its equity-method affiliate YCruise, serving as a provider of regional waterborne mobility. The group is composed of 5 consolidated subsidiaries and 8 equity-method affiliates.

Business Model

The main revenue source is the fee-based model of harbor tug work rates and escort work rates in the Tugboat Business, where sales are determined by the product of the number of vessels entering/leaving port and the unit price. It is a capital-intensive, asset-heavy business with a high proportion of fixed costs (crew expenses, depreciation), and improving utilization rates and revising fee rates are the key levers for earnings improvement. The Maritime-Related Business adds CTV charter revenue, while the Passenger Ship Business adds fare and merchandise sales revenue. Asset-light transformation is also progressing through equity-method affiliated companies.

Company Strengths

The company provides tugboat services in four districts—Yokohama-Kawasaki, Tokyo, Yokosuka, and Chiba—and fulfills a public infrastructure-like role through escort operations on the Uraga Channel and Nakanose Fairway as well as guard boat operations at LNG berths. In FY2026 (ending March 2026), sales of the Tugboat Business reached ¥9,517 million, accounting for 72% of consolidated sales, and revenue increased in all districts even after the fee rate hike implemented in May 2025.

Since operating Japan's first dedicated offshore wind power access vessel in 2013, the company has secured orders for a CTV for O&M at Nyuzen Port in Toyama Prefecture and for CTV chartering during the construction phase of the Kitakyushu Hibikinada Offshore Wind Farm. In FY2026 (ending March 2026), sales of the Maritime-Related Business rose 100.4% year on year to ¥1,956 million, with the accumulated track record serving as a competitive advantage in winning new projects.

As of the end of FY2026 (ending March 2026), net assets stood at ¥29,344 million, with an equity ratio of 74.5%. Long-term borrowings decreased by ¥369 million during the period, keeping financial leverage low. Retained earnings accumulated further following the recording of net income of ¥5,046 million, which included a gain on sale of fixed assets of ¥7,970 million, giving the company sufficient funding capacity to cover CTV construction and the acquisition of shares in equity-method affiliates using its own funds.

ENVALITH's Perspective

Net income attributable to owners of parent for FY2026 (ending March 2026) of ¥5,046 million (up 146.9% year on year) was primarily driven by a ¥7,970 million gain on sale of fixed assets from the disposal of land, buildings, and vessels. Ordinary income was only ¥347 million, indicating that the core business's earnings power remains limited. Extraordinary losses were also recorded, including an impairment loss of ¥334 million and a provision for environmental measures of ¥233 million, warranting a cautious assessment of the sustainability of net income. It should also be noted that the payment of ¥2,573 million in income taxes will affect cash flow from the following fiscal period onward.

The company has designated its FY2027 (ending March 2027) earnings forecast as "undetermined," citing as the primary reason the de facto closure of the Strait of Hormuz resulting from the military conflict between the US and Israel and Iran. A significant decrease in vessels subject to tugboat operations, mainly tankers, is expected, though the magnitude remains unknown. The Tugboat Business is a core segment accounting for 72% of net sales, and by its nature, its performance is directly affected by changes in the external environment. While the effect of the May 2025 rate increase will provide support, whether it can offset the impact of the decline in vessel numbers will be the key focus for FY2027 (ending March 2027).

The Maritime-Related Business achieved net sales of ¥1,956 million in FY2026 (ending March 2026) (up ¥980 million year on year), but continued to post an operating loss of ¥192 million (an improvement from the ¥342 million loss in the previous period) due to increases in vessel charter fees, commissions paid, and depreciation expenses. The construction of new CTVs and rising construction costs have pushed up fixed costs, making improved utilization rates and the acquisition of additional projects key to reaching the breakeven point. The Passenger Ship Business also continued to post an operating loss of ¥58 million even after the transfer of the sightseeing boat segment to the equity method, and the group's overall operating income of ¥106 million reflects a structure in which the Tugboat Business's ¥319 million offsets losses in other segments.

Growth Strategy

Rebuilding the earnings structure around three pillars: tugboat rate increases, expansion of the CTV business, and streamlining of the passenger ship business

From May 2025, harbor tug service rates and escort tug service rates were raised across all regions. In FY2026 (ending March 2026), the application of the new rates spread through the second half of the year, contributing to revenue growth in all regions. Tugboat Business sales reached ¥9,517 million, up 10.7% year on year, with operating profit of ¥319 million.

In addition to O&M work at Nyuzen Port in Toyama Prefecture, sales reached ¥1,956 million, up 100.4% year on year, driven by the chartering of numerous CTVs for construction work at the Kitakyushu Hibikinada offshore wind farm. However, an operating loss of ¥192 million continued due to increases in charter fees and depreciation expenses. Investment in newly built CTVs (construction in progress of ¥1,608 million) is ongoing, and reaching the breakeven point through improved utilization rates is the next goal.

The sightseeing boat division at Yokohama Port (harbor sightseeing boats and water buses) was transferred to YCruise Co., Ltd. (an equity-method affiliate), reducing operating expenses centered on personnel and food costs. Sales in the Passenger Ship Business declined by ¥796 million, but fixed costs were lightened on a consolidated basis. However, an operating loss of ¥58 million continued, and stabilizing profitability in the Car Ferry Business segment remains a challenge.

Last updated: July 19, 2026