Tokyo Kisen Co., Ltd.

Business Details

The core segment operated by Tokyo Kisen Co., Ltd., Tokai Service Co., Ltd., and Toa Kisen Co., Ltd. It provides Harbor Tug (Berthing Assistance), Escort Tug (Uraga Channel Route Escort), Bay-Mouth Pilot Boat, and guard boat/disaster prevention services in the Yokohama-Kawasaki, Tokyo, Yokosuka, and Chiba areas. The business has a high fixed-cost ratio, and revenue is heavily influenced by the number of vessels entering and departing Tokyo Bay. In FY2026 (ending March 2026), this segment accounted for approximately 72% of consolidated net sales. Note that CTV operations have been transferred to the Maritime-Related Business segment from this fiscal year.

Recent Overview

A combination of rate increases and higher vessel entry/departure volumes drove a turnaround from an operating loss to profit

In FY2026 (ending March 2026), the Tugboat Business achieved net sales of ¥9,517 million (up 10.7% year on year) and operating income of ¥319 million (versus an operating loss of ¥146 million in the prior period), a significant improvement. The effects of the harbor tug and escort operation rate increases implemented in May 2025 were successful across all areas. While there had been concerns about a substantial decline in car carrier calls due to U.S. automobile tariffs, calls actually trended upward, and tankers, which had been sluggish in the prior period, also turned to an increase. Although large container ships declined, this was offset by an increase in small and mid-sized container ships and increased entries/departures of hazardous material carriers and bulk carriers.

Key Products

Growth Drivers

• Unit price improvement effect from the May 2025 rate increases for port tugboat and escort operations (contributing to increased revenue across all areas)
• Increasing trend in vessels entering and departing Tokyo Bay (increases in tankers, small/mid-sized container ships, hazardous material carriers, and bulk carriers)
• Expansion of escort operations and bay-mouth pilot boat operations in the Yokosuka area
• Increase in entries/departures across nearly all vessel types in the Chiba area
• Maintenance and efficiency improvement of the fleet through tugboat replacement construction

Risks

• Concern over a significant decline in target vessels, primarily tankers, due to the de facto closure of the Strait of Hormuz (the main reason the FY2027 (ending March 2027) earnings forecast remains undetermined)
• Risk of decreased car carrier entries/departures due to U.S. automobile tariff policy
• Business characteristic whereby the number of vessels entering and departing Tokyo Bay is heavily influenced by external conditions (difficult for the company to control)
• Upward pressure on labor costs due to stricter working-hour regulations for crew members and base salary increases
• Risk of future increases in depreciation expenses due to rising construction costs for new tugboats
• Risk of continued decline in large container ship calls