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Mazda Enhances Green Distribution System Between Hiroshima and the Tokai District
Submitted by Berny on Monday, July 9, 2007 - 19:32Mazda General

- Commences use of newly designed, exclusive rail containers in round trip rail transport system -

—To improve the efficiency of collection and transport of vehicle parts, as part of its Green Distribution System between Hiroshima and the Tokai District (central Japan), Mazda Motor Corporation today (July 2, 2007) began using newly designed, exclusive cargo containers in its rail transport circuit. The new rail containers are 31 feet (9.4 meters) long, more than double the length of the containers used before, and allow for a significant improvement in transport efficiency. The Green Distribution System includes Mazda’s milk-run system*1, which uses a single truck to collect parts from multiple suppliers, and a modal shift*2 from truck to rail for service part shipments. Mazda expects these improvements will reduce energy requirements for logistics between the regions by 27 percent annually.

Mazda initiated the Green Distribution System between Hiroshima and the Tokai district in April 2006, when it began to progressively introduce the ‘milk-run’ system to pick up parts from its suppliers in Mie, Shizuoka and Gifu prefectures and collect them in Nagoya. Concurrently, Mazda shifted from trucks to rail transport for the final stage of delivering the collected supply parts from the Nagoya cargo depot to Hiroshima. Also in April 2006, Mazda began to transport service parts from Hiroshima to Nagoya by rail.

The latest changes include the expansion of the milk-run system to service Mazda’s suppliers in Aichi prefecture using rail transport and the introduction of Mazda’s exclusive rail containers. From July 2, 2007, the new containers will be used for the round trip transport of both supply and service parts between the Hiroshima and Nagoya cargo terminals. Each new container prominently displays Mazda’s brand symbol and corporate mark on both sides.

These Green Distribution initiatives between Hiroshima and the Tokai district are endorsed by Japan’s Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure and Transport (MLIT) under Japan’s Green Physical Distribution Partnership Conferences*3, which aim to promote environmental policy measures in the physical distribution sector. The New Energy and Industrial Technology Development Organization*4 (NEDO) is subsidizing the new system as part of its Support Project for Industries for Increasing the Efficient Use of Energy. The target of these policies is a 27 percent reduction in energy used for transport. The program is also being supported by Nippon Express Co., Ltd., Malox Co., Ltd. and Japan Freight Railway Co., Ltd. (JR Freight).

Mazda’s senior managing executive officer in charge of production and business logistics, Masaharu Yamaki, said, “In order to minimize the environmental impact of our logistics operations, Mazda is improving its transportation efficiency and cutting CO2 emissions through this modal shift and the milk-run system.”

As a corporation aware of the importance of its social contributions, Mazda will continue its work on enhanced eco-friendly transport systems in the area of business logistics in addition to its environmental preservation efforts, and the development of safety and other technologies.

*1 The term ‘milk-run’ is used to refer to a single truck which cycles around multiple suppliers collecting freight. The system enables a reduction in the number of trucks.
*2 Modal shift refers to a change in the mode of transport used for logistics, from trucks to bulk shipments by sea, rail or air freight.
*3 A project which seeks the support and cooperation of freight companies and their clients to reduce CO2 emissions from logistics activities.
*4 New Energy and Industrial Technology Development Organization. NEDO is Japan’s largest public R&D management organization for promoting the development of advanced industrial, environmental, new energy and energy conservation technologies.

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