Behind the Scenes at NYKStaff Voices

NYK's Challenge: Pioneering Innovation Through Engagement in Space-related Businesses

space-related businesses

Outline of the Project

NYK is embarking on a new journey in space-related businesses, a field distinct from our traditional business domains. The catalyst for this venture was the NYK Digital Academy, an internal entrepreneurial development program. Three overseas employees joined as a team, participating in the program online amid the COVID-19 pandemic. Through diverse and lively discussions, the team explored new business creation, ultimately leading to the conceptualization of the "space business," which has since evolved into an active project. We invited the three team members to share the project's origins and progress.

Offshore launch site illustration

Offshore recovery illustration

Members

Daisuke Suga

Daisuke Suga
Position: Seconded to the JAXA R&D Division, Fourth Unit (Tsukuba) (at the time of the interview)
Joined NYK in 2008.

Daisuke was drawn to NYK by the opportunity to work in the shipping industry, which underpins Japan's societal infrastructure. The prospect of working internationally in a close-knit environment also attracted him. After joining, he was assigned to the Raw Materials Shipping Team, where he later worked in Singapore and Shanghai. In April 2023, he joined the Advanced Tech & Space Business Development Team within the Innovation Promotion Group, taking his current role in October of the same year.

Makoto Yamaguchi

Makoto Yamaguchi
Position: Seconded to MTI (Monohakobi Technology Institute) (at the time of the interview)
Joined NYK in 2005.

As an engineer, Makoto sought a broader field where he could contribute to society through technology, finding it in the shipping industry. Impressed by the company culture during recruitment, he felt NYK was a place where he could leverage his abilities. After training, he was seconded to NYK Engineering, where he later worked in LNG ship planning. In 2018, he was seconded to a Singapore Group company. He has held his current position at MTI since 2021.

Go Imai

Go Imai
Position: Seconded to Ocean Network Express Singapore (at the time of the interview)
Joined NYK in 2008.

Go wanted a career that contributed to society. Realizing the economy is driven by the flow of goods and money, he was drawn to NYK's business across land, sea, and air. After joining, he worked in the Raw Materials Group and then at NYK Container Line's Nagoya branch before being posted to Singapore in 2015. He has been in his current position since 2017.

A New Venture Combining "Space" and "Ships": The Offshore Rocket Launch Vessel Idea from Three Overseas Members

Daisuke Suga
In 2021, I was based in Shanghai and involved in business and corporate restructuring projects. Witnessing the rise of new industries like EVs in China inspired me to pursue something innovative and launch a new business. This led me to apply to participate in the NYK Digital Academy.

Makoto Yamaguchi
I was seconded to a ship-management company in Singapore at the time. The maritime industry, including shipbuilding, has undergone a paradigm shift over the past few decades, and I felt a sense of stagnation in Japan's maritime sector. I applied to the academy to initiate change in the industry.

Go Imai
Though stationed in a different location from Makoto, I was also involved in a big data-driven container optimization project in Singapore. The program's focus on developing digital leaders attracted me to apply to the NYK Digital Academy.

Daisuke Suga
We were likely grouped as the "overseas team." The program included a team-based new business ideation exercise. Following the academy's advice to "pursue what you are passionate about 24/7" and "leverage NYK's strengths in business," we brainstormed and listed ideas.

Makoto Yamaguchi
While various ideas emerged, our discussions gradually converged. As someone interested in vehicles, I proposed a related business. Daisuke mentioned "space," and Go proposed a concrete idea around these keywords.

Go Imai
I recalled a news segment about launching rockets from ships. It sparked an idea: combining space and maritime businesses in the form of an "offshore rocket launch vessel."

Makoto Yamaguchi
Go's idea began to take shape as a project. I never imagined revisiting my high school and college interest in the space industry at NYK, but it filled me with excitement and a desire to make it a reality.

Daisuke Suga
It was an unconventional yet intriguing idea. Research revealed that offshore locations, being unfixed, could flexibly meet launch demands with less environmental impact than land-based sites. Launching from the sea also proved ideal for placing satellites in optimal orbits.

JAXA

Applying for and Winning a JAXA Joint Research Program: The Offshore Recovery Research Project Begins

Makoto Yamaguchi
After presenting to the CEO and executives, we accumulated space-related knowledge by participating in company-sponsored business contests and attending space study sessions. Leveraging networks built during university and professional life, we approached companies and universities. As an engineer, I explored the technical feasibility of our plans during meetings.

Go Imai
Engaging with external companies was crucial. To validate our hypothesis that offshore rocket launches could contribute to space-related businesses, we sought meetings with space-related companies and consulted with many experts. As Makoto mentioned, the excitement of the project drove me to gather insights and steadily take action.

Daisuke Suga
Initially, each of us met with stakeholders from space-related companies and organizations to assess the feasibility of our plans and identify necessary actions. One such company was Mitsubishi Heavy Industries (MHI), Japan's space industry leader. Initially, we were perceived as merely interested in space and rockets.

Makoto Yamaguchi
The project's momentum was partly due to luck and timing. At the end of 2021, MHI invited us to apply for a joint research program with JAXA. Our successful application marked the project's official start, underscoring the importance of relationships.

Go Imai
While aiming for offshore rocket launches in the future, the project began with offshore recovery research. This involves developing a system to recover and reuse the first stage of rockets at sea, significantly reducing costs.

Daisuke Suga
Offshore recovery research transitioned from a feasibility challenge (Step 1) to an idea development phase (Step 2) in fiscal 2023. NYK's top management committed to pursuing the space business, including it as a new venture in the medium-term business plan announced in March 2023.

The medium-term management plan lists "space-related business" as one of the new businesses to be undertaken.

Utilizing Satellite Data: Leveraging 800 Vessels Operating Worldwide

Daisuke Suga
Reflecting on our journey, I believe the three of us made the project's continuity possible. Alone, it wouldn't have been feasible. Despite busy schedules, we persevered, consistently attending weekly meetings.

Go Imai
With all three of us physically distant, we had to innovate in sharing progress and organizing action items. Balancing the project with regular duties required effective time management, and we often progressed the project outside of work hours.

Makoto Yamaguchi
From a technical perspective, the need for feasibility at every stage was a significant departure from traditional tasks. Without feasibility, plans would seem reckless, necessitating a strong sense of responsibility in ensuring technical viability.

Go Imai
Indeed, Makoto handled the technical evaluations. His work continues to assess the feasibility of the offshore rocket launch idea and address cost, safety, and logistical challenges.

Daisuke Suga
In addition to offshore launches and recovery, utilizing satellite data is another project theme. NYK operates over 800 vessels globally and is exploring the possibility of using satellite data at sea.

Go Imai
As part of this initiative, we participated in an acceleration program for space-related businesses development hosted by a major corporation from April to September 2023. We selected two startups to address challenges in optimal route design and GHG emission reduction for vessels, continuing discussions on satellite data utilization.

Daisuke Suga
Given our extensive fleet, we believe in the early feasibility of utilizing satellite data at sea.

The "rocket offshore launch ship," which combines "space" and "ship," was conceived from the consideration of new businesses by three members of the "overseas team."

Becoming a Game Changer in the Space Industry: Demonstrating the Potential of "Ships" in Solving Societal Challenges

Daisuke Suga
I estimate the project's completion at about 10%. However, we've expanded and strengthened our network with internal and external partners, laying a solid foundation for project execution.

Makoto Yamaguchi
The project remains in its early stages. We face numerous tasks, including establishing a business model, addressing regulatory frameworks, overcoming technical hurdles, and designing systems. Nonetheless, the industry's support for our idea, initiated by the three of us, is palpable, and we've communicated NYK's commitment to the space industry internally and externally.

Go Imai
NYK, historically unassociated with the space industry, has received positive responses from space professionals to our proposals. The space industry's upward trend is clear, but challenges remain. By leveraging NYK's unique technology and expertise to address these challenges, we could become a game changer in the space industry.

Makoto Yamaguchi
Our ultimate goal is for NYK to routinely engage in a multifaceted space business, establishing it as a new revenue pillar. Achieving this requires a long-term approach, beginning with addressing immediate needs.

Daisuke Suga
Indeed, we must progress the offshore recovery and launch projects we're currently pursuing. Providing a platform for rocket recovery and launch in Japan, a maritime nation, could underpin Japan's social and economic infrastructure and significantly impact the global space industry.

Makoto Yamaguchi
Successfully executing offshore recovery and launch would firmly establish NYK's position as a "space infrastructure company." We are determined to pursue this goal.

Go Imai
Additionally, we aim to highlight the potential of "ships" in solving societal challenges within the maritime industry. Beyond traditional cargo transport like LNG, oil, containers, and iron ore, we intend to demonstrate ships' broader capabilities.

The content is accurate as of September 2023

Link: NYK's Challenge in the Space Business