Japan Update: Leveraging technology to achieve sustainable logistics solutions

In a bid to tackle its labour shortage crisis and reduce emissions, Japan is embracing innovative solutions across multiple logistics segments. This week, the Japanese Transport and Tourism Ministry and Ocean Network Express Japan (ONE Japan) have separately announced that they are spearheading initiatives that illustrate the country’s commitment to leveraging technology towards achieving sustainable logistics solutions.

On the ground, the Transport Ministry has made a groundbreaking plan to build a 310-mile, fully automated, underground transportation system linking Tokyo and Osaka. This ambitious project, inspired by the efficiency of sushi conveyors, aims to alleviate traffic congestion by handling the cargo equivalent of 25,000 trucks daily. This not only eases road traffic but also significantly reduces pollution through efficiency. Minister Tetsuo Saito highlighted that “[The project] will not only address the logistics crisis but also help reduce greenhouse gas emissions.”

The most critical issue this project aims to address is Japan’s severe labour shortage. The country’s declining population, which lost 837,000 people in the year leading up to 1 October 2023, is acutely felt in the logistics sector. Prime Minister Fumio Kishida has warned that Japan is “on the verge of being unable to maintain social functions.” The automated system aims to mitigate this issue by reducing reliance on human drivers.

On the maritime shipping front, ONE, Japan’s flagship liner company, announced the launch of “ONE GREEN BELT”, a new transportation solution utilising domestic ships to transfer import containers from Keihin and Hanshin ports to the nearest local port. This service, designed to address driver shortages and logistics challenges, allows shippers to switch to local port unloading without altering contract terms. This initiative also responds to the growing demand for reduced CO2 emissions by minimising land transport distances.

ONE has been strengthening its services at local ports, establishing new domestic shipping routes, and expanding coverage to meet customer needs. By partnering with Nippon Express and Imoto Shoun, ONE Japan has developed an easy-to-use system that ensures sustainable container logistics. The new service reduces CO2 emissions compared to trucks and decreases land transportation distances by using the nearest regional port, which also helps avoid congestion at major port gates.

In the initial stages, the “ONE GREEN BELT” service will focus on transportation from Keihin Port to Sendai, Onahama, and Hitachinaka in the Tohoku and Northern Kanto areas, with plans to gradually expand coverage from eastern to western Japan. This approach ensures that non-hazardous dry container cargo can be efficiently managed, addressing both labour shortages and environmental concerns.

Now more so than ever, “adapt or perish” aptly captures the necessity of embracing change in today’s fast-paced world. Although these projects are a response to challenges including a declining population and the need to reduce emissions, Japan’s embrace of technological advancements and innovative logistics serves to push them along the innovation curve. By combining automated underground transport with improved domestic shipping services, Japan could serve as a role model for sustainable and efficient logistics on the global stage.

 

By Eugene Quek, Partner & Head of Projects in Japan.