Japan Launches New Shipping Initiative to Strengthen Domestic Shipbuilding
Japan has officially introduced a comprehensive shipping initiative aimed at bolstering its shipyards and enhancing collaboration within the domestic maritime sector. This strategic move comes in response to increasing competition from Chinese and South Korean shipbuilders, who have significantly expanded their global market share. The initiative centers around the formation of Sakura Ocean Corporation, a new joint venture that unites key players in the Japanese maritime industry.
The joint venture was established through a capital and business alliance between ORIX’s vessel trading arm, SOMEC, and three prominent owner-builder groups: Shoei Kisen (part of the Imabari group), Kambara Kisen (affiliated with the Tsuneishi group), and Onomichi Dockyard. Each of these groups will hold a 30% stake in Sakura Ocean, while SOMEC will retain a 10% share. The venture plans to order three new vessels—one from each shipyard—set for delivery by 2030. These vessels will be chartered to Japanese operators under time-charter contracts, ensuring a steady flow of work for domestic shipbuilders.
Strategic Goals and Industry Collaboration
The Japanese government is positioning this initiative as a crucial strategy to safeguard the nation’s shipbuilding and maritime industries. By integrating domestic orders, ownership, chartering, and management into a cohesive framework, Sakura Ocean aims to create a more stable pipeline for Japanese shipyards. This approach is intended to keep ship financing and asset management within Japan, thereby strengthening the country’s influence in future maritime decisions.
ORIX has been actively developing this ecosystem over the past two years, acquiring Santoku Senpaku in 2024 and SOMEC in 2025. Both Shoei Kisen, Kambara Kisen, and Onomichi Dockyard are already shareholders in SOMEC, making the establishment of Sakura Ocean a natural extension of their existing collaboration. The name “Sakura,” meaning cherry blossom in Japanese, symbolizes renewal and growth, reflecting the initiative’s goals.
This announcement marks a significant shift in Japan’s approach to shipbuilding, moving beyond traditional bilateral relationships between yards and owners. The collaboration among these major players signifies a coordinated industrial strategy to confront the challenges posed by the aggressive expansion of Chinese and Korean shipyards.
Historical Context and Future Outlook
Historically, Japan was a dominant force in global shipbuilding, accounting for nearly 50% of the market in the 1990s. However, its share has drastically declined to around 10% today, overshadowed by China, which commands 70% of newbuild capacity and 90% of repair capacity, and South Korea, a long-standing competitor. In light of this decline, Japan has set ambitious plans to double its shipbuilding output by 2030.
Earlier this year, Imabari Shipbuilding, Japan’s largest shipyard, took a significant step by acquiring a controlling stake in Japan Marine United (JMU), the second-largest shipbuilder in the country. Additionally, in November of the previous year, Japan’s three major shipping lines—Nippon Yusen Kaisha, Mitsui OSK Lines, and Kawasaki Kisen Kaisha—joined forces with leading shipyards to revitalize domestic shipbuilding. Their collaboration includes investments in MILES, a design company co-owned by Mitsubishi Heavy Industries and Imabari Shipbuilding.
As Japan embarks on this new initiative, the focus remains on revitalizing its maritime industry and reclaiming its position in the global shipbuilding market.
