3-2. Logistics Facility Planning and Logistics Park Selection Based on Freight Transport Volume Analysis
In order for a company to build a winning supply chain and formulate lean logistics facility planning, it is essential to accurately grasp the macro trends of freight transport and the flow of goods by region (intra-regional flow and inter-regional flow).
Simply choosing "the location closest to demand" or "land with cheap rent" will lead to fatal challenges after operations begin, such as bloated freight transport costs, trucks waiting to dock, and difficulties securing drivers due to the 2024 problem.
This article provides a multifaceted analysis of changes in domestic freight transport volume over the past 20 years, the balance between intra-regional flow and inter-regional flow for each regional block, and the hub functions played by major logistics parks nationwide, explaining practical guidelines for translating this into highly accurate logistics facility planning.
1. Freight Transport Trends over the Past 20 Years and Background
The first step to making your company's logistics facility planning successful is to correctly discern the changes in the macro environment surrounding freight transport across Japan as a whole.
1-1. Trends in Total Logistics Costs (Ratio of Logistics Costs to Sales / Macro Costs)
Period of Slump and Stability (2000s to Mid-2010s)
Due to price competition among transport operators and thorough logistics efficiency improvements by companies, the ratio of logistics costs to sales remained stable at a low level of under 5% to around 5% for a long time.
Period of Long-term Increase (2016 Onwards)
Against the backdrop of freight rate hikes accompanying the severe shortage of truck drivers, soaring fuel prices, and rising labor costs, the increase in freight transport costs began in earnest.
Fixation at a High Level (2021 to Present)
In fiscal 2021, it recorded 5.70%, the highest ratio in the past 20 years. In recent years, it has remained at a high level of 5.36% to 5.44%, and the perceived burden of logistics costs has reached an all-time high due to responses to the "2024 problem" and high prices.
1-2. Structural Changes in Logistics Volume (Domestic Freight Transport Volume)
Gradual Decrease in Total Weight (Ton basis)
Due to the relocation of manufacturing overseas, the lightening of products, and the promotion of joint delivery, the total domestic freight transport weight has continued a gradual decrease/flat trend from the 5 billion-ton scale in the early 2000s to the low 4 billion-ton range.
Divergence between BtoB (Business-to-Business) and BtoC (EC/Courier)
While mass transport in BtoB is sluggish, the number of courier parcels handled has increased explosively due to the expansion of EC. Even if the total weight does not increase, a structural change is progressing where "small-lot, high-frequency" deliveries are intensifying, driving up the workload on-site and the frequency of transport.
2. Flow Structure by 10 Regional Blocks Nationwide (Intra-Regional Flow vs. Inter-Regional Flow)
When determining the location area of a hub in logistics facility planning, the most important indicator is the ratio of "intra-regional flow (completed within the block)" and "inter-regional flow (transport crossing over to other blocks)" from the shipping origin.
The Fact that Intra-Regional Flow Accounts for About 70-80%
The vast majority (about 70-80%) of freight transport shipped from each regional block is a flow that completes within the same block (intra-regional flow). The foundation is designing a delivery network geared towards local production for local consumption and community-based delivery.
Inter-Regional Flow is Mainly Directed to Adjacent Regions and Metropolitan Areas
The remaining roughly 20-30% (inter-regional flow) is mainly comprised of "transport to adjacent regional blocks" and "concentrated transport to large metropolitan areas such as Kanto, Chubu, and Kinki."
Structural Characteristics Deciphered from Mapping Data and Insights for Facility Planning
1. Extreme Concentration in the Three Major Metropolitan Areas (56.6%)
Just the three blocks of Kanto (27.8%), Chubu (16.1%), and Kinki (12.7%) account for the majority (56.6%) of the total freight transport volume in Japan. When establishing a wide-area hub center, selecting a logistics park with excellent accessibility to these metropolitan areas is mandatory.2. High "Intra-Regional Completion Rate" (National Average 77.1%)
Of the total freight transport volume nationwide, about 77.1% is completed within the same block (intra-regional flow), and transport crossing regional blocks (inter-regional flow) accounts for only about 22.9% of the total. Particularly in Kanto and Kyushu, the ratio of intra-regional flow is extremely high, and strengthening the last-mile network within the region is the crux of logistics facility planning.3. The Top Prefecture is "Aichi Prefecture"
By regional block, Kanto is first, but looking at single prefectures, Aichi Prefecture, a major agglomeration of manufacturing, boasts the highest freight transport volume in the country. This demonstrates the importance of the Chubu region as the point of contact between production logistics and sales logistics.
3. Major Logistics Parks and Consolidation Hubs Nationwide
Major logistics parks (distribution business parks) nationwide are developed in prime locations directly connected to expressway interchanges (ICs), major arterial roads, ports, and airports, with the aim of alleviating traffic congestion in urban areas and consolidating and streamlining freight transport.
1. Tokyo Metropolitan Area (Kanto Area)
In the Tokyo metropolitan area, which possesses a massive consumption area and international infrastructure, logistics parks along the bay area and the inland loop lines (Gaikan Expressway, Ken-O Expressway) form the core of intra-regional flow and inter-regional flow.
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Keihin / Heiwajima Area (Ota Ward, Tokyo)
An agglomeration of various logistics warehouses, including one of Japan's largest "Keihin Truck Terminals." Adjacent to Haneda Airport and the Port of Tokyo, and directly connected to the Shuto Expressway Bayshore Route and Haneda Route, it is a comprehensive logistics hub representative of Japan.
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Itabashi Distribution Business Park (Itabashi Ward, Tokyo)
Located along the Shuto Expressway Route 5 Ikebukuro Line, with easy access to the Kan-Etsu Expressway and Tohoku Expressway. It is a relay hub for intra-regional flow to the northern metropolitan area and inter-regional flow toward the Kan-Etsu and Tohoku directions.
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Kasai Distribution Business Park (Edogawa Ward, Tokyo)
Located along the Tokyo Bay Route, it is a delivery hub for the city center and the Chiba/Ibaraki directions. The Kasai Truck Terminal and various cold storage warehouses are highly concentrated here.
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Atsugi Logistics Park / Atsugi Inland Area (Atsugi City / Aikawa Town, Kanagawa Prefecture)
A nodal point where the Tomei Expressway (Atsugi IC), Shin-Tomei, and Ken-O Expressway intersect. It functions as a wide-area hub for inter-regional flow connecting the Chukyo and Kansai regions, in addition to intra-regional flow to the entire metropolitan area.
2. Chubu Region (Chukyo Area)
A junction for Japan's freight transport where the automotive industry is concentrated and the Tomei, Meishin, Chuo, and Shin-Tomei expressways converge.
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Komaki Distribution Business Park (Komaki City, Aichi Prefecture)
"Japan's largest logistics junction" close to the connection point of the Tomei and Meishin Expressways (Komaki IC). It is a cross-dock hub not only for intra-regional flow within the Chukyo region but also for inter-regional flow connecting Eastern and Western Japan.
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Meiko / Tobishima Logistics Park (Tobishima Village / Nagoya City, Aichi Prefecture)
Directly connected to the Port of Nagoya International Container Terminal, with outstanding access to the Isewangan Expressway. A port-location hub handling the storage, processing, and freight transport of import/export cargo and parts.
3. Kinki Region (Kansai Area)
A network of the Meishin, Chugoku Expressway, Hanshin Expressway, Kinki Expressway, and Shin-Meishin runs like a web, covering inter-regional flow to all of Western Japan.
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Kita-Osaka Distribution Business Park (Ibaraki City, Minoh City, etc., Osaka Prefecture)
The largest logistics hub in Kansai where the Meishin (Ibaraki IC), Chugoku Expressway, Kinki Expressway, and Shin-Meishin converge. It single-handedly takes on intra-regional flow within the Keihanshin metropolitan area and inter-regional flow to all of Western Japan.
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Higashi-Osaka Distribution Business Park (Higashi-Osaka City, Osaka Prefecture)
Directly connected to the Kinki Expressway and Hanshin Expressway Route 13 Higashi-Osaka Line, collaborating with the manufacturing agglomeration. Boasts high convenience as an urban delivery hub into Osaka City.
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Kobe Distribution Business Park (Suma Ward / Nishi Ward, Kobe City, Hyogo Prefecture)
A nodal point connecting the Port of Kobe, Sanyo Expressway, Chugoku Expressway, and Kobe-Awaji-Naruto Expressway. A hub for international cargo and inter-regional flow to the Chugoku/Shikoku regions.
4. Kyushu, Chugoku, Shikoku, Hokkaido, Tohoku Areas
In regional blocks, wide-area logistics parks are formed at the crossroads (junctions) of major expressways or near interchanges of large metropolitan areas.
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Tosu Distribution Business Park (Tosu City, Saga Prefecture)
"Kyushu's Logistics Crossroads" where the Kyushu, Nagasaki, and Oita Expressways intersect. A major hub leveraging its location capable of delivering to all prefectures in Kyushu within a few hours.
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Fukuoka Distribution Center (Tanonotsu) (Higashi Ward, Fukuoka City)
Kyushu's largest distribution and wholesale park, close to the Kyushu Expressway (Fukuoka IC), Port of Hakata, and Fukuoka Airport. The linchpin of urban intra-regional flow.
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Sapporo Distribution Center (Oyachi Area) (Shiroishi Ward / Atsubetsu Ward, Sapporo City)
Hokkaido's largest hub directly connected to the Hokkaido Expressway (Sapporo-Minami IC). Achieves both wide-area freight transport to various parts of Hokkaido and delivery within the Sapporo metropolitan area.
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Sendai Distribution Center (Miyagino Ward, Sendai City, Miyagi Prefecture)
Tohoku's largest hub logistics park covering the 6 prefectures of Tohoku, close to the Tohoku Expressway, Sendai Tobu Road, and Port of Sendai.
4. The 3 Roles Played by Logistics Parks in Logistics Facility Planning
When a company advances a sophisticated logistics facility planning, advancing into and locating within a logistics park (distribution business park) systematically developed by the government or development corporations, rather than independently acquiring private land and building a hub, presents extremely large structural and strategic advantages. A logistics park is not merely a collection of warehouses; it primarily serves the following three important roles as an indispensable social infrastructure smoothly connecting the regional economy with wide-area freight transport networks.
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Dramatic Streamlining of Transshipment and Cargo Handling Work at Traffic Nodes
Logistics parks are located in prime traffic locations directly connected to major expressway interchanges (ICs), arterial roads, international ports, and freight rail stations. As a result, they demonstrate an advanced "cross-dock (transshipment/sorting) function" that receives long-distance, high-volume freight transport (inter-regional flow) brought from rural areas or long distances (other blocks), and smoothly passes the baton to short-distance, small-lot delivery within the city (intra-regional flow). By separating and consolidating the traffic lines of long-distance large trucks and intra-city collection/delivery vehicles at the node, the empty running rate of vehicles is drastically reduced, realizing reductions in driver detention times and minimizing total transport and delivery costs.
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Preservation of the Urban Environment (Separation of Residence and Industry) and Securing 24-Hour Full Operation
To protect residential areas and city centers from logistics pollution such as on-street parking of large trucks, noise and vibration from idling and night-time cargo handling, and exhaust gas, logistics parks are consolidated and developed along suburban roadsides or bay areas based on the city planning principle of "separating residence and industry." Because environmental loads on neighboring residents and lifestyle complaints can be prevented beforehand, an extremely large practical advantage is born for logistics operators: they can stably secure legally and environmentally sound operations for late-night/early-morning truck arrivals/departures and 24/365 continuous operations without stopping.
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Joint Delivery and Consolidation Effects through Agglomeration of Cross-Industry and Same-Industry Companies (Promotion of GX)
Within a logistics park, truck terminals, commercial warehouses, multi-level automated warehouses, wholesale markets, distribution centers, and distribution processing facilities are concentrated. By leveraging this geographical agglomeration effect, it becomes easy to carry out "joint arrangement of trucks" and "sharing of cargo (joint delivery)" among companies in the same industry or neighboring companies. Dramatically improving the load factor per vehicle not only serves as a solution to the chronic truck driver shortage (the 2024 problem) but also functions as a powerful promotion base for decarbonization and Green Logistics (GX), which significantly reduces carbon dioxide (CO2) emissions.