Evaluation of Japanese port policies through network analysis

Abstract

Although the Japanese government has implemented port reforms since the 1990s in response to declining international competitiveness of Japan's container ports, Japanese ports have continued to decline, at least in terms of containerized cargo handling volume. However, since the relative share of port handling volumes would naturally decline with the growth in other emerging Asian economies, it may be unfair to evaluate Japan's port policies or international presence solely in terms of cargo handling volume. This study evaluates Japan's port policies based on centrality analysis of Keihin and Hanshin Ports, which are the targets of the policies, in the context of global maritime container network. The results of the network analysis reveal that the rankings of Keihin and Hanshin in each centrality index have declined while major ports in Asia have consistently ranked high in the global marine container transport network. However, the increased importance of the Asian major ports in the network, combined with the strengthening of links of both ports to other Asian major ports, does not result in a decline in the presence of Keihin and Hanshin in the network as much as a decline in the ranking of cargo handling volume. In addition, the three scenario analyses confirm that Keihin and Hanshin would be further enhanced if the policy goal of strengthening domestic hub functions is fully achieved, and that a policy shift to dependence on hub ports in Asia for transshipment functions would ensure their presence on the network. In addition, as Japanese ports are highly dependent on Pusan, they are extremely vulnerable to the malfunction of Pusan in terms of network structure; thus, making Keihin and Hanshin function as domestic hubs is crucial to address this problem. Moreover, considering the vulnerability in the network structure in addition to the centrality index helps evaluate the reasonableness of Japan's port policies.