Case Analysis: Funding and Financing of Transport in Japan - TRAN 411

This case study examines the funding and financing challenges of Japan's intermodal transport system. The analysis highlights the problem of an inefficiently funded system hindering freight flow and economic growth. The significance of the problem is discussed, emphasizing its negative impact on commercial activities, unemployment, and economic growth. The study then presents two alternative actions: increasing taxes on intermodal transport users and seeking credit facilities from national and international organizations, along with their respective advantages and disadvantages. The recommendation focuses on improving the transport system through infrastructure upgrades, funded by tax revenue, while ensuring responsible allocation and preventing misuse of funds. The case analysis uses a sample format from the course TRAN 411 and includes references to support the arguments made.

Running head: THE FUNDING AND FINANCING OF TRANSPORT 1
The Funding and Financing of Transportation Project
Name
Institution

THE FUNDING AND FINANCING OF TRANSPORT 2
The Funding and Financing of Transportation Project
I. Summary
Intermodal transportation is important because it plays a pivotal role in the country’s
economy. Every year, the country exports millions of commodities to the foreign nations both
within and out of the continent. At the same time, it imports huge volumes of commodities from
other countries. This is a big freight that requires efficient transportation right from the point of
consumption (Shin, Roh & Hur, 2018). Meaning, it needs a well-established intermodal transport
system.
II. Problem
As a country, Japan requires a stable and effective transport system to help in the
transportation of cargo throughout the country. The problem that exists is that the intermodal
transport system is not efficient because it has not been properly funded. This is disastrous
because it not only hinders he smooth flow of freight, but also derails the process of economic
growth (Agamez-Arias & Moyano-Fuentes, 2017). This is, indeed, a very serious problem that
needs to be rectified.
III. Significance of the Problem
The problem of poor intermodal transport system is of great concern to all the Japanese. It
has been negatively impacting on the country in many ways. First, it has been preventing
commercial activities in the country. An inefficient flow of commodities-raw materials or
finished products is bad to the traders because it leads o losses. Besides, poor transport system
has long-term effects because it leads to unemployment and slowed economic growth

THE FUNDING AND FINANCING OF TRANSPORT 3
(Kordnejad, 2016). Because of this, the government of Japan must take all the necessary
measures to rectify the situation. Transport is a core driver of the economy.
IV. Development of Alternatives
1. Alternative Action 1: The government of Japan should levy more taxes from the
intermodal transport users and use it to fund the repair, upgrading, and
construction of additional transport infrastructure across the nation.
Advantages: The government will get enough revenues to use in the improvement
of the transport system. Tax is assured and once a new tax regime is implemented,
it must be collected (Nechaev & Antipina, 2016). Meaning, one approved, the
funds are guaranteed.
Disadvantages: Introducing, implanting, and enforcing a new taxation might
require a lot of time. The process is lengthy because it has to go through the
legislator ad seek numerous approvals at different levels before it is eventually
enacted into law.
2. Alternative Action 2: The government should seek for credit facilities from the
national and international organizations. Such organizations include banks,
governments, and individuals (Nechaev & Antipina, 2016). The funds can enable
the government to stabilize its transport infrastructure.
Advantages: The advantage of loans is that it is guaranteed because the country’s
credit rating is good. At the same time, the government has security ad can even
sell bonds so as to get additional revenue to fund such projects.
Disadvantages: The disadvantages of such loans are many. One, t can subject the
government to manipulation by the foreign money lenders that might take

THE FUNDING AND FINANCING OF TRANSPORT 4
advantage of the situation to control it. Two, loans are expensive in the long-run
because they attract interests.
V. Recommendation
The government of Japan should improve its transport system through reparation,
upgrading, and expansion of the rail, road, water, and air transport infrastructure. Money should
come from taxes. Even if it plans to achieve this by increasing taxes, the citizens should not be
exploited (Nechaev & Antipina, 2016). The government should also increase its allocation to the
transport sector and also take all the necessary steps to ensure that the allocated revenues are not
stolen or diverted, but used for the right intended purpose.

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References
Agamez-Arias, A.D.M. & Moyano-Fuentes, J., (2017). Intermodal transport in freight
distribution: a literature review. Transport Reviews, 37(6), pp.782-807.
Kordnejad, B., (2016). Stakeholder analysis in intermodal urban freight transport. Transportation
Research Procedia, 12, pp.750-764.
Nechaev, A. & Antipina, O., (2016). Analysis of the Impact of Taxation of Business Entities on
the Innovative Development of the Country. European Research Studies, 19(1), p.71.
Shin, S., Roh, H.S. & Hur, S.H., (2018). Technical Trends Related to Intermodal Automated
Freight Transport Systems (AFTS). The Asian Journal of Shipping and Logistics, 34(2),
pp.161-169.