Section 2 Toward Developing New Transportation Policies


    Transportation is the fundamental foundation for the people's livelihood and socio-economic activities. We must appropriately adapt the transportation sector to the new era of the 21st century from the new viewpoints including the comprehensive transportation policy development and the construction of coordinated, efficient transportation infrastructure.

1. Abolition of Demand/Supply Adjustment Regulations and Laying of Groundwork for Making Effective Use of Market Forces

    The demand/supply adjustment regulations are expected to impede in response to diversified needs and ensure efficient business management, while Japan amid the economic recession is required to fundamentally reform its entire economic and social systems. Therefore, the government in December 1996 devised a plan to abolish the demand/ supply adjustment regulations in principle. In order to allow transportation to be revitalized and developed under the principles of market forces and self-responsibility, we must improve market conditions as described below in order to take full advantage of the deregulation for promoting competition between businesses:

(1) Development of Comprehensive Transportation Infrastructure
    Transportation infrastructure including railways, airports and ports and harbors is the foundation for people to benefit from transportation services. Massive investment is required to develop such infrastructure, and given that much time is required for this investment to be recovered, the private sector alone has difficulties undertaking such an investment. Therefore, the government must take the leading role in and support the development of the transportation infrastructure. In this respect, consideration must be given to the following points :

  @ Coordination of positions for transportation infrastructure components in planning infrastructure construction projects. 
A Systematic links between transportation modes, including integrated development of airports, ports and harbors plus railways as the access to such facilities.
B In order to ensure the efficient, effective implementation of projects, efforts must be made to concentrate investment in priority areas, increase the investment efficiency, implement comprehensive, systematic assessment of projects upon their adoption, including the cost benefit analysis, reassess projects after their adoption and lower construction costs.
C The private finance initiative should be introduced to take advantage of private-sector financial resources and technologies.
D Ensuring harmonization between hardware and software to have transportation services meet people's needs.
ETransportation infrastructure development, coupled with other social capital development, should contribute to the
comprehensive, systematic development and utilization of national land.

(2) Creative Services Meeting New Needs
    In order to contribute to businesses' creation of new services, the government should offer information on changes in social needs, deregulation and other matters and support the development of new technologies.

(3) Laying the Groundwork for Promotion of Fair Competition
    In order to take full advantage of market forces, the government, while considering the characteristics of markets, must lay the groundwork for promoting competition through international negotiations on fair competition in the aviation and shipping sectors, international standardization of equipment and instruments, and establishment of airport slot allocation rules.

2. Addressing Problems Market Forces Cannot Solve

(1) Ensuring Smooth Transportation in Overcrowded and Depopulated Regions
    In overcrowded regions, the government must promote the improvement of the environment for driving automobiles, the use of public transportation means, the relaxation of rush hour congestion and other transportation-related measures in terms of both hardware and software, while considering these measures' close relationship with other urban policy measures. In order to ensure bus and other lifeline transportation services for remote islands and other depopulated regions, the government must appropriately share the burden and cooperate with local governments and other organizations in providing various kinds of assistance to them for improving the efficiency of transportation services. In this way, the government may be able to ensure smooth transportation in both overcrowded and depopulated regions.

(2) Ensuring Reliable Transportation Services
    The government must closely watch and appropriately respond to any deterioration in quality of transportation services, sharp fare hikes and other problems emerging as market forces intensify competition. It must also promote the disclosure of relevant information to prevent people's confusion resulting from the diversification of transportation services.

(3) Improved Links between Transportation Modes
    In order to ensure the continuity and better convenience of transportation means, the government must either develop or improve links between transportation modes, including a railway access to airport terminals. It must also develop and deploy the intelligent transportation system and the traffic demand management to ensure comprehensive transportation services including private means.

(4) Measures for Small and Medium Businesses and Employment Security in Transportation
    In order to ease the impact of the abolition of demand/supply adjustment regulations on small and medium businesses, the government must allow them to receive public loans, credit insurance, special tax breaks and other benefits. To secure employment, the government must also make employment insurance and other assistance available.

(5) Ensuring Safe, Disaster-Proof Transportation
     The government must take measures to ensure safety as the most fundamental policy goal for transportation. It must also ensure transportation networks even amid disasters by improving facilities' resistance to earthquakes and by readying alternative transportation means.

(6) Realizing Transportation That Can Coexist with the Environment and Is User-friendly
     In order to appropriately address the important issue of global warming, the transportation sector must step up the development and diffusion of low-emission vehicles, and ensure a shift to public transportation means and other measures in order to build up a transportation system that is environmentally friendly. As Japan's society ages with disabled persons increasingly participating in social activities, the sector must also pro-mote efforts to remove hardware and software barriers to aged and disabled persons in transportation.

(7) Paving the Way for Research, Development and Introduction of Advanced Technologies
     The government must play either a leading role or shared role in the standardization of equipment and instruments, development of transportation systems assisting disabled persons, and other projects to take advantage of remarkable advances in information and communication technologies for advanced, efficient transportation services.

(8) Laying the Groundwork for Expansion of Personnel Exchanges
     The government must initiate and support cooperation between relevant people for further expansion of personnel exchanges to promote overseas advertisement of Japan's tourism, development of a comprehensive tourism information system, construction of attractive towns for residents and visitors, cooperation between resorts, fair tourism transactions and other measures.

(9) Development of Urban Public Transit Systems
     In order to contribute to revitalizing cities through increasing the efficiency of the flow of people through urban areas as well as between urban and other areas, the central government must cooperate with local governments and businesses to comprehensively promote the improvement of people's convenience at each public transportation system and improvement of links between different transportation modes at terminals along with relevant urban development projects. In this respect, Japan since July 1998 has enforced the Law on Improvement and Vitalization in City Center

    The transportation sector, in order to provide safe, smooth and efficient services, must take advantage of market forces to improve services in view of people's needs and business efficiency. The transportation administration for its part must play the leading role in laying the groundwork for such private-sector efforts and tackling problems that market forces cannot solve.


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