Chapter 2 Ministry of Transport Efforts Facing the Twenty-first Century


    In order to cope with the above, the Ministry of Transport will pursue deregulation, such as in the abolition of supply-demand control regulations, build an efficient physical distribution system, continue to improve social capital through focused and efficient investments under severe financial restrictions, and promote the construction of new transport systems through innovative and creative technology.


Section 1 Transport Activities Responding to the Progress of Globalization and Aiming at Improving the Quality of Life


1. Improvement of Transport Services and Vitalization of Businesses through Promotion of Competition

    In response to the big changes in international and domestic environments affecting transport activities, it will be necessary to vitalize the transport market and to provide transport services meeting user needs by further promoting competition and by making the most use of private enterprises, which are positively challenging new possibilities with their entrepreneurship.
    For this purpose, in December 1996, the Ministry of Transport decided to abolish supply-demand control regulations in transport activities, aiming at completing the abolition in three to five years, and to build traffic and transport systems making the most of market principles, while providing the necessary environment and conditions and taking necessary measures to protect users and ensure safety.
    Various problems may arise from the abolition of supply-demand control regulations, in terms of the maintenance of routes necessary for daily life, safety, and consumer protection. The Council for Transport Policy is now discussing possible responses to such problems and the Ministry will take necessary measures based on the council's report.


(Principal Items of Deregulation Related to Passenger Transport)


(1) Supply-demand Control and Regulations on Fares
Passener railway : The supply-demand control regulation will be abolished in FY 1999. The Ministry will apply the regulations on service discontinuation, paying attention to operators' input.
Bus : The Ministry will abolish the supply-demand control regulation by FY 2001 at the latest, provided that necessary plans are drawn up to maintain necessary local routes.
    Regarding fares and charges regulations, the Ministry will study and introduce an upper limit pricing system when abolishing the supply-demand adjustment regulation. For the time being, the Ministry will encourage more flexible setting of fares and charges, including the introduction of reduced fares from FY 1997.
Chartered bus : The Ministry will abolish the supply-demand control regulation in FY 1999, after establishing the measures for ensuring safety and protecting consumers.
    The permission system for fares and charges will be shifted to a notification system, as soon as the supply-demand adjustment regulation is abolished. For the time being, the Ministry will encourage more flexible setting of fares and charges, including the introduction of reduced fares from FY 1997.
Taxi : The Ministry will abolish the supply-demand control regulation by FY 2001 at the latest, after imposing measures for ensuring safety and protecting consumers. The Ministry will also make efforts to move up the implementation.
    Regarding fares and charges regulations, the Ministry will promptly study an upper limit pricing system, while studying the abolition of supply-demand adjustment regulation. Following which, the Ministry will introduce that system by FY 2001 at the latest and make efforts to move up its implementation.
Domestic passener ship : The Ministry will abolish the supply-demand control regulation by FY 2001 at the latest, after establishing measures for maintaining necessary local routes.
Airplane : The Ministry will abolish the supply-demand control regulation in FY 1999, after establishing a policy of maintaining local necessary routes and rules for allocating slots at major congested airports.
    While studying the effects of abolition, the Ministry will also study the way to promote more flexible setting of fares.

(2) Others
    Automobile inspection regulations and certification : Based on the report by the Council for Transport Technology dated June 18, 1997, the Ministry will work positively to make regulations of motor vehicles harmonized internationally and realize reciprocal recognition of certification.
    With regard to disassembling repair inspection, the Ministry will also take necessary measures, based on the above-mentioned report stating that such inspection should be abolished in line with internationalization.
    As for the term of validity of motor vehicle inspection certificate, the Ministry will set up a system continually to review and extend the term if no serious problems are foreseen.
    Tourist business registration : With regard to the term of validity of registration and renewal, the Ministry will extend the term from three years to five years, after studying the necessary measures for protecting consumers.

2. Provision of Social Capital for Supporting and Developing an Affluent Quality of Life

    Building traffic infrastructure is a precondition to providing a competitive market environment. To realize a society where people can really feel comfortable and affluent, it is also necessary to supply social capital which cannot be raised just by utilizing the market principle.

(1) Construction of Faster and More Comfortable Railways
    Regarding trunk railways, the important task is to build high-speed railway networks. It is necessary to construct "New Shinkansen Lines" and promote direct operations between the existing railroad lines and the Shinkansen. The construction of urban railways is also needed because they are necessary not only for enhancing transport capacity and easing congestion, but also from the viewpoint of supplying new residential areas and reducing commuting time to and from work or school.
    The construction of railroads, however, will require a huge amount of money and a long preparation period, and the investment risk is also high. It has therefore become more important for those concerned to study the way to support the plan financially, bear the subsequent costs, and make further efforts to promote the construction.

(2) Construction of Airports Responding to the Growing Demand for Air Transportation
    The urgent task is to pursue timely construction of airports in response to growing air demand, particularly the international hub airports and domestic key airports which will become the footholds of the aviation network. For this purpose, the Ministry will improve the facilities at New Tokyo International Airport (Narita Airport), promote the offshore development project at Tokyo International Airport (Haneda Airport), expedite the second phase construction at Kansai International Airport and the construction project of Chubu New Airport, and make comprehensive surveys and studies on new key airport construction in metropolitan areas.
    With regard to regional key airports and local airports, the Ministry will pursue mainly existing projects and try to improve the services of existing airports as the need arises.

3. Aiming at a Society Where People Can Feel Comfortable and Affluent

(1) Efforts Aiming at Comfortable Transportation in Metropolitan Areas
(A) Promotion of "off peak" commuting
    Through the Conference on lmproving Commuter Comfort which was set up in cooperation with the Ministry of Labor, the Ministry of Transport will promote off-peak commuting, encouraging firms to introduce staggered working hours and flextime systems.
(B) Alleviation of road congestion
    To promote smoother road traffic in urban areas, the Ministry will pursue measures, such as Transportation Demand Management encouraging users to park-and-ride, carpool, and stagger commuting.

(2) Realization of Transport Services Friendly to the Aged and the Handicapped
    The Ministry will encourage traffic operators to install elevators and other equipment at railway stations and other places.
    The Ministry will also grant subsidies for elevators designed for handicapped persons at railroad stations, via the Foundation for Transportation Ecology and Mobility. The Ministry will also support the introduction of "non-step buses" through the Subsidies for total action to revitalize Buses.

(3) Securing User Reliable Transportation
    The Ministry will take measures to implement transport services users can rely on, by preventing fare increases and a decline in driver skills. The Ministry will also promote information disclosure so that market principles will function effectively.

(4) Securing Transportation in Local Areas
    It is getting very difficult to manage bus and railway businesses in depopulated areas, as well as operating sea and air routes to isolated islands. If supply-demand adjustment regulations are abolished in the future, routes with lesser demand may be obliged to stop running. The Ministry is also concerned about the declining quality of services.
    The Ministry will therefore try to maintain indispensable transportation services, such as the bus services in remote areas and routes to isolated islands, based on the specific measures being studied by the Council for Transport Policy.

(5) Regional Promotion through Tourism
    In accordance with Welcome Plan 21 (the program to double the number of foreign tourists) proposed in April 1996 and the Law to Promote Inbound International Tourism by Diversifying Destinations in Japan enacted based on this plan (enforced in June 1997), the Ministry will take measures for promoting local areas by attracting tourists to regional tourist destinations.
    The Ministry will also try to vitalize local areas through domestic tourism, by stimulating demand for tourism and making attractive tourist destinations.

(6) Safe and Disaster-resistant Transport Facilities
    The Ministry will promote measures for preventing traffic accidents, in accordance with the Sixth Fundamental Traffic Safety Program (FY 1996-2000), and also make effortsto secure timely and effective forecasts and warnings, and establish rescue systems and measures for victim relief.
    The Ministry will also try to enhance the earthquake-resistance of railway, harbor and airport facilities, establish information communication systems, and secure emergency and alternative means of transportation.

4. Aiming at Smooth Transportation Services in Line with International Standards

(1) Promotion of International Policy Adjustment
    The Ministry will positively participate in the Asia Pacific Economic Cooperation (APEC), East Asia Transportation Forum, and hold high-level transport conferences with major nations and the European Union to continue talks with them. The Ministry will thus carry out bilateral and multilateral policy adjustments and continue discussions.
    With regard to the conformance with international standards of transport facilities, the Ministry will promote to make automobile regulations harmonized internationally, and will also enhance Port State Control (PSC) under international cooperation to exclude ships not conforming to international standards.
    Furthermore, the Ministry will resolutely deal with Japan-U.S. aviation, and port issues, while adhering to the fundamental Japanese policy.
    With regard to the building of international transport networks, the Ministry will try to secure route and transport capacity which will meet consumer needs through negotiations on regular international freight services. Concerning international marine transport services, the Ministry will positively contribute to the activities of the World Trade Organization (WTO), APEC, International Maritime Organization (IMO), and try to build a free and fair international marine market.
    In addition, the Ministry will promote the expansion of the international ship system (introduction of assigning Japanese officers- the captain and chief engineer on board an international ship, establishment of a practical training scheme for young ship officers, etc.) to vitalize the Japanese oceangoing shipping industry.

(2) Promotion of International Cooperation
    To help the development of developing countries, the Ministry will make comprehensive efforts, providing assistance not only for the construction of railroads, harbors and airports, but also for the formulation of traffic policy. The Ministry is placing particular emphasis on environmental issues in providing assistance for transport services.

5. Promotion of Research and Development of Transport Technology

    Historically, the birth of new technology has brought revolutionary changes to transportation as well as society. Transport technology will play a very important role in creating a really affluent society in the twenty-first century. At present, research and development is being conducted in the following fields:
Multi-functional transport satellite (MTSAT) :
    The Ministry plans to launch a multi-functional transport satellite (MTSAT) in FY 1999 to conduct Air Traffic Service and meteorological observation, and is proceeding with the procurement of the satellite. The introduction of the next generation air navigation system centered on MTSAT will make it possible to increase air transport capacity and improve the safety of air transportation.
Superconductin magnetically levitated railway (Maglev) :
    Aiming at super-high speeds (the maximum operating speed of 500 km/h) and a transport capacity of around 10,000 persons/peak hour (one way), the Ministry has begun running tests on the experimental line laid in Yamanashi prefecture since April 1997. The Ministry will decide by FY 1999 the outline of technical details to put this into practical use.
Ultra-1ar e floating structure(Mega-Float) :
    The Ministry is continuing to conduct demonstrative experiments using a large floating model, and to make technical studies on the availability as airports.
Intelligent Transport system :
    As part of the technical development of an Intelligent Transport System (ITS), which will be built as an integral system networking people, vehicles and roads through information communications technology, the Ministry is making surveys and studies on the Advanced Safety Vehicle (ASV) development and the measures for utilizing ITS in road transport businesses in cooperation with the government ministries / agencies concerned.


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