WAVE 1999 JOINT STUDY SUMMARY
A Comparative Study of Management Methods (Construction, Control, and Operation)in U.S. and Japan Container Ports
Author: Dr.Jess Browning
Introduction
WAVE and the Global Trade, Transportation, and Logistics Studies Program at the University of Washington in Seattle conducted the 1999 joint study, sponsored by the Japan Foundation. Interviews were held between December 6th and 22nd in Tokyo, Yokohama, Nagoya, Kobe, Shimonoseki, and Kitakyushu. The author of this report would like to express his sincere gratitude to all members of WAVE as well as to the hosts and the people interviewed in the terminals, port authorities, and ministries visited. The time spent by these people and the efforts they expended, contributed considerably to the outcome of this report.
In this rapidly changing era of global exchange, Japan's national government is under political and economic pressure to make their port's marine terminal operations more efficient, user-friendly, and more competitive with other ports in East Asia. In 1998, Japan's Administrative Reform Council's Deregulation Subcommittee stressed the importance of an efficient distribution system as the basis for economic revival and improved economic efficiencies to better meet user needs at Japanese ports. A Harbor Transport Subcommittee was charged with developing recommendations to deregulate, modernize, and revitalize Japan's harbor transport industry while improving efficiency through competition.1 An advisory panel to the transport minister recommended that deregulatory steps should be implemented in several stages, starting with Tokyo and moving on through Yokohama, Nagoya, Osaka, Kobe and four other major ports. This move, which opens the stevedoring industry to competition, is aimed at halting the comparative decline of Japanese ports, which have been losing their ranking container trade to other Asian ports, such as Singapore, Hong Kong, Kaohsiung, and Pusan. Along with this, the Ministry of Transport (MOT) is working towards the development of container terminals for foreign trade to expedite imports, exports, and transshipments as well as the development of terminals for domestic trade. This includes the construction of deep-water container terminals, which are vital as bases for international shipping networks and their strategic location to cut the costs of physical distribution.2
Principal Objectives
In this joint study, the WAVE Program is looking for information on current management methods, the control, construction, operation (including logistics practices) of major North American container ports and Japanese container ports so that comparisons can be made and a solution can be found to provide the most effective way to build, control, and operate container terminals. This joint study looks at the major Japanese container gateway ports in Tokyo Bay, Osaka Bay, Ise Bay and North Kyushu as well as the major container ports in the container gateway ports in the West Coast of North America (Vancouver, B.C., Seattle, Tacoma, Portland, Oakland, Long Beach, and Los Angeles). This comparative study of marine container terminals in Japan and major West Coast North American ports makes it possible to spread the best practices found to all those concerned. These best practices include various types of institutional arrangements. This study is a forward-looking approach by WAVE to address the problems associated with this competitive new era of global exchange. The hope is, that in the long run, this will facilitate sustainable trade in all regions and will promote safe and environmentally friendly growth providing a higher degree of prosperity for all.
