Pilot Transport Project Results of Pilot Transport 2018 and Proposal of Pilot Transport 2019 Tottori Prefecture, Japan July, 2019 1 Route of Pilot Transport Tottori Prefecture conducted the second Zarubino port extension route pilot transportation of the DBS Cruise Ferry in October 2018 (first pilot transportation completed in April 2018). This extension aims to strengthen Sakaiminato’s function as a gateway to East Asia as well as to create a freight route between Tottori Prefecture and Jilin Province in China. Changchun Vladivostok Hunchun ■Contents of Assessments 1. Further Verify Lead Times By Truck Zarubino 2. Confirm Suitability for Precision Equipment Extended Sea lane 3. Explore Possibility for Transporting Food Items Donghae ■Piot Transportation Carrier Maizuru Nippon Express Co., Ltd. Sakaiminato (freight) October 2018 Pilot Transportation Cargo Export（2 Items） Import（1 Item） Device Products Item Japanese Sake Item Wood Ear Mushroom （LCL） 4 Tri-Wall Boxes Boxes 84 Bottles 20 Boxes (20kg) Quantity ７ （ ） Quantity （20ft Container） （Bulk Cargo） （20ft Container） Enterprise in Wangqing County, Embarkation Enterprise in Maizuru City Enterprise in Yonago City Embarkation Jilin Province Enterprise in Hunchun City, Jilin Enterprise in Yanji City, Jilin Destination Destination Enterprise in Kobe City Province Province 2 Schedule of Pilot Transport ■Shipping Schedule Oct.13 Oct.14 Oct.15 Oct.16 Oct.17 Oct.18 Oct.19 Date Sat Sun Mon Tue Wed Thurs Fri 9:30 14:00 11:00 21:00 11:00 9:00 ARL Donghae Vladivostok Zarubino Vladivostok Donghae Sakaiminato 19:00 14:00 6:00 15:30 14:00 17:30 DPT Sakaiminato Donghae Vladivostok Zarubino Vladivostok Donghae ■Transportation Schedule Export Import Oct.9（Tue） Consolidate Sake (Transport to Sakaiminato) Consolidate Device Products Oct.10 Wed Transport Empty Container to Hunchun （ ） (Transport to Sakaiminato) Oct.11（Thurs） Load Cargo into Container and Transport to Zarubino Oct.12（Fri） Load in DBS Arrive in Zarubino, Temporary Storage Oct.13（Sat） Depart Sakaiminato Oct.16（Tue） Arrive in Zarubino (Transit cargo procedures) Load in DBS, Depart from Zarubino Arrive at Hunchun, Customs Clearance Procedures for Oct.17 Wed （ ） Device Products Oct.18（Thurs） Device Products Arrive at Consignee (Hunchun) Arrive in Hunchun, Customs Clearance Procedures for Oct.19 Fri Arrive at Sakaiminato, Customs Clearance Procedures （ ） Sake Oct.22（Mon） Arrive at Consignee (Kobe) Nov.5（Mon） Sake Arrives at Consignee (Yanji) 3 Cargo Handling at Zarubino Port DBS Cruise Ferry Berthing in Zarubino Port Unloading 20ft Container 20ft Refrigerated Container Loaded in DBS DBS Departing from Zarubino Port 4 Summary Findings from Pilot Transportation 2018 • Import and export freight delivery between Sakaiminato and Jilin Province completed in the same one week lead time as was achieved during the first pilot transportation 2018 thus reconfirming the superior speed of this route (lead time of established Dalian route is around 12 days). Advantages • Not a single scratch found on outside of device product packing boxes confirming suitability of route for shipping precision machinery and other delicate items. • Confirmed ability to transport alcohol, vegetables, and other food products on this route. • Trucks with power supply in the chassis are not available for land transportation between the border of China and Russia (Zarubino to Hunchun). Necessary to verify suitability of transportation method Issues and for items requiring refrigeration. Problems • Takes extremely long to determine whether or not cargo with few prior cases of transportation can be handled (e.g. Russian land transportation company could not determine whether or not they could transport bonded sake until just before arrival in Zarubino port). 5 Pilot Transportat 2019 【Moving Forward】 • Conduct pilot transportation with new types of cargo. • Change freight method and timing and conduct further pilot transportations in order to address issues that arose from the 2018 pilot transportations. • Implement initiatives at Northeast Asia Expo tied to promoting exports to Jilin Province and expanding sales routes. 【Cargo Under Consideration （Tottori←→Jilin Province） 】 • Device product exhibitions for Northeast Asia Expo (Cockpit Display from Japan (NEW).) ⇒Reinstall data logger to conduct further validation on shock and humidity as no data could be collected from this year’s shipping. Export •Food product exhibitions for Northeast Asia Expo (snacks, seasonings, etc.). (NEW) • Sakaiminato refrigerated fishery products (NEW) ⇒Display at Northeast Asia Expo and exhibitions within Changchun city along with other projects will be conducted in connection with expanding sales routes and promoting exports to Jilin Province. •Parts Rack (NEW) • Disposable Chopsticks (NEW) Import • Summer Season Vegetables ⇒Conduct further verification with a midsummer shipment as 2018 shipment occurred in October. Also, conduct further verification with a variety of vegetable for which Japanese customs requires the submission of a quarantine certificate. 【Work Plan in 2019(TBD) 】 August: Pilot transport is to be implemented. December: The Report of the pilot transport and recommendations are to be shared with the members and the secretariat, then submitted to GTI organs/national governments. 6 Proposals for GTI １ GTI Logistics Sub-Committee Initiatives We propose GTI Transport Board to share information about the shipping route serviced by the DBS Cruise Ferry connecting Primorye-1 and Primorye-2 by way of Zarubino port and Vladivostok port, and to discuss about vitalization of those sea-land logistics. ２ Establish Regular Meetings with Authorities of Primorsky Krai Ports and Customs The utilization of ports in Primorsky Krai is important for promoting logistics in Northeast Asia. As such, smooth communication between GTI member regions and the concerned authorities of Primorsky Krai is essential. We found the meeting arranged by the GTI Secretariat with Far East Customs, Vladivostok port, and Zarubino port authorities in April 2018 extremely helpful and recommend the creation of another opportunities for such meetings in the future. ３ Primorsky Krai’s Membership to NEA Local Cooperation Committee Increase of usage of Zarubino port and Vladivostok port and invigoration of the Primorye-1 and Promorye-2 international transport corridors will in turn stimulate further development of Primorsky Krai. As such, we recommend continued efforts to encourage Primorsky Krai’s membership to the NEA Local Cooperation Committee. ４ Implementation of Pilot transport by LCC Members It is important to assess the usability of the route from various aspect. Taking this opportunity of pilot transport by Tottori Prefectural Government, relevant local governments consider implementing their own pilot transport on this route. 7 DBS Cruise Ferry Sea Routes Trans-Siberian Railway Went into service on June, 2009 To Moscow, Europe Vladivostok To Northeastern Area Target freight and passengers from of China proximal major cities as well as Zarubino western region of Japan hours （19 ） Sakaiminato, Tokyo To the Seoul metropolitan area Tottori Donghae （14 hours） DBS Cruise Ferry DBS Transportation Schedule March – November, 2018 ＜Name of vessel＞ M.V. Eastern Dream 【 】（ ） Mon Tue Wed Thu Fri Sat Sun ＜Description of vessel＞ ■Gross Tonnage 14,000 G/T 14:00 11:00 9:00 9:30 ARV Vladi Dong Sakai Dong Accommodation Capacity 480 pax(passengers) ■ vostok hae minato hae ■Maximum Load 130TEU 14:00 14:00 Facilities Convenience Store, Restaurant, Duty Free etc. 17:30 19:00 ＜ ＞ DPT Vladi Dongh Sakai Dong ＜Operation Company＞ DBS Cruise Ferry Co. LTD vostok ae minato hae (Donghae, Korea) DBS Cruise Ferry Advantages Advantage #1: Reliable Service • Accurate lead time • Tottori to Vladivostok in two days • Uninterrupted service since operations started in 2009 (not including interruptions resulting from stormy weather or regular maintenance) Advantage #2: Safe, Secure and Flexible Shipping • Equipped to handle heavy machinery, oversized and bulk cargo • LCL shipments • Low shock and vibration - perfect for precision machinery Transportation Route Pogranichny railroad checkpoint; Pogranichny automobile checkpoint SUIFENHE RUSSIA CHINA USSURIISK Transport Corridor Primorye -1 Kraskino automobile checkpoint; VLADIVOSTOK Makhalino railroad checkpoint HUNCHUN SLAVYANKA NAKHODKA ЗаZрAуRбиUнBоINO Transport Corridor Primorye 2 Regular sea-line route NASON Extended route for the pilot transportation 10 Overview of Trial Cargo ①（Device Products） Shipment Automotive LCD Printed Circuit Board Inverters Packing Tape ■ Item Modules (PCB) Quantity 20 items ✕ ３boxes 3 items x 1 box 352 items × 1 box 50 items × 15 boxes ■Findings １ Lead Time The same 1 week lead time as the first pilot transportation thus reconfirming the speed advantage of this route (lead time of established Dalian route is around 12 days). ２ Precision Parts No superficial damage to packing boxes of device products confirming suitability of route for shipping precision parts and other delicate items. ３ Data Logger Though making the necessary arrangements for customs took time, a measurement instrument (Temperature, Humidity, Shock) was sent with the shipment; however, due to a defect in the device, no data was collected. ■Transportation Schedule Day # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Country City Date Oct.5 Oct.6 Oct.7 Oct.8 Oct.9 Oct.10 Oct.11 Oct.12 Oct.13 Oct.14 Oct.15 Oct.16 Oct.17 Oct.18 Day Fri Sat Sun Mon Tue Wed Thurs Fri Sat Sun Mon Tue Wed Thurs Special packaging Sakai Vanning