Chapter　5　 Changing Physical Distribution Industry

　 　The distribution industry is undergoing a major change with the development of bases for traffic, changes in consumer needs, and the increased import of manufactured goods. Paying attention to the changing physical distribution industry, the Ministry of Transport has taken various measures to ensure that physical distribution activity can be carried out flexibly and accurately in response to such changes.

5. 1　Changes in Distribution Services

　 　In parallel with the development of high-speed motorways, truck transport has been accelerated and rationalized. With the opening of the Seikan Tunnel and the Seto-ohashi Bridge, distribution services are undergoing such changes as transfers among transport facilities, and this trend deserves attention.
　 　In response to the remarkable expansion of distribution services for consumers, such as "takuhaibin" (door-to-door delivery service of parcels) (Fig. 13, See Note), housemoving services and "trunk-room services" (Fig. 14), we have taken various steps for consumer protection, including the institution of standard terms and conditions contracts of carriage, the rationalization of fares and charges, and the creation of claim-settlement channels. Note. Trunk-Room Service
　 　A service to keep furniture, clothing, art objects, furs, documents, magnetic tapes and other small, non-commercial articles at the request of consumers and business companies.
　 　As for the Freight Villa plan, a pilot project is now under way toward a full-scale operation (See Note).
　 　As for multimodal transportation which has made remarkable progress in recent years, we have drafted a Japanese text of a standard terms and conditions contract of carriage for international intermodal transport to standardize obligations and expedite smooth transactions.
Note. Freight Villa
　 　The Freight Villa is a consumer distribution system that combines a warehouse located in the suburbs of a large city and a transport system like "takuhaibin", designed to keep house-hold items not in immeditate use for a certain period at a low cost.
　 　Since April. 1988, the Ministry of Transport has undertaken a pilot project with the cooperation of warehousing and trucking operators.

5. 2　Activation of Physical Distribution Industry

　 　In response to the changing trade environment that surrounds Japan, we need to develop a system for imported manufactured goods at ports and harbors. To cope with the sharp increase in international air freight, there is a need for a drastic study of the air freight handling system.
　 　In order to develop facilities capable of meeting diverse and sophisticated distribution needs, we have promoted the development of physical distribution modernization terminals and bases for high-level physical distribution activity.
　 　By revising the law on the promotion of industry in rural areas, we are planning to introduce to rural areas various physical distribution services now concentrated in large cities and their suburbs.
　 　Most distribution services are run by medium-and smallscale operators, and their business faces difficult conditions. To improve the constitution of medium-and small-scale enterprises, we have provided them with various facilities, such as modernization measures, anti-recession measures and business sophistication measures.
　 　We are planning to re-examine various regulations related to physical distribution services so that physical distribution activity can be carried out flexibly and accurately in response to changing physical distribution needs and an efficient physical distribution system can be established for all transport facilities.
　 　The Physical Distribution Committee of the Council for Transport Policy has worked out an "opinion concerning business regulations related to the trucking industry and intermodal transport services" concerning the trucking industry, the opinion suggests abolishing the supply-demand adjustment rules and changing the present licensing system to an authorization system; concerning intermodal transport services, the opinion calls for creation of an across-the-board, comprehensive system for freight handling operators. The section referring to the physical distribution industry in the "recommendation concerning the relaxation of public regulations, "compiled by the new Council on Administrative Reform, incorporates the opinion's basic thinking as the main point of reform. The Ministry of Transport will take necessary legislative steps on the basis of the opinion and the Council's recommendation.