The fifth workshop for university students in Yokohama City, "What is the future of 'Smart City Yokohama'?", was held on Tuesday, December 10th at the Yokohama Minato Mirai 21 General Incorporated Association guest room.
The theme of this event was "Challenges and Future Visions of International Logistics for the Realization of Smart Cities." Guest speaker was Mr. Kohei Ito of the Forward ONE Promotion Division, DX Promotion Department, Nissin Corporation, and a fruitful discussion was held under the facilitation of Mr. Sato of Biztech Co., Ltd.
The "Lifeblood" of Smart Cities: International Logistics Supporting Cities
At the beginning of the workshop, facilitator Mr. Sato reiterated the purpose of the program.
"When we think of smart cities, we tend to focus on technologies such as ICT and mobility. However, using technology is not the goal. The purpose of this workshop is to consider how Yokohama can create an environment in which we can live better, happier, and safer lives in the future."
In the first installment, we looked at smart cities from the perspective of regional finance from the Bank of Yokohama, in the second installment, from the perspective of railway companies from Tokyu Corporation and Sotetsu, and in the fourth installment, from the perspective of plant engineering from JGC. This time, we will focus on international logistics, which can be said to be the "lifeblood" of cities.
About Nissin: International logistics professionals with Yokohama as their gateway
The workshop began with self-introductions by employees of Nissin Corporation's DX Promotion Department.
First, we have Mr. Tsuchiya from the DX Promotion Department, Forward ONE. He has been with the company for nine years, originally worked in a cold storage warehouse, and is currently in charge of promoting DX.
Next was Mr. Bi, also from the DX Promotion Department's Logistics Design Division. As a first-year employee, he gave a friendly self-introduction, saying that he is "on a similar level to everyone else."
Next is Mr. Sekine from the DX Promotion Department's Hacollabo Liberth Business Promotion Division. He is in charge of a new business called a circular logistics solution for lithium-ion batteries. After 10 years of experience in air cargo import/export sales, he has been involved in this new business since April of this year.
Finally, today's guest speaker, Kohei Ito, took the stage. He began by saying, "Our name, Nisshin, is written as 'new every day.' As an international logistics company, we are developing our business with the purpose of delivering inspiration to people around the world and filling the earth with smiles."
Yokohama Port - the gateway to international logistics
Mr. Ito first gave a presentation about the current state of the logistics industry and Yokohama, citing specific data.
What comes to mind when you hear the word "logistics"?
In response to this question, students mentioned words such as "delivery service," "long working hours," and "transporting supplies during disasters."
"That's right. What you normally see is mainly domestic courier services. However, international logistics is a little different. We mainly deal with the import and export of goods between companies, so-called B2B logistics."
According to data presented by Mr. Ito, there are approximately 7 logistics companies in Japan, with the industry's operating revenue of approximately 29 trillion yen, and approximately 3% of the total working population working in the logistics industry. "This is a huge core industry that supports society and the economy," said Mr. Ito.
Yokohama Port in particular is an extremely important hub for Japan's international logistics. Its container handling volume in 2023 is expected to reach approximately 307 million TEU (equivalent to 20-foot containers), second only to Tokyo Port. It also boasts the highest number of ocean-going vessels entering the port in Japan.
"If the Port of Yokohama were to disappear or cease to function, it would have a major impact on the Japanese economy. That's how important a gateway Yokohama is, given the place where you all live now."
Basic knowledge of international logistics: Understanding complex transport flows
Next, Mr. Ito gave a detailed explanation of the basics of international logistics.
There are four main means of international transportation: sea transportation, air transportation, truck transportation, and rail transportation.
There are two methods for ocean transport: FCL (Full Container Load: using an entire container) and LCL (Less than Container Load: combining cargo from multiple shippers into one container). "For example, LCL would be transporting cargo from Tsuchiya's company, Bi's company, and Sekine's company all in one container," he explained, citing a specific example.
In air transport, there are two methods: using the cargo space on passenger flights, and using cargo-only flights. The students seemed surprised when they were told, "When you board an airplane, the space under your feet also carries commercial cargo."
And an essential procedure for international transportation is "customs clearance." "Export and import customs clearance is always required to move goods between countries. Taxes must be paid and legal regulations must be met -- without this, cargo cannot cross borders."
Regarding Nisshin's role, Mr. Ito explained the difference between a "CARRIER" and a "FORWARDER."
Carriers are businesses that own ships, planes, and trucks and actually transport goods. Meanwhile, we, forwarders, are "logistics designers." We optimally combine various transportation methods, warehouses, and customs procedures to design and arrange the optimal route for our customers—that's our job."
Nissin's Characteristics and Initiatives - Diverse Cargo and Global Network
Founded in 1938, Nissin is a comprehensive logistics company with a global network of 171 locations in 22 countries. We handle a wide range of cargo, providing optimal logistics for a wide range of items, from automobiles to food and wine, chemicals, precision equipment, and even artwork.
When a student asked, "How do you transport artworks?", Mr. Sekine gave a specific example.
"Artworks are extremely delicate. We use special packaging materials, attach shock-detection stickers, and control the temperature and humidity. We also take out adequate insurance and often transport them by air."
Nisshin is also currently focusing on digital transformation and environmental considerations.
"The logistics industry is said to be lagging behind in digitalization. It also has high CO2 emissions, so achieving carbon neutrality by 2050 is a top priority." Nissin is working to realize next-generation logistics, including digital transformation services that streamline import and export operations, reverse logistics such as the collection and recycling of lithium-ion batteries, and the "HACO Lab." project, which utilizes returnable containers.
Towards realizing smart cities: Four core challenges
Mr. Ito presented four core challenges facing international logistics in order to realize smart cities.
1. Supply Chain (Efficiency) :
Labor shortages, traffic congestion, inefficient container movements, and increasing frequency of small shipments - these issues call for AI-based demand forecasting, automatic calculation of optimal routes, and real-time data sharing between ports, warehouses, and transportation companies.
2. Decarbonization (environment) :
Logistics is an industry with high CO2 emissions. It is necessary to electrify port facilities, develop green energy supply bases, and promote a circular economy.
3. Resilience :
Pandemics, geopolitical conflicts, natural disasters—a single disruption can paralyze the entire supply chain, making it necessary to have a business continuity plan (BCP) that will maintain functionality even in the event of a disaster, and to secure alternative transportation routes.
4. Automation and efficiency (employment) :
In response to the serious labor shortage, aging workforce, and physically demanding working environments, it is necessary to move forward with automating routine tasks while shifting people to higher value-added tasks.
"A true smart city is not simply about introducing digital technology. It is about systems that enable people to live and work in more efficient, sustainable, and resilient environments. To achieve this, it is essential to evolve international logistics, which can be thought of as the lifeblood of a city."
Lively Q&A session with students
After the lecture, the students asked many questions.
In response to a straightforward question, "Is the logistics industry really hard work?", Mr. Ito honestly answered, "There are some aspects that cannot be denied. Driver shortages, long working hours -- these are the things that are being called the 2024 problem. However, the entire industry is working to improve the situation."
In response to the question, "Can individuals also request services from Nisshin?", they answered, "Basically, this is a service for businesses."
In response to the question, "I had the impression that Nagoya Port handled a larger volume of containers," he elaborated, "Yokohama is second in terms of the number of containers, but Nagoya Port may be higher in terms of trade value. As it is home to the automobile industry, including Toyota, there is also a lot of transportation other than containers, such as the transport of finished cars."
Other specific questions included, "What kind of cargo cannot be transported?", "Which country has the strictest customs clearance?", and "What is the relationship between trading companies and logistics companies?", and Mr. Ito and the other Nisshin staff answered them carefully.
Workshop: Thinking about the future of logistics in Yokohama
At the workshop, students discussed the four core issues presented earlier: supply chain efficiency, decarbonization, resilience, and automation/employment.
The main suggestions made by the students are as follows:
A.Strengthening resilience :
"I wonder if we could create a system like a 'Disaster Prevention Logistics Countermeasures Headquarters' in each regional block in preparation for disasters? If we had an industry-wide system that could quickly switch from the port reservation system used in normal times to an emergency, it would make it easier to transport supplies in times of disaster."
Two.Supply chain efficiency :
"I think we need a unified reservation system or platform for the entire industry to reduce congestion and waiting times at ports. However, I think this would require a control tower function that involves both the government and the private sector."
Three.Decarbonization :
"Can we make more use of green energy at Yokohama Port? For example, we need to electrify port facilities and develop infrastructure to promote the switch to electric trucks."
Four.Automation
:
"There are concerns that increased automation will lead to fewer jobs, but I think it will actually allow people to shift to more creative work. Routine tasks like crane operation will be automated, and people will be able to focus on high-value-added work like planning, management, and improvement. I think we can aim for this kind of future work style."
Mr. Ito commented, "When you're on the ground, you tend to get caught up in the issues at hand. The ideas you all came up with today were all fresh perspectives for us. I think the idea that citizens and students can be the ones to solve logistics issues is particularly wonderful."
After the workshop
This workshop highlighted the fact that the huge infrastructure known as "international logistics," which we don't usually think much about, supports our lives.
To realize a smart city, not only ICT and mobility but also the evolution of logistics, the "lifeblood" of the city, is essential. And what supports this logistics is Yokohama Port, one of Japan's leading gateways, and the daily efforts of logistics companies like Nissin.
The discussions made it clear that none of these issues can be solved by a single company alone, and that cross-industry collaboration, public-private partnerships, and the participation of a diverse range of players, including citizens and students, are necessary.
Participating students commented, "I was surprised at the depth of the logistics industry," "I had no idea Yokohama Port was so important," and "I realized that the efforts of people working behind the scenes are essential to creating a smart city."
This workshop will be held over six sessions. The next one will be held on Wednesday, January 7, 2026, and will involve a visit to NTT East's "NTT e-city labo" and "Wellness Lounge."
We will continue to report on the workshop, so please stay tuned!