While the urge for Japanese logistics companies to expand into global markets mounts, certain problems need to be resolved, including institutional constraints placed in the partner countries, before high-quality logistics systems, in which Japanese logistics companies have strengths, can be deployed in the Asian nations. The development of an environment for overseas deployment of Japan’s logistics systems has been pursued through the implementation of demonstrations of the schemes of fully integrated land-sea transportation on RORO ships, policy dialogs at the government level and so on.

## (2) Consolidating capabilities of the international maritime transportation 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, international 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 logistics that supports economic activity in Japan and life of citizens, improving 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 international 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 marine 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 of refinement.

### a. Enhancing the facilities of International Container Hub

To support Japan’s industrial activities and the people’s lives in terms of logistics, the key international routes of marine container transportation that link Japan to North America, Europe and else need to be consistently maintained and even expanded.

To address this need, Hanshin Port and Keihin Port were selected to be International Container Hub each in August 2010 to implement a fully package of hardware and software measures, including the construction of deepwater quays and efficient port management taking advantage of “private” viewpoints. As for port management, Special Port Operation Companies have been appointed at Tokyo Port, Kawasaki Port, Yokohama Port, Osaka Port and Kobe Port.

In the meantime, the conditions surrounding Japan’s shipping and ports and habors have been changing rapidly and with increasing toughness, keeping pace with a restructuring of the European line alliances (G6 Alliance), formation of a new alliance of mega-carriers (P3 network) and the commissioning of supergiant container ships represented by Triple E (18,000TEU class).

Under the circumstances, the International Container Hub Policy Promotion Committee has met since July 2013, publicizing its final conclusions in January 2014 focusing on the three key principles of “concentration,” as by picking up cargoes at International Container Hub from sources over a broad area, “creation,” as by integrating industries in the hinterlands of strategic ports, and “increased competitiveness,” as by reinforcing the functionalities of deepwater container terminals or creating a government system of investment into port management companies.

Reflecting discussions at the committee, the Law for Making Partial Amendments to the Port and Harbor Law was enforced in April 2014, allowing governmental investment into the port management companies at international container strategic ports, adding warehouses that involve distribution and processing in the vicinity of piers at international container strategic ports to a list of facilities eligible for the interest-free loan program and so on.

From now on, these measures will be set into full motion to deepen the evolution of the international container strategic port and harbor policies and also to accelerate the pace of approach to their implementation.