Japan's major ports are falling behind Asian rivals in China, Korea and Singapore due to a failed 'equitable' funding policy that spreads investment nationwide, reports The Asahi Shimbun .
Recently obtained Ministry of Land, Infrastructure, Transport and Tourism documents show that nearly half of the ports designated as key gateways to maritime transport - or 58 of 128 - are operating in the red, unable to pay for critical costs such as maintenance through the income they generate, the paper said.
In many cases, the ports must rely on central or local government funds to stay afload, according to fiscal 2006 financial statements submitted to the transport ministry by local governments.
Of the approximately 1,000 ports in Japan, 128 have been designated as key distribution hubs and receive increased construction subsidies. But the documents show that the central government has failed to prioritise spending to enhance facilities at many of the venues.
Other Asian ports, such as Pusan in South Korea, have outstripped Japanese ports in terms of shipping containers handled, by offering lower handling fees and simplified paperwork for import procedures, The Asahi Shimbun said.
Increasingly, shipping firms are using Pusan as a hub, with cargo from Japanese ports, including Hakata, being reloaded onto large freighters destined for the US, Europe and China.
Other Asian countries have long focused investment on several key ports, while critics have pointed out that Japan has continued to distribute funding among its 128 ports.
No comments yet