Chapter 3. Direction Which Transport Should Look Forward to Realize Fulfilment of People Life Co-Existing With lnternational Society


Section 1. Aiming at smooth international exchanges of people

1. Improvement of international airport responding to demand on Japan
    It is expected that Narita Airport located in the vicinity of the metropolitan area will continue to play an important role together with Kansai International Airport, to bear the considerable share of demand of international air transport of Japan. It is one of the largest international airports in the world [Fig. 55], nonetheless the capacity of facilities of Narita Airport is unsatisfactory to respond to its situation. So expansion of the capacity of facilities including construction of a new runway is keenly required. [Table 9]
    Accordingly, the "Narita Airport Symposium" and the "Narita Airport Roundtable Conference" have been held since Nov.1991, and recently all the participants at the conference accepted the opinion of the "Sumiya Study Group" and came to an agreement. The confrontation was thus solved and Narita Airport problem is proceeding to a new stage. The ministry will make full effort to improve the Airport with a new point of view from the stand point of attaining co-existence with the local community.
    Even though the current restriction of capacity of international airports is expected to be relieved for a while, particularly in the Kansai area by the opening of Kansai International Airport in Sept.1994, the demand of international aviation departing from and arriving at the whole area of Asia including Japan is predicted to increase sharply hereafter and even if a new runway is constructed in Narita airport, the situation of the capacity shortage may be worsened.
    In order to respond to such a situation adequately, the Ministry is conducting a survey to attain progress in the total concept of Kansai International Airport based on "the 6th five year plan of airport construction" taking into account the sound operation and smooth execution of the project, and also for the concept of New Chubu International Airport, a comprehensive survey has been conducted under consideration of future demand of air transport by cooperation of the relevant bodies on subjects such as the relation with existing airports, profitability and the cost bearing.
    It is expected that a higher cost than that of the past will be required for future construction of international airports responding to the predicted increase of demand. Accordingly the saving of operation expenditures and finding a source for the necessary funding for airport construction is becoming more important for the purpose of strengthening the competitiveness of Japanese air transport companies and maintaining the function of international hub airports, so it is necessary to conduct research on these subjects.
    As for the recent phenomenon of Japanese passengers travelling to Europe or to U.S. through international hub airport located in the neighbouring countries/areas, it is considered that such a trend is principally generated by the fare gap and convenience of changing lines between Japan and foreign air transport companies. Hence it is important for Japanese air transport companies to endeavour to improve their international competitiveness through utilization of a new system of international air transport fares and to improve the convenience of changing lines at international hub airports in Japan.
    It is deemed possible to provide sufficient facilities to respond to international air transport demand in local areas if a network of international and domestic lines in Kansai International Airport is formed through the above mentioned effort. Hence the Japanese Government should consider the extension of aviation services of foreign air line companies to local airports in taking into account the utilization of Kansai International Airport. Nonetheless, internationalization of local airports may contribute to the enhancement of the local economy, and the desire of local communities for internationalization is strong. It is hence advisable to consider extension services of foreign airline companies to local airports if enough demand for air transport between such areas and the countries/areas is expected.
2. Strengthening of competitiveness and fulfilment of service of Japanese air transport companies
    In view of the advantages for Japanese users and to secure national interest, it is essential to continue to offer transport service by Japanese air transport companies in the future. Hence it is necessary for Japanese air transport companies to strengthen the basic operations and to offer air transport services attractive to users. Also it is necessary for the Japanese government to provide desirable conditions for the smooth execution of such measures to be taken by each company.
(1) Measures to be taken by air transport companies
    It is necessary for each air transport company to take the following measures while paying full attention to ensure safety.
(Shift of structure to lower cost operation)
    It is necessary to assess every aspect regarding cost particularly on fixed expenditure such as personnel expenses, and also to consign regular maintenance work overseas and to employ foreign crew which contribute to shift expenditure paid in Yen to foreign currency.
    Also it is necessary to execute further applications of low cost operations such as wet-lease and to extend the range of cooperative operation of business between Japanese air transport companies.
(Improvement of profitability)
    In the case of existing lines, Japanese companies fail to offer a sufficient numbers of flights compared to foreign companies, it is desirable to improve the convenience to users by increasing the number of flights or, if demand is small, to operate a service line responding to demand flexibly through the application of wet lease, utilization of intermodal transportation or application of a cord sharing method. Also it would be effective to develop new demand through execution of chartered flight operations for routes with no regular flights available.
    It is necessary also to apply new marketing~ strategy such as CRS(Computerized Reservation System) or FFP(Frequent Flier Program).
(Offering of adequate service conforming to user's need)
    Regarding the service of air transport companies, to offer a cheaper and more comfortable service has become more important to respond to the more sophisticated and diversified needs of users.
    Hence it is important to provide information to the users on the contents and advantages of a new international air fare system introduced in Apr. 1994, and also to develop attractive offers of travel plans utilizing this system.
    For on-flight service, it is necessary to diversify the service according to the type of route and user, and in some cases it would be necessary to simplify the existing service.
(2) Improvement of circumstances by the Japanese government
    The government should review existing regulations as follows while paying full attention to the safety aspect:
(Assessment on regulations regarding to technology)
    To review relevant regulations which contribute to the promotion of a signment of periodic maintenance service overseas, and to promote of introduction of simulators in practice examination for issuance of certificate of skill for operation crew.
    In addition, to examine the possibility of assessing existing regulations or standards regarding the extension of the age limit of pilots engaging in paid operation, to the work of operation crew and to the repair or remodeling of equipment installed on the aircraft. (Assessment of regulations regarding to form of operation)
    To examine the possibility of relieving conditions by execution of wet leases, intermodal transportation and code sharing. Also to examine the possibility of relieving relevant regulations aiming at contributing to the efficient execution of chartered flights such as to relieve restrictions of one-way charter to contribute to the easier application of the fly-and-cruise plan combining aircraft and passenger ship.


Section 2. Aiming at promotion of attractive sightseeing

1. Promotion of foreign visits to Japan
    Promotion of foreign visits to Japan is an important theme to encourage international understanding of the economy and society of Japan and to establish friendly relations between Japan and foreign countries.
    However, foreign visits to Japan have been levelling off and stay at a lower level compared to other countries in Asia owing to the strong Yen, the unsatisfactory promotion of the sightseeing image in Japan and inconvenient circumstances of travelling alone in Japan because of the language barrier etc.
    To improve such a situation, it is necessary to take measures such as to execute programs to support international sightseeing interchanges, to promote personal visits to Japan by strategic offers of travel-related information, to promote group tours to Japan through travel development based on adequate marketing, and to substantiate an effective acceptance system for foreign visitors through positive utilization of Japan National Tourist Organization under cooperation with municipal corporations.
    The promotion of international conventions plays an important role in establishing international mutual understanding and friendly relations. Even though international conventions are increasingly held in Japan in these days, the number of conventions held by each city in Japan is far behind that of not only cities in Europe and U.S.A. but also Asian cities such as Singapore and Hong Kong [Fig. 56]. It is necessary, therefore, to execute programs to promote international conventions based on the "International Convention Promotion Law" approved and enforced in June 1994, through comprehensive cooperation between the central government, the Japan National Tourist Organization and municipal corporations.
2. Environment improvement to promote safe and comfortable overseas travel
    To promote safe and comfortable overseas travel, it is necessary to examine a way to improve the vacation, system, to offer attractive travel commodities and also to improve measures to assure safety.
    Particularly for accident or trouble while travelling overseas, cases caused by lack of information on local affairs and by the language barrier are increasing and hence a system offering information for travelers is an extremely important theme. Travelers, on the other hand, should pay full attention to the local social condition to avoid accidents or trouble.
    Accordingly, reference materials such as video tapes and brochures offering information about travel destinations or leaflets with English phrazes to be used in the case of emergency are provided, and also improvement systems offering information to Japanese travelers by tourist companies and aviation companies lead by Japan National Tourist Organization is progressing. [Fig. 57]
3. Realization of cheap and comfortable domestic travel
    To encourage domestic travel at a time when there is a strong shift to overseas travel owing to the feeling of lowered cost due to the strong Yen, lowering the cost of domestic travel is an important subject. For this purpose, It is necessary to provide discount rates of fares of public transport means, to improve cheap accommodation such as MINSHUKU (boarding houses), pensions or public accommodation and to promote the utilization of these facilities.
4. Improvement of vacation system
    In Japan, the current number of days of vacation per head is considerably less than that of Europe and U.S.A. [Table 10] and time to take leave is concentrated in a particular period. In Order to enjoy a fully satisfactory and relaxed vacation trip, has become an important subject and ways to improve the vacation system are being studied such as systems of "acquisition of a long vacation" or "dispersion of vacation timing (acquisition of vacation at any time)".
    Hence, under the cooperation of the relevant authorities, taking into account the overseas system, the Ministry of Transport is currently examining ways to realize the expansion of vacation days and to disperse its acquisition, and also organizing promotion conferences on "fulfilment of comfortable vacations" comprised of experienced and knowledgable persons and economic circles.


Section 3. Aiming at smooth international physical distribution

1. Construction of international ports and harbors in consideration of user's convenience
(1) Basic direction of major ports and harbors in Japan to move forward
    The service level of ports and harbors in Japan is rather unsatisfactory compared to ports and harbors in foreign countries regarding both service and facilities such as the depth of container terminals, yard space for importation, loading systems and the charges of ports and harbors etc. As the importance of Japan in East Asia has become comparatively lower, it is increasingly of concern that the arrival of depot ships engaging in basic service route to ports and harbors in Japan may decrease.
    If the number of the arrivals of depot ships decreases, it is feared that this will seriously affect the international competitiveness of our relevant industries owing to an increase in the cost of transport as a result of the necessity of transshipment, longer time will be required for transport which as a consequence may cause spoil of quality of cargo. Also the smooth importation of foodstuffs and manufactured products which should increase in the future may be impeded.
    Hence it is necessary to improve the services available for cargo to be directly exported overseas and to be directly imported from overseas so as to ensure the arrival of depot ships at ports and harbors in Japan.
    Furthermore, to bear a share of transport and play a role in the international physical distribution network, it is necessary for Japan to respond adequately to trend of cargo transshipment in neighbouring countries.
(2) Construction of facilities responding to structural change of physical distribution
    For the purpose of ensuring the arrival of depot ships and as a consequence to improve quality of life of Japanese people and to secure the international competitiveness of Japanese companies, it is necessary for ports and harbors in Japan to construct or install the following facilities taking into account the structural changes of physical distribution.
(a) Construction of import-oriented facilities
    Keeping abreast with the increase of import container cargo, it is necessary to construct import-oriented container terminals with a width 2 to 4 times wider than conventional terminals. Also it is important to construct comprehensive import terminals providing not only facilities for storage, cargo handling and processing for distribution but also facilities to offer information located next to existing foreign trade terminals for the smooth handling of import cargo.
    In consideration of such a situation, the construction of Foreign Access Zones (FAZ) is proceeding in combination with the construction of import-oriented ports and harbors at Kobe and other areas based on the "Temporary law to stimulate imports and to attract foreign investments" approved in March 1994. It is necessary to actively take such an approach hereafter.
(b) Construction of facilities responding to the trend towards the introduction of larger container ships
    It is necessary to upgrade the standards of container terminals in Japan, where facilities are relatively behind those in ports and harbors in the neighboring Asian countries and areas, to conform to the trend of introduction of much larger container ships in major sea lines. Hence facilities with high level of standards with a water depth exceeding 14m, 300-350m long wharfs and wider yards are under construction in main ports and harbors such as in Kobe, Yokohama and Tokyo where main liners arrive, and it is necessary to promote the program actively.
    On the other hand, with the decentralization of production and consumption, the amount of containers handled in local ports and harbors is steadily increasing. Nonetheless construction of container terminals in local ports and harbors is not yet sufficient and hence it is necessary to promote the construction of facilities responding to the situation.
(c) Construction of facilities contributing to efficient transshipment
    The transshipment of containers in Japanese ports and harbors is facing problems of congestion on portside roads and lowered efficiency of handling cargoes caused by loading containers in a transverse direction. Therefore, it is necessary to proceed with construction of portside roads and to take measures to improve the efficiency of transshipment through construction of terminals to serve both for oceangoing ships and for domestic sea liners, refering to cases overseas such as Singapore. [Fig. 58]
(3) Upgrading service level
(a) Improvement in cargo handling system
    In major ports and harbors in Japan, cargoes are generally not handled on Sunday at present, but it is necessary to examine the possibility of Sunday operation refering to overseas situations from the viewpoint of relieving complaints of consignees of cargoes and shipping companies so as to maintain arrivals of major liners. Hence those engaging in harbor operation such as the Japan Harbor Transportation Association and the dock workers trade unions are actively negotiating on the subject of Sunday operation. In addition, it is important to introduce new types of cargo handling machines for further improvement in efficiency and labor saving.
(b) Revision of harbor related charges to a reasonable level
    Since harbor related charges in Japan are at higher level compared to foreign countries/areas, it is necessary to take measures to revise and lower them to an adequate level. At present, cargo handling fees, wharf charges and pilotage fares each take a considerable share in harbor related charges [Fig. 59], hence it is necessary hereafter to improve the efficiency of cargo handling, to attain labor saving, and to an develop information system on the whole harbor related operation, as well as to review funds to construct wharfs for exclusive use. As for the pilotage system, it is also necessary to review the charge system and to take active measures to improve the efficiency of pilotage operation.
2. Construction of international airports as bases of international physical distribution
    As the amount of international air cargo transport is increasing dramatically, consignees and physical distribution operators require more strongly the execution of adequate measures to ensure smoother cargo handling such as prompter services of custom and quarantine clearance, facility construction and improvement of Narita Airport, and the utilization of Kansai International Airport for the purpose of relieving the centralization of cargo at Narita Airport. [Fig. 60]
    It is considered that location of Narita Airport on the outskirts of the metropolitan area is the main cause of concentration of international air cargo at present. Hence it is necessary to endeavour to expand runway capacity and to construct or expand cargo handling facilities in the airport.
    The opening of Kansai International Airport in September 1994 is highly appreciated by customers for its 24 hour operation and the service of custom and quarantine clearance [Fig. 61], and it is estimated that international air cargoes particularly in the Kansai area and the western part of Japan will shift there. It is also expected that the new airport will play an important role as a base of international physical distribution in Japan including the eastern part of Japan such as the Tohoku region and Hokkaido from now on since it provides cargo handling facilities with extra large capacity and links international and domestic lines.
    As for local airports, it is necessary to promote their utilization extensively through development of air cargo transport demand by the introduction of chartered flights and improvement of conveniences for domestic shipment.
    Also it is important from the viewpoint of assuring smoother distribution of imported air cargo by construction of Foreign Access Zones (FAZ) at RINKU town (opposite the seashore of Kansai International Airport island) etc. which are to be located near international airports based on the "Provisional law governing the increase of imports and smoother domestic investment".
3. Strengthening of competitiveness of Japanese oceangoing shipping companies and improvement of their service
    Japanese oceangoing shipping companies that own Japanese marine fleets are now facing a severer business environment due to harder competition with other Asian shipping companies and the sharp rise of the yen continuing from last year.
    Nonetheless it is necessary to ensure stable and low-cost cargo transport for the economic growth of Japan and for stabilization and improvement of the lives of the Japanese people. It is necessary to maintain and improve the system, which strengthens the international competitiveness of Japanese marine fleets centering on vessels with Japanese nationality and also provides a high-quality and stable transport service, through following measures:
(1) Measures aiming to strengthen international competitiveness
    The operating profits of Japanese oceangoing shipping companies were forced into a siharp decline due to the yen hike. To cover this plunge in profit, they cut various costs such as general administration costs and transport costs, as well as transfering the administration sector to overseas, employing foreign crews to ships with Japanese nationality, making payment in dollars through utilization of overseas shipbuilders, and making transport contracts in yen etc . While an inclcease in flagging out is feared due to the stronger Yen, it is also important to take measures to maintain and improve vessels with Japanese nationality by proceeding consultation between relevant bodies to review the further application of mixed nationality crews on board and by providing financial support for construction of ship with Japanese nationality.
(2) Offering of transportation service responding to structural changes in demand and conforming to customer needs
    Even though Japanese oceangoing shipping companies have been trying to promote multimodal transportation services in order to meet the more sophisticated requirement of consignees, by extending their business to railway and truck transportation overseas and the constructing of container terminals, such capital expenditure is a burden, and therefore, it is necessary to promote further efficient operation and rationalization.
    It is necessary for the Ministry of Transport to negotiate with countries enforcing restrictions on Japanese oceangoing shipping companies and Japanese freight forwarders to relieve such impediments so that these Japanese companies can extend their business activities in such countries.
    In addition, in response to structural changes such as shifts in demand of cargoes from Japan to NIES and other Asian countries/areas, it is necessary to provide an operation system of liner service for cargoes leaving from and arriving in Asia, to review unprofitable sealine operation, to establish the global network by cooperating with overseas maritime transport companies, and to review the transportation system of trampers.
    Furthermore, the need for higher speed transportation is expected to increase in coming years as the physical distribution of Asian countries and areas becomes more active. Even though the Techno Super Liner as a new type of extra high speed vessel, which is currently at stage of R&D, has not yet been perfected as regards economic efficiency and the required construction of relevant facilities, it is expected to be utilized as a new high speed transport service if these problems are solved and the vessel becomes applicable for practical use.


Section 4. Promotion of International Cooperation

1. Increasing importance of the role of Japan in international cooperation
    As a nation with the second largest economy whose GNP reached 15% of the world economy, Japan is responsible to positively contribute to global peace and stability, and hence Japan is enthusiastically promoting further qualitative and quantitative improvements for international economic cooperation. In June 1992 "Japan s Official Development Assistance Charter" was provided to clarify basic rules and concepts for execution of ODA and the 5th mid-term target of ODA was provided in May 1993 setting a target of expenditures at 70-75 billion dollars (compared to 50 billion dollars in the 4th mid term target) for the period covering 5 years from 1993 to 1997 for further repletion of ODA by the Japanese government.
2. Importance of transport in international cooperation
    The establishment of an efficient transportation system and promotion of sightseeing, through construction and improvement of infrastructure facilities such as railways, airports and ports and harbors, is essential for developing countries to improve the standard of life, to promote regional areas, and to develop the economy as well as to construct or to improve economic infrastructures such as electricity utilities and communication networks.
    However, developing countries are not furnished with the satisfactory basic facilities of transportation due to a shortage of funds and technology, and accordingly quite a number of their requests for cooperation or aid are being submitted to Japan who has sufficient funds and a high level of technology, and the Ministry of Transport is positively executing international cooperation in the area of transport responding to such requests.
3. Diversification of needs on international cooperation
    The needs of international cooperation in the area of transport have tended to become diversified in recent years.
    In addition to requests for cooperation in the hardware category such as the construction of basic facilities of transportation, cooperation as regards such service categories as management and the operation of facilities, measures to privatize the public sector and education of human resources are becoming more important. As international cooperation in the area of environment protection is increasingly becoming more important concerns on global problems of the environment strengthen, and accordingly cooperation programs to lower transport pollution and to prevent marine contamination are being executed.
    For cooperation regarding safety, there has been positive cooperation from the viewpoint of preventing transport accidents and to save human lives which does not only contribute to regions where there is such cooperation but also to secures safety for Japanese travelers and residents there.
4. Execution of international cooperation putting priority on Asia
    Aid from the Japanese government to developing countries has been given mainly in Asia, and thus it has greatly contributed to the rapid economic growth of NIES and ASEAN.
    While the economic linkage between Japan and other Asian countries/areas has been stronger in accordance with the economic growth there, it is desirable to continue economic cooperation mainly in transport infrastructure construction since construction or improvement of the basic transport facilities cannot meet the increasing demand for human transport and physical distribution which causes traffic jams which impede the development of the economy to some extent.
    Following Asian economic growth, the mood to attain healthy economic activities and well-balanced economic growth of the Asia and Pacific basin area as a whole has been strengthened. In the field of transport, cooperation to establish transportation systems and the promotion of sightseeing is being carried out through conferences of cabinet members of APEC (Asia Pacific Economic Cooperation) countries/areas etc.
    In addition, responding to the decision to establish the WTO office for the Asia and Pacific region (tentative name) in Japan at the 10th general assembly of WTO (World Tourism Organization), preparatory procedures are proceeding to open the office in Osaka.
    There are some assertions that repletion of aid to Asian countries may rather cause a depression in domestic industries in Japan and lower further the international competitiveness of Japanese airports and ports and harbors. Nonetheless, not only is economic growth of Asian countries essential for the stability of nations and peace of the region, but also progress in construction of transport infrastructure attained by the aid of the Japanese government is expected to strengthen the economic power of Asia as a whole including Japan and as a consequence it is considered to contribute to the economic growth of Japan.
    For regions including Africa, Latin America and Eastern Europe, it is necessary to strengthen international cooperation efforts as much as possible. Furthermore, for countries in Eastern Europe as newly listed recipients of ODA, it is necessary to extend cooperation in such categories as modernization and rationalization of physical distribution, which are required for transition to the market economy, and sightseeing which effectively acquires foreign currencies.


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