The new container terminal in Hakata “Island City” has wetlands so it has been opposed by residents. It was appealed in legal proceedings and a judge approved the appeal. The environmental decision still needs to be considered. Eco-port is in the area of “Island City”. This is a development that is designed to recycle all types of materials on a large scale. Anti-earthquake berths are important in that many major Japan ports are necessary to provide supplies to the hinterland in times of disaster. This again is considered to be a public good and is paid for by national government subsidies.65
Economic analysis and cost-effectiveness analysis have been introduced into various projects in the recent years, before then, only the port management body reviewed financial plans. However, such analyses are required at the time of budget proposal. There is a calculation formula developed by the government based on numerical values that have been established. For example, the construction of gateway ports is deemed to contribute to cost reduction land transportation fees to Kobe Port and feeder shipping charges to other regional ports along with the following benefits: 1) less cost in land transportation; 2) less transit time in land transportation; 3) less cost in transshipment via overseas ports; and 4) less freight charges in ocean transportation.66
In the U.S., cost benefit analysis studies are the norm. The Port of Seattle, for example, always does a cost benefit analysis in terms of terminal development. There is typically a formal process that involves an Environmental Impact Statement (EIS) and that which must consider all the positive and negative impacts of the terminal construction. Independently of the EIS process, the Port of Seattle projects the jobs to be created by the terminal development and the positive economic impacts of the development on the regional economy. These results are factored into the decision to develop or not to develop along with the financial return.67
Government promotion of innovation in port infrastructure/equipment/operations
The national governments in both Japan and the U.S. promote innovation in port infrastructure, equipment and operations. In the U.S. the congressionally mandated “Transportation Efficiency Act for the 21st Century68 has provided funding for a number of initiatives to use information technologies to improve freight flows. In addition the Maritime Administration (MARAD) conducts studies and workshops on cargo handling, and more efficient container handling systems.69 In Japan, the Ministry of Transport spells out their long-term policies in the Port and Harbors Bureau's annual report. It includes policies for the development of port and harbor technology including information infrastructure in container terminal design.70
Intermodal
Port and logistics operations are more and more carried out by a limited number of international operators, specializing in dedicated market segments, and by a few large shipping lines expanding their maritime networks into inland operations to offer integrated transport services. Seaports have moved from the simple physical sea/land interface they once used to be and have successively turned into commerce and industrial centers with logistics and distribution platforms. They are now becoming intermodal nodes in international supply chains networks.71 Traffic concentration on large intermodal systems, railroad mergers, and shipping alliances results in fewer ports handling a growing share of world trade. The top 10 containers ports handled 31% of the world traffic in 1980, and handle close to 40% today. Simultaneously, the growth of transshipment activities complements the development of hub ports. Container transshipment is believed to make 20% of total maritime container traffic today, and is growing.
