The Rise of Venous Logistics.

The Rise of Venous Logistics.
As the waste problem comes under close scrutiny, venous logistics is beginning to attract attention. As we move toward a recycling-oriented society, venous logistics, in which goods flow in the opposite direction, is expected to grow to a scale comparable to that of conventional arterial logistics. However, more than 90% of current arterial logistics is transported by truck. If venous logistics develops in this form, CO2 emissions, a global warming substance, will accelerate.
Therefore, a "modal shift" has been proposed for several years to switch logistics from truck to rail transportation. (JR Kankyo) is a venture company that has established a rail freight transportation system for industrial waste by integrating three industries: emissions, collection and transportation, and treatment and disposal. We interviewed Mr. Seiichi Hoshino, president of the company, who pioneered the rail transport of industrial waste, which had previously been legally difficult.
Five barriers to the realization of rail transport of industrial waste.
In March 1994, the Council for Transport Policy announced that "promotion of modal shift" was an important policy, and in response, a "Modal Shift Study Group" was established within the Railway Business Division of JR Freight's headquarters. Mr. Hoshino, who is the president of Hoshiryo, an industrial waste processing company, and has assisted in various administrative procedures as an administrative scrivener, was invited as a lecturer to the study group, which led to the establishment of the company.
In September 1994, Japan Environmental Railroad Transport Co., Ltd. was established to "promote modal shift, establish venous logistics by rail, and solve various problems for that purpose," based on the Modal Shift Study Group, in conjunction with the issue of business expansion by strengthening industrial waste transportation of JR Freight, which had been continuously in the red.

There were five major obstacles to achieving a modal shift in industrial waste transportation.

Potential violation of the Waste Disposal and Public Cleansing Law's "prohibition of re-consignment," as three collection and transportation companies, including JR Freight, would be required.
In order to load and unload cargo at railroad stations, a permit is required not only for an industrial waste collection and transportation business (white number), but also for a railroad Class 2 use transportation business (green number).
JR Freight also requires industrial waste collection and transportation business at 160 terminals and stations nationwide.
Development of new cargo containers and container transport equipment specifically for waste.
Devise an industrial waste disposal consignment agreement and manifest for rail transport based on the Industrial Waste Disposal Law.
The line has only been in operation for the past two years. It took us three years to clear all the problems one by one, including the preparation of practical documents including permits and approvals," he said.

Container development and deregulation have expanded the use of containers.

The first was the transportation of shredder dust between Koshigaya Terminal and Tsuruga Port Station in September 1996. Currently, the company is in full operation, including 33 5-ton containers of JR Freight and 5 10-ton containers owned by the company. On average, the company transports more than 2,000 tons of lid industrial waste per month from the discharging offices to disposal sites and intermediate treatment plants.

As for the prohibition on re-consignment, each company in charge of transportation contracts directly with the discharging company for each section from the discharging office to the station, from the station to the station, and from the station to the disposal site. The problem was resolved through a method in which each company exchanged manifests while maintaining the reliability and safety of transportation.

In addition, a new container was developed for more efficient transportation. The "Inner Container for JR Freight 5-ton Containers" has a ceiling and body that opens and closes wide on both sides, facilitating the discharge of waste. It can also be stacked with a forklift, making it easy to load multiple trucks. It is truly a container for integrated transport by rail and truck.

This container will enable even ordinary truckers to use railroads and promote a modal shift.

In April 1997, the Freight Forwarding Business Law was revised, and regulations on pickup and delivery consignment were greatly eased. This made it possible for JR Environment to make transportation contracts with parties that meet certain conditions, using the permits it holds. In other words, a system is now in place that allows JR Freight to operate its waste transport business by rail at all 160 of its stations.

In June 1998, the JR Environment "Management Association" was established with the aim of building a network for the transport of industrial waste, and any company that wishes to use JR Freight to transport industrial waste can become a member, regardless of whether it is a trucker, manufacturer, or disposal company. The entire country is divided into 133 districts, each with one regular member company, to create a nationwide transportation network. Regular members receive preferential treatment, including procedures for using railroads, but "more than that," he says, "we want people to think that because we are a management association of business owners, our business will expand infinitely.

Another major attraction of rail transportation is the low cost of transport. A truck can carry a load 50 km, but for the same price it can travel about 400 km. Fees are clearly defined by distance, based on JR Freight's fee structure.

In addition, there are few cases where just-in-time delivery is required for waste, as is the case with arterial logistics. Therefore, it may be said that rail transport, which can collect waste to a certain extent and transport it in large quantities, is suited to venous logistics.

As part of its medium- to long-term plan, the company aims to achieve capitalization of 1 billion yen, 200 shareholders, and sales of 30 billion yen by 2002, and to go public with over-the-counter shares. Major logistics companies are beginning to enter the vein logistics market in various forms, and it seems certain that the company and its network will play a role in this market with rail transport as a weapon.