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Green Logistics Policies for Sustainable

Development in Japan

Policy Bureau, Ministry of Land, Infrastructure,


Transport and Tourism
July 29, 2021

Ministry of Land, Infrastructure, Transport and Tourism


Today’s Topics

1. Current Situation of Logistics in Japan

2. Masterplan of Comprehensive Logistics


Policies

3. Green Logistics Policies for Sustainable


Development

1
1. CURRENT SITUATION OF LOGISTICS
IN JAPAN

2
Scale of Japanese Logistics Industry
Annual sales of the Japanese transportation industry are about 41 trillion yen. The logistics industry is a major industry
that accounts for about 26 trillion yen.
The logistics industry accounts for about 4% of the total number of workers in all industries.

Annual sales (FY2018) Number of workers (FY2019) Types of logistics businesses


(Number of enterprises)

Trucking industry (62,068)


JR cargo (1)
Passenger
transport Coastal shipping (3,408)
Approx. 760,000 International shipping (192)
Passenger workers
transport Port transport (861)
Approx.
15 trillion yen Air cargo transportation (22)
Logistics Logistics Rail freight forwarding (1,133)
Approx. Approx. 2.62
26 trillion yen million Ocean freight forwarding (1,069)
workers Air freight forwarding (203)
Warehousing (6,557)
Truck terminal (16)

Total amount of the transportation Total number of workers in the (FY2018)


industry: About 41 trillion yen transportation industry: About 3.38 million
* The logistics industry (about 26 trillion yen) * The logistics industry (about 2.62 million) accounts
accounts for about 4% of total sales of all for about 4% of the total number of workers in all
industries (about 724 trillion yen). industries (about 67.33 million).

[Notes] 1. The operating revenue of logistics was prepared by Logistics Policy Division, Ministry of Land, Infrastructure, Transport and Tourism from the 2018 Business
Performance Report (partly 2017).
2. The operating revenue of passenger transportation was prepared by Logistics Policy Division, Ministry of Land, Infrastructure, Transport and Tourism from “White
Paper on Transportation Policy” 2020.
3. The number of workers was prepared by Logistics Policy Division, Ministry of Land, Infrastructure, Transport and Tourism from the Ministry of Internal Affairs and 3
Communications “Labor Force Survey” 2020 (water transportation is included in “logistics”).
Trends in the Volume of Cargo Transport (tons)

The volume of domestic cargo transport has been on a long-term declining trend. But it has been
levelling off since 2010.
The volume of international cargo transport has been on a declining trend since 2013.

(100 million Trends in the Volume of Domestic Cargo


tons) (100 million Trends in the Volume of International Cargo
Transport (tons)
70 tons) Transport
12

60
10

50
8
40

6
30

4
20

2
10

(FY) 0
0 1990 1995 2000 2005 2010 2013 2014 2015 2016 2017 2018
(FY)

Automobile
自動車 Domestic shipping
内航海運 Railway
鉄道 Air
航空

Source: Ministry of Land, Infrastructure, Transport and Tourism “Annual Statistics on Traffic and Transportation”

4
Expansion of Electronic Commerce (EC) Market and Increase in the
Number of Packages Handled by Home Delivery Services

The electronic commerce (EC) market has grown as of 2019 to 19.3 trillion yen in total, and 10.0 trillion yen in the area of sale of goods.
As the EC market grew, the number of packages handled by home delivery services increased by about 710 million (+19.6%) in 5 years.

[Trend in the scale of EC market] [Trend in the number of packages handled by home delivery services]

200 Trend in the scale of EC market (Unit: 100 billion yen) 8.00%
45.0
180 In 2015, 7.2 trillion yen in the area of sale of goods 21.42
Increased by 19.6% in 5 years
Market scale expanded by 50% in 5 years 7.00% 40.0 (approx. 710 million packages)
20.38
6.76%
160
17.78 19.48 6.22% 35.0
6.00%
5.79%
140 71.67 30.0
16.33 66.47 5.00%
5.43%
120 15.11 4.75% 59.57 25.0
11.02 4.37% 53.53
100 49.01 4.00% 20.0
3.17% 3.40%3.85%
44.82
80 2.84% 40.71
3.00% 15.0
60 2.08%
1.79% 10.0
1.52% 95.13 92.99
100.52 2.00%
40 77.88 84.59 80.04 86.01 5.0
68.04 72.40
60.89 66.96 59.93
53.44 1.00%
20 0.0

1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
FY1990
FY1991
FY1992
FY1993
FY1994
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
0 0.00% 年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
年度
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Sale of goods
物販系分野 Service
サービス分野 Digital
デジタル分野
Source: METI “Survey of Actual Status of Electronic Commerce” Source: MLIT “Survey on the number of door-to-door delivery packages handled in FY2018”
Note: Survey on market scale by business category started from FY2013 data Note: The number of packages handled by Japan Post Co., Ltd. has been included in the figures of FY2007 and later.

5
Labor Shortage in the Logistics Sector in Japan

In the logistics sector, labor shortage has become serious in recent years.
Increasing number of companies feel that there is a shortage of truck drivers. In 2020, about 39% of
companies answered that they were “insufficient” or “slightly insufficient.”
Due to the impact of COVID-19, which slowed down business-to-business distribution, the shortage
of truck drivers has eased.

<Situation of labor shortage in regular workers> <Percentage of companies that feel there is a
shortage of truck drivers>
Percentage of companies with a shortage of workers
Percentage of companies with an excess of workers

70
Transportation business 2013 12 34
60 and postal business
2014 14 39
50
2015 19 39
40
(%)

2016 18 40

30 About 40% of
All industries surveyed 2017 21 42 companies lack drivers
20
2018 25 45

10
2019 21 46

0 2020 11 28 Total 39%

0 10 20 30 40 50 60 70 80 (%)

系列1
Insufficient 系列2
Slightly insufficient

Source: Ministry of Health, Labor and Welfare “Survey on Labor Source: Japan Trucking Association “Survey on Business Confidence
Economy Trend” in Trucking Industry” 6
* Figures of 2Q (July to September) for each year are used in the graph.
Working Conditions of Truck Drivers

Long working hours of truck drivers are partly due to long waiting time/cargo
handling time at the shipper and destination sites.
Shippers and transport operators should cooperate in reducing waiting time
and improving efficiency of cargo handling work and other measures to
shorten working hours of truck drivers.

Average working hours for an operation and its details


Distribution of cargo waiting time for an operation
(With and without cargo waiting time)

Operation with cargo waiting time (46.0%) Average


working hours Over 2 hours
28.7%
3 hours–
13:27 15.1% –30 minutes
22.5%

2 hours to
3 hours Average time:
13.6%
Operation without cargo waiting time (54.0%) 1 hour
45 minutes
30 minutes to
1 hour
1 hour to 22.4%
2 hours
26.4%
Over 1 hour
Inspection, etc. Driving Waiting for cargo Cargo handling
55.1%

Supplemental Resting Unknown Source: Survey on Trucking Conditions (2015)


work, etc.

7
CO2 Emissions in Japan and International Agreements for Reduction

In Japan, the transportation sector accounts for about 18.6% of total CO2 emissions.
Automobiles as a whole account for 86.1% (16.1% of total emissions in Japan) and freight cars account for
36.8% (6.8% of total in Japan) of emissions from the transportation sector.
After the end of the first commitment period of the Kyoto Protocol, based on the Paris Agreement adopted at
COP21 and Japan’s Intended Nationally Determined Contributions (INDC) submitted to the UN in July 2015,
the Global Warming Countermeasures Plan was approved by the Cabinet in May 2016.

8
2. MASTERPLAN OF COMPREHENSIVE
LOGISTICS POLICIES

9
Japan’s Masterplan of Comprehensive Logistics Policies
The Masterplan of Comprehensive Logistics Policies has been developed in every 5 years since April 1997 to indicate
the direction of the government’s logistics measures and policies, and comprehensively promote the measures through
integrated cooperation among relevant ministries.
The Masterplan has been formulated six times in response to changes and challenges in various economic situations.

1997–2001 2001–2005 2005–2009

(1) The most convenient and (1) Establish an internationally (1) Realize speedy, seamless, and low-cost
highly attractive services in competitive logistics market logistics covering both international and
the Asia-Pacific region including cost domestic services
competitiveness (2) Realize efficient and environment-
(2) Logistics cost that will not friendly logistics, such as “green
inhibit competitive advantage
(2) Establish logistics systems logistics” Increase the
as an industrial location (3) Establish a logistics system to support productivity
with reduced environmental safe and secure lives of people
(3) Reducing environmental burden and contribute to (4) Establish an efficient logistics system of logistics
burden recycling-oriented society focusing on the demand side
Tackle social
challenges
2009–2013 2013–2017 2017–2020

“Establish a logistics system that Realize “tough logistics” capable of


(1) Realize efficient logistics that supports enhancement and growth of responding to changes in social situations
• Enhance industrial
supports global supply chain economy - Realize total optimization of and new challenges competitiveness
logistics without unreasonable, wasteful,
(2) Realize logistics with less or uneven, both in Japan and overseas” <Connectivity> Enhancing efficiency and creating • Respond to SDGs
environmental burden added value for entire supply chain etc.
(1) Realize efficient logistics to support <Transparency> Implementing workstyle reform
(3) Ensure safe and secure business activities and people’s lives <Infrastructure> Enhancing infrastructure functions
<Sustainability> Addressing disaster risks and
logistics, etc. (2) Make efforts to further reduce environmental issues
environmental burden <Innovation> Utilizing new technologies
(3) Make efforts to ensure safety and <Human resource development> Securing and
security training human resources

10
Overview of Masterplan of Comprehensive Logistics Policies
(FY2021 - FY2025)

Technological innovations Decrease in working age population Increasing severity and


Social momentum for SDGs /truck driver shortage(2024 issue*,
(Society 5.0) etc.) frequency of disasters

Spread of COVID-19 infection

New lifestyles Reaffirming the social value of logistics


Rapid growth of the EC market (Contactless / Non-face-to-face delivery (logistics workers as essential workers)
service)

This is an opportunity to accelerate the digitalization and structural reform of


logistics, which has not appreciably progressed thus far.

In addition to the dramatic changes in society caused by the COVID-19 pandemic, the challenges facing logistics in Japan are becoming more acute and clear.
(1) Thorough optimization of the entire supply chain through the promotion of
(2) Measures against labor shortages and promotion of the structural reform of
“Logistics DX” and standardization in logistics
logistics (Carrier-friendly logistics)
(Simple and smooth logistics)

(1) Reinforcement of logistics digitalization (1) Improvement of the working environment necessary to comply
(2) Promotion of initiatives for automation and mechanization that with the upper limit on overtime work for truck drivers
contribute to relieving labor shortages and enabling non-contact, non- (2) Promotion of measures to ensure stable transport of coastal
face-to-face logistics shipping
(3) Acceleration of standardization in logistics (3) Promotion of innovative initiatives to improve labor productivity
(4) Logistics and commercial distribution data infrastructure, etc. (4) Rationalization of distribution of agricultural, forestry and fishery
(5) Education and procurement of advanced logistics personnel products and foods, etc.
(5) Sustainable provision of of last-mile delivery service in
depopulated areas
(6) Measures to secure a new workforce
(7) Strengthening of public relations on logistics
3) Formation of strong and sustainable logistics networks (Strong and flexible
logistics)

(1) Construction of a robust and sustainable logistics network that can function in contingencies such as infectious diseases and large-scale
disasters.
(2) Formation of logistics networks that contributes to the international competitiveness and sustainable growth of Japanese industry
(3) Development of logistics networks to ensure global environmental sustainability (e.g., realization of carbon neutrality)

11
3. GREEN LOGISTICS POLICIES FOR
SUSTAINABLE DEVELOPMENT
(1) Act on Advancement of Integration and Streamlining of Distribution Business P13

(2) Promotion of Modal Shift, etc. P16

(3) Special Account for Energy Measures P19

(4) Green Logistics Partnership P22

12
(1) Act on Advancement of Integration and
Streamlining of Distribution Business

13
Overview of Act on Advancement of Integration and Streamlining of
Distribution Business
Aims System Overview
• Strengthening the international competitiveness of
Japanese industry The government certifies businesses in which two or more parties work together to
• Realizing small-lot, high-frequency cargo deliveries in implement integration (integrated handling of transportation, storage, cargo handling,
response to the increasingly-sophisticated and varied and processing for distribution) and improve efficiency (streamlining of transportation)
nature of consumer demand of distribution operations and which also contribute to reducing the environmental
• Reducing the environmental burden of logistics burden and saving labor (businesses for integration and streamlining of distribution
• Securing the required labor resources for the undertaking operations), and supports the certified businesses.
of logistic tasks

Examples of businesses for integration and streamlining of distribution operations Support Measures
Consolidation of Integration of transportation (1) Promoting the launch and
Modal shifts
transportation networks and delivery implementation of businesses
Delivery • Subsidies to offset planning and operational
destination
expenses
• Deemed permissions, etc. for warehouse
Conventional warehouse business operators, truck transportation
business operators, etc. at startup of

destination
Delivery
business
(2) Support for required facilities and
Distribution processor Delivery infrastructure, etc.
destination
• Special taxation provisions for combined

Minister approval
transportation warehouses
→ Corporate income tax: Additional depreciation
Transit facility Individual deliveries with deduction 10% (for 5 years)
Inefficient and dispersed network Long-distance truck transportation
low capacity utilization → Fixed property tax: 50% of tax base (for 5 years), etc.
• Special taxation provisions for freight
Plan Plan Plan transportation using passenger railway
Efficient and consolidated network Integrated deliveries with high Large-volume transportation utilizing (freight cars carriers)
capacity utilization railways and vessels → Fixed property tax: Two-thirds of tax base (for 5
years), etc.
• Consideration given to the zoning regulations
of facilities
→ Consideration with respect to development
destination

permission for the urbanization control areas


Delivery

Factories
(3) Financial Support
Combined
• Expanding the limit for credit insurance plans
transportation Delivery • Long-term low-interest lending programs
Import Delivery
warehouse destination destination • Long-term, no-interest lending programs
(Specified (mainly for small and medium-sized
distribution center)
enterprises), etc. 14
Results and Effects of the System based on the Act
(as of May 31, 2021)
As the shortage of labor has been increasingly serious, many superior initiatives were certified as
programs in which two or more parties work together to reduce labor and improve efficiency of
logistics and which also contribute to reducing environmental burden.
(From October 2016 to May 31, 2021, 263 were certified as Integration and Streamlining Plans)

By category Agricultural
Superior initiatives are certified By major handling item and fishery
Mineral
products
products 0.4%
Category Number of 7.2%
projects Certified for a Chemical products
8.7%
Modal shift 90 wide variety of
items
Integration of transportation and delivery 21 Light industry products
Special items
(door-to-door delivery (food, etc.)
Consolidation of transportation networks 159 packages, etc.) 39.4%
12.5%
Other 12
Integrated transportation among 3 enterprises:2,
leveling of operations: 1, relay transportation: 2, Miscellaneous
manufactured items
express bus passenger-cargo consolidated (materials, etc.) Metal mechanical
transportation:1, village-run bus passenger-cargo 13.6% items 18.2%
consolidated transportation, route bus consolidated Labor saved
transporation:2, reduction of empty container travel
distance:2, advance loading to improve efficiency:1)
Note) Initiatives applicable to several categories are counted for all relevant categories. Equivalent to approx. 1.19 million hours/year of labor
Secured labor equivalent to about 563 truck drivers
CO2 reduction Source) Prepared by Logistics Policy Division based on Basic Survey on
Approx. 99,000 t-CO2/year Wage Structure (Ministry of Health, Health, Labor and Welfare)

Equivalent to CO2 absorbed by Reduction of cargo waiting time Truck reservation system
approx. 11.29 million cedar trees introduced in 102 cases
(These cedar trees are equivalent
to an area of approx. 112.92 m2) Truck drivers reserve Truck arrival times can be leveled,
arrival time reducing the waiting time

Source) Prepared by Logistics Policy Division based on the calculation


formula provided on the Forestry Agency website) 15
(2) Promotion of Modal Shift, etc.

16
Promotion of Modal Shift, etc. Budget for FY2021: 43 million yen

To address labor shortage in the logistics field while reducing greenhouse gas emissions, under the framework of the Act on Advancement of
Integration and Streamlining of Distribution Business, the government supports the shift of transportation mode (modal shift) from truck to
rail/vessel shipment, which are mass transportation means with less CO2 emissions.

For initiatives aimed at improving logistics efficiency, such as modal shift, the Major steps toward implementation of the plan
government provides support for expenses required for research in preparation for the
formulation of the integration and streamlining plans based on the revised Act on 1. Setting up the council
Advancement of Integration and Streamlining of Distribution Business, such as holding • Sharing the intention toward improving logistics efficiency
of council meetings. among relevant parties including logistics companies and
Also, the government supports operation costs for the first year with regard to modal shippers
shift and consolidation of trunk line transportation networks to be implemented under the
certified integration and streamlining plans.
Subsidy for planning Subsidy for operation 2. Holding the council meetings Subsidy for planning
Initiatives eligible for support
expenses expenses • Gathering of relevant parties expenses
Shift to mass transportation
Modal shift (i) Subsidy rate: Within • Sharing and arrangement of information concerning
means individual cargo transportation conditions (lots, packing
50%
Consolidation of trunk line (ii) Maximum 5 million yen style, lead time, etc.) and challenges in achieving modal
(i) Subsidy rate: *2
transportation
fixed shift, etc.
(ii) Maximum • Estimation of the effects of CO2 emissions reduction, etc.
Improving efficiency of truck Joint delivery 2 million yen
transportation *1
Other initiatives that Not applicable
contribute to reduction of 3. Formulating the Integration and Streamlining Plan
CO2 emissions
• Formulating the Integration and Streamlining Plan based on
Consolidation of Integration of Modal shift the results of examination by the council
transportation networks transportation and delivery

Factories 4. Certification of the plan and preparation for implementation

Import Delivery destination


Delivery 5. Operation start Subsidy for operation expenses
destination

[Besides the above, supporting shift to contactless / non-face-to-face Examples of automation devices
logistics]
If an initiative eligible for the subsidy for planning expenses of *1 above also includes a plan for
introduction of a device that will contribute to further labor saving and automation, the upper
limit of the subsidy will be raised.
(i) Subsidy rate: Within 50% (ii) Addition: 3 million yen, Total maximum: 5 million yen
If an initiative eligible for the subsidy for operation expenses of *2 above also includes operation using
a device that will contribute to further labor saving and automation, the subsidy rate and the
upper limit of the subsidy will be raised.
(i) Subsidy rate: Within two-thirds (ii) Addition: 5 million yen, Total maximum: 10 million yen Picking robot Unmanned carrier Unmanned forklift 17
Example of Initiative: Joint Modal Shift to Railway Transportation of Car
Parts and Return Containers
Certified on July 12, 2019
Responsible entities Project outline
Toyota Transportation Co., Ltd., Nippon Jointly implement modal shift for transportation of car parts and
Express Co., Ltd., Japan Freight Railway return containers that had been transported separately by trucks by
Company, Toyota Motor Kyushu, Inc., Toyota different routes from plants in Aichi and Fukuoka
Motor Corporation

Before 12 trucks
Toyota Motor
Hiroshima DC Kyushu (A)
Toyota Motor
(A)

(Driver change) Fukuoka


Aichi 7 trucks
Toyota Motor
Toyota Motor
Relay point Hiroshima DC
Kyushu (B)
(B)

Total number of trucks: 19 Distance: About 800 km / one-way

After JR containers Total number of trucks: 15 (reduced by 4)


Large trucks
桃太 郎
Toyota Motor
Kyushu (A)
Toyota Motor

Freight Terminal
Nagoya-Minami

(A)
Freight Station

Kitakyushu

Relay point
Fukuoka

Station
Relay point

Aichi 桃太 郎

Toyota Motor Toyota Motor


(B)
Modal shift: Approx. 770 km Kyushu (B)

Feature Effects

• Implemented both modal shift and joint transportation • CO2 emissions reduced: 5,381.3 t (83.2%)
at the same time • Driver’s driving hours reduced: 77,630 hours (77.4%)
18
(3) Special Account for Energy Measures

19
Projects to promote introduction of advanced technologies that will simultaneously
achieve social innovation and logistics decarbonization (Ministry of the Environment partnership projects)
[Budget for FY2021: 800 million yen ]

Support will be provided for the introduction of advanced equipment aimed at simultaneously solving social issues and achieving
decarbonization.
① To achieve the CO2 emissions reduction targets announced in the Global Warming Countermeasures Plan, support the introduction of advanced equipment
1. Project and systems that will contribute to decarbonization of logistics and create certain demand, thereby promoting reduction of prices of devices
objectives
1. 事業目的 ② Aim to achieve autonomous dissemination of devices, achieve reduction of CO2 emissions in logistics, endeavor to tackle issues including labor shortage
associated with population decrease and aging, need to improve working conditions, maintenance of logistics functions along with measures for disaster
prevention and mitigation or the spread of infectious diseases, thereby achieving social innovations at the same time.

2. Project
事業内容 outline 4. Project image
1. Zero-energy warehouse model
1. Zero-energy warehouse model promotion project
Support simultaneous introduction of labor-saving and energy-saving equipment and (1) Reduction of energy consumption for
lighting and air conditioning by automation of
(2) Improving efficiency
by shifting to energy-saving
Aim to reduce CO2
renewable energy facilities in a distribution warehouse. Simultaneously achieve Manned area
warehouse operations
Unmanned area
equipment
emissions by 40% in
reduction of CO2 emissions in logistics, tackle labor shortage, implement measures for 2030 for the entire
disaster prevention and mitigation, and maintain logistics functions in case of the warehouse industry by
Unmanned Unmanned
deploying to other
spread of an infectious disease. No lighting required
in automated area
forklift carrier
(3) Energy supply by warehouses of a
Automation of operations by utilization of AI, etc. renewable energy facilities
Operation in cooperation with disaster prevention
* Limited to private use
certain scale or larger
2. Logistics utilizing drones in depopulated areas project systems is also possible.

Support conversion from existing logistics to drone logistics in depopulated areas where 2. Logistics utilizing drones in depopulated areas
cargo volume is small. Simultaneously achieve significant reduction of CO2 emissions <Issues in depopulated areas>
by improving efficiency in transportation and delivery, tackle labor shortage, and Village • Low loading efficiency and high transportation
establish a sustainable distribution network even in case of the spread of an infectious Village cost due to a decrease in cargo
disease. • Aging and shortage of truck drivers
Drone

3. Introduction of LNG fuel systems promotion project


Support practical application of an advanced navigation system combining the LNG fuel Conversion to drone logistics
system and the latest CO2-reducing equipment. Simultaneously achieve significant
reduction of CO2 emissions with advanced technologies using LNG fuels, etc., and Social change by maintaining
improvement of labor environment by cost reduction and labor saving. Ancillary facility distribution network in depopulated
Distribution base (Drone port) areas and low-carbon distribution
3. Introduction of LNG fuel systems Aim to reduce
3. Project
事業スキーム scheme Gas engine LNG tank Combining with CO2- CO2 emissions
Gas supply reducing equipment in domestic


system shipping by 30%
Project type Subsidized projects (1,2: indirect, 3: direct)
■事業形態 in 2030 by
introduction of
LNG fuel
Eligible recipients Private business operators, organizations systems
Device to assist optimal
Storage battery
navigation planning
■実施期間
Implementation period From FY2020 to FY2025

20
Agency for Natural Resources and
Subsidy for Projects to Further Promote Efficient Transportation Using AI, Energy

IoT, etc.
Budget for FY2021 6.20 billion yen
Project outline Project image
Project objectives and overview (1) Enhancing transportation efficiency of entire supply chain using new technologies
1) Formulate a collaboration
Since the final energy consumption of the transportation segment is the plan
second largest following the industrial segment, actions to reduce energy 2) Introduce a system to
Enhancing efficiency
consumption must be urgently taken. Therefore, aims of this project are as improve efficiency of the

×
〇 □
×

of entire supply chain


entire logistics
follows. 3) Introduce new technologies Use of RFID, etc. Visualize movements of goods
using AI, IoT, etc. and transactions
(1) Enhancing transportation efficiency of entire supply chain using new
technologies Retailers,

Unloading
Delivery consumers
Shipper, carrier, recipient, etc. formulate a collaboration plan and conduct Ports, freight stations, Trunk line

demonstration of energy-saving effects of initiatives to improve efficiency of manufacturer’s factories, etc.


transportation Logistics base

the entire supply chain through standardization and commonization of Improving loading/unloading efficiency Improving efficiency of
warehouse operations
Improving efficiency of delivery operations


logistics systems and introduction of AI, IoT and other new technologies.

(2) Improving efficiency of truck transportation 作業区分

出荷

出荷

入荷
社名

A社

B社

C社
バース

A
状態

作業中

作業中

受付済

Verify the effects of energy saving by cooperation between truck transport


・・・

Truck reservation system AGV (automated guided vehicle) Unmanned Automatic


delivery robot driving delivery
companies and shippers using AI or IoT tools, such as the vehicle status
management system and the reservation system. (2) Improving efficiency of truck transportation
(3) Demonstration of operation efficiency of domestic vessels Normal
When the status management (I) Outward [Shipper A]
For domestic vessels, conduct demonstration of the energy-saving effects system is in use

of combination of innovative energy-saving technologies and energy-saving (IV) Return (II) Return (I) Outward

scrubbers, etc., and reflect the results as the “energy-saving ranking of (III) Delivery of cargo
(II) Picking up new cargo
domestic vessels”, thereby promoting the spread of energy-saving vessels. [Recipient D] Cargo pick-up,
g

please. [Shipper C] [Recipient B]


(4) Maintenance of energy-saving performance of in-use vehicles using
big data Visit Shipper C and
pick-up the cargo,
By knowing real-time location information, the
nearest truck that can go to the destination within
To properly maintain the energy-saving performance of in-use vehicles, please. the shortest time can be chosen, improving
efficiency.
promote the establishment of an environment in which signs of the
occurrence of troubles on automobiles can be detected in advance. (3) Demonstration of operation efficiency of domestic vessels
Low-resistance, high- Main electronic Energy-saving
Target performance wheel control engine scrubber
Energy-saving ranking of domestic vessels

The three-year project from FY2021 through FY2023 is aimed at reducing


energy consumption in the transportation segment by approx. 1.56 million kL Hardware
on a crude oil basis by FY2030 with this project and its effects.
Conditions (Eligible parties, eligible acts, subsidy rate, etc.
Navigation planning support system
Subsidy Subsidy: (1) (2) (50%), (4) (one-third)
Software

• Ocean current
prediction Navigation Based on applications from operators,
• Wind projection optimization etc., evaluate the CO2 emissions
government

Private • Wave projection reduction of a vessel by the introduction


of energy-saving and CO2 reduction
National

organizations, etc. Private measures, and determine its rank

companies, (4) Maintenance of energy-saving performance of in-use vehicles using big data
etc. Support introduction of a cloud-based scanning tool (a tool
connected to vehicles with a connector, used to
Subsidy: (3) (50%) communicate with electronic control unit inside the vehicle,
conduct analysis and maintenance)
21
(4) Green Logistics Partnership

22
Overview of Green Logistics Partnership (GLP) Conference
Green Logistics Partnership (GLP) Conference (Manager: Takehiko Sugiyama, Professor Emeritus, Hitotsubashi University)
• Launched as a conference for promoting awareness of the importance of green logistics and stimulating interactions among cargo owners, logistics
companies, and other concerned parties in order to advance CO2 reductions in the logistics sector.
Since FY2015, this conference has been promoting not just initiatives to reduce amounts of CO2 emissions but also initiatives to reduce other burdens on
the environment, improve the productivity of logistics, and otherwise contribute to the establishment of sustainable systems of logistics.
• Organized by: Ministry of Land, Infrastructure, Transport and Tourism; Ministry of Economy, Trade and Industry; Japan Federation of Freight Industries,
Japan Institute of Logistics Systems Supported by: Japan Federation of Economic Organizations
• Established: April 2005
• Membership: About 3,400 members … Logistics companies, cargo owners, industry associations, think tanks, research institutions, etc.
• Introduction and Award of superior initiatives as well as holding discussions regarding Green Logistics aimed towards the expansion of voluntary efforts in
the private sector aimed at reducing CO2 emissions

Outline of Award of superior initiatives


[Purpose] To encourage enterprises to autonomously engage in initiatives and promote the dissemination and growth of the concept of green logistics by recognizing
meritorious achievements in connection with initiatives carried out to successfully reduce burdens on the environment in the logistics sector, improve the productivity of
logistics, or otherwise establish a sustainable system of logistics.
[Types of awards] Minister’s Award, Director-General’s Award, and a Special Award have been created.
Minister’s Award … Award from Minister of Land, Infrastructure, Transport and Tourism; Award from Ministry of Economy, Trade and Industry
Director-General’s Award … Award from Deputy Minister for Public Transport and Logistics Policy, Ministry of Land, Infrastructure, Transport and
Tourism; Award from Deputy Director-General for Commerce and Service Industry Policy, Ministry of Economy, Trade and
Industry
Special Award … Award on the level of the Ministers Award and the Director-General Awards for particularly superior initiatives

MLIT Awards Examples (FY2020)


◆ Award from the Minister of the MLIT
Project name: Joint transportation using swap-body container
trucks
Business operators: Home Logistics Co., Ltd. Separating container from Container placed
Unicharm Products Co., Ltd. chassis
Trancom Co., Ltd.
Awarding ceremony

◆ Award from Deputy Minister for Public Transport and Logistics Policy, MLIT
Project name: Bulk transportation of paper products in Japan using ro-ro ships
(between Aichi and Saitama)
Business operators: Kuribayashi Steamship Co., Ltd., Oji Logistics Co., Ltd., Loading at Home Loading at a
Tokai Kyowa Co., Ltd., Kuribayashi Unyu Co., Ltd. Logistics DC Unicharm plant
Example of project awarded from the Minister of the MLIT
Joint transportation using swap-body container trucks
23
FY2020 Award from the Minister of the MLIT
Joint transportation using swap-body container trucks

Business operators Project summary


Home Logistics Co., Ltd. Joint transportation across business sectors between Home Logistics and Unicharm using swap-body container
trucks in cooperation with Trancom, a logistics partner of the two companies, was implemented at 10 sites around
Unicharm Products Co., Ltd. Japan. The project enables return on the same day, improving transportation efficiency, reducing empty return
Trancom Co., Ltd. trucks, and separating cargo handling, thereby reducing environmental load and improving drivers’ working
environment.
* Excerpt from operation examples
Before Operations at each site
…Empty truck return /
Kagawa Hyogo Shizuoka Cost borne by carrier
companies
Home Logistics
Nitori store Nitori store
DC

Unicharm Unicharm Unicharm


plant Trancom DC plant

Transportation arranged separately by each company, arrival on the next day after spending a Separating container from Container placed
chassis
night in car
After
Kagawa Hyogo Shizuoka …Empty truck return

Home Logistics
Nitori store Nitori store
DC

Unicharm Unicharm Unicharm


plant Trancom DC plant
Loading at Home Logistics Loading at a Unicharm plant
DC
Round-trip transportation on the same day/relay transportation by two companies using
swap-body container trucks

Features Effects
• In response to fluctuations depending on the day of week, secure stable load • CO2 emissions reduced: 880.4t-CO2/year (38.6%)
volume with alternative cargo arranged by Trancom, thereby enabling regular • Improvement in productivity: 2,490 trucks (50%) reduced
operation.
• In response to changes in work associated with the introduction of swap-body
• Hours of unloading by drivers reduced: 12,450 h/year
container trucks, the business scheme is designed to be easily applicable to other
businesses with logistic partners.
• Cargo handling time was eliminated, enabling drivers to make effective use of time 24
Award from Deputy Minister for Public Transport and Logistics Policy, MLIT FY2020
Bulk transportation of paper products in Japan using ro-ro ships
(between Aichi and Saitama)

Business operators Project summary


Kuribayashi Steamship Co., Switching of transportation of paper products (paper rolls) between Aichi and Saitama from truck
Ltd., Oji Logistics Co., Ltd., transportation in small lots to bulk transportation in large lots has enabled a ocean modal shift with ro-ro
Tokai Kyowa Co., Ltd., ships, achieving reduction of land transportation distance and environmental burden, as well as reduction of
Kuribayashi Unyu Co., Ltd. transportation cost.

Before

Oji Paper
Processing
Co., Ltd.
Approx. 400 km (truck transportation) site in
Kasugai
Saitama
Plant
Small-lot truck transportation

After

Oji Paper
Processing
Co., Ltd. Approx. 30 km Nagoya Tokyo Approx. 65 km
Approx. 350 km (transportation with ro-ro ship) site in
Kasugai (truck transportation) Port Port (truck transportation)
Saitama
Plant
Large-lot ship transportation

Features
Effects
Achieving the modal shift for medium distance inside Honshu using bulk
transportation CO2 reduction: 73.5 t-CO2/year (33%)
Significantly reducing land transportation distance and truck transportation hours,
resulting in reduction of environmental burden and improvement in working Driver’s driving hours reduced: 4,815 hours/year (74%)
environment 25

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