GLOBAL TRADE OPERATIONS

OMGT23211

SGS-GROUP 02-TEAM
LECTURER: DUY DINH KHUONG

TEAM MEMBERS:
Nguyen Thanh Trung- s3883032

Chau Bang Thanh Van - S3938276

Mai My Linh - s3979647

TOKYO PORT, JAPAN Do Minh Khanh - s3927586

TABLE OF CONTENT
01. 04.
OVERVIEW
COMPARATIVE ADVANTAGE
ANALYSIS

02. 05
DESCRIPTION OF PORT’S FUNTIONS
.RECOMMENDATIONS
PORT’ CHALLENGES AND

03. 06.
PORTER DIAMOND OF
TECHNOLOGIES IMPACTS
COMPETITIVE ADVANTAGE
OVERVIEW:
PORT OF TOKYO
International strategic ports of Japan

One of the largest maritime ports in

Japan and the Pacific Ocean
Long and rich history reflects Japan’s
development
 GEOGRAPHIC
Located in Koto City, Ariake district,
Tokyo.
One of 6 ports of Tokyo Bay, the most
inland, between the estuaries of the
Arakawa and Tamagawa Rivers
Connecting Asia and the Pacific Ocean
Stretching many districts: Aomi, Oi, and
Harumi, spanning over 5,000 hectares
Seabed characteristics: sand mixed
with mud
Strategic position makes Tokyo port
become a key shipping routes
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Port of Tokyo (2008), Kouwan Metro (2019), Shinohara and Saika (2018)
 02.
HISTORICAL MEIJI PERIOD

EVOLUTION
In the late 19th century, it opened its
doors to international trade and
dredging channels - the foundation for
development.
Long and rich history reflects
Japan’s development.
03.
POST-WAR WORLD II
The devastating Great Kanto
Earthquake (1923) and post-World
01. War II pronounced the importance of
Tokyo port.
EDO PORT - THE ORIGINS
1941, Tokyo Port officially became an
1392: The establishment of Edo international gateway for trade
port, the predecessor of Tokyo
port. 04.
Purpose: Distribution point for
LARGEST CONTAINERS PORT
supplying goods to the people of
Edo 2007, Port of Tokyo handled 90.8
million tonnes of cargo and
facilitated the movement of over
31,000 vessels.
--> Largest and busiest port in Japan
Orbitshub (2023), Kouwan Metro (2019)
 CURRENT OPERATION
Annually, the port handled millions TEU of container, and two-thirds of total
incoming and outgoing cargo in Japan

The port's activities have been

353,617 TEUs decreasing.

↓ 5.7% -> The decentralization strategies of

(Exports ↓ 1.3%, Imports ↓ 9.8%) Japan

Container News (2024)

 RELATIONSHIP:
PORT AND CITY
The relationship has been dynamic yet
remains stable since its establishment.

Contributing to development of extensive

infrastructure and cityscape

Environment concerns
Sea bottoms deepened by constant dredging
Contribute trillions --> Negative impact on benthic fauna, causes
+30,000
Yen annually (2.5 employment the sulfide accumulation and phosphorus
Tril ¥ in 1st quarter opportunities release
2024) --> Pulmonary and changing pH of water

Ando et al. (2021), Lee et al. (2003)

TOKYO PORT’S
FUNCTIONS
Modes of serves
Infrastructure
Intermodal capabilities
Key imports and exports
Document required for importing
 MODES OF SERVICES
The port of Tokyo provides diverse service modes

ROAD FREIGHT OCEAN FREIGHT AIR FREIGHT WAREHOUSE TOURISM

~2,000 hectares of 3 passenger ship

dedicated storage yards terminals

Orbitshub (2023), Kouwan Metro (2019), Cruise Port Guide of Japan (n.d)
 INFRASTRUCTURE & INTERMODAL
CAPABILITY
Orbitshub (2023), Kouwan Metro (2019), Cruise Port Guide of Japan (n.d)

Extensive infrastructure spanning over 5,000 hectares, dedicated to terminals,

storage yards, and various facilities.
3 container terminals, 2 foodstuff terminals, 2 automobile terminals, and 3
passenger ship terminals
2,674 Warehousing and Storage companies are partnering with Tokyo port.

Multimodal transport
Boosting road-sea multimodal transport: introducing Haisen Bridge and Tunnel
Rail-sea multimodel transport mostly for heavy chemical
 KEY PRODUCTS
Orbitshub (2023), Kouwan Metro (2019)

Imports Exports

clothing, footwear, electrical recycled material, chemical industrial

machinery products
DOCUMENTATION
REQUIRED FOR
IMPORTING
Japan strict in documents and inspect

Importing: commercial invoice, General dry cargo has highest

original, signed bill of landing or air detention rate
waybill if shipped by air, packing list 1,314 ships were detention cause
deficiencies in document

International Trade Administry (2024)

ROAD FREIGHT
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Quality Control System

Highly Professional Staf
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100% Satisfaction Guarantee
COMPETITIVE ADVANTAGES Tokyo Port
Porter's Diamond:

Porter's Diamond Model examines four key factors:

factor conditions, demand conditions, related and
supporting industries, and firm strategy.
(Yap 2021; Acosta, Coronado and Mar 2007)

Factor conditions, crucial for industry

competitiveness, include infrastructure,
labor, capital, and logistical technology.
(Bakan and Dogan 2012).

Figure 1: Porter's Diamond mode (Yap 2021)

GEOGRAPHY AND NETWORK

Japan
Natural harbors
Key hub in Asia-Pacific trade (Riew 2007)

Vietnam
Strategic location near industrial hubs
3,260 km coastline
Close to major shipping routes of the Strait of
Malacca and the Pacific Ocean (Nong 2023)

FIGURE 2: ASIA PACIFIC TRADE ROUTES

Japan's strategic harbors and urban locations enhance trade and transportation, while
Vietnam's vast coastline and proximity to key shipping routes highlight each nation's
distinct maritime strengths.
INFRASTRACTURE

Japan
Significant integration and extensions of transport networks:
The Tokyo Railway Freight Terminal, near Tokyo Bay, connects Tokyo Port
and Haneda Airport, serving as a multimodal hub for efficient cargo
transport (Xia 2021).
The MLIT's opening of a north-south harbour road in Tokyo Port aims to
strengthen and streamline the surrounding road network (TMG 2020).

Vietnam
Figure 3: Location Map of Haisen Tunnel and Bridge (TMG 2020)

Underdeveloped and lacks connection with various ports

Overloading at seaports
=> Poor infrastructure and marinetime system, delays and increases
costs by around 30 per cent (VNS 2019)

Figure 4: Traffic congestion in and around Cat Lai Port (Nghi 2023)

In short, while Tokyo Port thrives due to strong logistics integration, Cat Lai Port struggles with
infrastructure issues that hinder its efficiency.
TECHNOLOGY

Japan
Terminal Operation Systems (TOS) Tokyo Port
Port Communication Systems (PCSs)
'Smart Japan ICT Strategy' document
Smart equipment like IoT, AI, and 5G

Vietnam
Currently applies "electronic port" (ePort)
(VNS 2019) Cat Lai Port
Lack of updated logistics technology
(VNS 2019).

The Port of Tokyo not only reduces costs and service completion times for stakeholders, but also
reduces environmental burdens through improved logistics and transportation processes.
 Chau Bang Thanh Van S3938276

DEMAND CONDITIONS

Throughput of Port of Tokyo Throughput of Cat Lai Port

352,680 TEUs of foreign trade containers in October 2023, a Over 5.5 million TEUs, which is equivalent to 78.5 million tons of

10.3% decrease from the previous year products in 2022.

Export: 88,744 TEUs of laden containers, 4.8% decrease It is anticipated that the port's throughput will continue to

Import: 175,246 TEUs of laden containers decreased by 9.7% increase, with a goal of accommodating 10 million TEUs by 2025

( Japan International Freight Forwarders Association Inc 2023). ( Customs News 2023).
 Chau Bang Thanh Van S3938276

DEMAND CONDITIONS

Main Imported Products: Machinery, equipment, and spare parts for

Main Imported Products: Crude petroleum, petroleum gas, coal
industries including electronics, textiles, footwear, and substantial
briquettes, integrated circuits, and broadcasting equipment
quantities of basic materials
=> The scarcity of natural resources in Japan
=> Vietnam's expanding manufacturing sector, particularly in the
Main Exported Products: Apparatus, chemicals, electronic equipment,
sectors of electronics, textiles, and garments
and transport equipment, which includes motor vehicles
Main Exported Products: Electronics, footwear, garments, and textiles
=> Its highly developed industrial sector
=> Strategic location and competitive advantage in lower costs

TOKYO PORT'S COMPETITIVE ADVANTAGE IS DERIVED FROM THE DEMAND FOR LOGISTICS SERVICES BEING SUPERIOR TO THAT OF CAT LAT PORT
 DEMAND CON
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ROAD FREIGHT OCEAN FREIGHT AIR FREIGHT

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ROAD FREIGHT
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Quality Control System

Highly Professional Staf
Accurate Testing Processes
100% Satisfaction Guarantee
 01.
LAND AND WEATHER

COMPARATIVE Favored by nature leading to more

productivity.

ADVANTAGE- 02.
VIETNAM GOVERNMENT SUPPORT
Government support significantly
in developing agriculture.
Vietnam’s ability to produce agriculture
products (rice) at a lower opportunity
cost than Japan.
03.
FARMER
Skillful workforce with a long
tradition.
 LAND & WEATHER

28 million hectares of agricultural land 3.2 million hectares of agricultural land, paddy area
Land with heavy clay and silt loam soils has been declining year-to-year,
Suitable for all rice growing methods (wet, dry, Lack of sunshine during summer and persistent rains
aquaponics, etc.) during grain-filling periods
Growing rice month-to-month Various natural disasters
Tropical climate (heat and humidity)
 GOVERNMENT SUPPORT

Provide renting land services for farmers

Sell agricultural land at a low price Little to no support for small-family farmers due to
Support selling agricultural products policies promoting unfettered trade liberalization
Implement policies for reserving agricultural land Japanese family farmer held a publicity stand to
make pressure on Government

Campesina (2023)
 FARMERS

Traditional occupations, Skill-full workforce Aging workforce

Young labor Decrease in rice demand leading to a demotivated
Apply many high-tech equipment workforce
 01. 03.
LAND LABOUR
Abundant in organic resources Competitive job market, strict
which provides important training and education
materials for chemincal skilled workers
industries,

COMPARATIVE
ADVANTAGE -
02. 04.
PORT OF TOKYO CAPITAL ENTREPRENEURSHIP
Technology which increased Introduction of chemical
Japan’s ability to produce chemical production capacity. industries and chemical
products.
products at a lower opportunity cost
than Viet Nam.
LAND CAPITAL
Abundant in organic resources (:
rich fish supply of the pacific,
camphor,
rice bran and sugar molasses,
forests of Sakhalin and of Manchoukuo
Abundant in minerals (Toyoda et al. 2024):
coal, iron ore, zinc, lead, copper, sulfur, gold, and silver,
limestones
--> provides important materials for chemical industries.

LABOUR ENTREPRENUERSHIP
Competitive Workforce
 LABOUR

Abundant in organic resources: ...

rich fish supply of the pacific,
camphor,
rice bran and sugar molasses,
forests of Sakhalin and of Manchoukuo
Abundant in minerals (Toyoda et al. 2024):
coal, iron ore, zinc, lead, copper, sulfur, gold, and silver,
limestones
--> provides important materials for chemical industries.
 BULK TERMINALS

PORT DESIGN - LIQUID TERMINALS

CHEMICAL
EXPORT
CONTAINER TERMINALS
 OPERATIONAL CHALLENGES

Natural Disasters Inadequate Structure

Aging Population Limited Capacity
 RECOMMENDATIONS

Integrate Technology Strengthen policies,

procedures and customes
 Chau Bang Thanh Van S3938276

IMPACT OF CURRENT AND EMERGING TECHNOLOGIES

More productive, efficient, and sophisticated

AUTO GATE AI BLOCKCHAIN BIG DATA AUTOMATION

 Chau Bang Thanh Van S3938276

INTERNATIONAL PORTS

Rotterdam port (Netherlands) Rotterdam port (Netherlands) Hamburg Port (Germany)

Digital Twin IoT sensors IoT, Big Data, and AI

(Rahman 2023)
 Chau Bang Thanh Van S3938276

TECHNOLOGY ADVANCEMENTS

Advanced container monitoring systems Electronic warehouse management software

Automated equipment Automatic gate systems
Digital platforms in the cargo handling process ( Thanh 2019)
( Orbitshub 2023)
=> The optimization of human resources and time
=> A pioneer in maritime innovation
 Chau Bang Thanh Van S3938276

RECOMMENDATIONS
FOR CAT LAI PORT
Internet of Things (IoT)
Big data analytics
Blockchain
IoT sensors
Cloud computing

Enhancing the tracking and administration of goods

Enhancing security, and streamline procedures
Monitoring container status
Assuring delivery accuracy
Minimizing losses
Reducing handling time
Facilitating the optimization of logisitc and customs documents
Enabling the analysis of historical shipping patterns in conjunction
with real-time input data
(Prosertek 2024)
 Reference
Yap WY (2021) Competitiveness and competitive advantage of ports, in Business and Economics of Port Management,1st edition, Routledge.

Acosta M, Coronado D, and Mar Cerban M (2007) ‘Port competitiveness in container traffic from an internal point of view: the experience of the Port of Algeciras Bay’, Maritime Policy &
Management, 34(5): 501–520. doi: 10.1080/03088830701585381.
Inutsuka H, Ichimura K, Sugimura Y, Yoshie M, and Shinoda T 'Study on the Relationship between Port Governance and Terminal Operation System for Smart Port: Japan Case', Logistics,
8(2):59, accessed 26 August 2024 https://doi.org/10.3390/logistics8020059.

Haezendonck E, Pison G, Rousseeuw P, Struyf A and Verbeke A (2000) ‘The Competitive Advantage of Seaports’, Marit Econ Logist , 2: 69–82, SpringerLink website, accessed 26 August
2024. https://doi.org/10.1057/ijme.2000.8
Wilmsmeier G, Hoffmann J (2008) ‘Liner Shipping Connectivity and Port Infrastructure as Determinants of Freight Rates in the Caribbean’ Marit Econ Logist ,10:130–151 , SpringerLink
website, accessed 26 August 2024. https://doi.org/10.1057/palgrave.mel.9100195.
Smit JA (2010) 'The competitive advantage of nations: is Porter’s Diamond Framework a new theory that explains the international competitiveness of countries?', Southern African
Business Review, 14(1):1-1, AJOL website, accessed 26 August 2024. https://www.ajol.info/index.php/sabr/article/view/76358.

Urbanova (2018) Japan’s Legacy of Technology in the Digital Era: A Mixed Methods Analysis of the Competitive Advantage of the IoT sector in Japan, Lund University Publications
website, accessed 26 August 2024. https://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=8953276&fileOId=8953277.

Sintusingha, S., Wu, H., Lin, W., Han, S. S., & Qin, B. (Eds.). (2021). International perspectives on the belt and road initiative : A bottom-up approach. Taylor & Francis Group.
Yang YC and Chen SL(2016) 'Determinants of global logistics hub ports: Comparison of the port development policies of Taiwan, Korea, and Japan', Transport Policy, 45: 179-189,
sciencedirect website ,access https://doi.org/10.1016/j.tranpol.2015.10.005.

Vietnamnews (VNS) (21 October, 2019) 'Vietnamese port infrastructure needs to keep pace with growth', Vietnamnews, accessed 30 August 2024.
https://vietnamnews.vn/economy/537172/vietnamese-port-infrastructure-needs-to-keep-pace-with-growth.html.

Cyrill M and Nguyen CA (2024) Port Infrastructure in Vietnam: 3 Regional Hubs for Importers and Exporters, Vietnam briefing website, accessed 30 August 2024 . https://www.vietnam-
briefing.com/news/port-infrastructure-vietnam-3-hubs-for-importers-exporters.html/.

Bureau of Port and Harbor (2020) Opening of a connecting north-south harbor road in Tokyo Port, metro.tokyo.lg.jp, accessed 30 August 2024.
https://www.metro.tokyo.lg.jp/english/topics/2020/0611_02.html.

Xia MZ (2021) 'Analysis and Research of Port Gathering and Transportation System in Tokyo Port', Earth and Environmental Science 831, 1:1-1, doi:10.1088/1755-1315/831/1/012043.
 Reference

Nghi X (11 October 2023) 'Measures needed to tackle congestion at Vietnam’s biggest port', vneconomy, accessed 30 August 2024. https://vneconomy.vn/measures-needed-to-tackle-
congestion-at-vietnams-biggest-port.htm.
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