Exploring the Current Situation and Future Prospects of the Cooperation Between the Japanese and Russian Ports Across the Sea Of

Exploring the current situation and future prospects of the cooperation between the Japanese and Russian ports across the Sea of Japan: Viewed from the Russian Perspective Aleksandr Turbin and Yutaka Takemura Abstract Geographic proximity, common economic interests and political strife towards normalization of the relations between the Russian Federation and Japan are supposed to result in a positive dynamics of economic exchanges between the two nations including the increase in the cargo volumes shipped through the Japanese and Russian ports across the Sea of Japan. However, the results are moderate throughout the recent years as we see more of a fading maintenance of the old cooperation rather than rapid growth. In mass media and expert analysis, this is mainly explained by the declined purchase power of Russian business due to the fall of the Russian currency accompanied by the international and Japanese sanctions against Russia. But is that the only reason? What else influences the volumes of Russian-Japanese trade in East Asia? This article observes current Russian-Japanese trade and cooperation in the sphere of sea transportation and makes an attempt to clarify the existing problems and future prospects in collaboration between the Japanese and Russian ports across the Sea of Japan. Keywords: container transportation, Japanese ports on the Sea of Japan, Russian Far East, Russo- Japanese relations 日本海をまたぐ露日港湾間の協力の現状と将来の展望の検討：ロシア側の視点からアレクサンドル・トゥルビン竹村豊要旨地理的近接性と共通経済利益と露日関係正常化への政治努力とは両国間の経済交流にポジティヴなダイナミズムを生み出すはずであり、日本海をまたぐ露日港湾間の船舶輸送量の増加にもつながるはずである。しかしながら、近年の成果は控えめなものにとどまり、急成長どころか、旧来の協力関係の維持すら難しいのが現状である。メディアや専門家の分析において、そのことは、主に、日本を含む諸外国の対露経済制裁とルーブルの下落に伴うロシア企業の購買力の低下によって説明されている。しかし、それだけが理由だろうか。東アジアでの露日間の貿易量に影響を与えている他の要因は何であろうか。本稿は、露日間の貿易と協力について海上交通の面で検討し、日本海をまたぐ両国港湾間の協力が現在抱えている問題と将来の展望を明らかにしようとするものである。キーワード：コンテナ輸送、日本海沿岸の日本の港湾、ロシア極東、露日関係 I. Introduction At the same time, the Russian Far Eastern ports play a crucial role in Russia’s trade with the Asia- Being an island state Japan has highly developed Pacific countries and Japan in particular. sea infrastructure. There are about one thousand Vladivostok port has played a major role in the ports around the country. Although the Japanese country’s presence in North-East Asia both in ports on the Sea of Japan are closer to the Eurasian terms of trade and military presence. Nakhodka continent, the major Japanese ports in terms of port was one of the major ports of the Russian Far cargo volumes are located on the eastern coast of East as it was open to foreigners during the Soviet the country. Such disposition is seen due to the period. Vostochny port is one of the biggest spread of Japanese population and industry, Russian ports, and it was founded as a part of the showing that basically most of the Japanese Soviet-Japanese strategy of bilateral trade economic potential is concentrated on the eastern promotion. The idea to construct this port was side of Honshu Island. The five busiest container discussed in frames of Soviet-Japanese Economic ports of Japan are located there: Tokyo, Yokohama, Council that was established in 1966, and the Nagoya, Kobe and Osaka. However, due to a modernization of port facilities was held using number of reasons, including the high sensitivity Japanese equipment and technologies. Korsakov of the Japanese eastern coast towards earthquakes, port was founded by Japan in the southern part of Japanese central government tends to pay much Sakhalin island in 1907. Located nearby attention to the development of the western «Prigorodnoye» terminal nowadays plays a crucial coastline. role in Russian-Japanese cooperation in the sphere the South Kuril Islands (called “Northern of LNG production. These and other Far Eastern Territories” by the Japanese) and the question of the peace treaty and finishing with the persistent ports played and continue to play a decisive role in problems of communication between Russian and import and especially export operations of the Japanese business. The history of business Russian Federation. relations between Russia and Japan has many As we see, Russian-Japanese trade relations have a examples of “unsuccessful stories.” But at the long history. Though Russia and Japan same time, according to Moscow Carnegie Center experienced military clashes between them estimations, Japanese invested 14,4 billion dollars throughout history, both powers had the intention in Russian economy during last 25 years (10,3 to enhance economic activities towards each other. billion USD in fuel-power complex, such as Mitsui Having a heavy burden of historical legacy and Mitsubishi investments in Sakhalin Energy nowadays two countries experience a number of project) 1 which makes them the first biggest obstacles towards mutual cooperation in trade, investor into the Russian Far East. Such starting from the sensitive political issues, such as complexity in relations is rather curious. Area Organization Designation President and other executives Primorsky Chamber of Commerce and Industry Head of the International Relations Committee and other Primorsky executives krai Container shipping company Logistic Department executive Consulting company «ASSO- Director Invest Consulting» Akita Prefectural Department of Industry and Labor Commerce Akita Prefectural Government and Trade Division Associate Director and other executives Akita Port Office Chief and other executives Akita Akita Funakawa Bay Port Prefecture Director and other executives Office Noshiro Port Office in Akita Vice principal and other executives Prefecture Commerce, Industry and Labor Department Industrial Location Toyama Prefectural and Trade Division Director and other executives Toyama Government Public Works Department Associate Director and other Prefecture executives A transportation company Multimodal Transport Department General Manger and other Fushiki Kairiku Unso Co. Ltd. executives Bureau of Transportation Policy Port Promotion Division Niigata Prefectural Government Director and other executives Niigata Prefecture Transportation services company Niigata World Trade Executive Terminal Co.,Ltd. Sakai Port Trade Promotion Association General Manager and other executives Tottori Association Prefecture Sakai Port Authority Assistant Director Hamada Port Promotion Chief of Secretariat and Secretariat and other executives Shimane Association Prefecture Industry Policy Division of Industrial Economics Department Hamada City Government executive Yamagata Yamagata Prefectural Port and Harbor Management Office Deputy Director and other Prefecture Government executives Table 1. Respondents of the interviews This article makes a brief review of Russian- interviews were conducted during the visits to Japanese trade and cooperation in the sphere of sea Japanese ports in June-July 2017. A joint transportation and tries to make a contribution to delegation of Akita Prefecture Government, AIU the discussion about the prospects and possibilities IASRC and FEFU CAPS visited ports of Akita, for further cooperation between the Japanese and Funakawa and Noshiro (Akita Prefecture), Russian ports across the Sea of Japan. The article Fushiki-Toyama Port (Toyama Prefecture), Port of is written as the result of a joint research held by Niigata (Niigata Prefecture), Sakaiminato Port the Institute for Asian Studies and Regional (Tottori Prefecture), Hamada Port (Shimane Collaboration of Akita International University and Prefecture) and Port of Sakata (Yamagata the Center for Asia-Pacific Studies of the Far Prefecture). The visits included meetings with the Eastern Federal University on January – November representatives of local government and port 2017. authorities, business representatives and other interested parties. Table 1 shows the general information about the respondents. II. Data source review and methodology All the respondents received a questionnaire The research was done using two main tracks. A describing the main topics of the following quantitative analysis of economic indicators and interviews. Though the interviews themselves were trade relations was made by using specialized semi-structured, we tried to use more qualitative sources such as Russian Custom Statistics database approach by encouraging respondents to speak (Japan-Primorsky krai trade volumes), Reports on more about those aspects of the issue, which they Russian Sea Ports cargo and container turnovers, could give wider comments on or which they etc. Information about the trade volumes between supposed to be more crucial regarding the general Japan and Russia was retrieved from the outline of the discussion about economic International Trade Centre Trade Map (based on cooperation between Russia and Japan. As a result, UN COMTRADE statistics), some data was also we got a number of interviews covering the topic taken from the International Monetary Fund starting from the technical peculiarities of the ports database. Simultaneously qualitative data was and logistic infrastructure of both sides and ending gathered via a number of expert semi-structured with the broad speculations about the historical and interviews that were taken both in Russia and cultural aspects of bilateral cooperation. Japan. As most of the interviews lasted for a long time For the purpose of this research, we conducted a (more than three hours in several cases) and series of interviews. Four interviews were covered a wide number of topics, we decided to conducted in Russia on January-March 2017, structure this article using the quantitative

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