Govt steps up Japan-brand sales efforts (Source: The Daily Yomiuri)

Link: Govt steps up Japan-brand sales efforts : Business : DAILY YOMIURI ONLINE (The Daily Yomiuri)

Govt steps up Japan-brand sales efforts

Akihiro Okada, Izuru Jitsumori and Koichi Uetake / Yomiuri Shimbun Staff Writers

Cabinet ministers are globe-hopping to help Japanese companies sell their specialized products and technology, such as Shinkansen bullet trains and nuclear power plants.

Company officials accompanied the ministers, in an attempt to revive competition against rival countries like France and South Korea.

The sales efforts involved members of both the public and private sectors, such as executives from Central Japan Railway Co. (JR Tokai).

According to the Economy, Trade and Industry Ministry, global investment in railways and other essential infrastructure is expected to reach 41 trillion dollars (about 3.85 yen quadrillion) by 2030.

This growth is due to an increased desire for nuclear power plants that do not emit greenhouse gases and for efficient high-speed train lines for economic stimulus.

Land, Infrastructure, Transport and Tourism Minister Seiji Maehara visited the United States hoping to export Japan's maglev and Shinkansen technology.

At a press conference on April 30, Maehara emphasized, "Unless the government and business unite to tackle the issue, even excellent technology won't be adopted."

The U.S. government plans to build 11 bullet train lines with a total distance of 13,700 kilometers at an expense of 13 billion dollars (about 1.22 trillion yen).

With the U.S. plan in mind, the government in April revised regulations allowing the Japan Bank for International Cooperation to make loans to industrialized countries for high-speed train projects.

The government will also host U.S. Transportation Secretary Ray LaHood from Sunday to Wednesday to have him ride the Shinkansen and maglev trains.

However, JR Tokai Chairman Yoshi-yuki Kasai, who accompanied Maehara to the United States, told reporters, "Japan's efforts lag behind other countries."

Another JR official also expressed concern, saying, "Japanese companies might not win any U.S. train contracts."

As an example of the stiff competition, a Florida high-speed train line has 22 companies bidding for the contract.

Maehara said, "I thought the number would be five or six at most. On the trip I got a glimpse of how fierce the competition in the high-speed train business is."

France and Germany are at an advantage with their public and private sectors working together. China is also looking to export its high-speed train technology, charging lower prices than its rivals.

Yoshito Sengoku, state minister for national policy, attended the opening ceremony of the Shanghai World Expo and then traveled to Vietnam on Sunday, where he promoted Japanese nuclear power and bullet train technology.

Vietnam plans to build four nuclear power reactors.

Two contracts will probably be won by Russia, which sells the reactors together with submarines as a set. Japan, France and South Korea will likely compete for the two remaining reactors.

Prime Minister Yukio Hatoyama sent a personal letter to Vietnamese Prime Minister Nguyen Tan Dung, but it remains uncertain if Japan's bid will be successful.

Japan did win an Indian urban development contract utilizing Smart Grid, a next-generation electric power supply network, costing about 120 billion yen.

Economy, Trade and Industry Minister Masayuki Naoshima attended an April 30 signing ceremony between the Japanese business consortium and an Indian state government. "We hope to popularize this successful model throughout Asia," he said.

To increase contracts won by Japanese companies, the central government's aid is important, but a system to handle projects in an integrated manner is also needed.

For example, France provides services for everything involved in a nuclear power plant, from construction to operations, fuel supply and the processing of used fuel.

Japanese infrastructure firms, railway companies, power companies and those involved in the operation and management of finished facilities must increase their collaboration.
(May. 7, 2010)