PART 2. TRANSPORT TRENDS

CHAPTER 1. OUTLlNE OF TRANSPORT lN FISCAL 1992 AND RECENT TRENDS

Section 1. Trends in general economy and transport activity

1. Trends in passenger transport
(1) Domestic traffic
　 　 With the slowdown of economic growth and sluggish consumption, the domestic volume of passenger traffic in FY1992 showed slower growth with passengers carried totalling 81.8 billion persons, an increase of only 1.8% over the previous fiscal year (do. hereafter). The total passenger-kilometers was 1353.3 billion, an increase of only 1.7%.
　 　 Railway transportation showed an increase in passenger-kilometers traveled by pass holders owing to an increase of distance of traveling, but transportation by non-pass-holders was modest steady, and total passenger transport was sluggish.
　 　 As regards automobile transportation, the category of commercial transportation, such as buses, hired cars and taxis, was not active, and hired car and taxi services showed particularly significant decreases, reflecting the effects of the economic recession. Transportation by private passenger cars grew rapidly, compared to that of commercial vehicles. Air transportation decreased significantly, owing to great decreases in transportation over main routes [Table 6].
(2) International traffic
　 　 Even though the number of Japanese going abroad in the latter half of calendar year 1992 decreased compared with the same period in the previous year due to the recession, the total number in 1992 reached a new record of 11.79 million. Also, the number of foreigners arriving reached a record high of 3.58 million, an increase of 50 thousand persons over the previous year.
2. Cargo traffic
(1) Domestic traffic
　 　 Domestic freight traffic in fiscal 1992 decreased in all sectors, affected by decreases in investment in fixed capital and the slowdown of consumption, etc. The total volume of traffic was 6,725.4 million tons, a decrease of 2.8% from the previous fiscal year, and total tonnage-kilometers was 557,070 million, a decrease of 0.5%.
　 　 The volume of freight traffic by commercial automobiles showed a slight increase in tonnage-kilometers over the previous year, and all other modes, such as rail, private automobiles, coastwise shipping and air transport, decreased from the previous year due to decreased total demand for cargo transportation, which is attributed to the recession [Table 7].
(2) International cargo traffic
　 　 Despite depressed economic activity in OECD countries, Asian economies showed relatively favorable growth which contributed to the record levels of maritime transportation in the world in calendar year 1991. Japan's maritime transportation showed a great increase in exports, but the volume of imports decreased and the total volume of exports and imports consequently decreased.
3. Recent transport trends (results for April- July 1993)
　 　 Domestic passenger traffic on JR increased from the same period of the previous year, but all other sectors of domestic passenger traffic continued to decrease. Domestic cargo traffic by railroad and automobiles slowed down because of the economic recession. Coastwise shipping was level on an annual basis but turned downward after June. Domestic air cargo traffic increased. On the other hand, international air passenger traffic continued to decrease, reflecting a decrease of demand for travel abroad, but the number of Japanese passengers arrivals and departures turned upward in July after 11 months of decreases, which is attributed to a sharp rise in the exchange value of the yen.
4. Influence of the strong yen on the transport industry
　 　 The exchange rate of the yen has been rising recently, from 125 yen/US$1 at the end of 1992 to a peak of almost 100 yen in August 1993.
　 　 Such a sharp rise in the yen's value affects the transport industry, particularly the operation of oceangoing transport or shipbuilding, which are international businesses.
　 　 In response, the Government decided to implement urgent economic stimulation measures, including deregulation of various controls, return the benefits generated in specific industries by the rising value of the yen to consumers, and a wide variety of other measures to rectify the tough economic situation. In the sector relevant to Ministry of Transport, overseas travel is considered an area in which the strengthening of the yen may benefit consumers. In addition to the policy of passing on exchange rate benefits to consumers, policies are being implemented to extend a system of discount fares to airlines, railways and passenger ships in an effort to stimulate domestic demand and improve services for users.

Section 2. Investment for construction of facilities

　 　 Total public investment for the transport sector in FY1992 was 15,077.4 billion yen, an increase of 13.3% over the previous fiscal year, and total private investment for the transport sector in FY1992 on an actual construction basis was 3,779.7 billion yen, maintaining the previous year's 6.7% growth rate [Table 8,Table 9].