Section 3 Constructing an Efficient Logistics System


1. Formulation of the Comprehensive Program of Logistics Policies for Building an Efficient Physical Distribution System

    On April 4, 1997, the Cabinet formally approved the Comprehensive Program of Logistics Policies, in which the government put priority on measures such as (i) improvement of the social infrastructure, (ii) further promotion of deregulation, and (iii) development of a more sophisticated logistics system (Table 13).

2. Building a Social Infrastructure That Can Respond to the Era of Mega-competition.

    The government will promote the redevelopment of international hub ports and airports that have become outdated by international standards. Linkage will be established between roads, railways, ports and harbors, airports and logistics centers to eliminate any logistical bottleneck.

(1) Port Facilities That Meet the Needs of the New Age
    In the major international ports and harbors including Tokyo, Ise, Osaka and Kitakyushu Ports, high-standard international marine container terminals with a depth of more than 15 meters will be urgently constructed as an urgent task. Construction of international marine container terminals will also be conducted at other local international ports and harbors so that they can supplement the role of major international ports. At the same time, simplification of various procedures and the introduction of electronic data interchange systems is underway. For facilitating domestic intermodal transport, the construction of coastal shipping terminals will be promoted.

(2) Responding to the Rapid Increase of Air Cargo
    The construction of hub airports in major urban areas is one of the highest priority policies. In order to respond to the rapidly increasing demands for air cargo transport, the construction of cargo handling facilities at the New Tokyo International Airport and Kansai International Airport will be steadily promoted.

(3) Reviewing the Environmentally Friendly Railroad Freight System
    In order to promote railway cargo transportation, it is necessary to improve the basic railway infrastructure so that the trains can run on schedules that are more convenient for the cargo owner. To this end, the government is currently supporting efforts to increase the freight transport capacity of the Tokaido line.

(4) Promoting Physical Distribution Centers
    The government is now promoting the construction of warehouses, truck terminals and the government designated facilities for logistics sophistication as well as the construction of physical distribution centers in urban areas. However, the number of physical distribution bases in Japan is insufficient due to the difficulty of acquiring land. Physical distribution businesses are increasingly expected to utilize their physical distribution bases more efficiently and thus reduce the impact on the environment. For that purpose, based on the Comprehensive Program of Logistics Policies, the Ministry of Transport plans to issue a guideline for the construction of physical distribution bases by the end of FY 1997 for the benefit of the private physical distribution businesses.

(5) Responding to the Need to Promote Imports in an Era of Mega-exchange
    In addition to the construction of a deep container terminal at the major international ports, and the construction of hub airports in major metropolitan areas, the Ministry is supporting projects in the Foreign Access Zones (FAZ) that will promote imports (Fig 14). The construction of comprehensive import terminals in the vicinity of international airports and international hub ports and at the FAZ, as well the construction of coastal warehouses within the port areas for accommodating increased imports will be promoted.

3. In Order to Improve Physical Distribution Services--Promoting Deregulation

    With the objective of expanding business opportunities and promoting healthy competition among private companies, initiatives for deregulating the physical distribution sector are being implemented such as simplification of the requirements imposed on new entrants to the sector, and introduction of a more flexible rate and charges system.
    In the trucking businesses, the geographical business area will be expanded based on units of economic blocks by FY 2000, and the minimum number of vehicles per company will be lowered progressively to five trucks for all regions throughout Japan.
    With respect to the railway freight business, the supply demand adjustment regulations will be abolished, in accordance with the current JNR reforms, as soon as the full fledged privatization of JR Freight has been achieved and its management improved. Then, the current approval system will be changed to a report system.
    Over the next four years, the Ministry will implement measures to reduce dependence on the tonnage adjustments program of domestic coastal shipping, with the cooperation and understanding of cargo owners, while giving due consideration to small and medium-sized companies, with the exception of container vessels and Roll-on Roll-over vessels which are the core for promoting modal shift by the end of FY 1998.
    With regards to the ports and harbors transport business, the appropriate measures will be implemented based on the Administrative Reform Committee's monitoring activities and conclusions in FY 1997, including the possibility of abolishing the demand supply adjustment regulations.

4. Towards a New Age -- Initiatives for Promoting a More Sophisticated Physical Distribution System

(1) Appropriate Allocation of Physical Distribution Transport Operations--Promoting Modal Shift
    In response to concerns about global warming caused by C02 emissions, the modal shift of the long-distance trunk transport should be made to increase the use of coastal shipping and railway transport which offer excellent efficiency. For that purpose, necessary measures will be implemented.

(2) Intermodal Transport
     The smooth linkage between various modes of transport will be promoted to establish a more appropriate cargo transport system that draws upon the benefits of each type of transport mode. To this end, roads will be constructed to improve accessibility to ports and harbors and railway freight stations. We will also implement measures for promoting coherent palletization.

(3) Improving Inter-Regional Physical Distribution Efficiency --- Promoting Shared Trunk Transport
     As part of the initiative to improve the efficiency of inter-regional physical distribution, shared trunk transport was launched from November 1994 and proved to be a very efficient method of truck transportation (Table 15). The regions where shared trunk transport are being implemented will be expanded, and transport companies will be encouraged to participate.

(4) Establishing an Efficient Urban Physical Distribution System
     The shift from trucks for private use, which are an inefficient transport mode, to trucks for business use will be promoted (Table 16). In order to improve the loading efficiency per truck, we are promoting the shared collection and distribution of goods. Joint collection and distribution of goods are being promoted in many regions including the Fukuoka Tenjin area.

(5) Advent of the Advanced Info-communications Society and Initiatives in the Logistics Arena
(i) The establishment of a smooth information exchange system -- promoting logistics EDI
    With the goal of promoting electronic data interchange(EDI) in the logistics arena, the Logistics EDI Promotion Organization has been established as a joint effort of the public and private sector in a bid to improve the business environment.
(ii) The truck transport system for the new age
    In order to improve truck transport efficiency, the Ministry is strongly promoting various measures to establish a new efficient information communications system, which includes the development of a truck/cargo seeking information system, and which is expected to improve transport efficiency. Also the Ministry is investigating and researching utilization of the Intelligent Transport System (ITS) to truck transport in collaboration with other government agencies and ministries (Fig. 17).
(iii) Initiatives to introduce information technology in port distribution
    By FY 1999, the government intends to introduce an EDI system for processing export and import permit applications under the Foreign Exchange Control Law and the Foreign Trade Control Law. EDI processing of port arrival and departure procedures, quarantine and other administrative procedures at the major ports will also be promoted. Compatibility will be established between the new EDI system and existing customs clearance information processing systems for export/import applications under the Customs Law.
    The Ministry of Transport is promoting initiatives to simplify application procedures such as introducing facsimile application for procedures made under port management bodies and port managers for some ports. Since FY 1996, the Ministry has been engaged in a joint study with the harbor authorities of the eight major harbors in Japan, for launching an EDI system that will process various applications related to the responsibilities of the port management bodies.
    Since December 1996, the Maritime Safety Agency has allowed transport businesses to use a standard form for anchorage application to port manager, and to make application for two or more ships to use mooring facilities through a single application. In preparation for the EDI processing of port entry and exit procedures, the Ministry is currently implementing surveys and studies.


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