○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 supporting the application of ITS or GIS (geographic information system) to physical distribution. Recently it has conducted a demonstration experiment involving electronic tags.

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 and in boosting the efficiency of cargo transport on key routes. In addition to providing such support, MLIT is taking numerous measures for urban physical distribution. Among them are: the development of orbital roads and bypass roads and elimination of highway-railroad grade crossings by building overpasses or underpasses to ease congestion; construction of facilities designed to facilitate consolidated distribution; promotion of Transportation Demand Management (TDM) and other systems.

Furthermore, MLIT is promoting the development of a next-generation maritime transport system that takes advantage of IT, as well as new types of distribution services.

## [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.

Measures to revitalize domestic marine transport include, among others, the creation of a competitive market.

As for the airline industry, MLIT is contributing to better service for passengers by encouraging entry of new airliners into the market. Such encouragement includes preferential allocation of takeoff and landing slots for new entrants and equalization of qualifications for using airport facilities. The ministry is also helping the industry solidify its management base by taking action in an integrated manner to stimulate demand, redouble its support for efforts to improve service, and review relevant regulations.

## Real estate industry

MLIT aims to upgrade real estate management. In particular, the ministry promotes appropriate and efficient management of rental property.

## ○Rejuvenating the construction industry

The ministry’s efforts to rejuvenate the construction industry include: promoting the establishment of social safety nets; regulating company evaluation in public works projects; expelling bad or disqualified contractors from the market; studying the introduction of the construction management (CM) approach; improving labor standards in the industry; solidifying management base for subcontractor and construction-related industries; and raising the levels of construction skills.

Trends in construction investment (nominal term) and the numbers of licensed contractors and workers

Notes:1. The figures for construction investment are estimates for FY2001 and FY2002 and a forecast for FY2003.

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