Various environmental factors of international transport for Japan are
undergoing drastic changes such as accentuated growth of those areas requiring
adjustment of the respective interests of well developed and developing nations
in addition to changes taking place structurally in the international transport
marketplace.
Particularly, developments in developing nations (areas) of the Far East
such as the Republic of Korea, Taiwan, Hongkong and Singapore which continue
at a rate of high growth with cheap labor, intesified adoption of technology,
and low customs tariffs, are influencing Japan in many different ways.
First of all, in the shipping field the growth of the maritime cargo traffic
of four nations (areas) shows a far larger figure than the growth of Japan and
their exports to the U.S. from 1975 to 1980 has grown 3.2 times to reach a level
equal to 57% of Japan exports to the US (Fig.
7).
Airline transport volume in 1982 showed Singapore and the Republic of Korea
in 7th and 8th place respectively, so that the sum of these two countries (6.2%)
and Japan (6.4%) indicated just about equal shares. In the field of shipbuilding,
the total number of ships built in the Republic of Korea has been second only
to Japan since 1981, and continues to grow. In the interchange of people, the
total number of persons arriving in Japan from these countries (areas) from
1975 to 1983, for example, increased by 360%, and their ties with us continue
to grow in importance.
In order to accomodate these changes in international environmental conditions
along with expending efforts to fortify the management foundations of our international
transport enterprises, the maintaining of international competitiveness together
with the necessity of promoting the formulation of international multimodal
transport systems, has prompted the following measures in the various divisions
engaged in international transport.
(1) Ocean-going shipping
@ Coping with changes in the order of shipping
The international order of shipping is based upon "the principles of freedom
of shipping" but in recent years, measures by developing nations to favor vessels
of their own nationality, the coming into effect of convention on a Code of
Conduct for Liner Conference, etc., point to the birth of new developments.
With respect to such north-south problem, we are keeping in close touch with
developed countries, and utilizing every opportunity to confer with developing
nations in order to provide a wide range of measures to properly cope with new
developments.
On the other hand, a new shipping Act was passed in June 1984 in the US to
rebuild their shipping. This new Act includes certain provisions which are welcomed
by Japan but until we see how the Act is actually going to be administered,
it is difficult to give a proper assessment of the consequences. It is therefore
important that necessary steps be taken to provide for the developing situation
since this Act was passed.
The functions of the liner conference agreements along major shipping routes
have recently been deteriorating and in Japanese shipping companies, the drastic
study of operating provisions including space charter, marine vessel classification
and composition of fleets of vessels, together with the operation of intermediary
liners, should all be reviewed in detail.
A The future of oceangoing shipping
With a deterioration of international competitiveness in recent years, there
is a marked decline in the loading share by Japanese merchant fleet in our foreign
trade and especially the decline in the percentage of Japanese vessels has been
continuing very steadily ever since 1970. In 1970 our merchant fleet was composed
of 75% Japanese vessels. This, however, decreased to 56% in 1982 (Fig.
8). Furthermore, in our oceangoing shipping, rapid changes in international
shipping environment, distinctive changes both in volume and quality of ocean
cargo being transported, problems with seamen, and worsening of profit earning
potential for the shipping, were all very distinct problems being faced.
Due to these unfavorable circumstances, in August 1984, the Council for Rationalization
of Shipping and Shipbuilding Industries 'submitted a report on the "Future Policies
for the Oceangoing Shipping".
This report emphasized the need for a reduction in the number of Japanese
crews, the increase of intensive training programs to build a limited number
of highly professional and efficient crews, the further modernization of vessels
in the merchant fleet and the chartering of low-cost foreign vessels, expending
the relaxation of restrictive measures which tend to inhibit the enterprising
spirit of our merchant fleet, and finally to establish a firm basis for the
management of shipping which can weather the stiff trials of international competition.
(2) Shipbuilding
Japanese shipbuilding industry in 1983 built 42% of the total tonnage built
around the world; the other shipbuilding nations of Europe only accounted for
28%. However a 3rd group of shipbuilding nations continued to have a dominating
30% and the growth of the Republic of Korea, which became the 2nd largest shipbuilding
nation, has been phenomenal (Fig.
9). For some time in the forseeable future, international competition in
shipbuilding can be expected in stiffen.
Meantime,Japanese shipbuilding industry is continuing to be forced to operate
at 70% capacity with the decline in unit prices continuing to make operations
persistently difficult.
In response to the recommendations of the shipbuilding subcommittee of the Council
for Rationalization of shipping and shipbuilding Industries, the Ministry of
Transport undertook projections on an overall long term basis for shipbuilding
and concluded that @ improvement of the underlying financial strength of the
shipbuilding industry through increases in productivity and improvement in reorganization
within the industry, A improvement in the financial strength of the ship machinery
industries, and B promotion of technology development, were necessary to re-establish
an attractive and competitive industrial organization, and made a report accordingly
to the subcommittee.
(3) International Air Transport
Today our country with its own air transport enterprises (2) and foreign
air transport enterprises (37) forms a network with 40 countries, I area and
80 cities. The number of passengers arriving and leaving by scheduled airliners
has been steadily increasing, and in fiscal 1983, looking at the share of passenger
traffic per area, it was equivalent to 90% of the total traffic between Asia
and the US (Fig. 10). On the other
hand, freight transport has also shown phenomenal growth.
With respect to the development of an international air transport policy,
de-regulation is progressing in the US, the U.K. _and Holland. It can be expected
that pressures from those nations, which support a number of different internationally
competitive airline enterprises of various sizes, will gradually succeed in
the decontrolling of international air transport. In order to enable Japanese
international airline enterprises to commercially compete against these foreign
interests, it is extremely important to have them strive for a much higher degree
of efficiency and improve their services 'for the benefit of their customers.
In the negotiations between Japan and the US on air services, to achieve
an eventual fair balance between Japanese and US interests, discussions are
continuing right now to endeavour to reach an agreement by September 1985. Within
a provisional framework established in 1982, charter flights were arranged for
All Nippon Airways to Hawaii in September 1984. In reconstructing the airlines
relationship between Japan and the US with sufficient attention being paid to
the changes taking place around the world in international airway relations,
it is necessary to achieve an overall balance in air rights. At such a time,
the size of the US airline market, with numerous unrestricted airports throughout
the country, (conditions which do not exist in Japan but which are advantages
which only the US possesses,) must be given due recognition.
(1) Economic cooperation with developing countries
Economic cooperation in transport-related activities such as the improvement
of transport infrastructure is exceedingly important for the development of
the economies and societies of developing countries and many such requests are
received. Therefore, a great portion of overseas aid from Japan is devoted to
transport-related areas.
@ Financial cooperation
20% of the total direct loans of Japanese government (total cumulative record
from fiscal year 1966 to 1983) is allocated to transport, so that in 1983, loans
totalling ¥130 billion were allocated to transport projects. (Official "Exchange
of Notes" basis.)
A Technological cooperation
The Ministry of Transport extends assistance to developing countries on an
intergovernmental basis, cooperating through JICA (Japan International Cooperation
Agency) in the reception of trainees, dispatch of experts, development research
projects, etc. In addition, for projects on an international scale, studies
are continuing on the concept of a second Panama Canal construction project
and the concept of an Asis Master Port.
(2) International cooperation with developed countries
With the advancement of the position of Japan in international society, and
with the closer relationships of mutual interdependence on an international
basis, Japan is expected to make its contribution to the international economy
and society so that the necessity of promoting international cooperation on
a wide range of economic and engineering projets is being emphasized. Under
such circumstances, pivoting around the US, Japan and the EC within the world
economy, in order to solve the problems faced by the international community
in resources, energy, environment, food supplies, etc. scientific technological
aid in transport expertise between two countries and in multi-faceted assistance
has been promoted and shall continue in closer and more concentrated ways with
already well developed nations in particular.
20 years have elapsed since restrictions on travelling abroad were abolished,
and the number of visting foreigners from abroad has grown' phenomenally. The
310,000 persons who visited in 1963 reached 1,970,000 by 1983 (6.4 times) which
was an average 10% increase per year.
On the other hand the number of travellers abroad from Japan with the rise
in the standard of living and the increase of leisure time, grew from 100,000
persons in 1963 to 4,230, 000 (42.3times) in 1983, increasing proportionately
far more than the pace of visitors to Japan.
Under such circumstances, in order to cope with the increase of visitors
to Japan, the provision of tourist information network (i system), travel phone
services, goodwill translating movements, etc. are being implemented but in
order to properly increase international understanding, a continued, detailed
and sincere effort must be expended towards foreign visitors as well as arranging
for better security for the Japanese visiting abroad as a part of an overall
promotion of international tourism, is becoming more and more necessary.
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