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GTI Project in Focus 1st ESCAP-GTI Seminar on Transport Issues in North-East Asia Transport Corridors: Challenges and Opportunities for North-East Asia 10 October 2019, Ulaanbaatar, Mongolia Session 3: Project in Focus – Evolution of Regional Value Chains and Logistics Networks in Greater Tumen Region (GTR) Views from Japan Hirofumi Arai, ERINA Economic Research Institute for Northeast Asia, All Rights Reserved 1 1. Main Directions in Japan Economic Research Institute for Northeast Asia, All Rights Reserved 2 The Most Populated Cities in Japan Tokyo 8,336,599 Yokohama 3,574,443 Osaka 2,592,413 Nagoya 2,191,279 Sapporo 1,883,027 Kobe 1,528,478 Kyoto 1,459,640 Fukuoka 1,392,289 Kawasaki 1,306,785 Saitama 1,193,350 Hiroshima 1,143,841 Yono 1,077,730 Sendai 1,063,103 Pacific (Industrial) Belt Economic Research Institute for Northeast Asia, All Rights Reserved 3 Overall Railway Network (Passenger) Economic Research Institute for Northeast Asia, All Rights Reserved 4 JR Freight Service Line Economic Research Institute for Northeast Asia, All Rights Reserved 5 Highway Network Economic Research Institute for Northeast Asia, All Rights Reserved 6 Major Ports in Japan Specially designated major ports (23) Major ports (105) Economic Research Institute for Northeast Asia, All Rights Reserved 7 Policy attentions to Pacific major ports “Super-hub Port” Initiative from 2004 • Applied to: - 1) Keihin Port (Alliances of Port of Tokyo and Port of Yokohama) - 2) Alliances of Port of Nagoya and Port of Yokkaichi - 3) Hanshin Port (Alliances of Port of Kobe and Port of Osaka) • Measures: - 1) Formulation of “Mega - Container Terminals” • To reduce handling costs through economies of scale, a “Super-hub Port” should have “Mega Container Terminals” to enable integrated and flexible terminal operation. - 2) Encouraging consolidation of terminal operators • Encouraging private operators to participate in the terminal business through financing supports and long-term lease arrangements of public assets (public wharf) - 3) Introduction of cutting-edge IT • Introduction of cutting-edge IT system and fully automated cargo handling equipment to enable 24 hours operation - 4) Improve connection with domestic feeder services • Promote the development of domestic feeder services to increase the domestic feeder cargo Economic Research Institute for Northeast Asia, All Rights Reserved 8 Pacific Coast Prevails in Container Handling Source:Port and Harbour Modernization Promotion Council of Japan, 2018 Economic Research Institute for Northeast Asia, All Rights Reserved 9 Ref. Container Handling Port Ranking (2018) Rank Port TEU RankPort TEU 1Tokyo 4,570,702 20Fushiki-Toyama 72,601 2Yokohama 2,722,523 21Akita 70,153 3Nagoya 2,699,625 *** 4Kobe 2,219,585 23Kanazawa 68,474 5Osaka 2,096,318 *** 6Hakata 882,196 29Sakai 36,898 7Shimizu 483,450 30Tsuruga 36,591 8Kitakyushu 477,564 *** 9Tomakomai 226,944 34Sakata 33,106 10Yokkaichi 205,547 35Naoetsu 33,097 11Sendai 179,754 *** 12Niigata 170,833 49Maizuru 18,623 13Hiroshima 161,973 *** 56Hamada 4,336 Economic Research Institute for Northeast Asia, All Rights Reserved 10 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Thous. Thous. TEU Their Their volume stillis very small. Source 500 0 : Port and Harbour Modernization Promotion Council Japan Council Port of and Harbour Modernization Promotion 1989 1990 1991 Economic Economic Research Institute for Northeast Asia, Rights All Reserved 1992 1993 1994 1995 1996 1997 1998 1999 2000 Int'l empty)Container(incl. Handled 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3% of Total Total of 3% Otherports Japan10Sea ports Kobe Osaka Nagoya Yokohama Tokyo 11 Slight Different Picture in Japan-Russia Trade Auto-parts Export to Russia (T/S) Automobile Export to Russia (Direct) LNG Import from Russia (Direct) Coal Import from Russia (Direct) 0% 20% 40% 60% 80% 100% Japan Sea Pacific Source:Port and Harbour Statistics, 2017 Economic Research Institute for Northeast Asia, All Rights Reserved 12 Trial Shipments for TSR (SLB) • MLIT organized 7 trial shipments in 2018. • In the firstest case, it took only 15 days from Japan to Moscow. In some specific cases, special arrangements/documentation took some time. • No damages to cargos. Freight Marine at RFE Ports Railway Total Beverages 4 days from Kobe 3 days 8 days 15 days Food 10 days from Yokohama 6 days 7 days 23 days Instruments 9 days from Nagoya 9 days 9 days 27 days Construction materials 8 days from Yokohama 7 days 10 days 25 days Machinery parts 10 days from Yokohama 9 days 8 days 27 days Daily necessities 12 days from Yokohama via Pusan 5 days 11 days 28 days Food, Daily necessities 2 days from Maizuru 17 days 12 days 31 days MLIT is going to organize additional trial shipments to Europe in 2019. Economic Research Institute for Northeast Asia, All Rights Reserved 13 “Quality Infrastructure Investment” Initiative • Essence of Quality Infrastructure: - 1) Economic efficiency (low life-cycle cost), 2) Safety, 3) Resilience against natural disaster, 4) Consideration on environmental and social impact, 5) Contribution to the local society and economy (transfer of technology and human resources development) • Main Players - JICA (Japan International Cooperation Agency): Technical Assistance - JBIC (Japan Bank for International Cooperation): Finance - JOIN (Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development, established in 2014): Involvement of private sector • Examples: - Mumbai - Ahamedabad Highspeed Railway Project (India) - Mombasa Port Development Project (Kenya) Economic Research Institute for Northeast Asia, All Rights Reserved 14 2. Future Vision in the GTR Economic Research Institute for Northeast Asia, All Rights Reserved 15 From a standpoint of the Japanese west coast Existing main routes: Bohai bay ports – Pacific coast Existing local routes: Proposed additional routes: Bohai bay ports – west coast Russian ports – west coast The new routes enable to save time, reduce CO2 emissions and, probably, transportation costs. For example; Changchun(CN) – Zarubino(RU) – Niigata(JP): appox.1,500km Changchun(CN) – Dalian(CN) – Niigata(JP): approx.2,600km Economic Research Institute for Northeast Asia, All Rights Reserved 16 Foreign Trade of Three NE China Provinces with Japan (2012, mil. USD) with Russia (2012, mil. USD) Data source: Statistics Yearbook of each province Economic Research Institute for Northeast Asia, All Rights Reserved 17 Thank you for your kind attention!! http://www.erina.or.jp Economic Research Institute for Northeast Asia, All Rights Reserved 18.
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