News On Japan

Amazon Opens Kansai's Largest Logistics Hub

HYOGO - Amazon has opened its third logistics facility in Amagasaki, Hyogo Prefecture, creating the company's largest distribution hub in the Kansai region with capacity to handle up to 1 million packages a day.

The new facility has a total floor area equivalent to about three Koshien Stadiums and is equipped with around 3,000 robots to support warehouse operations.

Amazon invested more than 180 billion yen in Hyogo Prefecture over the five years through last year, reflecting the growing importance of the area to its logistics network.

The company said Amagasaki was selected because of its strong access to expressways, including the Hanshin Expressway, as well as its convenient location for reaching major population centers.

The new center is located near an expressway interchange, helping Amazon move goods quickly between its warehouse network and major consumer markets.

Experts say Amagasaki has another important advantage: it combines strong transportation access with convenience for employees commuting to work, making it an unusually favorable location for a large logistics facility.

The expansion also offers benefits for the local economy by creating employment and attracting investment.

Amagasaki and Hyogo Prefecture are also working with Amazon to use its logistics capabilities during disasters. Under the arrangements, Amazon will keep about 15,000 types of daily necessities available for emergency support.

Because evacuation and recovery periods can continue for extended periods following a major disaster, local authorities expect the system to help provide supplies suited to the changing needs of affected residents.

Amazon is also developing spaces that can be used by local residents, creating opportunities for community interaction and regional revitalization.

For the company, closer links with residents could also help strengthen recognition of logistics centers as essential infrastructure supporting everyday life.

The rapid expansion of logistics facilities, however, is highlighting a growing problem known as the "last-mile" challenge: how to move packages efficiently through the final stage from a distribution network to individual homes.

One of the biggest difficulties is a shortage of delivery drivers.

Japan's so-called 2024 problem, which introduced stricter limits on truck drivers' overtime hours, has raised concerns about reduced transportation capacity. More than 70% of trucking companies nationwide say they are experiencing a shortage of drivers.

Another increasingly serious problem is the lack of parking space for delivery vehicles, particularly in densely populated urban areas.

Osaka City revised its ordinance in April this year and will require newly constructed apartment buildings subject to the rules from April 2028 to provide parking spaces for delivery vehicles.

The measure is intended to reduce the time drivers spend searching for places to stop while making deliveries.

Long working hours in the logistics industry are also linked to delays at warehouses and other facilities, where drivers can spend substantial amounts of time waiting to pick up or unload cargo.

Apartment deliveries present further complications. Drivers may face difficulty entering buildings beyond automatically locked entrances, while many buildings still do not have enough parcel lockers.

These problems mean that simply providing parking spaces may not be enough, with further measures needed to improve how packages are delivered inside large residential buildings.

Logistics has become indispensable to daily life and is also closely tied to the broader economy. Rising movement of consumer goods can reflect stronger purchasing activity, while increased shipments between factories can indicate expansion in industrial production.

Keeping goods moving smoothly, including by addressing labor shortages and last-mile bottlenecks, is therefore becoming increasingly important not only for delivery companies and consumers but also for sustaining wider economic activity.

Source: YOMIURI

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