RINKO CORPORATION

Business Details

Comprises the Company's Transportation Division and two transportation-related consolidated subsidiaries, Rinko Transportation Co., Ltd. and Rinko Port Warehouse Co., Ltd. It provides an integrated suite of services centered on the Port of Niigata, including port transportation (vessel loading/unloading and shore work), freight forwarding, warehousing, trucking, ship mooring services, customs clearance, shipping agency services, and air cargo handling. This segment accounts for approximately 72% of consolidated net sales and is the group's core business, with performance driven by cargo movement trends at the Port of Niigata.

Recent Overview

Handling volume increased, but higher costs caused profit to decline 30.3% year on year

In FY2026 (ending March 2026), the Transportation Segment achieved a total cargo handling volume of 5,353 thousand tons (up 1.5% year on year), with general cargo up 3.5% and container cargo up 0.3%, against a backdrop of increased cargo movement at the Port of Niigata overall. In addition to steady trends in existing major cargo categories, new cargo also generally trended favorably, and an increase in warehoused cargo also contributed to higher sales. On the other hand, segment profit declined significantly to ¥101 million, down 30.3% year on year, due to increased subcontracting costs and labor costs amid rising prices. As a subsequent event, on April 1, 2026, the Company made NX Nihonkai Warehouse Co., Ltd. a subsidiary (voting interest of 99.1%), thereby strengthening cargo storage capacity in the Niigata West Port area.

Key Products

Growth Drivers

• Maintaining and expanding handling volume through steady handling of general cargo (raw materials) at the Port of Niigata and continued handling of new cargo
• Stabilizing the revenue base through ongoing review of work fees and increased efforts to capture spot cargo (mainly general cargo)
• Strengthening cargo storage capacity in the Niigata West Port area and incorporating warehousing know-how through the acquisition of NX Nihonkai Warehouse Co., Ltd. as a subsidiary
• Capturing renewable energy-related and special cargo, such as that related to planned wind power generation projects off the Port of Niigata and off Tainai, Niigata Prefecture
• Promoting modal shift transportation utilizing the Niigata–Kyushu container coastal feeder service

Risks

• Risk that cargo movement at the Port of Niigata is affected by the economic conditions of foreign countries, mainly China and Southeast Asia, and by U.S. tariff hike policies
• Risk of profit pressure from rising prices, higher labor costs, and increased subcontracting costs (the main factor that pushed down segment profit by 30.3% in FY2026 (ending March 2026))
• Risk of difficulty maintaining cargo handling and transportation systems due to labor shortages in Japan
• Risk of profit pressure from increased depreciation and amortization accompanying higher capital expenditures (up 54% year on year to ¥468 million)
• Risk of fluctuations in handling volume due to reorganization of, or schedule changes by, shipping companies calling at the Port of Niigata
• Risk of goodwill and integration costs arising from making NX Nihonkai Warehouse Co., Ltd. a subsidiary (the acquisition price and amount of goodwill have not yet been finalized)