Joint Delivery of Construction Materials Commences in the Boso Area of Chiba Prefecture

Tokyo Electric Power Company Holdings, Inc. Power Grid (Headquarters: Chiyoda-ku, Tokyo, President and Executive Officer: Yoshinori Kaneko, hereinafter "TEPCO PG") and Nippon Telegraph and Telephone East Corporation (Headquarters: Shinjuku-ku, Tokyo, President and Executive Officer: Naoki Shibutani, hereinafter "NTT East") will begin joint delivery of construction materials (transformers, routers, etc.) for both companies in the Boso area of Chiba Prefecture (Narita City, Mobara City, Kisarazu City) starting today.

This initiative is a new attempt by different operators in power and telecommunications to collaborate and jointly deliver construction materials.

1. Background

In recent years, the logistics sector has been required to undertake initiatives to reduce the burden on drivers and improve the efficiency of transportation and delivery, against the backdrop of a shortage of workers and a decline in transportation and delivery capacity. Even for operators supporting infrastructure, making transportation and delivery more efficient and advanced is an important issue in order to secure a stable supply of materials while reducing environmental impact. Furthermore, by establishing an efficient transportation and delivery system in normal times, it can be applied in the event of a disaster, leading to improved response capabilities. TEPCO PG and NTT East, together with Tokyo Gas Network Co., Ltd., have concluded a collaboration agreement among the three companies supporting social infrastructure in gas, electricity, and telecommunications *1. While mutually utilizing the management resources and data held by each company, they are advancing collaboration aimed at streamlining and upgrading operations, creating social value, and solving regional issues. They have previously collaborated in various fields toward the sustainable and stable operation of infrastructure businesses, such as strengthening disaster response capabilities and promoting joint inspections. This joint delivery of construction materials is a concrete result of considering collaboration in the logistics field as part of the initiatives based on this agreement.

*1 Press Release https://www.ntt-east.co.jp/release/detail/20221118_01.html

2. Overview of the Initiative

TEPCO PG and NTT East will begin joint delivery of construction materials for both companies in the Boso area of Chiba Prefecture (Narita City, Mobara City, Kisarazu City) starting today.

In this initiative, NTT East's construction materials will be transported from NTT East's logistics warehouse (Kazo City, Saitama Prefecture) to TEPCO PG's logistics warehouse (Chiba City, Chiba Prefecture), and after transshipment at the same warehouse, TEPCO PG will consolidate and deliver the construction materials of both companies.

The Boso area of Chiba Prefecture was selected as the initial target area because NTT East's delivery route passes near TEPCO PG's logistics warehouse, and the delivery destinations of both companies are geographically close, confirming a high affinity for joint delivery.

3. Overview and Results of the Demonstration Experiment

Prior to the start of joint delivery, a demonstration of joint delivery was conducted to confirm the effectiveness of the above scheme.

(1) Overview of the Demonstration Experiment

Under the following conditions, joint delivery using TEPCO PG's logistics warehouse as a relay point was verified.

Target area: Chiba Boso area

Implementation frequency: 3 times in total (April 17, April 24, May 15, 2025)

(2) Results of the Demonstration Experiment *2

As a result of the demonstration experiment, the following effects per day for each evaluation item were confirmed.

Number of trucks: Reduced by 1

Total driving distance: Reduced by 15%

Total driving time: Reduced by 11%

Average loading rate: Increased by 14%

Total cargo handling time: Reduced by 40%

CO2 emissions: Reduced by 13%

As a certain effect was confirmed in each evaluation item through the demonstration experiment, we have decided to launch joint delivery in earnest in the relevant area.

*2 The results of this demonstration are limited to the target routes and target materials for the Chiba Boso area. They are also calculated by comparison with conventional operations (independent delivery by each company). The percentages indicate the rate of increase or decrease compared to conventional operations.

4. Implementation Structure and Overview

Regarding transportation and delivery operations in this initiative, NTT East will entrust its transportation and delivery to NTT Logisco Inc., and TEPCO PG to TEPCO Logistics Co., Ltd., and both companies will collaborate to implement joint delivery.

The target area will be the Chiba Boso area, just as in the demonstration experiment. The frequency of implementation will be once a week.

5. Future Outlook

We will proceed with considerations for expanding the area for joint delivery applying the scheme of this initiative, as well as the use of joint trunk transportation and joint warehouses. At the same time, we will also consider strengthening collaboration in the event of a disaster, such as mutual use of vehicles in emergencies, to further improve response capabilities.

Furthermore, utilizing the knowledge gained through this initiative, we will continue to promote collaboration under the framework of the three-company collaboration agreement, not limited to the logistics field, but also strengthening disaster response capabilities, conducting joint equipment inspections, and establishing common platforms for infrastructure base data, thereby advancing cooperation that contributes to the sustainable and stable operation of infrastructure businesses and the enhancement of regional value.