## Section 2 Implementing Comprehensive and Integrated Logistics Policies

Pursuant to the “Integrated Logistics Master Plan (2009-2013)” formulated in July 2009 to promptly and precisely address variable logistic conditions, such as deepening global supply chains and increased need to take actions to combat global warming, Japan has been advancing the implementation of comprehensive, integrated packages of logistics policies. A next version of the Maste Plan is now under review as the original plan reaches its target year of 2013.

## 1 Implementating Logistics Policies to Correspond with Deepening Global Supply Chains

To keep up with deepening global supply chains, efforts directed at reinforcing Japan’s international logic functions are under way, including driving overseas deployment of the nation’s logistic systems.

## (1) Promoting the overseas deployment of Japanese logistics systems

Amid accelerating advances of Japanese industries into Asian regions, the availability of high-quality logistics services, like those being deployed by domestic physical distributors in Japan, is being sought for international physical distribution in the Asian nations. While the need for Japanese physical distributors to expand overseas thus mounts, some problems need to be resolved, including institutional constraints placed in the partner countries, before high-quality logistics systems, in which Japanese physical distributors have strengths, can be deployed in the Asian nations. For this reason, the Ministry will promote an understanding of Japan’s logistics system and its implementation by holding dialogs with the partner countries, etc. and also seek to refurbish the logistics environment, as by improving on institutional systems.

## (2) Strengthening capabilities of the international maritime transport network

As the globalization of economy progresses, the volume of international marine transportation continues to grow year to year. From the perspective of optimizing maritime transportation through large bundle shipments, container and bulk freight liners continue to grow in size. In the meantime, key Asian ports have successfully increased their volumes of freight handling, resulting in concentrated ports of call, with U.S. and European key sea routes making fewer calls at Japan. Further, slow responses to larger vessels to carry bulk cargo $ ^{Note} $ raise concerns over diminishing competitiveness in domestic industries forced into a mutually disadvantageous business environment.

In light of such conditions, Japan carries on its effort to streamline the flow of physical distribution that supports economic activity in Japan and life of citizens, thus boosting the competitiveness of the shipping entities at their location at home, which would in turn augment Japan’s industrial competitiveness and realize economic reconstruction by maintaining and expanding the calls of U.S. and European key routes at Japanese ports and simplifying and stabilizing imports of lifeblood materials, such as resources and energies.

In parallel with these approaches, efforts to shape an efficient network of maritime transportation in which international and domestic transport services are integrated will be carried on, and relevant measures will be enhanced and developed at a deeper level.

## ① Enhancing the functionalities of strategic international container ports

To support Japanese industrial activities and the life of citezens in terms of logistics, the key international routes of marine container distribution that link Japan to North America, Europe and else need to be maintained with stability and even expanded.

However, since the port costs have been further reduced at New Pusan Port, which was commissioned into service in February, 2006, and other ports, the number of times key European and U.S. routes call at Japanese ports remain on the decline and are yet to be maintained and expanded.