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State Subsidy System for Remote Island Liner Services in Japan

Authors
  • Baird, Alfred J1
  • 1 TRI Maritime Transport Group, Napier University Business School, Sighthill Court, Edinburgh, EH11 4BN, Scotland, UK , Edinburgh (United Kingdom)
Type
Published Article
Journal
International journal of maritime economics
Publisher
Palgrave Macmillan UK
Publication Date
Mar 01, 2001
Volume
3
Issue
1
Pages
102–120
Identifiers
DOI: 10.1057/palgrave.ijme.9100005
Source
Springer Nature
Keywords
License
Yellow

Abstract

Japan has one of the world’s largest networks of remote island liner services. As with other remote island lifeline services, operators face similar problems such as traffic imbalances, seasonality, and inadequate fare levels. Many of these liner operations, and hence the communities they serve, depend on state subsidy for survival. This paper explains the subsidy system for remote island liner services in Japan. It provides analysis of some of the industry’s difficulties, in the face of diminishing traffic flows, and national budget constraints. Several proposals are offered in an effort to help modernise what is a particularly fragmented shipping system, and to aid decision makers in their quest to ensure long-term stability of the industry.

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