JFSA Business Plan
I. Definition
The JFSA Business plan is a high level summary of objectives and action plans that
JFSA shall pursue in compliance with the constitutions of JFSA as stipulated in the
Articles of JFSA, to deliver material merits and benefits that the members would
expect to deprive from the activities of JFSA in respect with their shipping and related
operations in Japan.
The business plan is a dynamic document and as such should be updated whenever
there are new developments and/or when any members wish to add tasks. JFSA
business strategies shall be developed progressively by the Executive Committee in
consultation with other members.
II. Business Plan for 2004/2005
1. Revision of JFSA constitutions and Management structure
Purpose: Enhance visibility of JFSA both internally within the membership and
externally with the Japanese Government organizations and agencies, shipping
and transportation related industries in Japan as well as Public Relation.
Improve transparency of JFSA management and operation.
Action :
Execution of a new Articles of JFSA that comprehends all the desired
revision of JFSA constitutions and management structure at 2004 AGM on
October 20th.
2. Constructive relationship building with MLIT, JSA/JSPC, JHTA, Local port
administrators and other related organizations in Japan.
Purpose: Enhance an ability of JFSA to represent interests of the foreign shipping
community in Japan in pursuit of further deregulation on Japanese shipping, port
operations and transportation business so as to elevate the value of JFSA to the
existing membership as well as to induce membership newcomers.
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Action:
Explore opportunities whenever and wherever possible to make positive
contribution to the conduct of various councils, committees and discussion forums
sponsored by MLIT ,MOF and other public institutions in search of deregulation,
Business Process Re-engineering based on global standards, simplification of
shipping and port procedures, etc to improve efficiency whilst reducing costs of the
foreign shipping business in Japan such as:
1) Deregulation of the Port Pilot Law to reduce an overall pilotage cost by no less
than 30 pct within 2005 by way of:
a) elimination of special 10 pct fee which amounts
approximately yen 2 billions for
foreign shipping
operators.
b) integration of Bay Pilot and Harbour Pilot in Tokyo Bay,
Osaka Bay and Ise-Mikawa Bay to make them a single
pilot service at the reduced rates on a simplified tariff.
c) exemption of compulsory pilot is granted to foreign
masters who hold competent international
masters
certificate and proven career of commanding frequent call
at a particular port of Japan which is similar to that is
already granted to Japanese masters.
2) Simplification, standardization and deregulation of port entrance/clearance
procedures based on the single platform port EDI system that has to develop
improved connectivity with Sea-Naccs to make them a truly user friendly
one-stop service to reduce process costs by shipping companies and their agents.
a) Ratification of IMO-FAL Treaty by Japanese Government
in early 2005 is going to raise momentum to accelerate
E-Shipping and E-Port Operation systems development in
Japan
under the E-Government Initiative by Prime
Ministers' office.
b) Promotion of usage of ACL on Sea-Naccs.
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3) Development of the Super-Core -Port project over the next 3 years between
2005-2008 should not fail to deliver the desired results of reducing port costs by
30 pct and improve efficiency of port operation to curtail import lead-time down to
24 hours from 72 hours for the present by regulating Japanese ports operate 24
hours 7 days a week without massive overtime surcharge including 7 days a
week Customs clearance .
a) In
July
2004,MLIT
has
officially
designated
Super-Core-Ports ( no longer named Super-Hub ports)
including Keihin Ports of Tokyo and Yokohama, Hanshin
Ports of Osaka and Kobe and Ise-bay Ports of Nagoya
and Yokkaichi where a variety of experimental exercises
will begin to take place from 2005 in order to build blocks
to the perfection of the internationally competitive
Japanese major ports.
b) In 2003, Japanese Customs has commissioned an
experimentation of 7 days a week acceptance of Import
Customs clearance at several major ports and in
September 2004, the Customs had decided to expand the
7 days a week Customs operation to some other ports and
plan to change the rule completely in 2005 for all
Japanese ports.
c) Feasibility study has commenced to develop more cost
efficient container feeder operation by rail, coastal barge
and joint operation of overland trucking that opens to us
an opportunity to re-address Cabotage issue.
3. Strengthen the status of JFSA as a leadership organization of foreign shipping
business operating in Japan:
Purpose: The existence of so called sub-standard vessels are major cause of
marine casualties and unlawful conducts in the Japanese territorial water that
are becoming increasingly more serious issue to the Japanese Government.
Given rising threat of the Terrorist attacks, USA has been demanding stricter
security control both ships and ports by her trade partners. CSI/CT-Pat and ISPS
Code have created additional tasks and costs for not only shipping business but
port administrators as well. JFSA maintains a position that individual shipping
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companies should not be held responsible for such additional costs.
There said to be no less than 100 foreign shipping business are currently serving
to Japan of which a vast majority is represented by local agency firms. Many of
them are independent who are associated with neither JFSA nor Foreign
Shipping Agency Association. Visibility and traceability of those minor foreign
shipping business are hard to find. MLIT and MSA in particular are keen to see
JFSA initiative to net-work with those minor operators ,if not get them organized
under the fabric of JFSA. Expanding JFSA membership base is good to improve
JFSA presence and bargaining power but the prevailing constitution of JFSA
does not permit to get itself engaged with sub-standard shipping operators, nor is
it recommended to do so, unless substantial merits are offered for taking on such
additional liabilities.
Action:
JFSA does not have necessary resources to take care of sub-standard
foreign shipping business operating in Japan and it is not the purpose of JFSA as
it is presently constituted, however, as the centre of international shipping is
shifting progressively away from the traditional shipping nations including EU
countries and Japan to developing shipping countries ,primarily in Asia, JFSA
shall be aware of shipping and port related developments and opportunities in
those areas so as to enable JFSA to take opportunities of making some form of
alliance with those operators in search for JFSA objectives are better fulfilled.
4. JFSA Public Relation:
Purpose: JFSA as a representative of the foreign shipping business in Japan shall be
more proactive in launching appropriate PR activities to keep high the image of the
foreign shipping business in Japan who play a substantial role on the international
transportation to/from Japan.
Action:
JFSA shall always maintain a close liaison with JSA and other related
organizations on developments and opportunities to raise public image of the
foreign shipping business in Japan. JFSA should be responsive to social issues
such as environmental developments and anti-terrorism initiative whereas
maintaining low profile on political and religious issues.
Promote an image of GREEN shipping and CSR accountability of
the
membership companies who are operating in compliance with the internationally
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warranted quality and safety standard ,under the banner of JFSA to differentiate
the status of JFSA membership companies from other foreign shipping business.
5. Plan to strengthen resources of JFSA in both Finance and Human Resources:
Purpose:
JFSA should seek to grow in concurrent with the growth and
development of foreign shipping business in Japan.
Action :
Procurement of financial resource is the top priority in order to build a
financial health of the association.
As JFSA is financed by the membership fee, the growth must be deprived from the
acquisition of new memberships. Induce new members to raise a fund to finance
JFSA growth and developments. Target for 2004/2005 is to secure 5 new
members.
Improve working relationship with Japan Association of Foreign-Trade Ship
Agencies (JAFSA) and its membership
rationalize between us.
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companies to seek opportunities to