Strategy for Establishing a Cargo Gateway Airport in Japan

ABSTRACT

1. To stimulate economic growth amidst a declining labor force in Japan there is a strong necessity to absorb the economic vitality of Asia. The establishment of a domestic cargo gateway airport is attracting attention in this regard. The merits of this are: 1. Production and employment creation by way of establishing a large-scale logistics hub; 2. Reduction of physical distribution costs; 3. Avoiding the hollowing out of domestic industry.

2. In recent years, Japanese airports and airlines have seen a drop in competitiveness in the area of international air cargo. Meanwhile, the South Korean airport (Incheon) and Korean Air have enjoyed enhanced competitiveness; the strategies behind this success offer lessons for the establishment of a cargo gateway airport in Japan.

3. The experience of Japanese ports losing their gateway function in the 90s shows that it would be difficult to recapture a gateway airport once it has been established nearby. In addition, it is necessary that the gateway airport serve not only within the Asia region but Asia-North America and Asia-Europe as well.

4. The conditions necessary for a cargo gateway airport are as follows: 1. 24-hour year-round operation; 2. Multiple runways exceeding 3,500m in length; 3. Ability to accommodate both international and domestic departures and arrivals; 4. Sufficient space and facilities within the airport to handle cargo; 5. Sufficient slots to handle cargo flights; 6. That the aforementioned conditions (1-5) have been met, or can be met quickly. The only airport able to satisfy these conditions in Japan is Kansai International Airport.

5. To establish a cargo gateway airport in Japan that will help stimulate economic growth it is necessary to: 1. Concentrate strategy on making Kansai International Airport a cargo gateway airport; 2. Pursue a government-financed resolution of excessive debt held by Kansai International Airport Co. Ltd.; 3. Promote “open-sky” policy for all countries; 4. Establish preferential tax measures and special zones for structural reform to increase the merits of a cargo gateway airport.