PREFACE

iii

SUMMARY AND CONCLUSION

vii

CHAPTER I.

CURRENT DOMESTIC SHIPPING OPERATIONS

1

A.

The existing fleet

1

B.

Country summaries

1

CHAPTER II.

ISSUES AND CONSTRAINTS

5

A.

Age and suitability of ships: financial constraints

5

B.

Maintenance and repairs

5

C.

Port facilities and outer island wharves

5

D.

Control of domestic shipping operations

6

E.

Management

6

F.

Safety standards

6

G.

Crew training

7

CHAPTER III.

PROPOSALS FOR CONSIDERATION: DOMESTIC SHIPPING OPERATIONS

9

A.

Government controls and trade licensing systems

9

B.

Upgrading of safety standards

9

C.

Crew training

9

D.

Upgrading of ship repair facilities and supply of spare parts

10

CHAPTER IV.

PROPOSALS FOR CONSIDERATION: FLEET REPLACEMENT

13

A.

Strategy for fleet replacement

13

B.

Procedures for assessment of aged vessels

13

C.

Criteria for types and numbers of vessels

14

D.

General requirements for domestic trade vessels

16

E.

Location of shipbuilding programme and conditions for purchase of secondhand vessels

18

CHAPTER V.

ESTIMATES OF COSTS OF ACQUIRING REPLACEMENT VESSELS

19

A.

Estimate of costs

19

B.

Constraints on the ship acquisition programme

23

CHAPTER VI.

FINANCIAL STRATEGIES AND MEASURES FOR ACQUIRING REPLACEMENT VESSELS

29

A.

Policy measures for governments

29

B.

Policy options for the private sector

31

C.

Policy options on regional basis

36

ANNEXES

I.

Effects of ship acquisition price and interest rate on operating surplus

39

II.

Effect on finance terms on operating surplus

47

III.

Outline of investment efficiency indicators and simulation model

55

IV.

Outline of Maritime Credit Corporation in Japan

61