The transport ministry is looking to acquire equity stakes in the companies that run the main container ports in Tokyo and Osaka amid strong competition from the port of Busan in South Korea, sources said.
Businesses have been urging the government to get involved in running the operators of Keihin Ports, which covers Tokyo, Yokohama and Kawasaki in Tokyo Bay, and Hanshin Ports, which covers Osaka and Kobe, after seeing large shipments of Japanese cargo bound for Europe and North America routed via Busan.
At Busan, a state government-owned authority provides various subsidies totaling an estimated ¥4 billion or more to freight forwarders each year. The aid and low personnel costs are helping shipping firms set lower fares, drawing Japanese customers to South Korean vessels.