The flat rate lease is commonly used in Japan where the outcome is a Zero-Sum Game. If times are bad, the carrier looses and the port wins. If the port and carrier agree to a “shared revenue” lease, it becomes a “Win-Win” situation. When times are bad neither the carrier or the port suffer too much and then, on the other hand, if times are good, both win. Japan should move towards a “shared revenue”124 lease with alliance carriers using the “landlord port” model. MOT needs to change the law to allow revenue sharing and longer term leases.125
Landside Access and Intermodal Transportation
Foreign and domestic marine carriers, terminal operators, motor carriers and rail carriers should be invited to share their views on an advanced intermodal network for moving containers to and from container terminals and Japan's hinterlands. This also should include more consideration for domestic container movements by various marine modes. The rail carriers should work with the port authorities, shippers and marine carriers to develop an efficient intermodal network in Japan. Japan branches of foreign carriers should be allowed limited license for trucking. Trucking companies should be encouraged to acquire and implement on-board communications that is tied to container terminal EDI systems to improve efficiency of truck operations and provide better customer service. The judiciary branch of the government should review and revise the bill of lading law to be in consistent with general international practice to allow one bill of lading to accompany shipments from foreign origin to destinations in Japan's hinterlands.
Conclusions
In summary, the current structure of the provision of port services should be modified to introduce free competition while keeping the public interest in mind. More flexible arrangements for lessees of terminals should be introduced. There should be a move towards transparency, equity and rapidity of operation. And if Japan's container ports are to compete with other Asian ports there needs to be a serious effort taken in collaboration with government authorities, terminal operators, labor, and marine carriers to come up with a permanent and comprehensive seven-day-work schedule at major ports.126 One of the major challenges lies in the quick improvement of an inefficient operating system, which lacks EDI integration.
The above recommendations, if adopted and implemented by Japan's relevant ministries, would help to improve the countries competitive position as well as that of its ports. It would also help to promote one of its container ports as a regional hub and would enable Japan and its trading partners to reap the benefits associated with a rapidly expanding global economy.
