Cost-benefit analysis for port investment
In recent years, inefficient investment projects for seaports have become the focus of criticism. In response, government agencies in charge of port and other infrastructure are setting investment efficiency guidelines calculated in terms of investment amount versus anticipated benefits. The Ministries of Transport and Construction have established project assessment methods using cost-benefit analysis in their procedural manuals. The manual for port facilities divides port projects into 26 categories and describes methods of measuring benefit in the evaluation of each category. The government is also moving toward reevaluating past projects with the intent to cancel or postpone those with poor investment efficiency.
Boosting international competitiveness of Japanese ports
In a globalizing economy, international logistics are playing an increasingly significant role. The container transportation industry especially is working toward boosting competitiveness through consortiums of marine transport businesses. Under current circumstances, it is essential for Japanese ports to respond to moves by the North American and European shipping industries to reorder themselves and utilize larger vessels. Major ports in neighboring Asian countries are actively developing deep-water container terminals. Japan promotes the development of such terminals at the gate-way port in an attempt to enjoy the advantages of scale to reduce logistics costs, thus improving international competitiveness in transportation. Among other measures, Japan is upgrading container terminals to support efficient port logistics, controlling facility usage charges, simplifying port entrance / departure procedures, and adopting Information Technologies (IT) and Electronic Date Interchange (EDI) systems for port logistics operations.
