In the United States, it is not normal to construct a terminal and put the lease up for bid. Port authorities want to attract lessees who will work very hard to increase cargo volume. They try to select a partner that will be a successful lessee and who may be either a carrier or terminal operator. U.S. port authorities procure some of the funds by issuing bonds. They do not use tax revenue except perhaps for failures in the system and as a last resort.
The big difference between port authorities in the U.S. and,Japan may result from these negotiation approaches. The construction of U.S. ports does not begin before completing negotiations and making agreements. On the other hand, the construction of Japanese ports may begin before all agreements are reached (between ports and users).
Can a Japan Port Become a Regional Transportation Hub?
Japan would like to see one of their ports become a transportation hub for the Eastern Pacific region and is interested in developing one of its container ports into become a “hub port”. Japan looks to its future role as an integrated part of Asia's fast developing regional economy and as a competitor with other countries in the region for its share of the economic growth that is projected to take place. To do so, it needs to consider a system wide approach in developing a “Hub Port”. It needs to consider passengers, airfreight and express freight in addition to sea cargo and as well as container freight. Japan would like to see their “gate-way ports” be more competitive with other ports in the region, however, foreign and local marine carriers are not likely to choose a Japanese port as a Hub of operation unless Japan can establish efficient, user-friendly terminal operations that consider all modes. In doing so it will enable them to connect with newly emerging trade flows in this new era of global exchange.
Officials of large multinational companies associated with Hub Port operations expect direct sea and air connections between critical markets within the region and throughout the world. The development of open and equal access for international carriers is a very important consideration in connecting to markets in China. Hong Kong, Taiwan, Korea, Russia and internal markets. There are however, many local problems that exist within Japan's transportation sector that need to be resolved in order for one of its ports to become a regional hub within the East Asia Pacific Region.
Japan is well situated with much of the necessary port and intermodal infrastructure, however, it will not be possible for one of its ports to develop as a regional transportation hub unless appropriate changes are made in the deregulation of the transportation sector and related policy changes that will enable operators and carriers to competitively engage in port terminal management and operations.
Recommendations
Japan is well located from a geographical standpoint and should be able to facilitate the development of one of its marine ports to serve as a regional hub. Improving the competitive position of its gateway ports should increase the frequency and capacity of more vessel calls at Japan ports and should increase the competitiveness of Japan's importers and exporters by providing greater opportunity in emerging global markets. This type of activity could help to compensate for the import and export volumes lost from Japan as a result of the Kobe earthquake and manufacturing shifts from Japan to other locations respectfully. These efforts should bring in foreign and local investment to that will help to establish a Regional Transportation Hub in Japan. While the container terminals in Hong Kong and Singapore handle far more containers than terminals in Japan.
