Rise of venous logistics of industrial waste 1998.01(45)

 The venous logistics of industrial waste has become a huge business opportunity for logistics companies and is about to develop into a mature industry. Behind this is the demand of the times for a recycling-oriented society. Eiji Abo, director of the Institute of Logistics Management, says, “Venous logistics, which collects and transports waste around the world, will become a major business.

In fact, more than 1,500 new waste transporters entered the venous logistics market as soon as the Circular Economy and Waste Act came into effect in Germany in 1994. Based on the results of research related to venous logistics in the U.S., we estimate that collection and transportation costs account for about 30% of the waste treatment market, including recycling, and if we estimate the market size in Japan at the beginning of 2000 to be about 30 trillion yen, the venous logistics market can be calculated to be roughly 10 trillion yen in size.

On the other hand, it is possible to make the following prediction. Currently, the Japanese trucking market is estimated to be 12-13 trillion yen, almost 100% of which is for arterial logistics for the supply of products and goods. In the future, as the development of venous logistics is promoted in all areas, products and other goods sold will flow back from arteries to veins. There is a great possibility that a market for venous logistics will emerge that will rival the current arterial logistics market.

Nippon Express, which has partially succeeded in entering the venous logistics market in Japan, divides venous logistics into the following three business fields. (1) services for local environmental conservation, such as transportation of overburdened soil and collection of spilled heavy oil, (2) specialized processing and transportation of specific items, such as mercury and waste oil, and (3) recycling logistics of used products. Currently, there are more than 90,000 industrial waste collection and transportation companies throughout Japan, the majority of which are small-scale operations such as sole proprietorships. Nippon Express appears to be pursuing its own development by utilizing its nationwide network.

With the transition to a recycling-oriented society, venous logistics will play an increasingly important role. In the future, when the collection and transportation of general waste is also eased, the venous logistics market will further expand its base. Considering that the basis of a recycling-oriented society is local and regional completion, there are still many commercial opportunities for small and medium-sized companies to enter the local collection and transportation business. Who will ride this new wave?