○Measures to develop a highly-advanced physical distribution system that ensures overall efficiency

MLIT has been promoting wider use of IT in the physical distribution sector. Specifically, the ministry is considering the XMLized EDI (Electronic Data Interchange) in the physical sector to the national standard and supporting the application of ITS or GIS to physical distribution.

In interregional distribution, MLIT pursues more efficient physical distribution using intermodal transportation and other means. To this end, the ministry is providing support in developing ports, train stations, and other distribution hubs, in boosting the efficiency of cargo transport on key routes, and in developing access roads which connect distribution hubs to expressways. In addition to providing such support, MLIT is taking numerous measures for urban physical distribution. Among them are: the elimination of highway-railroad grade crossings by building overpasses or underpasses to ease congestion; facilitation of consolidated distribution.

Furthermore, MLIT is promoting the development of a next-generation maritime transport system that takes advantage of IT and the advancement of medium and small sized distribution companies into new types of distribution as 3PL (3rd Party Logistics).

## [Revitalizing industry]

## ○ Measures to revitalize the transport industry

Amid the deregulation process in the transport industry, railway operators are taking steps to improve their service, including the introduction of IC card tickets. Efforts are also being made toward the complete privatization of JR companies.

MLIT now requires driving staff at substitute driver service providers to carry type II driver's license as part of its efforts to optimize the industry. This requirement is provided for in the revised Road Traffic Law.

To vitalize the domestic shipping industry, MLIT promotes competition in the industry under the recently-amended Coastal Shipping Business Law.

MLIT also encourages competition in the airline industry as well. To provide a level playing field, the ministry implements preferential allocation of takeoff and landing slots for new entrants in the industry.

## ○Stimulating the real estate market

MLIT’s measures to stimulate the real estate market include: improving conditions for the land market, providing adequate real estate information, promoting the securitization of real estate further, and exploiting the land and housing taxation framework.

## ○Rejuvenating the construction industry

The ministry’s efforts to rejuvenate the construction industry include: promoting the management innovations of medium and small sized construction industry; promoting the establishment of social safety nets; regulating company evaluation in public works projects; expelling bad or disqualified contractors from the market; implementation measures against dumping order intake; improving labor standards in the industry; solidifying management base for subcontractor and construction-related industries; and raising the levels of construction skills.

Notes:1. The figures for construction investment are estimates for FY2002 and FY2003 and a forecast for FY2004.

2. The number of licensed contractors represents the figure at the end of each fiscal year (the end of March of the following year).

3. The number of workers represents the annual average.

Sources: MLIT, Estimate of Construction Investment and Licensed Contractor Survey; MPHPT, Labour Force Survey