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

News On Japan
POPULAR NEWS

Two typhoons are moving across the Pacific east and southeast of Japan, with both expected to change course around the weekend and remain well away from the main Japanese islands, though high waves and stronger winds could affect some areas. Typhoon No. 28, a strong storm, was moving west near Wake Island at about 45 kilometers per hour as of 3 a.m. on October 7, according to the Japan Meteorological Agency.

A core member of the international ransomware group Qilin was detained in Japan and handed over to German authorities, according to people familiar with the case, as Japanese companies and institutions face a growing wave of cyberattacks that has exposed nearly 15 million pieces of personal information this month alone.

New Year postcards for 2027 arrived at post offices across Hokkaido on October 6, with designs featuring sheep for the upcoming Year of the Sheep as Japan's traditional New Year card market continues to shrink.

A first-of-its-kind sleep competition was held in Tokyo on October 5, with contestants competing for a 2.22 million yen top prize by trying to achieve the deepest, fastest and most stable sleep during a 90-minute session.

Japan brought the Aichi-Nagoya Asian Games to a close on October 4 with a record 83 gold medals and 269 medals overall, finishing second behind China after 16 days of competition that produced historic victories in swimming, athletics, judo, wrestling, softball and other sports, while a closing ceremony in Nagoya marked the end of the first Asian Games held in Japan in 32 years.

MEDIA CHANNELS
         

MORE Business NEWS

Japan's prolonged period of rising prices is continuing to squeeze households and businesses, driven by the weak yen, higher raw material costs and rising wages, forcing consumers to change how they shop and cook while companies search for ways to contain costs without losing customers.

Tokyo stocks extended their strong advance on October 6, with the Nikkei 225 closing above 70,000 for the first time in three months as buying in artificial intelligence and semiconductor-related shares combined with easing concern over the government bond market. The Nikkei gained 737 points, or 1.05%, to 70,684, while the broader TOPIX rose 38.34 points, or 0.92%, to 4,183.56.

A newly opened luxury villa in Kitakaruizawa, Gunma Prefecture, has already sold out under a shared-ownership model that allows buyers to purchase annual stays rather than an entire property, highlighting a growing push to draw wealthy visitors and investment into regional Japan.

Suzuki Motor said it will launch its new e SKY electric minicar on November 16, marking the automaker's first battery-powered mini passenger vehicle and offering a driving range of 310 kilometers on a single charge, among the longest for a Japanese-made vehicle in the category.

Daiwa Securities said on October 5 that about 220,000 records containing customer personal information may have been leaked following unauthorized access to a contractor that manages online customer inquiries.

Japan began requiring property owners to declare their nationality when applying for real estate registration on October 5, including when registering the purchase of condominiums and other properties, as the government seeks a clearer picture of foreign ownership of land and buildings.

太陽光や風力といった再生可能エネルギー技術の成熟と発電コストの低下に伴い、新エネルギーは従来の単なるエネルギー供給源から、長期的な運用価値とキャッシュフロー創出のポテンシャルを秘めたインフラ資産へと変貌を遂げつつあります。

Tokyo stocks surged on October 5, with the Nikkei 225 closing at 69,947, up 1,637 points, after briefly recovering the 70,000 level for the first time in about three months, as weak U.S. jobs data reduced expectations for an October Federal Reserve rate hike and buying spread through artificial intelligence and semiconductor-related shares.