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Private equipment investments in the transportation sector for FY1977 showed a 7.4% decline in terms of nominal value from the preceding fiscal year, and a 10.3% decrease in real terms, following a steady fall over the past five years. Investments in transport-related public works, however, increased by 23.7% in nominal terms and 19.2% in real terms. (See Figure 1.)
In FY1977, investments in transport-related public works amounted to Y6,277,000 million, up 23.7% in nominal value (up 19.2% in real value) over the preceding fiscal year. Investments were up 17.0% in ports and harbors, 16.9% in railroads, 29.7% in airports, 22.7% in coastal facilities, and 26.5% in roads, showing 2-digit across-the-board increases. (See Table 7.)
In FY1977, equipment investments by private transport enterprises (classed
in 17 types) amounted to Y935,300 million on a nominal work volume basis, or
a 7.457o decline from the preceding fiscal year, registering another drop after
three consecutive years of decline, though the decline in FY1977 was less than
those in the preceding three years. By type of enterprises, carriers (9 types),
manufacturers (3 types), and other (5 types) all showed a decline over the level
of the preceding fiscal year. (See
Table 8.) The principal motivations for equipment investments were "to build
up a transportation capacity to meet the demand increase" for carriers and others,
and "to update, maintain, or repair existing facilities" for manufacturers.
The funds raised for equipment investments amounted to Y993,000 million on a
payment basis. They came from internal reserves (40.4%), local bank loans (24.9%),
government loans (14.6%), stocks and bonds (13.0%), foreign capital (1.9%),
and others (5.1%).
As is clear from the account above, private transportation enterprises are weak
with a low ratio of net worth, and always experience financial hardships stemming
from the heavy interest rate on investment loans.
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