## 2 Measures Aimed at Building an Efficient and Sustainable Logistics System in Japan

Additional approaches are underway to build an efficient logistics system in Japan to enhance Japan’s industrial competitiveness while decreasing environmental loads.

## (1) Flow of interregional logistics

The MLIT proceeds to develop nodal points of logistics, such as ports and freight stations, to drive combined multimodal transportation. Cargo transportation by rail can be used more efficiently by utilizing the facilities that have been developed to increase capacities of cargo transportation by rail. The construction of combined multimodal transport terminals is also being proceeded at Tokyo Port and elsewhere to consolidate coordination between marine transportation and other modes of transport. In addition, the MLIT works to drive modal shifts, as by approaching various issues relevant to alternative transportation in case of rail transportation accidents.

Key road networks will also be constructed to streamline the flow of truck transportation.

## (2) Streamlining the inner-region logistics including inner-city logistics

Urban distribution centers $ {}^{Note 1} $ have been developed in 22 cities and 29 locations (27 of which were already in service by the end of March 2015), in accordance with the Act on the Improvement of Urban Distribution Centers, to enhance the urban functions of logistics and streamline road traffic through the intensive location of distribution facilities.

To prevent roadside parking for cargo handling purposes, the Ministry has encouraged local governments to include the mandatory installation of parking spaces for cargo handling in their municipal parking ordinances. As of the end of March 2014, municipal ordinances had been amended in 89 cities to dictate the installation of parking spaces for cargo handling at commercial installations within a certain scale or larger.

Measures taken to optimize traffic flow include making focused attempts at eliminating congestion bottleneck points, constructing graded intersections, and resolving railway crossings that are closed at nearly all times. In parallel, non-structural measures, such as those aimed at encouraging joint transportation and delivery pursuant to the Low Carbon City Promotion Act to boost loading efficiency, have been promoted.

In depopulated areas or the like., local residents find it increasingly difficult to make day-to-day shopping, etc. while the efficiency of physical distribution continues to decline. Starting from October 2014, the “Review Panel on Sustainable Logistics Networks in Support of Communities” has been organized to maintain and upgrade home delivery services through collaborations between operators and NPOs and other entities and to explore new transportation systems instrumental in support, etc. of shopping-handicapped residents.

At the same time, case studies of excellent endeavors have been publicized to encourage local public entities and operators at work.

## (3) Further efforts to implement logistic services that are more sophisticated and that deliver better total efficiency

To accelerate the implementation of the 3PL business Note $ ^{2} $ further, the Ministry not only arranges for the environment in which logistic companies find it easier to make inroads into the 3PL business easier, by hosting human resources development and training sessions, creating guidelines for small and medium business companies to enter the EC market and so on, but also seeks to generalize and simplify the logistic flow through a system of accreditation for total efficiency plans $ ^{3} $ in accordance with the Act on the Improvement of Urban Distribution Centers. As of the end of February 2015, 249 total efficiency plans were accredited in accordance with the Act.