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An analysis of the overcapacity problem under the decentralized management system of container ports in Japan

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  • Hideko Terada

Abstract

This article is concerned with an analytical summary of how the Japanese container ports have been taking place overcapacity problem in a systematic way. It focuses on institutional aspects of the overcapacity problem from the viewpoint of accounting cost and opportunity cost. The first issue arises due to the port authority's accounting system and insufficient disclosures of financial statements of port business to the port users and taxpayers. The second issue is inherently related to resource allocation between the state government and local governments through the budget system and income distribution programmes. Since a proper allocation of economic resources in the port sector as a whole will depend on investment decisions being taken within a coherent framework for ensuring that costs are passed on to port users, these issues are closely related to each other in reality. Although the budget system is completely controlled by the state government, the local governments have authoritative power over port planning, financing, and management, which is assured by the Ports and Harbours Law. The overcapacity problem appears to be an inevitable result.

Suggested Citation

  • Hideko Terada, 2002. "An analysis of the overcapacity problem under the decentralized management system of container ports in Japan," Maritime Policy & Management, Taylor & Francis Journals, vol. 29(1), pages 3-15, January.
    • Handle: RePEc:taf:marpmg:v:29:y:2002:i:1:p:3-15
    DOI: 10.1080/03088830010028883
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    Cited by:

    1. Van de Voorde, Eddy E.M., 2005. "What Future the Maritime Sector: Some Considerations on Globalisation, Co-Operation and Market Power," Research in Transportation Economics, Elsevier, vol. 13(1), pages 253-277, January.
    2. Zheng, Shiyuan & Ge, Ying-En & Fu, Xiaowen & (Marco) Nie, Yu & Xie, Chi, 2020. "Demand information sharing in port concession arrangements," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 118-143.
    3. Zhang, Yanfang & Zhang, Ming & Liu, Yue & Nie, Rui, 2017. "Enterprise investment, local government intervention and coal overcapacity: The case of China," Energy Policy, Elsevier, vol. 101(C), pages 162-169.
    4. Seo, Young-Joon & Park, Jin Suk, 2016. "The estimation of minimum efficient scale of the port industry," Transport Policy, Elsevier, vol. 49(C), pages 168-175.
    5. Bandara, Yapa Mahinda & Nguyen, Hong-Oanh, 2016. "Influential factors in port infrastructure tariff formulation, implementation and revision," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 220-232.

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