Energy / Climate Change

February 15, 2008


Kobe City to Subsidize Maritime Transportation to Oita Port in Kyushu

Keywords: Climate Change Energy Conservation Local government Non-manufacturing industry Transportation / Mobility 

Kobe City in Japan announced on October 10, 2007 its decision to subsidize modal shift projects involving ferry services between Kobe Port and Oita Port in Kyushu. These projects will be part of the city's modal shift grant system, which was first implemented in April 2006 and aims to promote modal shifts in physical distribution networks.

Two types of grants are offered: (1) subsidies for improving facilities necessary for modal shifting to coastal vessels, and (2) subsidies for reinforcing incentives for regular coastal container shipping businesses. More specifically, the former program is intended for modal shift projects utilizing Kobe Port, and partially finances facility improvements needed to construct the relevant logistic systems. The latter program covers part of the costs of regular coastal feeder container shipping that uses Kobe Port.

Kobe City already selected four model projects for subsidies in fiscal 2007 to reinforce incentives for regular coastal container shipping services. It also adopted a maritime transportation project for ferry services between Kobe and Oita Port, to be undertaken by the Diamond Ferry Co.; the latter is a coastal vessel modal shift facility improvement subsidy program. The company will be awarded a maximum of 10 million yen (US$86,207) for purchasing chassis equipment for rolling truck containers, etc. on and off the ferries. The city expects that transporting 18,600 tons of cargo by sea per year will help reduce annual carbon dioxide emissions by about 1,200 tons.

Posted: 2008/02/15 05:29:19 PM
Japanese version