Global logistics is changing. The shipping industry, which plays an important role in the global movement of goods, for example, has sought more efficient service through bigger ships, re-planning routes, and reshuffling partnerships, like the alliance among megacarriers, as well as other business strategies. The Panama Canal expansion, scheduled for completion in 2015, will accelerate this trend, especially in transpacific routes between Northeast Asia and North America.

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Considering this change on either side of the Pacific Ocean, the United States and Japan are developing infrastructure to strengthen their competitiveness through facilitating trade and fostering business activities. Under the leadership of President Obama, the U.S. government continues efforts to help modernize U.S. ports and other infrastructure for a more efficient intermodal system. Likewise, the Japanese government has launched a plan to develop “International Strategic Ports” in the Tokyo/Yokohama and Osaka/Kobe areas.

 

These changes are expected to bring about, among other benefits, lower logistics costs, more exports, and prosperity for the national and local economies. However, some disadvantages are also expected. Larger ships may prefer fewer calls at ports, which would result in some ports’ loss of gateway status. Developing ports in neighboring countries may intensify competition with ports in the U.S. and Japan.

 

What form then should the U.S. and Japanese approaches to infrastructure development take to manage the changing global logistics climate? With this question in mind, American and Japanese experts discussed how the transportation network will change in the years to come, infrastructure needs, and the expected effects on transpacific trade.