In such situations, Japanese major shipbuilders have taken actions towards restructuring the industry since autumn of 1999, which includes, comprehensive business cooperation, separation of shipbuilding departments, and amalgamation.
(2) Commercialization of Techno Superliner
The Techno Superliner (TSL) is a super high-speed ship that can carry large volume of cargoes at a speed twice those of ordinary container ships. When TSL enters service and high-speed marine transport networks are provided, the new marine transport system will pro-mote economic activation in regions, be able to offer an alternative transport route in the event of a disaster, and create new businesses, thus increasing opportunities of employment. As a result, socio-economic effects can be expected. TSL, using new technology, however, has some problems to be solved, which include costs for ship construction, operation and maintenance, which are higher than ordinary ships. To over-come these problems, a new shipholding and operation company will be established while preparation for operational circumstances and conditions will be completed within fiscal 2000. The first commercial TSL is expected to enter service on the coastal route in Japan as soon as possible.
(3) Measures for Small and Medium Shipbuilders
Japanese small- and medium-scale shipbuilders are marketing mainly coasting ships. Japanese economic inactivity and relaxation of restrictions will continue to decrease demand for coasting ships for the time being. Changes in the economic structure and type of job will also alter both ship quality and demand for ship tonnage necessary for coastal shipping. Therefore, optimization of the shipbuilding capacity at these shipbuilders is vital, and they must develop technology for ship sup-ply to adequately cope with the change in ship demand. Following measures are now in progress.
(a) Structural improvement: Based on a law for promoting modernization of small- and medium-scale companies, undertakings for structural improvement have been implemented, which include optimizing production capacity, strengthening technological bases, and enhancing production bases. The Association for Structural Improvement of the Shipbuilding Industry (ASIS) also sup-ports these companies. When companies retract their shipbuilding business, ASIS buys up land and facilities for smooth withdrawal from shipbuilding. This will result in improvement of imbalance for ship supply and demand.
(b) Exploitation of new ship demand: Replacement of government-operated ships is now being promoted, together with other measures.
(c) Steady employment: Abilities of workers will further be improved by providing educational training and practical skill training for workers.
(d) Reforms for company operation based on the law for supporting reforms of small- and medium-scale companies: The law stipulates that management bases be strengthened, and operational reforms of companies be promoted.
(4) Promotion of International Cooperation
Shipbuilding industries worldwide, which share a single international market, should pursue harmonious advancement of the industry. To do so, it is required to deepen common understanding of supply and demand for newbuildings and to establish rules for international competition through international cooperation.
For continuous contribution to the international socio-economic development, Japan, as a leading shipbuilding country, has been promoting international cooperation, demonstrating its initiative at the OECD and other meetings, to achieve the following:
(a) Promote stabilization of supply and demand and establishment of normal competitive conditions in the ship-building market worldwide.
(b) Promote economic and technical cooperation in the shipbuilding circles.
