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close this bookEmerging World Cities in Pacific Asia (UNU, 1996, 528 pages)
close this folderPart 1. Global - Asia - Pacific functional linkages
close this folderInternational transport and communications interactions between Pacific Asia's emerging world cities
View the document(introductory text...)
View the documentMultilayered flows
View the documentGoods transactions
View the documentInternational passengers
View the documentInternational telecommunications
View the documentConclusion
View the documentAcknowledgements
View the documentNotes
View the documentReferences

(introductory text...)

Peter J. Rimmer

A global system of production and services is being spatially articulated through a network of emerging world cities. In particular, it involves strong linkages and interactions between world cities located in the "triad" of supra-regions - North America (Canada, the United States, and Mexico), a significantly changed Europe, and a dynamic Pacific Asia - and connections and movements between world cities within each jumbo region. Attention here is restricted to linkages and interactions between emerging world cities within Pacific Asia - the fastest-growing region in the global economy.

A major difficulty in pursuing this topic is the past preoccupation with nation-states and the internal structures of individual world cities. Little attempt has been made to establish the strength of the external linkages and interactions underlying the distribution of goods and services within Pacific Asia and the fortunes of individual cities. This raises two issues: what is the nature of the transport and communications networks between world cities; and what is the frequency of movements of goods, passengers, and information along these routes? Attention here is concentrated on the dynamic flows between world cities because the static structure of transport and communications networks has already been analysed in terms of nodes and connections (Rimmer, 1990).

In considering these issues, the first section provides a conceptual framework for examining flows preparatory to identifying the urban agglomerations and discussing data availability. Within this framework, the second section examines goods transactions. The third section analyses movements of people. Then the fourth section studies the flow of routinized information through communications networks. A concluding section raises the subject of going beyond world cities to encompass development corridors -a settlement form more appropriate to a borderless world.

Multilayered flows

Since 1970, much emphasis has been placed on the emergence of global network corporations and the likely impact of new information technologies -satellites and optic fibres - on spatial structures (Castells, 1989). As they have increased the availability of knowledge, these technologies have led to an interest in analysing telephone calls and the transmission of faxes and telexes between world cities. At best, this focus provides a partial analysis of international linkages and interactions because it concentrates on the transmission of routinized and uncomplicated information. It neglects the movements of individuals that are necessary to transfer structurally complex information (i.e. knowledge) in face-to-face contacts, and goods transactions increasingly decentralized because of the decreasing costs of transport, the introduction of robots, and computerized production control. If this conceptual problem is to be overcome, the multilayered flows between Pacific Asia's emerging world cities, comprising goods, people, and information, must be considered (fig. 3.1).

Tri-level flows

In a bid to resolve this issue Kobayashi and Okada (1990) have recognized that movements of goods, people, and information are exchanged between firms (and households) on a spatial network comprising nodes and links. In our analysis, nodes are world cities comprising firms with goods production and information capacities (i.e. universities and research centres). Links facilitate flows. A tri-level infrastructural arrangement is envisaged comprising low-speed transport, high-speed transport, and telecommunications networks to accommodate movements of goods, people, and information (fig. 3.2). In exchanging standardized information, personal contacts can be replaced by telecommunications. Where information is complex, face-to-face contact is necessary for negotiations and the transmission of new knowledge; transport is essential to promote cooperation between workers and more advanced research and development activities.


Fig. 3.1 Multilayered flows between world cities

Accessibility is a key concept because it determines each emerging world city's potential as a generator of goods, people, and information. Also, it reflects the decreasing role of the friction of distance in telecommunications and its persistence in movements of goods and people. Internal network structure within a world city is an important determinant of the regional division of labour. With the highest accessibility, the central node is the prime location for workers handling both structurally complex and uncomplicated information. Owing to the spread of telecommunications, the flow of standardized information at peripheral nodes has increased, therefore workers can be decentralized and face-to-face contact can be replaced by the transmission of data and information.

A major problem is that the expansion of the telecommunications network is outstripping the growth of both high-speed and slow-speed transport networks - the result of opposition from environmental groups. Rather than all three surfaces being shown as equal, they should be tapered to reflect this phenomenon. Although there is some scope for technological substitution between transport and telecommunications, research suggests that the new media will increase rather than reduce the need for face-to-face contact. Inevitably, existing networks will be congested.


Fig. 3.2 The tri-level infrastructural arrangement comprising low-speed transport, high-speed transport, and telecommunications networks (Source: based on Kobayashi and Okada, 1990)

Already, congested road networks and rising truck costs between Japanese world cities are prompting a modal shift from road to rail, coastal shipping, and air (Nikkei, 11 September 1991; 12 September 1991; 13 September 1991; 26 September 1991). The shift, however, has been hampered by saturated railway lines and inadequate port and airport infrastructure. In a bid to accommodate changing relative demands for infrastructure, most investment in urban agglomerations in Pacific Asia will be in nodes (ports, airports, and teleports) rather than in links.1

Urban agglomerations

The United Nations' Prospects of World Urbanization (UN, 1989) provides information on urban agglomerations in Pacific Asia for 1975, 1985, and 2000. In 1985, these agglomerations ranged in size from 19 million people in Tokyo to 310,000 in Vientiane (Laos). Of these, 29 agglomerations were identified as being among the world's "top 100" with populations in excess of 2 million (table 3.1). In selecting world cities for study it is tempting to establish an arbitrary cut-off (say 2 million or 5 million). However, this would mean that many Chinese agglomerations with no direct global connections would have to be included, while agglomerations such as Kuala Lumpur whose international importance belies their population size would be excluded. Further, the Klang Valley Corridor covering the Kuala Lumpur conurbation, Shah Alam, and Klang, and the wider definitions of Jakarta (Jabotabek) and Singapore would also be eliminated. While adjacent cities such as Manila-Quezon, Osaka-Kobe, and Tokyo-Yokohama are grouped together, larger conceptualizations are feasible, as exemplified by Kyoto-Osaka-Kobe (Keihanshin). A strong case exists for collocating Beijing and Tianjin, Hong Kong and Guangzhou, Seoul and Pusan, and Taipei and Kaohsiung as single entities because they function as extended metropolitan areas.

Instead of altering the United Nations' definition of urban agglomerations, 12 representative world cities have been chosen for study: Bangkok, Beijing, Hong Kong, Jakarta, Kuala Lumpur, Manila, Osaka, Seoul, Shanghai, Singapore, Taipei, and Tokyo (fig. 3.3). Between 1975 and 1985, their combined population grew at 8 per cent per annum from almost 66 million to a little under 93 million (table 3.2). A slower rate of growth of 6.4 per cent is anticipated between 1985 and 2000, with the combined population reaching almost 122 million. Over this 25-year period a marked shift in the distribution of world city populations is expected. World cities in South-East Asia will boost their share of the combined population from one-fifth in 1975 to one-third in 2000 - Singapore will be the only South-East Asia centre to experience a relative decline. Conversely, Taipei is expected to be the only emerging world city in East Asia to increase its share of the combined population.

Population is an unreliable guide to judging a world city's status; it has to be supplemented by indicators of commercial transactions, people, information, and financial services. In 1982, this approach was used in a study by Nomura Research Institute (NSK, 1982). Of the 12 cities under review, five were classified as super-integrated, international cities - Seoul as a commercial centre, Hong Kong as a financial centre, and Manila, Singapore, and Tokyo as multi-faceted centres; another five were classified as highly integrated international cities - Taipei and Osaka as commercial centres, Jakarta and Bang kok as information centres, and Kuala Lumpur as a financial centre; and two - Beijing and Shanghai - were unranked because they failed to meet the criteria to be considered as international cities (unlike Kobe, Nagoya, and Guangzhou) (see table 3.3).

Table 3.1 Urban agglomerations with a population of 2 million or more in Pacific Asia, 1985, and their average rate of growth, 1970-2000

Rank in 1985


Population (million)

Average annual rate of
growth (%)


Agglomeration

1970

1985

2000

1970-1985

1985-2000

1

Tokyo/Yokohama (Japan)

14.87

19.04

21.32

1.65

0.75

5

Shanghai (China)

11.41

12.06

14.69

0.37

1.32

10

Seoul (Korea, Rep. of)

5.31

10.07

12.97

4.27

1.69

12

Osaka/Kobe (Japan)

7.60

9.56

11.18

1.53

1.04

14

Beijing (China)

8.29

9.33

11.47

0.79

1.38

17

Tianjin (China)

6.87

7.96

9.96

0.98

1.49

19

Jakarta (Indonesia)

4.32

7.79

13.23

3.93

3.53

22

Manila/Quezon City (Philippines)

3.53

7.09

11.48

4.65

3.21

26

Bangkok (Thailand)

3.11

5.86

10.26

4.22

3.73

29

Hong Kong (Hong Kong)

3.40

5.16

6.09

2.78

1.10

39

Shenyang (China)

3.14

4.11

5.50

1.79

1.94

40

Pusan (Korea, Rep. of)

1.81

4.02

5.82

5.32

2.47

46

Wuhan (China)

2.73

3.40

4.47

1.46

1.82

49

Guangzhou (China)

2.50

3.33

4.49

1.91

1.99

64

Ho Chi Minh (Viet Nam)

2.00

2.78

4.42

2.20

3 09

66

Chongqing (China)

2.46

2.72

3.42

0.67

1.53

67

Rangoona (Burma)

1.43

2.71

4.45

4.26

3.31

70

Chengdu (China)

1.58

2.69

3.98

3.55

2.61

76

Harbin (China)

2.00

2.63

3.56

1.83

2.02

79

Singapore (Singapore)

1.56

2.56

2.95

3.30

0.95

81

Taipei (China)

1.50

2.52

3.78

3.46

2.70

83

Zibo (China)

1.30

2.41

3.76

4.12

2.97

85

Surabaya (Indonesia)

1.47

2.32

3.67

3.04

3.06

86

Xian (China)

1.73

2.28

3.08

1.84

2.01

89

Lupanshui (China)

1.66

2.20

3.00

1.88

2.07

92

Nanjing (China)

1.78

2.16

2.83

1.29

1.80

94

Kitakyushu (Japan)

1.59

2.09

2.39

1.82

0.89

98

Medan (Indonesia)

0.61

2.05

5.36

8.08

6.41

99

Nagoya (Japan)

1.85

2.05

2.11

0.68

0.19

Source: UN (1989).
a. Now known as Yangon (Myanmar)


Fig. 3.3 Urban agglomerations in Pacific Asia in 2000 (Source: UN, 1989)

Table 3.2 Actual and estimated population of emerging world cities in Pacific Asia, 1970, 1985, and 2000


1970

1985

2000

City

Million

Per cent

Million

Per cent

Million

Per cent

Jakarta

4.32

6.6

7.79

8.4

13.23

10.9

Singapore

1.56

2.4

2.56

2.8

2.95

2.4

Kuala Lumpur

0.64

1.0

1.27

1.4

2.56

2.1

Bangkok

3.11

4.7

5.86

6.3

10.26

8.4

Manila/Quezon City

3.53

5.4

7.09

7.7

11.48

9.4

South-East Asia

13.16

20.1

24.57

26.6

40.48

33.2

Taipei

1.50

2.3

2.52

2.7

3.78

3.1

Hong Kong

3.40

5.2

5.16

5.6

6.09

5.0

Shanghai

11.41

17.4

12.06

13.0

14.69

12.0

Beijing

8.29

12.6

9.33

10.1

11.47

9.4

Osaka/Kobe

7.60

11.6

9.56

10.4

11.18

9.2

Tokyo/Yokohama

14.87

22.7

19.08

20.7

21.32

17.5

Seoul

5.31

8.1

10.07

10.9

12.97

10.6

East Asia

52.38

79.9

67.78

73.4

81.50

66.8

Pacific Asia

65.54

100.0

92.35

100.0

121.98

100.0

Source: UN (1989).

The Nomura Research Institute's study was insightful, though it was biased towards information from Japan and ignored agglomerations (e.g. Osaka and Kobe were considered separately). In 1991, an attempt was made by the author to update the material for world cities preliminary to investigating flows of goods, people, information, and capital between them. This provided additional insights into infrastructure but was inconclusive about the fortunes of individual cities. There is little doubt that Hong Kong, Seoul, Singapore, and Tokyo had maintained their first-ranking status. Evidence of Manila's reduced status and Bangkok's claim for upgrading to the topmost ranking could not be substantiated. Although Osaka and Taipei should have had little trouble in maintaining their second-ranked status, improved showings from Kuala Lumpur and Jakarta were not apparent. As is evident from table 3.4, there were few grounds on which Beijing and Shanghai could be classed as international cities in 1991. It is difficult, however, to draw authoritative conclusions from these data. An analysis is required of changes in flows of goods, people, and information over time - a need that comes up against the barrier of data availability.

Table 3.3 Classification of Pacific Asian cities, 1982


JAK

SIN

KUL

BKK

MNL

TPE

HKG

SHA

BJS

OSA

TKO

SEL

Services:

Airport (500,000)

Ö

Ö

Ö

Ö

Ö

-

Ö

-

-

Ö

Ö

Ö

Conventions

7

59

3

0

1

0

4

1

0

8

4

11

Education (no. of universities)

n.a.

n.a.

3

n.a.

7

1

1

n.a.

n.a.

4

11

2

International R&D

4

4

11

24

8

-

1

0

0

n.a.

n.a.

26

Commercial:

Branches major trading company

139

74

39

57

92

91

107

0

32

n.a.

n.a.

73

Head office MNC

0

0

0

0

1

1

0

0

0

20

79

6

Port (over 50,000 tonnes)

Ö

Ö

-

Ö

Ö

Ö

Ö

Ö

-

Ö

Ö

-

Information:

Branches of Japanese newspapers

6

6

0

6

4

0

6

0

6

n.a.

n.a.

6

International organizations

2

0

0

9

2

0

0

0

0

0

1

0

Financial:

Money order market

-

Ö

Ö

-

Ö

-

Ö

-

-

-

Ö

-

Capital market

-

-

-

-

-

-

Ö

-

-

-

-

-

Japanese banks and securities

Ö

Ö

Ö

Ö

Ö

Ö

Ö

-

-

Ö

Ö

Ö

Evaluation

2

1

2

2

1

2

1

4

4

2

1

1

Source: NSK (1982).
Abbreviations: JAK - Jakarta; SIN - Singapore; KUL - Kuala Lumpur; BKK - Bangkok; MNL - Manila; TPE - Taipei; HKG - Hong Kong; SHA - Shanghai; BJS - Beijing; OSA - Osaka; TKO - Tokyo; and SEL - Seoul.

Evaluation: 1 = Super-integrated international city; 2 = Highly integrated international city; 3 = International city; 4 = Unranked.

Table 3.4 Classification of Pacific Asian cities, 1991


JAK

SIN

KUL

BKK

MEL

TPE

HKG

SHA

BJS

OSA

TKO

SEL

Services:

Airport (1 mill.)

Ö

Ö

Ö

Ö

Ö

Ö

Ö

-

-

Ö

Ö

Ö

Conventions, 1992

2

34

n.a.

16

11

4

110

3

25

5

34

10

Education (no. of universities and colleges)

12

5

10

12

22

n.a.

n.a.

6

17

13

57

18

Hotel management companies (no. of chains)

4

7

3

5

4

2

7

3

2

4

4

1

Commercial:

Head office MNC













Fortune 500

0

0

1

0

0

1

0

0

0

111a

11

Top 500 Asia Pacific companies

2

50

80

60

80

30

100

0

0

150a

100

Top 50 airlines

1

1

1

1

0

1

1

0

0

0

3

1

Port (over 1 mill. TEUs)

-

Ö

-

-

-

Ö

Ö

-

-

Ö

Ö

Ö

Information:

International organ izations

42

41

49

99

83

0

0

0

0

0

88

31

Financial:

Top 100 banks

0

0

0

0

0

0

1

0

1

0

30

4

Sources: Besser (1991); Fortune, 30 July 1990; EPL (1989); M (1992); UIA (1989).
Abbreviations: JAK - Jakarta; SIN - Singapore; KUL - Kuala Lumpur; BKK - Bangkok; MNL - Manila; TPE - Taipei; HKG - Hong Kong; SHA - Shanghai; BJS - Beijing; OSA - Osaka; TKO - Tokyo; and SEL - Seoul.
a. Figures refer to both Osaka and Tokyo.

Table 3.5 Checklist of transactions between emerging world cities in Pacific Asia

Goods and commercial transactions

Information flows

Express freight

Base international organizations

HQs/branches MNCs (Fortune 500)

Consultancies

Ports (container movements)

International franchises


Optical fibre networks

Movement of people

Satellite TV

Air passengers

Telephone calls

Conventions

Trading companies

Education (overseas university students)


International schools

Capital flows

Labour movement

Banking institutions

Sports Olympics

Money markets

Tourists


Universal expositions


Data availability

An ambitious list of items was earmarked for investigation comprising goods and commercial transactions, movement of people, and information and capital flows (see table 3.5). If dynamic changes in international linkages and interactions between Pacific Asian world cities are to be traced, however, the minimum requirement is to obtain dyadic data for at least two points in time. A major problem is the availability of appropriate statistics. Most dyadic data are not for world cities but for coarse areas (supra-regions or countries). For example, the tourism statistics for Pacific Asia are available only by country (WTO, 1990). The problem is complicated by some economies collecting statistics by country of residence. They include Malaysia and Hong Kong (table 3.6). Other countries record statistics only by nationality, notably China, Japan, and South Korea (table 3.7). Yet Indonesia, the Philippines, and Singapore supply statistics by both country of residence and nationality. No figures are provided for Taiwan by either country of residence or nationality, though they do exist (ROC, 1990a,b,c). These complications preclude effective use of annual tourism statistics, though some provide breakdowns by mode (air, sea, and road). Others supply information on tourist motivations (business, holidays, and visits to friends and relatives).

Table 3.6 Tourists from abroad within Pacific Asia by country of residence, 1988 ('000)

From/To

Ind

Sin

Mal

Thai

Phil

Taiw

HK

Chin

Jpn

Kor

Indonesia

-

n.a.


n.a.

7

n.a.

106

n.a.

n.a.

n.a.

Singapore

347

-


n.a.

24

n.a.

187

n.a.

n.a.

n.a.

Malaysia

105

n.a.

2,598

n.a.

16

n.a.

127

n.a.

n.a.

n.a.

Thailand

9

n.a.


-

10

n.a.

186

n.a.

n.a.

n.a.

Philippines

10

n.a.


n.a.

-

n.a.

159

n.a.

n.a.

n.a.

Taiwan

33

152

31

-

56

-

1,094

n.a.

n.a.

n.a.

Hong Kong

29

124

44

n.a.

133

n.a.

-

n.a.

n.a.

n.a.

China

n.a.

n.a.

n.a.

n.a.

2

n.a.


-

n.a.

n.a.

Japan

158

682

154

n.a.

182

n.a.

1,240

n.a.

-

n.a.

South Korea

20

55

n.a.

n.a.

16

n.a.

101

n.a.

n.a.

-

Source: WTO (1990).
Abbreviations: Ind - Indonesia; Sin - Singapore; Mal - Malaysia; Thai - Thailand; Phil -Philippines; Taiw - Taiwan; HK - Hong Kong; Chin - China; Jpn - Japan; Kor - South Korea.

Table 3.7 Tourists from abroad within Pacific Asia by nationality, 1988 ('000)

From/To

Ind

Sin

Mal

Thai

Phil

Taiw

HK

Chin

Jpn

Kor

Indonesia

-

n.a.

n.a.

32

7

n.a.

n.a.

n.a.

32

10

Singapore

320

-

n.a.

248

18

n.a.

n.a.

65

35

18

Malaysia

110

n.a.

-

867

17

n.a.

n.a.

n.a.

46

16

Thailand

8

n.a.

n.a.

-

9

n.a.

n.a.

66

47

13

Philippines

10

n.a.

n.a.

40

-

n.a.

n.a.

71

102

51

Taiwan

34

156

n.a.

135

n.a.

-

n.a.

n.a.

411

124

Hong Kong

10

n.a.

n.a.

n.a.

n.a.

n.a.

-

n.a.

31

62

China

n.a.

n.a.

n.a.

n.a.

90

n.a.

n.a.

-

109

0

Japan

161

700

n.a.

449

180

n.a.

n.a.

591

-

1,124

South Korea

21

n.a.

n.a.

65

16

n.a.

n.a.

n.a.

341

-

Source: WTO (1990).
Abbreviation: Ind - Indonesia; Sin - Singapore; Mal - Malaysia; Thai - Thailand; Phil -Philippines; Taiw - Taiwan; HK - Hong Kong; Chin - China; Jpn - Japan; Kor - South Korea.

Similar problems occur with statistics on overseas students (table 3.8). Data are available for Singapore, the Philippines, China, Japan, and Korea for the period 1985-1988 (UNESCO, 1991). There is no information for Indonesia, Malaysia, Thailand, Taiwan, and Hong Kong as hosts. Moreover, in 1988, the China data are actually those for 1983 and the Singapore data are for 1987. These problems seemed insuperable and the ambitious list of items was narrowed to a consideration of transport and communication flows.

Table 3.8 Foreign students by country of origin, 1988


Source

Host

Ind

Sina

Mal

Thai

Phil

Taiw

HK

Chinb

Jpn

Kor

Total

Ind

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Sina

50


3,687

23

21

n.a.

7

1

0

0

3,789

Mal

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Thai

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Phil

282

4

34

1,028

0

n.a.

150

229

41

295

2,063

Taiw

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

HK

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Chinb

3

19

0

27

6

n.a.

0

0

806

488

1,349

Jpn

574

88

983

616

41

n.a.

207

10,422

0

562

13,493

Kor

4

2

57

8

12

n.a.

2

0

562

0

647

Total

913

113

4,761

1,702

80

n.a.

366

10,652

1,409

1,345

21,341

Source: UNESCO (1991).

Abbreviations: Ind - Indonesia; Sin - Singapore; Mal - Malaysia; Thai - Thailand; Phil - Philippines; Taiw -Taiwan; HK - Hong Kong; Chin - China; Jpn - Japan; and Kor - South Korea.
a. Singapore data are for 1987.
b. China data are for 1983.

This decision was supported by city-pair data being available for air freight, air passenger, and air mail within Pacific Asia. Even then problems still remain because no corresponding regional figures for seaports and telecommunications exist. Consequently, some heroic assumptions have to be made about world cities dominating national spatial economies. Although this may be an acceptable proposition for many world cities (e.g. 90 per cent of Thailand's exports originate in Bangkok), it does not hold true for Beijing and Shanghai in China, and Osaka and Tokyo in Japan. On occasions, therefore, recourse is made to data-rich countries (e.g. Japan) and cities (e.g. Hong Kong) to provide case-study material. As data availability determines the depth to which international linkages and connections between Pacific Asian world cities can be studied, there is a more detailed preamble to information sources in examining international freight and mail, passengers, and telecommunications.

International freight and mail

Discussions of goods and commercial transactions have to be focused on trade figures. Preparatory to any discussion of international freight, the key features of Pacific Asia's intraregional trade have to be examined. With the exception of the city-states of Hong Kong and Singapore, trade statistics are provided only for countries. Statistics derived from the Australian National University's International Economic Data Bank are available between 1978 and 1990 (though those for 1990 are estimates). In discussing the key trends, interest is centred on 1983 - a year reflecting recovery from a worldwide recession - and 1989 - the most recent year for which a full set of data is available.

In 1983, Japan was the pivot of Pacific Asia's trading system (table 3.9). It enjoyed favourable trading relations with all Pacific Asian countries. The other feature was the key role played by the traditional entrepôts of Hong Kong and Singapore - the former as the de facto economic capital of China and the latter as the hub for South-East Asia, particularly for Indonesia and Malaysia. Although they had no trade with China, both Korea and Taiwan had strong but dependent relations with Japan.

By 1989, there had been a marked shift in the value of Pacific Asia's trade owing to East Asia's share increasing from almost 62 per cent in 1983 to over 76 per cent in 1989 (table 3.10). Japan had maintained its pivotal position, holding surpluses with all economies except Indonesia. There were, however, marked gains in Hong Kong, Taiwan, and, to a lesser extent, China and Korea. With the exception of Thailand, all economies in South-East Asia experienced a relative loss as the sub-region's share of Pacific Asia trade declined from 38 per cent in 1983 to 24 per cent in 1989. How have these changes affected the fortunes of individual world cities? A useful starting point is to examine container movements because they are most likely to reflect the shifts in trade.

Goods transactions

International container movements

The incorporation of containers into multimodal transport systems is still undeveloped in Pacific Asia because of poor infrastructural facilities in China, Indonesia, and Thailand, and protectionism in Korea and Taiwan. Shipping, therefore, is the key support to physical distribution within Pacific Asia. To appreciate the complexities of interactions between world cities, an understanding of hub/feeder operating structures is necessary. Most cities are located within close proximity to each other and can be reached within two or three days- a 10-day voyage being the extreme case (table 3.11). There are, however, problems in discussing container movements by sea between world cities. Not only are several world cities not maritime centres, but data on origin and destination by ports are not available. There are, however, estimated country data for container movements on individual shipping routes within Pacific Asia in both 1983 and 1991 (though the figures are not strictly comparable).

Table 3.9 The value of trade Pacific Asian countries, 1983 (US$ million)


Ind

Sin

Mal

Thai

Phil

Taiw

HK

Chin

Jpn

Kor

Total

Ind

-

3,128

58

49

242

220

182

27

9,678

327

13,911

Sin

3,465

-

3,843

944

421

325

1,482

213

2,008

457

13,158

Mal

59

3,182

-

578

163

350

245

157

2,782

661

8,177

Thai

120

518

285

-

68

63

317

107

960

91

2,529

Phil

30

139

162

20

-

74

158

22

948

149

1,702

Taiw

429

713

224

264

246

-

1,648

0

2,498

222

6,244

HK

598

926

215

242

378

178

-

2,495

966

380

6,378

Chin

49

567

186

195

143

0

5,797

-

4,517

0

11,454

Jpn

3,552

4,449

2,772

2,508

1,744

5,081

2,383

4,918

-

6,005

33,412

Kor

252

537

226

218

180

150

817

0

3,383

-

5,763

Total

8,554

14,159

7,971

5,018

3,585

6,441

13,029

7,939

27,740

8,292

102,728

Source: International Economic Data Bank, Australian National University.

Abbreviations: lnd - Indonesia; Sin - Singapore; Mal - Malaysia; Thai - Thailand; Phil - Philippines; Taiw - Taiwan; HK - Hong Kong; Chin - China; Jpn - Japan; and Kor - South Korea.

Table 3.10 The value of trade between Pacific Asian countries, 1989 (US$ million)


Ind

Sin

Mal

Thai

Phil

Taiw

HK

Chin

Jpn

Kor

Total

Ind

-

1,809

210

238

143

709

529

534

9,252

907

14,331

Sin

415

-

6,110

2,465

663

891

2,823

1,199

3,828

866

19,260

Mal

1,038

4,948

-

615

325

890

770

481

4,016

1,254

14,337

Thai

161

1,423

577

-

103

392

761

527

3,398

299

7,641

Phil

57

217

100

157

-

241

302

50

1,581

160

2,865

Taiw

932

1,975

693

1,107

775

-

7,030

0

9,086

1,134

22,732

HK

567

2,158

516

2,158

812

777

-

18,817

4,525

1,915

32,245

Chin

208

1,643

332

477

359

0

22,003

-

8,180

0

33,202

Jpn

3,288

9,199

4,107

6,811

2,370

16,097

11,472

8,477

-

16,491

78,312

Kor

626

1,499

512

717

464

1,247

3,352

0

13,167

-

21,584

Total

7,292

24,871

13,157

14,745

6,014

21,244

49,042

30,085

57,033

23,026

246,509

Source: international Economic Data Bank, Australian National University.
Abbreviations: Ind - Indonesia; Sin - Singapore; Mal - Malaysia; Thai - Thailand; Phil - Philippines; Taiw - Taiwan; HK - Hong Kong; Chin - China;
Jpn - Japan: and Kor - South Korea.

Table 3.11 Distance and voyage time of ax-Shanghai and ex-Kobe voyages to major Asia-Pacific ports, 1989 (voyage speed It knots)

Port

Ex-Shanghai distance (nautical miles)

Days

Ex-Kobe distance (nautical miles)

Days

Hong Kong

823

2.9

1,387

4.8

Jakarta

2,519

8.7

3,034

10.5

Keelung

419

1.5

926

3.2

Kobe

787

2.7

-

-

Pusan

493

1.7

623

2.1

Singapore

2,181

7.6

2,699

9.4

Shanghai

-

-

787

2.7

Yokohama

1,039

3.6

362

1.3

Source: Yamada (1989:7).

In 1983, container movements in Pacific Asia amounted to 2.7 million TEU (i.e. 5.4 million TEU as containers are handled twice, once at each end of the route) (NMCL, 1985). Total traffic only is given for individual routes (i.e. there is no breakdown by origin and destination). When flows over 100,000 TEU are mapped, a dominant network involving Japan and the newly industrializing economies is evident (Hong Kong, South Korea, Taiwan, and Singapore) - a reflection of high volumes of components being manufactured in different countries and being transported to a single destination for final assembly (fig. 3.4). Thailand, the Philippines, and the USSR featured as out-liers of this network, but China, Indonesia, and Malaysia did not figure prominently.

A major difficulty in interpreting this pattern of regional integration is that it comprises both: (a) intraregional movements carried by 100 major short-sea container lines within Pacific Asia (57 per cent); and (b) feeder flows to mainline deep-sea services (43 per cent) involving European and trans-Pacific markets (table 3.12). The three top intraregional routes of around 200,000 TEU included Japan - Taiwan, Japan-South Korea, and Japan-Hong Kong. These figures underlined Japan's pivotal importance as an intraregional force. Apart from high-intensity feeder routes, such as Japan-Korea and Singapore-Thailand, most container lines operated multi-port itineraries, with double or triple calls at a centre to assemble cargo. Many of the flows within Pacific Asia, however, were still made up of break-bulk rather than containerized cargo. Four flows of around 100,000 TEU accounted for 40 per cent of all feeder traffic to Europe and North America: Japan-South Korea, Singapore-Thailand, Taiwan-Philippines, and Japan-USSR. These covered the main lines (e.g. Sea-Land, American President Line, Maersk, Scan Dutch, and Evergreen Line) using a mix of direct line-haul calls, dedicated feeder vessels, and common carriers.


Fig. 3.4 Container movements between countries in Pacific Asia, 1983 (Source: NMCL, 1985)

Table 3.12 Container flows flows Pacific Asia, 1983

Route

Feeder

Intra-regional

Total


'000 TEU

Per cent

'000 TEU

Per cent

'000 TEU

Per cent

Japan-South Korea

140

12.0

210

13.6

350

12.9

Japan-Taiwan

30

2.6

250

16.2

280

10.3

Japan-Hong Kong

60

5.1

190

12.3

250

9.2

Hong Kong-Taiwan

60

5.1

150

9.7

210

7.8

Singapore-Thailand

130

11.1

22

1.4

152

5.6

Taiwan-Philippines

110

9.4

38

2.5

148

5.5

Japan-Singapore

28

2.4

100

6.5

128

4.7

Singapore-Hong Kong

37

3.2

87

5.7

124

4.6

Japan-USSR

95

8.1

10

0.7

105

3.9

Other

480

41.0

483

31.4

963

35.5

Total

1,170

100.0

1,540

100.0

2,710

100.0

Source: NMCL (1985).

The importance of feeder container services for the port-shipping systems of world cities in the early 1980s is shown in figure 3.5. By then the hubs for mainline services were: Port Klang (Kuala Lumpur), important for Far East/Europe trades; Singapore and Hong Kong, the traditional entrepôts; Kaohsiung, which had just emerged to challenge Hong Kong as a mainline location for some trans-Pacific operators involved in the development of West Coast United States ports and landbridge access to Mid-Western and Gulf markets; Pusan, which previously had strong feeder links to Hong Kong and Japan, and had been a major hub since 1979; and Kobe-Osaka and Tokyo-Yokohama, which dominated port activities in Japan (Robinson, 1985, 1989, 1991). Both Japan and Hong Kong had strong feeder links with the Soviet ports of Nakhodka and Vostochny, which offered important multimodal and landbridge links to Europe via the Trans-Siberian Railway. The other ports included: Bangkok, which was limited by draft and length restrictions on vessels negotiating the Chao Phraya River, and had strong connections with both Singapore and Hong Kong; Jakarta's Tanjung Priok and Manila, which were still essentially feeder ports though they had aspirations for mainline services; and the Chinese ports, which were just receiving their first container vessels.


Fig. 3.5 Short-sea and deep-sea shipping services in Pacific Asia during the early 1980s (Source: Robinson, 1991)

Between 1983 and 1991, Pacific Asian world cities were part of the world's fastest-growing container market. Spurred by the globalization of manufacturing, an annual growth rate of 10 per cent was experienced. In 1991, Nippon Yusen Kaisha (NYK) estimated 3 million TEU were generated within the region - a figure larger than the Far East-Europe trade and on a par with the eastbound trans-Pacific trade (PDI, 1991). When these container movements are mapped by routes in figure 3.6, the strong links between Japan and the newly industrializing economies can be seen to have persisted. Indonesia, Malaysia, and Thailand have been incorporated into the main network, with the second wave of manufacturing stemming from the movement of capital from Japan and the NIEs to lower-cost resource locations. China and the Philippines, however, did not have annual flows in excess of 60,000 TEU, though forecasts suggest a marked upsurge in their trade between Pacific Asian world cities.

The main backbone route was between Japan and Singapore. Most two-way routes, however, comprised both local and feeder cargoes and had not reached the point where the volume attracted large operators on a long-term basis or justified them as independent trades (table 3.13). On balance, Korea, Japan, and Singapore were "sources" (i.e. outflows exceeded inflows). Conversely, the other economies - Hong Kong, Indonesia, Malaysia, the Philippines, Taiwan, and Thailand - figured as "sinks" (i.e. inflows exceeded outflows). No data are available for routes including rapidly growing markets in southern China and Viet Nam.

Given the huge potential for trade between Pacific Asia's emerging world cities, shipping lines have flooded routes with surplus capacity, driving rates below the costs of providing the service - a phenomenon that has prompted a search for a mechanism to stabilize the market (Yamada, 1989). An uneven demand throughout the year makes the trade very difficult to manage. Total cargo on the Japan-Bangkok route does not exceed 10,000 TEU per month, but Japanese Lines deploy that capacity each week and have to compete with other mainline carriers (American President Line, Maersk, and Sea-Land), dedicated end-to-end intraregional carriers (Singapore's Pacific International Line and Regional Container Line, Taiwan's Cheng Lie Navigation and Wan Hai Steamship Company), and wayport operators. With such a diverse carrier base it is not surprising that rates between Japan and Singapore in 1991 were US$800 per TEU - the same as in 1983. The importance of the unstructured intraregional trade, however, should not be overestimated because it comprises raw materials to be transformed into products for shipment to the United States and Europe. Despite its growth it is still largely an auxiliary trade whose final customers are in North America and Europe.


Fig. 3.6 Container movements between countries in Pacific Asia, 1991 (Source: PDI, 1991)

Table 3.13 Estimated monthly movements of containers within Pacific Asia, 1991


Destination

Origin

Jpn

Kor

Taiw

HK

Phil

Sin

Mal

Thai

Ind

Totala

Jpn

-

11,800

14,500

15,000

1,700

14,000

5,000

9,000

6,500

77,500

Kor

16,300

-

2,900

6,900

1,200

1,600

600

1,200

2,100

32,800

Taiw

10,500

2,600

-

6,500

1,800

4,500

1,800

2,000

4,500

34,200

HK

10,000

3,300

5,000

-

2,300

13,000

1,300

1,500

4,200

40,600

Phil

2,400

500

700

900

-

600

100

100

300

5,600

Sin

20,000

1,000

9,500

11,000

1,000

-

8,500

8,500

4,000

63,500

Mal

2,700

800

1,200

2,100

300

600

-

300

400

8,400

Thai

7,500

500

2,000

2,500

200

2,000

200

-

200

15,100

Ind

4,400

700

1,400

1,400

150

350

350

250

-

9,000

Totala

73,800

21,200

37,200

46,300

8,650

36,650

17,850

22,850

22,200

286,700

Source: PDI (1991:A4).
Abbreviations: Jpn - Japan; Kor - Korea; Taiw - Taiwan; HK - Hong Kong; Phil - Philippines; Sin - Singapore; Mal - Malaysia; Thai - Thailand; and Ind -Indonesia.
a. The totals have been amended from the original.

Shipping line strategies coupled with economic growth have sparked marked port development in and around world cities. Like Kaohsiung, Hong Kong has extension plans at Tsing Yi and Lantau, and Singapore at Pulau Brani, to enhance their superhub status derived from their manufacturing bases and pivotal locational positions in shipping line itineraries. In South Korea, the new port of Kwangyang will offer Seoul an alternative outlet to the Port of Pusan, which handled 2.4 million TEU in 1989 - one-third above its design capacity. In Thailand, the addition of Laem Chabang, located some 130 km south-east of Bangkok, is designed to relieve the capital's congested port of Klong Toey, which handles over 1 million TEU annually - though the newcomer is having difficulty in attracting shipping lines. Finally, there is a glut of expansion projects at lesser ports, such as Port Klang (Kuala Lumpur), Manila, Shanghai, Tanjung Priok (Jakarta), and Tianjin (Beijing), which have been designed to attract cargo previously handled by the ports of neighbouring world cities.

This last set of ports is poised to take advantage of foreign investment in national economies and of schemes for deregulation and privatization (e.g. by allowing the entry of foreign carriers into Indonesia's protected markets and by allowing the private sector to run Manila's and Laem Chabang's wharves). A counter to the concentration of activity on emerging world cities is aid from international funding agencies to develop regional ports (e.g. Johore and Penang in Malaysia, Surabaya and Belawan in Indonesia). Although these may attract bulk cargoes, there are few signs of a marked decentralization of containerized cargoes from the superhubs. As the national economies sustaining the world cities shift from resource-based activities to manufacturing, it will be necessary to provide cargo centres at airports to handle higher-valued goods. Already this has been reflected in an increase in sea-air cargoes (e.g. from Japan to Hong Kong and Taiwan by sea and to Bangkok and other points in South-East Asia by air).

International air freight

Attention in discussing international air freight is focused on distances between Pacific Asia's world cities (table 3.14). The longest leg between world cities is 5,795 km between Jakarta and Tokyo, and the shortest is 300 km between Singapore and Kuala Lumpur. Hong Kong is the network's pivot because it has the shortest total distance to all other centres. A major difference in studying international air freight interactions between Pacific Asia's world cities compared with shipping, however, is that the quality of transport - punctuality, service frequency, and cargo collection and delivery - is the key. Time is more important than distance. To meet this desideratum, just-in-time systems are being adopted within the region assisted by:

(a) the pluralization of carriers (e.g. the introduction of Nippon Cargo Airlines);

(b) the development of new airports to overcome limited airport capacity created by service expansion (most marked in Japan where work is proceeding on the second phase of the New International Airport at Narita, the construction of the new Kansai International Airport, and the seaward expansion of Tokyo International Airport at Haneda); and

(c) changes in the structure of the air freighting industry in an attempt to upgrade general cargo and express services through merger (e.g. Federal Express and Flying Tigers, the heavyweight cargo airline), investment (e.g. Japanese Airlines investment with Lufthansa in DHL), and development of comprehensive air cargo information systems for logistics control.

Table 3.14 Air distances between Pacific Asian cities (km)


JAK

SIN

KUL

BKK

MNL

TPE

HKG

SHA

BJS

OSA

TKO

SEL

JAK

-

560

1,190

2,335

2,780

3,900

3,270

4,480

5,255

n.a.

5,795

5,355

SIN

560

-

330

1,445

2,460

3,245

2,585

3,800

4,575

n.a.

5,330

4,670

KUL

1,190

330

-

1,205

2,485

3,340

2,535

3,750

4,525

n.a.

5,335

4,620

BKK

2,335

1,445

1,205

-

2,200

2,520

1,715

2,685

3,305

n.a.

4,615

3,700

MNL

2,780

2,385

2,485

2,200

-

1,175

1,130

2,460

3,120

n.a.

3,015

2,625

TPE

3,900

3,245

3,340

2,520

1,175

-

805

2,020

2,795

n.a.

2,125

1,475

HKG

3,270

2,585

2,535

1,715

1,130

805

-

1,215

1,990

n.a.

2,905

2,085

SHA

4,480

3,800

3,750

2,685

2,460

2,020

1,215

-

1,080

n.a.

1,805

2,200

BJS

5,255

4,575

4,525

3,305

3,120

2,795

1,990

1,080

-

n.a.

2,115

2,585

OSA

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

-

n.a.

n.a.

TKO

5,795

5,330

5,355

4,615

3,015

2,125

2,905

1,805

2,115

n.a.

-

1,195

SEL

5,355

4,670

4,620

3,700

2,625

1,475

2,085

2,200

2,585

n.a.

1,195

-

Source: Besser (1991:552).
Abbreviations: JAK - Jakarta; SIN - Singapore; KUL - Kuala Lumpur; BKK - Bangkok; MNL - Manila; TPE - Taipei; HKG - Hong Kong; SHA Shanghai; BJS -Beijing; OSA - Osaka; TKO - Tokyo; and SEL - Seoul.

These developments have to be borne in mind when looking at changes in international freight movements between pairs of Pacific Asia's emerging world cities, and movements intended to make greater use of local airports outside their borders.

Statistics from ICAO permit an examination of scheduled air freight interactions and linkages between pairs of world cities for both 1983 and 1990. No distinction is made, however, between different market segments -express (next day guaranteed delivery), comprising small packages that are highly service sensitive, general cargo (second day delivery), comprising large items that tend to be price sensitive, and the traditional 72-hour airport-to-airport service. Nevertheless, information on air freight is available for both calendar and financial years and the data used refer to the year ending 31 March in each year. In analysing the tabulated data the strategy is to assess the degree to which cargo is concentrated on the "top five" airports. Then attention is focused on interpreting maps showing dominant unidirectional flows in excess of 10,000 tonnes. Interest is also centred on the net balance between inward and outward cargoes to determine the prime "sources" and "sinks" in the world's fastest-growing air cargo network.

Table 3.15 Origin and destination of air freight within Pacific Ada, 1983


Origin

Destination

City

Tonnes

Per cent

Tonnes

Per cent

Jakarta

6,615

1.6

5,985

1.4

Singapore

41,285

9.7

61,151

14.4

Kuala Lumpur

10,170

2.4

15,317

3.6

Bangkok

44,310

10.5

24,607

5.8

Manila

14,657

3.5

19,739

4.7

South-East Asia

117,037

27.7

126,799

29.9

Taipei

76,621

18.1

29,246

6.9

Hong Kong

87,883

20.7

79,425

18.7

Shanghai

430

0.1

667

0.2

Beijing

523

0.1

2,602

0.6

Osaka

18,089

4.3

23,952

5.7

Tokyo

84,520

19.9

111,475

26.3

Seoul

38,658

9.1

49,595

11.7

East Asia

306,724

72.3

296,962

70.1

Pacific Asia

423,761

100.0

423,761

100.0

Source: ICAO (1984).

In 1983, 423,761 tonnes were moved between world cities in Pacific Asia. The "top five" world cities generated almost 79 per cent of the air cargo. Hong Kong was the major generator, with 21 per cent of the total, closely followed by Tokyo (20 per cent) and Taipei (18 per cent), with a marked gap to Bangkok (11 per cent) and Singapore (10 per cent) (table 3.15). Seoul (9 per cent), however, was almost on a par with Singapore and Bangkok. Under 5 per cent were Osaka, Manila, Kuala Lumpur, and Jakarta, with Beijing and Shanghai making a negligible contribution. The "top five" destinations for air freight accounted for 78 per cent of the total. The composition of the "top five," however, was different, with Tokyo the recipient of more than one-quarter of all flows. It was followed by Hong Kong (19 per cent), Singapore (14 per cent), Seoul (12 per cent), and Taipei (7 per cent). The other significant destinations were Osaka (6 per cent), Bangkok (6 per cent), and Manila (5 per cent), and, to a lesser extent, Kuala Lumpur (4 per cent) and Jakarta (1 per cent). The Chinese world cities, however, were insignificant.


Fig. 3.7 Air cargo movements between world cities in Pacific Asia, 1983 (Source: ICAO, 1984)

When the major routes are mapped, the intensity of interaction between Tokyo, Seoul, Taipei, and Hong Kong is highlighted - a repetition of the strong linkages evident in container movements in the same year (fig. 3.7). The other world cities tied to the network, albeit by smaller masses of cargo, are Bangkok, Osaka, and Singapore. Beijing, Manila, and Shanghai did not have any connections in excess of 10,000 tonnes. The major "source" in the network was the Taipei-Hong Kong-Bangkok axis. Tokyo figured as the major "sink," followed by Singapore and Seoul.

Table 3.16 Origin and destination of air freight within Pacific Asia, 1990


Origin

Destination

City

Tonnes

Per cent

Tonnes

Per cent

Jakarta

37,540

2.8

23,140

1.7

Singapore

164,380

12.1

181,164

13.4

Kuala Lumpur

44,651

3.3

36,274

2.7

Bangkok

132,232

9.8

73,895

5.4

Manila

40,863

3.0

31,836

2.3

South-East Asia

419,666

31.0

346,309

25.5

Taipei

172,031

12.7

116,593

8.6

Hong Kong

227,911

16.8

199,046

14.7

Shanghai

4,464

0.3

1,045

0.1

Beijing

2,314

0.2

1,815

0.1

Osaka

61,345

4.5

79,517

5.9

Tokyo

214,450

15.8

344,089

25.4

Seoul

253,382

18.7

267,149

19.7

East Asia

935,897

69.0

1,009,254

74.5

Pacific Asia

1,355,563

100.0

1,355,563

100.0

Source: ICAO (1991).

By 1990, a marked change had occurred, with the total air cargo being handled increasing to almost 1.4 million tonnes - an annual increase of almost 37 per cent (table 3.16). The degree of concentration had lessened as the "top five" accounted for 76 per cent of the total a 3 per cent decline since 1983. Also, there had been changes in the importance of individual world cities, with Seoul (19 per cent) generating most traffic - more than double its share in 1983. It was followed by Hong Kong (17 per cent), Tokyo (16 per cent), Taipei (13 per cent), and Singapore (12 per cent). The only other world city challenging for inclusion in the "top five" was Bangkok (10 per cent) as there was no other centre above 5 per cent. On the other hand, the "top five" destinations were responsible for almost 82 per cent - a 4 per cent increase on the 1983 figure. Tokyo was still the major destination (25 per cent), with Seoul (20 per cent) the nearest challenger followed by Hong Kong (15 per cent), Singapore (13 per cent), and Taipei (9 per cent). Only two other centres exceeded 5 per cent Osaka (6 per cent) and Bangkok (5 per cent). Although currently much of Osaka's cargo is handled in Tokyo, there is no guarantee that after completion of the new Kansai International Airport this cargo will be switched - quality of service, as noted, not distance is the key desideratum.

A graphical analysis of the flows highlights how the network has expanded and deepened, with the most dominant links exceeding 40,000 tonnes (fig. 3.8). These comprise Bangkok, Hong Kong, Seoul, Singapore, Taipei, and Tokyo. The Seoul-Tokyo and Hong Kong-Tokyo legs exceeded 93,000 tonnes and the Taipei-Tokyo leg 72,000 tonnes. An analysis of the major "sources" reaffirms the presence of the Bangkok-Hong Kong-Taipei axis, with Jakarta, Kuala Lumpur, Manila, and Shanghai as minor "sources." Tokyo is the major "sink," with inflows exceeding outflows by 130,000 tonnes - the other "sinks" (Osaka, Seoul, and Singapore) all being less than 30,000 tonnes.

An examination of changes between 1983 and 1990 highlights the volatility of air freight movements (table 3.17). This analysis pinpoints the faster growth of world cities in South-East Asia. As both Manila and Bangkok failed to keep pace with events, the positive showings were confined to Jakarta, Kuala Lumpur, and, above all, Singapore, which had ambitions to be a "global cargo city." The net gain among world cities in South-East Asia was at the expense of Taipei, Hong Kong, and Tokyo, although all other centres made positive showings, with Seoul experiencing a massive increase. These results raise the question of which world city should be regarded as the air cargo hub for Pacific Asia - Federal Express is considering Taipei. They also prompt an investigation of air mail patterns to determine whether they are a carbon copy of air freight or differ because of their higher information content. Using the comprehensive set of statistics on air mail in 1983 and 1990, a similar analysis to that of air cargo is undertaken.

International air mail

The growth of courier services and technological changes in telecommunications have brought about some complex problems in international air mail movements between Pacific Asia's world cities. In Japan, for example, international sea mail declined continuously after the late 1970s in both Tokyo and Osaka but air mail grew markedly until the mid-1980s. However, since then air mail trends in Japan have been more or less constant, suggesting alternative forms of international linkages and interactions are being used.


Fig. 3.8 Air cargo movements between world cities in Pacific Asia, 1990 (Source: ICAO, 1991)

In 1983, 21,065 tonnes of air mail were moved in interactions between Pacific Asia's world cities (table 3.18). The "top five" world cities were responsible for 79 per cent of the air mail generated. Tokyo (34 per cent) was the dominant node, followed by Hong Kong (15 per cent), Seoul (12 per cent), Taipei, and Singapore (both 9 per cent). Apart from Manila and Bangkok (both 7 per cent) and Osaka (5 per cent), no other centres made a significant contribution. The degree of concentration among the "top five" destinations was 72 per cent. The major recipient was Tokyo (25 per cent), followed by Manila and Seoul (both 13 per cent), Hong Kong (12 per cent), and Taipei (10 per cent). Singapore and Bangkok (both 8 per cent) challenged for a place in the "top five" ahead of Kuala Lumpur and Jakarta (both 5 per cent). The remaining centres - Osaka, Beijing, and Shanghai - received a negligible amount of air mail.

Table 3.17 Changes in air height tonnage within Pacific Asia, 1983 and 1990


1983

1990

Change 1983-1990

City

Tonnes

Per cent

Tonnes

Per cent

Tonnes

Per cent

Jakarta

6,615

1.6

37,540

2.8

+30,925

+1.2

Singapore

41,285

9.7

164,380

12.1

+123,095

+2.4

Kuala Lumpur

10,170

2.4

44,651

3.3

+34,481

+0.9

Bangkok

44,310

10.5

132,232

9.8

+87,922

- 0.7

Manila

14,657

3.5

40,863

3.0

+26,206

-0.5

South-East Asia

117,037

27.7

419,666

31.0

+302,629

+3.3

Taipei

76,621

18.1

172,031

12.7

+95,410

-5.4

Hong Kong

87,883

20.7

227,911

16.8

+140,028

-3.9

Shanghai

430

0.1

4,464

0.3

+4,034

+0.2

Beijing

523

0.1

2,314

0.2

+1,791

+0.1

Osaka

18,089

4.3

61,345

4.5

+43,256

+0.2

Tokyo

84,520

19.9

214,450

15.8

+129,930

- 4.1

Seoul

38,658

9.1

253,382

18.7

+214,724

+9.6

East Asia

306,724

72.3

935,897

69.0

+629,173

-3.3

Pacific Asia

423,761

100.0

1,355,563

100.0

+931,802


Source. (lCAO, 1984,1991).

An examination of the flow pattern highlighted Tokyo's dominant position (fig. 3.9). Flows above 1,000 tonnes involved the Hong Kong-Tokyo, Tokyo-Seoul and Tokyo-Manila routes. Major "sources" were Tokyo, Osaka, Hong Kong, and Singapore. The major "sinks" were Manila, Jakarta, and Kuala Lumpur, and, to a lesser extent, Beijing, Taipei, Bangkok, and Seoul.

Table 3.18 Origin and destination of air mail within Pacific Asia, 1983


Origin

Destination

City

Tonnes

Per cent

Tonnes

Per cent

Jakarta

79

0.4

1,008

4.7

Singapore

1,870

8.8

1,769

8.3

Kuala Lumpur

305

1.4

1,031

4.8

Bangkok

1,460

6.8

1,600

7.5

Manila

1,505

7.0

2,711

12.7

South-East Asia

5,219

24.4

8,119

38.0

Taipei

1,989

9.3

2,189

10.2

Hong Kong

3,177

14.9

2,551

11.9

Shanghai

4

0

12

0.1

Beijing

5

0

26

1.5

Osaka

1,086

5.1

233

1.1

Tokyo

7,356

34.4

5,266

24.7

Seoul

2,529

11.9

2,669

12.5

East Asia

16,146

75.6

12,946

62.0

Pacific Asia

21,365

100.0

21,065

100.0

Source: ICAO (1484).

In 1990, almost 40,000 tonnes of international air mail were moved between Pacific Asia's world cities - an annual increase of over 12 per cent since 1983. The "top five" world cities generated more than 84 per cent of the cargo. Hong Kong (25 per cent) had usurped Tokyo (23 per cent) as the major generator of air mail, with Seoul (17 per cent), Taipei (10 per cent), and Bangkok (9 per cent) making up the "top five" (table 3.19). The only other significant generators were Manila and Singapore (both 5 per cent) and Osaka (3 per cent). The contributions of Kuala Lumpur and Jakarta (both 1 per cent) and Shanghai and Beijing were negligible. Receipts of international air mail among the world cities were more dispersed, with the "top five" attracting almost 73 per cent. Among the "top five" destinations, Tokyo (27 per cent) maintained its dominant position, followed by Taipei, Manila, and Seoul (all on 12 per cent), Bangkok (9 per cent), Hong Kong (8 per cent), Singapore (7 per cent), Osaka (5 per cent), Jakarta (4 per cent), and Kuala Lumpur (2 per cent). Contributions by Beijing and Shanghai were insignificant.

A consideration of the dominant flows highlighted the intensification of the network and the increase in the number of connections in excess of 500 tonnes (fig. 3.10). The main feature was the deepening of connections between world cities in East Asia. Four of the seven major flows over 1,000 tonnes involved Tokyo. Flows on the Seoul-Tokyo leg superseded Hong Kong-Tokyo as the most heavily trafficked. Kuala Lumpur, Beijing, and Shanghai had no major connections. The major "sources" were Hong Kong and Seoul. Manila was the major "sink," followed by Tokyo, Jakarta, Taipei, Singapore, and Osaka, with Beijing, Shanghai, and Bangkok as minor "sinks." The most striking feature compared with the air freight network was the incorporation of Manila into the network - presumably a reflection of Filipinos domiciled in major world cities throughout Pacific Asia.


Fig. 3.9 Air mail movements between world cities in Pacific Asia, 1983 (Source: ICAO, 1984)

Table 3.19 Origin and destination of air mail within Pacific Asia, 1990


Origin

Destination

City

Tonnes

Per cent

Tonnes

Per cent

Jakarta

390

1.0

1,747

4.4

Singapore

1,876

4.7

2,665

6.7

Kuala Lumpur

557

1.4

888

2.2

Bangkok

3,476

8.7

3,582

9.0

Manila

2,038

5.1

4,923

12.3

South-East Asia

8,337

20.9

13,805

34.6

Taipei

3,973

10.0

4,931

12.3

Hong Kong

10,117

25.3

3,258

8.2

Shanghai

14

0.0

108

0.3

Beijing

62

0.2

336

0.8

Osaka

1,367

3.4

1,971

4.9

Tokyo

9,282

23.2

10,948

27.4

Seoul

6,787

17.0

4,582

11.5

East Asia

31,602

79.1

26,134

65.4

Pacific Asia

39,939

100.0

39,939

100.0

Source: ICAO (1991).

An analysis of changes in the generation of international air mail shows a shift of over 3 per cent from world cities in South-East Asia to their counterparts in East Asia (table 3.20). The main negative showings were Singapore - a leader in Electronic Data Interchange (EDI) - and Manila. These were sufficient to offset the positive showings of Bangkok and Jakarta. In East Asia the principal losses were recorded by Tokyo and Osaka - a reflection of Japan's lead in shifting from an industrial to a post-industrial society. These relative losses were more than offset by major gains in Hong Kong and, to a lesser extent, in Seoul. Are these changes replicated in international passenger transport or is there yet another pattern consistent with the face-to-face transfer of structurally complex information?


Fig. 3.10 Air mail movements between world cities in Pacific Asia, 1990 (Source ICAO, 1991)

International passengers

Rapid changes are sweeping over international scheduled airlines, prompted by deregulation which, since 1978, has allowed United States mega-carriers -United, Delta, Continental, Northwest, and US Air - to spread their hub-and-spoke network activities throughout the world and to force realignments within the industry (i.e. they carry passengers from one foreign country to another via their home base). In Pacific Asia, the United States mega-carriers are fighting to obtain more of the burgeoning traffic stemming from high growth rates in order to benefit from the marketing advantages of hub-and-spoke systems - lower information costs, high quality of service, and more rewards from frequent-flyer programmes for the individual passenger (Tretheway, 1990). Regional airlines are responding to the challenge through privatization (e.g. Japan Airlines, 1987), simple carrier alliances (e.g. Singapore International Airlines with Delta), new airlines (e.g. Air Nippon Airlines, Asiana Airlines, and Eva Airlines), and strong carrier alliances (i.e. by taking a minor equity in a foreign carrier). Growing airport and airway congestion has sparked off a round of new airport proposals in Hong Kong, Osaka, and Seoul, as well as agreements to start or expand flights to airports outside the bounds of world cities (e.g. Fukuoka, Nagoya, and Sapporo in Japan, Macau, and Shenzhen in China).

Table 3.20 Changes in international air mail tonnage within Pacific Asia, 1983 and m


1983

1990

Change 1983-1990

City

Tonnes

Per cent

Tonnes

Per cent

Tonnes

Per cent

Jakarta

79

0.4

390

1.0

+311

+0.6

Singapore

1,870

8.8

1,876

4.7

+6

-4.1

Kuala Lumpur

305

1.4

557

1.4

+252


Bangkok

1,460

6.8

3,476

8.7

+2,016

+1.9

Manila

1,505

7.0

2,038

5.1

+533

-1.9

South-East Asia

5,219

24.4

8,337

20.9

+3,118

-3.5

Taipei

1,989

9.3

3,973

10.0

+1,984

+0.7

Hong Kong

3,177

14.9

10,117

25.3

+6,940

+10.4

Shanghai

4

0

14

0.0

+ 10


Beijing

5

0

62

0.2

+57

+0.2

Osaka

1,086

5.1

1,367

3.4

+281

- 1.7

Tokyo

7,356

34.4

9,282

23.2

+1,926

- 11.2

Seoul

2,529

11.9

6,787

17.0

+4,258

+5.1

East Asia

16,146

75.6

31,602

79.1

+15,456

+3.5

Pacific Asia

21,365

100.0

39,939

100.0

+18,574


Sources: ICAO (1984,1991).

Table 3.21 Travelling times by air between Pacific Asia's world cities


Timea

City

JAK

SIN

KUL

BKK

MNL

TPE

HKG

SHA

BJS

OSA

TKO

SEL

JAK

-

1.35

2.00

3.15

4.00

5.20

4.25

5.50

5.10

7.45

7.10

6.55

SIN

1.35

-

0.50

2.15

3.15

4.20

3.45

4.10

5.00

6.05

6.50

6.10

KUL

2.00

0.50

-

1.50

3.45

4.20

3.35

4.40

5.55

6.55

6.40

6.45

BKK

3.15

2.15

1.50

-

3.05

3.40

2.40

3.40

3.45

5.15

6.20

5.15

MNL

4.00

3.15

3.45

3.05

-

1.50

1.50

2.55

3.35

3.30

3.50

3.40

TPE

5.20

4.20

4.20

3.40

1.50

-

1.35

2.40

3.15

2.30

3.10

3.40

HKG

4.25

3.45

3.35

2.40

1.50

1.35

-

1.05

1.50

3.05

4.00

3.15

SHA

5.50

4.10

4.40

3.40

2.55

2.40

1.05

-

1.45

3.10

3.45

4.20

BJS

5.10

5.00

5.55

3.45

3.35

3.15

1.50

1.45

-

4.10

5.00

5.05

OSA

745

6.05

6.55

5.15

3.30

2.30

3.05

3.10

4.10

-

1.00

1.30

TKO

7.10

6.50

6.40

6.20

3.50

3.10

4.00

3.45

5.00

1.00

-

2.15

SEL

6.55

6.10

6.45

5.15

3.40

3.40

3.15

4.20

5.05

1.30

2.15

-

Source: ABC (1991).
Abbreviations: JAK - Jakarta; SIN - Singapore; KUL - Kuala Lumpur; BKK - Bangkok;
MNL - Manila; TPE - Taipei; HKG - Hong Kong; SHA - Shanghai; BJS - Beijing; OSA -
Osaka; TKO - Tokyo; and SEL - Seoul.
a. Only flying times are shown (those in italics refer to services via Hong Kong). The length of time in transfer points depends on the date and time of flying.

Raw distances used in discussing air freight need to be replaced by travelling time between major world city airports (table 3.21). The longest travelling time is 7 hours and 45 minutes between Jakarta and Osaka and the shortest is 50 minutes between Singapore and Kuala Lumpur. Again, Hong Kong is the pivot of the network as all Pacific Asia's world cities can be connected to it in the shortest possible time. Attention here, however, is focused on changes within Pacific Asia's international passenger market.

The same source of information is used for analysing international passenger traffic as for air freight and air mail - international scheduled airlines for individual world-city pairs (i.e. ICAO, 1984,1991). A major drawback to interpretation, however, is the absence of a breakdown of passengers into two distinctly different types of consumers: business (i.e. must-go travellers), who are highly sensitive to frequency of service, and leisure travellers, who are highly sensitive to price.

International air passengers

In 1983, over 12.4 million international air passengers travelled between Pacific Asia's world cities (table 3.22). The "top five" accounted for almost 70 per cent. Hong Kong (20 per cent) was the major generator, followed by Singapore (15 per cent), Tokyo (14 per cent), Taipei (11 per cent), and Bangkok (10 per cent). Other prominent generators were Manila (8 per cent) and Seoul (7 per cent), and Osaka and Kuala Lumpur (both 6 per cent). The contributions of both Beijing and Shanghai were negligible. As the respective inbound and outbound flows are more or less evenly balanced there is little point in discussing them separately.

Table 3.22 Origin and destination of air passengers within Pacific Asia, 1983


Origin

Destination

City

Passengers

Per cent

Passengers

Per cent

Jakarta

334,942

2.7

344,952

2.8

Singapore

1,877,879

15.1

1,921,102

15.4

Kuala Lumpur

780,690

6.3

750,252

6.0

Bangkok

1,193,758

9.6

1,137,386

9.1

Manila

927,577

7.5

880,347

7.1

South-East Asia

5,114,846

41.2

5,034,039

40 4

Taipei

1,356,207

10.9

1,321,699

10.6

Hong Kong

2,462,072

19.8

2,515,632

20.2

Shanghai

23,785

0.2

14,498

0.1

Beijing

29,423

0.2

55,422

0.5

Osaka

798,724

6.4

833,398

6.7

Tokyo

1,784,776

14.3

1,823,196

14.7

Seoul

874,152

7.0

846,101

6.8

East Asia

7,329,139

58.8

7,409,946

59.6

Pacific Asia

12,443,985

100.0

12,443,985

100.0

Source: ICAO (1984).

A graphical analysis of major links highlights the Kuala Lumpur-Singapore connection and the importance of the Tokyo-Hong Kong-Bangkok axis, with dominant flows exceeding 500,000 (fig. 3.11). Links between 250,000 and 500,000 brought Seoul, Osaka, Taipei, Manila, and Jakarta into the network. On this score both Beijing and Shanghai were "stranded." A discussion of "sources" and "sinks," however, has to be muted because, as noted, the margins were quite small owing to inbound and outbound movements being more or less evenly balanced. For the record, the major "sources" were Bangkok, Manila, Taipei, Kuala Lumpur, Seoul, and, to a lesser extent, Shanghai. The major "sinks" were Hong Kong, Singapore, Tokyo, Osaka, and Beijing.


Fig. 3.11 Air passenger movements between world cities in Pacific Asia, 1983 (Source: ICAO, 1984)

In 1990, almost 23 million international air passengers moved between Pacific Asia's world cities - an annual increase of 12 per cent since 1983. The "top five" generated over 70 per cent - a marginal increase since 1983 (table 3.23). Hong Kong (19 per cent) maintained its pivotal position, with Tokyo (17 per cent) experiencing the greatest growth, moving ahead of Singapore (15 per cent) into second place, and Bangkok (11 per cent) taking over fourth place from Taipei (10 per cent). The other major change was the rise of Seoul (9 per cent) and, to a lesser extent, Jakarta (3 per cent), but Manila and Kuala Lumpur (both 6 per cent) lost ground. Both Beijing's and Shanghai's contribution was negligible.

Table 3.23 Origin and destination of air passengers within Pacific Asia, 1990


Origin

Destination

City

Passengers

Per cent

Passengers

Per cent

Jakarta

741,013

3.2

777,367

3.4

Singapore

3,336,695

14.5

3,444,805

15.0

Kuala Lumpur

1,323,578

5.8

1,196,873

5.2

Bangkok

2,470,926

10.8

2,571,777

11.2

Manila

1,299,088

5.6

1,206,042

5.2

South-East Asia

9,171,300

39.9

9,196,864

40.0

Taipei

2,271,606

9.9

2,186,133

9.5

Hong Kong

4,289,112

18.7

4,174,254

18.2

Shanghai

44,183

0.2

45,100

0.2

Beijing

57,771

0.2

49,130

0.2

Osaka

1,279,580

5.6

1,316,688

5.7

Tokyo

3,801,039

16.5

3,744,377

16.3

Seoul

2,073,373

9.0

2,275,418

9.9

East Asia

13,816,664

60.1

13,791,100

60.0

Pacific Asia

22,987,964

100.0

22,987,964

100.0

Source: ICAO (1991).

An analysis of dominant links in 1990 highlighted the intensification and deepening of international interactions between world cities in Pacific Asia (fig. 3.12). The 1983 Tokyo-Hong Kong-Bangkok axis, with unidirectional flows in excess of 500,000 passengers per annum, has expanded to Seoul-Tokyo-Hong Kong-Bangkok-Singapore-Jakarta. Besides "Main Street," there is also a Hong Kong-Taipei-Tokyo link and an offshoot from Singapore to incorporate Kuala Lumpur. The Tokyo-Seoul link exceeded 1 million passengers. Minor links carrying between 250,000 and 500,000 passengers brought both Osaka and Manila into the network but not Beijing and Shanghai, which remained isolated. Differences between inbound and outbound flows revealed Hong Kong was the "dominant source," with an excess of 115,000 passengers - a reflection of the high proportion of non-local passengers stemming from its position as the dominant trans-Pacific gateway. Other centres featuring as "sources" included Kuala Lumpur, Manila, Taipei, and Tokyo. Seoul, with a deficit of 202,000, was the dominant "sink," followed by Singapore and Bangkok, and, to a lesser extent, Osaka and Jakarta. Beijing and Shanghai were almost evenly balanced.


Fig. 3.12 Air passenger movements between world cities in Pacific Asia, 1990 (Source: ICAO, 1991)

Table 3.24 Changes in numbers of air passengers within Pacific Asia, 1983 and 1990


1983

1990

Change 1983-1990

City

Passengers

Per cent

Passengers

Per cent

Passengers

Per cent

Jakarta

334,942

2.7

741,013

3.2

+406,071

+0.5

Singapore

1,877,879

15.1

3,336,695

14.5

+1,458,816

-0.6

Kuala Lumpur

780,690

6.3

1,323,578.

5.8

+542,888

- 0.5

Bangkok

1,193,758

9.6

2,470,926

10.8

+1,277,168

+1.2

Manila

927,577

7.5

1,299,088

5.6

+371,511

-1.9

South-East Asia

5,114,846

41.2

9,171,300

39.9

+4,056,454

- 1.3

Taipei

1,356,207

10.9

2,271,606

9.9

+915,399

-1.0

Hong Kong

2,462,072

19.8

4,289,112

18.7

+1,827,040

- 1.1

Shanghai

23,785

0.2

44,183

0.2

+20,398

-

Beijing

29,423

0.2

57,771

0.2

+28,348

-

Osaka

798,724

6.4

1,279,580

5.6

+480,856

-0.8

Tokyo

1,784,776

14.3

3,801,039

16.5

+2,016,263

+2.2

Seoul

874,152

7.0

2,073,373

9.0

+1,199,221

+2.0

East Asia

7,329,139

58.8

13,816,664

60.1

+6,487,525

+1.3

Pacific Asia

12,443,985

100.0

22,987,964

100.0

+10,543,979


Source: ICAO (1984, 1991).

As passenger flows will be a critical determinant of the relative status of Pacific Asia's world cities, the analysis is extended to highlight differences between 1983 and 1990 (table 3.24). This underlines the faster growth of world cities in East Asia. The only centres to experience a net gain in South-East Asia were Bangkok and, to a lesser extent, Jakarta. In East Asia the growth was narrowly focused on Tokyo and Seoul as both Hong Kong and Taipei experienced slower growth rates. Care has to be exercised in interpreting these changes because, as noted, it is not possible to disentangle business and tourist traffic. In turn, this makes it difficult to assess the impact of the replacement of air passenger transport by telecommunications.

International telecommunications

Analysing telecommunications interactions between world cities presents a problem. The most comprehensive set of data is contained in the International Telecommunication Union's statistical yearbook (ITU, 1988). Since 1973, it has provided a complete set of telecommunications parameters and economic data for the 180 member countries of the International Telegraphic Union (ITU) (Luhan, 1989). It has collected data on various branches of common carrier telecommunications - telephone, telegram, telex, and data transmission. This source provides a guide to the size of telecommunications systems, traffic, and staff, and distinguishes between domestic and international traffic. Apart from showing that the world's highest growth occurred in Pacific Asia, an analysis of international traffic does not provide any information on interactions between countries, let alone world cities.

There are no comparable statistics to those produced by the United States' Federal Communications Commission showing international message telephone services and telegraph and telex services between the continental United States and overseas countries. Evidence from Japan shows that the most common medium for corporate communications with the rest of Asia is facsimile, followed by the telephone and the telex (MPT, 1988). Telex use relative to facsimile use has been comparatively high because the telephone network between Japan and the rest of Asia has not been as well developed as that between Europe and North America. Greater use of the telephone has been encouraged by the small distance between Japan and the rest of Asia.

The most useful sources for studying Pacific Asia's telecommunications are publications from the International Institute of Communications (Staple and Mullins, 1989; Staple, 1990). They trace telecommunications traffic to and from 16 countries, including Japan, Hong Kong, Singapore, South Korea, Taiwan, and Thailand. Although China, Indonesia, the Philippines, and Malaysia are excluded, figures are provided for them when major telecommunication correspondents are given for the selected countries. As no information is provided on linkages and interactions between world cities, these country data have to suffice as a guide to Pacific Asia's "telegeography. "

International "telegeography"

When the traffic patterns for public voice circuits measured in MITT (Minutes of Telecommunications Traffic) are mapped for the fiscal year 1988 (April 1988 - March 1989), three economies feature as key "sources" - Japan, Hong Kong, and Singapore - and one - Taiwan as a major "sink" (fig. 3.13). The position of Japan - a "junction state" for South Korea, Taiwan, and Hong Kong - reflected its marked growth in outbound traffic since the late 1980s. Hong Kong, a net exporter to Taiwan and telecommunications entrepôt for China, directed almost one-third of its outbound traffic to the mainland. China's market increased annually during the mid-1980s at between 40 and 50 per cent and propelled its Ministry of Posts and Telecommunications into the "top 25" international carriers in 1988, albeit in last place.2 Singapore has dominant connections with Indonesia, Japan, Hong Kong, and Taiwan. The lesser prominence of Taiwan, as of South Korea, has stemmed from reluctance to open home markets to external competitive pressures, which are guaranteed to boost international traffic.3 Although Thailand, like Indonesia, has pretensions to being a key telecommunications player, its traffic is much smaller than that of other Pacific Asia counterparts.4

Paradoxically, Thailand (60 per cent) is more heavily dependent on telecommunications correspondents within Pacific Asia than are other economies. Taiwan (57 per cent), Hong Kong, and Singapore (54 per cent each) are the next most dependent on Pacific Asia markets, followed by South Korea (39 per cent) and Japan (37 per cent). This dependence is likely to increase with the region's continued economic expansion, fuelled by intra-Pacific Asia investment and tourism. Within the region it will be reflected in the growth in facsimile traffic, increased per capita flow of outbound traffic, and the progressive switch from outgoing international letters to international telephone calls and facsimiles.5

Conclusion

An analysis of the data on linkages and interactions between world cities has highlighted the marked dynamism in Pacific Asia since the early 1980s. It has pinpointed the intensification of transport and communications networks. Initially, there was a concentration on emerging world cities in East Asia, but the spread of capital to South-East Asia has seen the deepening of networks to incorporate its world city aspirants more fully. This is reflected in their increased percentage of air cargo. Conversely, East Asia's world cities have boosted their share of air passengers to redress the balance enjoyed by their South-East Asian counterparts in proportion to their total population.


Fig. 3.13 Telecommunications between countries in Pacific Asia, 1988 (Source: based on Staple, 1990)

All world cities, with the exception of Beijing and Shanghai, have recorded marked overall growth in transport and communications. There have been, however, considerable differences depending on the particular yardstick. Leads and lags have occurred. Some world cities have grown more rapidly than others. Seoul and, to a lesser extent, Jakarta, for example, have experienced faster rates of relative growth than have other world cities in all transport and communications sectors, whereas Manila has been dogged by slower rates across the board. Both Hong Kong and Taiwan have failed to keep pace in air cargo and air passengers. Some world cities have grown in particular sectors. For instance, Singapore and, to a lesser extent, Kuala Lumpur and Osaka have improved their positions as generators of air cargo. Conversely, Bangkok and Tokyo have boosted their share of air passengers.

As this fluidity is likely to continue, interpretation is problematical. If there is too much disaggregation there is a real danger of being overwhelmed by a plethora of different variables. These range from the hoary favourites of population and distance to strategic alliances following the globalization of transport and communications activities and the development of logistic network strategies. Given these developments, a Pacific Asia focus is fraught with problems, as the relative status of world cities hinges as much on their external relations with the European and North American blocs as on intra-regional forces.

These considerations are reflected in figure 3.14, which shows the "power" relationships between Pacific Asia's world cities based on transport and communications interactions. Tokyo is the pivot of both external and internal connections. Not only does it have strong linkages with the pivots of the European and North American blocs, but it is the junction for the emerging world cities serving the newly industrializing economies - Singapore, Hong Kong, Taipei, and Seoul. Part of Singapore's strength is drawn from being the junction for Bangkok, Kuala Lumpur, and Jakarta. Hong Kong fulfils a similar role for Manila. At present, it is difficult to tie Beijing and Shanghai into the emerging system of world cities as this study has underlined the tenuous nature of their international connections.

Looking ahead, all forecasts show that growth rates for transport and communications flows in Pacific Asia will be above world averages. The logical extension of this pattern of development is to recognize that linkages and interaction between Pacific Asia's world cities will create development corridors - areas of intense short-distance movement (cf. Ginsburg et al., 1991). This phenomenon has already occurred with the emergence of the Japan Development Corridor from Sapporo to Kita Kyushu. Two new entities are emerging - an East Asian Development Corridor stretching from Pusan to Hong Kong and the South-East Asian Development Corridor running from Chiang Mai to Bali. These are likely to spread, with the addition of Vladivostok and Hanoi to the East Asian Development Corridor and of Ho Chi Minh City to the South-East Asian Development Corridor. Inevitably, new transport and communications superhubs will have to seek locations outside these corridors.


Fig. 3.14 "Power" relationships between Pacific Asia's emerging world in transport and telecommunications, 1992

Acknowledgements

The research assistance afforded by Barbara Banks and Christine Tabart is much appreciated. The maps were drawn by Nigel Duffey, Cartographic Unit, Research School of Pacific Studies, Australian National University, Canberra, ACT, Australia.

Notes

1. Scheduling, under the conventional practice of carrying goods from the airport or seaport to the factory and distribution to clients, has become difficult to maintain. In April 1991, Japan IBM introduced a "Comprehensive Plan for Company Distribution" (Kaisha Sogo Butsuryu) in an effort to overcome this problem (Nikkei, 26 September 1991). A Systems Package Centre (SPC) comprising a cluster of warehouses has been developed in Tokyo and Osaka to store parts carried by ship from factories in the United States. In accordance with the specifications established by clients, the parts are marshalled on an assembly line in the SPC prior to delivery by truck. This new system has enabled US producers to switch from air to sea freight and has reduced the inventories at local factories.

2. Other Pacific Asia-based international carriers among the world's top 25, according to Staple (1990:16), included Japan's KDD or Kokusai Denshin Denwa (ranked 10th) and Taiwan's DGT (ranked 24th). By the mid-1990s, China's Ministry of Posts and Telecommunications became a major international power. By 1990, outgoing traffic from both Hong Kong and China was over 500 million MiTT - almost two-thirds of Japan's outgoing traffic. Major international communications ports are located in Beijing, Shanghai, and Guangzhou.

3. Liberalization of South Korea's closely regulated and structured market was planned for 1992.

4. In 1991, there were 300,000 subscribers in Jakarta out of 1.5 million lines in Indonesia. Only 14 per cent of subscribers had access to international line traffic.

5. As noted by Staple (1990:45-46), 0.15 per cent of Japan's traffic in 1988-1989 was international, compared with 1 per cent for the United States and 2 per cent for the United Kingdom. In 1988, Japan's ratio of international letters to telephone calls was 2:1, whereas the latter exceeded the former for the first time in the United States. This situation is likely to change in Japan with the introduction of language translation services.

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