Australia-Japan: Partners in regional commerce and engagement

Australia Japan

Partners in regional commerce and engagement

Australia–Japan Partners in regional commerce and engagement

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National Library of Australia Cataloguing-in-Publication entry

Author: Jim Gleeson Title: Australia–Japan: Partners in regional commerce and engagement ISBN: 978-1-921156-65-6 Notes: Includes index

Australia–Japan Partners in regional commerce and engagement

Jim Gleeson

ROLL OF HONOUR Major Sponsors BP Shell Footwork/Toll Lend Lease Mitsui BHP

Key Sponsors

Australia & New Zealand Banking Corp

Baker & McKenzie

National Australia Bank

JX Holdings

Meat & Livestock Australia

Woodside

Australia Japan Federation

Focus Publishing

North West Shelf

Mitsubishi Heavy Industries Sojitz Corporation West Australian Government

Supporting Sponsors

Allens Arthur Robinson

Clayton Utz

Deloitte

ADVISORY GROUP Ms Robyn Archer, AO, Creative Director,

Mr Paul Gallagher, Executive Director, AJBCC

Centenary of Canberra Mr Tim Lester, Partner, AAR Mr Daisaburo Akita, Chairman and Managing Director, Mitsui & Co., Australia

Mr Huw McKay, Senior International Economist, Westpac

Ms Melanie Brock, Regional Manager, MLA, Japan Mr John McBride, AO, Consultant Prof Jenny Corbett, Prof of Economics and Executive Director, Australia-Japan Research Centre, Crawford School of Economics and Government,

Mr Murray McLean, Former Australian Ambassador to Japan

ANU College of Asia & the Pacific Mr Philip Porter, Director, Philip Porter Consulting Prof Peter Drysdale, Professor of Economics and the Head of the East Asian Bureau of Economic Research and East Asia Forum-Crawford School

Mr Peter Yates, AM, Chairman of the Royal Institution of Australia and the Australian Science Media Centre

of Economics and Government Mr Craig Peacock, Commissioner, Mr Greg Earl, Asia-Pacific Editor, Australian Financial Review

Government of Western Australia, Tokyo

Table of contents

Advisory Group Roll of Honour

4 4

Part 3 Strong commercial partners

62

Showcase of key business sectors

Forewords

6

Craig Emerson, Australian Minister for Trade

Part 4 Partners in international engagement

94

Strategic partnerships

and Competitiveness Bruce Miller, Australian Ambassador to Japan

Introduction

8

Part 5 Culture and Lifestyle

124

Sir Rod Eddington, AO

Cultural ties in sport, food, design, tourism and arts

Part 1 Trusted Friends

Business Directory 10

148

Australia-Japan businesses

Australia-Japan relationship

Index Part 2 Australia–Japan Business

154

A—Z 32

Business collaboration in Asia

Acknowledgements

160

|5

forewords

Craig Emerson

Australian Minister for TRADE and Competitiveness It gives me great pleasure to introduce Australia-Japan: Partners in Regional Commerce and Engagement, which celebrates the 50th anniversary of the Australia-Japan Business Co-operation Committee and the Japan-Australia Business Co-operation Committee.

Japan is Australia’s second-largest two-way trading partner, accounting for nearly 12 per cent of total trade. It is also Australia’s third-largest source of foreign investment, and has been instrumental in the development of many Australian industries.

For Japan, Australia is a secure supplier of resources and food, and an important market for vehicle sales and inbound tourists. Australia is also home to more than 70,000 Japanese citizens. It is the third-largest group of Japanese people living outside Japan.

The Hon Dr Craig Emerson, MP Australian Minister for Trade and Competitiveness

Australia’s economic partnership with Japan extends well beyond trade in goods and services. I am confident the relationship will continue to evolve as both countries reap the benefits of the monumental economic, strategic and social changes underway in the Asian region during the Asian Century.

To examine how best to capitalise on this global shift in economic power, the Australian Government has commissioned a White Paper on Australia in the Asian Century. The project’s aim is to broaden and deepen Australia’s engagement with the fastest-growing region on earth. Japan is a big part of that story, so it follows that Australia’s relationship with Japan can only strengthen further.

I am pleased to commend Australia-Japan: Partners in Regional Commerce and Engagement as a timely tribute to the many individuals and businesses whose efforts have helped our two countries to prosper mutually.

6 | Australia—Japan

Bruce Miller Australian Ambassador

The first shipments of coal and wool from Australia to Japan well over a century ago sowed the seeds of an economic relationship that has become one of the most successful in Australia’s history. Australia is now the largest single provider of primary energy to Japan as well as one of its major suppliers of food. At the same time, Japanese demand for Australia’s resources—and the accompanying investment—has contributed enormously to the development of some of our strongest industries. To take advantage of these complementarities, Australia and Japan are seeking to take their economic partnership to a new level by negotiating a Free Trade Agreement.

But the relationship between Australia and Japan goes well beyond trade and investment. The growing closeness of our defence cooperation was evident following the Great East Japan Earthquake, when the Australian Defence Force helped Japan in its disaster response efforts.

Australia and Japan are also cooperating to address a broad range of

Mr Bruce Miller Australian Ambassador to Japan

challenges in regional and global forums. These include efforts to reduce the threat of wars and natural disasters, enhance the management of the international economy, tackle the problem of climate change, and promote nuclear disarmament and non-proliferation.

Ultimately, however, the strength of the relationship between Australia and Japan derives from the goodwill engendered by close people-to-people links.

These are reflected in educational exchanges, tourism, business collaboration, grassroots organisations and a myriad of other connections developed over many years.

It is my great pleasure to contribute to this important publication, which highlights the remarkable partnership between Australia and Japan.

FOREWORD | 7

Introduction

Sir Rod Eddington, AO B. Eng. (Hons) (UWA), M. Eng. Sci. (UWA), Hon. LLD (UWA), D. Phil. (Oxon)

The spectrum of bilateral people-to-people, educational, scientific, political, security relationships is as comprehensive as any that Australia enjoys with other nations. Indeed, it exceeds the level of contact enjoyed with most other nations. Sister-state, city and port agreements exceed 100 in number and thousands of Australian and Japanese regularly interact through the activities of the Australia-Japan ‘friendship’ societies that exist in both countries. There is great mutual respect and trust evident in our communities.

We commend the foresight and the courage of the politicians and senior bureaucrats who aspired for this level of contact when they negotiated the Australia-Japan Agreement on Commerce of 1957 and the Basic Treaty on Friendship and Co-operation of 1976. Both were unique at the time for one Sir Rod Eddington, AO

or both of the parties.

Much bilateral contact is underpinned by the positive experiences of students and young business people on exchange programs and the bilateral commerce. The latter has spanned 150 years.

We are familiar with the statistics of the bilateral two-way trade and its above average annual growth over many decades and of Japan being the third-largest foreign direct investor in Australia. The ‘complementarity’ of the bilateral commerce has been remarked upon over the years, as have the benefits of the restructuring of our economy to make Australia a ‘competitive’, ‘safe’ and ‘secure’ supplier of agricultural commodities, energy and mineral resources. Over the 50 years since the establishment of the Australia Japan Business Co-operation Committee in August 1962 (and of its counterpart, the Japan Australia Business Co-operation Committee, in February 1963)

8 | Australia—Japan

both nations' economies have changed substantially. Today, Australia and Japan are two ‘services’-dominated, balanced and sophisticated economies. There is broad interaction between Australian and Japanese companies in third markets in Asia, including in Japan’s extensive supply chains and production networks.

In recent years, fresh consideration has been given to the unrealised opportunities in bilateral commerce.

When added to the reality of an Asia-led globalising of the world economy, new characteristics are being identified for bilateral commerce. First, whilst existing opportunities in energy, resources and agribusiness trrading are not exhausted, the majority of the fresh opportunities are in the ‘services’ and ‘knowledge’ sectors. Second, as an echo of the past, and due to present day sophistication in both economies, there are many new, world-class complementarities being recognised, for instance, in infrastructure, financial services, aged and health care, and real estate management. Third, the mutual respect and trust built up over the decades, combined with cultural awareness and many long-standing relationships-turned-friendships, underpin the bilateral willingness to explore new ventures and collaborations.

Against a backdrop of demographic and structural shift, the developing economies of Asia have huge catalogues of ‘social’ and ‘economic’ infrastructure that require development, and a significant need to increase their institutions' ability to assist their people to realise their aspirations. The governments of Australia and Japan have a strong record for collaborating in Asia on humanitarian, disaster relief, anti-terrorism and security initiatives, and, via regional financial institutions, for building financial stability mechanisms and contributing to economic development. Therefore, in the ‘Asian century', it is expected that the existing commercial links will expand to facilitate new ways to undertake collaborative work in Australia, Japan and third countries.

The 21st century will be characterised by Australia and Japan engaging with third-country governments and businesses in pursuit of new and exciting outcomes.

INTRODUCTION | 9

1 Trusted friends

Australia-Japan relationship

Trusted friendships

Words like partnership and affiliation understate the breadth or depth of Australia’s close ties with Japan.

Since the signing of the Australia-Japan Commerce Agreement in 1957, the relationship has blossomed from a mutually profitable agreement between trading partners to a trusted friendship spanning security and strategic interests, economic objectives, research initiatives and close person-to-person connections.

Australia’s friendship with Japan is the cornerstone of its engagement with its Asian neighbours. It is a comprehensive affiliation based on shared values, common interests and a like-minded approach to security challenges. Japan has been Australia’s closest and most consistent friend in Asia for many years. The relationship is central to Australia’s foreign policy objectives and trade priorities.

As Japan and Australia have responded to the recent changes taking place in the world, they have grown closer than ever before.

The two countries implemented strong economic stimulus packages that increased production and helped to mitigate the effects of the global economic downturn. Their friendship is stronger today than it has been in the past, and shows every sign of continuing to strengthen into the future.

Dignity and resilience

After being ravaged by the

The ability of the Japanese to transform their country following the devastation of World

unprecedented Allied bombing

War II into one of the world’s leading economic powerhouses with one of the world’s highest

campain that ended World War II,

living standards—a success story unprecedented in modern times—reflects the diligence and

Japan rebuilt itself, creating one of

resilience of the Japanese character. The curiosity and ingenuity of its 60 million-strong, highly

the world's leading economies.

12 | Australia—Japan

educated workforce have made Japan a leader of the industrial world. It has created many of the technologies that characterise the technological age in which we live.

While Japanese people represent less than two per cent of the world’s population, they account for nearly 10 per cent of global GDP and five per cent of global trade. With a per capita GDP of around $US42,000, Japan will be the engine room of Asian economic development for many years into the future, particularly through its technological innovation and foreign Japan is one of the world's biggest buyers of Australian coal and gas. Australia is a rich market for Japanese manufactured products.

direct investment.

Japan is the world’s largest creditor nation, with net foreign assets worth over five per cent of world GDP. Japan is Australia’s second-largest export market, accounting for about one-fifth of our global exports in goods and services. Business, tourism, education and sister-city ties have fostered strong interpersonal links.

Complementary business activities The large gains for both Australia and Japan from the friendship are partly attributable to the fact that their resources are mutually complementary.

Japan values Australia as a dependable supplier of energy and strategic resources to fuel its industry, while Australia has a ready appetite for Japanese products. Australia remains Japan’s largest supplier of all forms of energy other than oil.

For Japan, the attractiveness of Australia as a supplier of energy and raw materials lies in its proximity and inherent cost advantages, coupled with 14 | Australia—Japan

political stability and willingness to accept foreign investment. Today, Australia’s annual exports to Japan are valued at just over $A40 billion, consisting principally of coal, LNG, iron ore, natural gas, beef and dairy products, gold, woodchips, aluminium ingots, alumina, petroleum and petroleum products, and wool. During the same period, Japan exports around $A14 billion worth of products to Australia, principally automobiles and automotive parts, general machinery, electrical equipment, rubber products, chemicals, precision machinery, iron and steel products and textile products.

As we embrace products like the Apple iPhone or iPod in preference to antecedents such as the Sony Walkman, we can easily forget that most of the components inside an iPhone are made in Japan. Products ranging from Korean consumer electronics to Chinese automobiles are made largely from Japanese components. As iconic Japanese brands in consumer products make way for other market entrants, we can be assured that Japanese manufacturing is as successful now as it ever has been, if rather less conspicuous.

Despite attention being diverted to other emerging powers in the region, Japan remains an economic colossus, having a major impact on the global economy.

Japan’s economic presence has made a major contribution to many economies around the world, including Australia. Two-way trade between Australia and Japan has tripled over the last 20 years, and the long-term trend remains positive.

Japanese direct investment plays a key role in the development of many Australian export industries. Australia is one of the largest recipients of offshore investment by Japanese mutual funds. Similarly, Japan is one of the largest destinations for Australian investment abroad. Japanese investors have become established owners of iconic Australian brands of food and alcoholic beverages as Japanese companies have increased their local and international market shares and built supply chains back to Japan.

Trusted friends | 15

Australian Minister for Foreign

As of the end of 2008, Japan’s direct investment in Australia was $A36 billion, 16 per cent

Affairs Stephen Smith (left),

more than the $A31 billion invested the previous year, making Japan one of Australia’s fastest

Japanese Minister for Foreign

growing sources of foreign direct investment. According to the Australian Bureau of Statistics,

Affairs Katsuya Okada and West

the value of direct and indirect Japanese investment in Australia is $A90 billion.

Australian Premier Colin Barnett at the War Memorial in Perth, Western

Joint opportunities in Asia

Australia's capital city. Okada's two-

Australia’s commercial interests with Japan now transcend direct trade with Japan itself

day visit to Australia was the first

and have become regional in nature. Companies from both countries operate and invest in

by an official of Japan's then-new

third-country supply and manufacturing networks. As Japanese business has extended its

government.

reach into Asia, Japan has become a conduit for Australian exports into a vastly extended marketplace. Japanese businesses have now created a base in Australia from which to export directly to Asia, with the value of exports to Asian markets (excluding Japan) estimated at $A6 billion. This figure is in addition to $A51 billion worth of Australian exports to Japan.

Since the collapse of Japan’s bubble economy in 1990, major structural adjustments have been made, prompting the nation’s biggest corporations to rationalise production and seek less expensive manufacturing bases offshore. As a result, they have established a strong presence internationally, especially in Asia. As an example of this trend, Peter Drysdale from the Crawford School of Economics highlights the increase in the proportion of electronics products that Japanese corporations have manufactured offshore (which rose from 11.4 per cent in 1990 to 45.5 per cent in 2007). He says that the Japanese market is no longer confined to Japan itself. It is a huge international market created by the activities of Japanese business and investors, especially through Asian production networks. This expanding market is buoyed by support from the Japanese government and it has an expanding base in Australian manufacturing, agriculture and services.

16 | Australia—Japan

The major realignments taking place in the world are transforming Asia into the world’s centre of economic gravity.

For the first time, Australians find themselves in the region that will become the centre of global affairs.

Asia is home to the world’s two most populous countries, the world’s largest holders of foreign exchange reserves, two of the world’s top three economies and three of the world’s five largest militaries. The countries of South East Asia, despite the 1997 and 2008 financial crises, have continued to grow strongly.

According to a recent study, Asia will account for around 45 per cent of global GDP by 2020, one-third of global trade and nearly one-quarter of global military spending. Much of the history of the 21st century will be written and shaped in our neighbourhood. Mirroring the remarkable development

Above: Emeritus Professor Peter Drysdale

of Australia and Japan’s bilateral trade is the evolution of our

(pictured)says the Japanese market has been

defence and security ties. The Australia-Japan Joint Foreign

spread worldwide by the activities of multinational

and Defence Ministerial Consultations, the so-called “2+2”

Japanese companies and investors.

meeting, is the only formal foreign and defence strategic

Top: Royal Australian Air Force Wing Commander

dialogue that Australia has in Asia. It is a product of the

Paul Carpenter receives a gift from a member

Japan-Australia Joint Declaration on Security Co-operation,

of the Japan Air Self-Defense Force. Following

which was the first such document that Japan signed with

World War II, Australia was the first country (other

any country other than the United States. Former prime

than the US) with which Japan made a joint

ministers John Howard and Junichiro Koizumi signed the

declaration on security co-operation.

Trusted friends | 17

Japanese-Australian relationships have developed well beyond banking and finance to include security, investments and a burgeoning number of personal exchanges.

18 | Australia—Japan

Australia-Japan Trade and Economic Framework in July

in bilateral trade and enabled Australia-Japan relations

2003, when John Howard visited Japan.

to develop into a multifaceted alliance spanning politics,

Under this framework, the two countries jointly researched the liberalisation of trade and investment, and at the Prime

security, investments and personal exchanges.

From the treaty in 1957, through to joint efforts to

Ministers' meeting held in Tokyo in April 2005, the two

establish APEC in the 1980s under Bob Hawke’s leadership,

leaders agreed to investigate the potential advantages and

and to their security co-operation, the developments in

disadvantages of an FTA.

Australia’s friendship with Japan have paved the way for its

In a speech at the Australia-Japan conference dinner on 11 February 2010, Australian Defence Minister Stephen

engagement with the region.

In 1974, Japan and Australia signed the Cultural

Smith identified five major areas of Australia-Japan co-

Agreement, and the two countries have conducted various

operation. Together, they are working through the G20 to

cultural exchange programs, involving academics, teachers,

revitalise the global economy, enhance the nations’ economic

students, researchers, artists and athletes as well as a variety

relationship through the conclusion of a comprehensive free

of exhibitions and performances, primarily through the

trade agreement, apply their growing defence partnership

Japan Foundation and the Australia-Japan Foundation.

to tackling problems in regional and international security,

In 1976, Australia and Japan signed the Basic Treaty of

advance nuclear non-proliferation and disarmament, and

Friendship and Co-operation, also known as the Nara Treaty.

increase bilateral collaboration in science, technology and

This alliance became the basis of the non-economic ties that

innovation to find ways to combat climate change.

bind Australia and Japan. It provided a framework under which many areas of co-operation could develop, including

Firmly established relationship

political and cultural links. It promoted a non-discriminatory

Following the termination of the Allied occupation of

approach to immigration and investment, and improved the

Japan, diplomatic relations between Australia and Japan

security of Japan’s supply of resources.

were re-established in 1952, with Haruhiko Nishi appointed

Just as the 1957 Agreement on Commerce enabled

as Japanese ambassador to Australia. On 6 July 1957, the

Australia’s and Japan’s trade relations to blossom, the 1976

signing of the Australia-Japan Agreement on Commerce

Treaty of Friendship and Co-operation set the stage for

set the stage for dramatic growth in trade and economic

rapid expansion in investment. The treaty offered a stable

integration between the two countries and became the

framework for the growth of both trade and investment and

basis of the strong bilateral partnership that allowed other

a much closer political relationship. A tangible outcome of

links to develop. The agreement was signed despite residual

the treaty was the Working Holiday Program, the first signed

tensions between the former World War II adversaries,

by either country, that allowed young people from Japan and

and it cemented Japan’s emerging position in Australia as

Australia to enjoy extended working holidays of up to one

an important export market and source of manufactured

year in each other’s country.

goods. Japan overtook the United Kingdom as Australia’s

The first Australia-Japan conference was held in Australia

largest export market in 1966, a status it held for more

in 2001. It was established to bring together leaders in

than 40 years. The agreement ushered in a 50-year expansion

their fields from both countries to discuss all aspects of Trusted friends | 19

the Australia-Japan relationship, including political and economic co-operation, education, science, the media, the arts and culture.

Few people present at the 2001 conference would have predicted that Australia and Japan would now be negotiating a free trade agreement or holding annual joint meetings of Foreign Affairs and Defence ministers.

On 16 July 2003, the Australian and Japanese prime ministers signed a trade and economic agreement, which committed the two countries to pursue closer economic The 2005 World Expo in Alchi, Japan,

ties. The agreement promotes liberalisation of trade and investment through co-operation

emphasised the many attractions of

in matters concerning customs and quarantine, and the mutual recognition of professional

the Australian way of life.

qualifications. Other areas that fall within the scope of the agreement are food, e-commerce and regulation of the securities industry.

In 2007, Australia and Japan signed a joint declaration on security co-operation, which was the first issued by Japan with another country other than the United States.

Increasing knowledge, creating value Austrade officers based in Japan believe that most future growth and interaction between the Australian and Japanese economies will occur in those sectors that are most knowledgeintensive or add the most value, such as the life sciences, information technology, nanotechnology, aerospace and environmental technologies. Services account for 75 to 80 per cent of Australia and Japan's domestic economies. As Australia moved ahead of Japan to deregulate and reform its service sector, Australian service operators became comparatively more efficient. As a result, Australian service providers now are in a strong position to sell 20 | Australia—Japan

Sydney's central business district rises beside one of the greatest natural harbours – and most famous bridges – in the world.

their services to Japanese customers. Service sectors where

these sectors via joint ventures or acquisitions, providing

Australian companies appear to be more competitive include

considerable scope for it to partner with Australian firms

government services, professional services such as legal and

providing financial services, legal services and engineering.

accounting, medical and aged care services, real-estate and

On a visit to Japan in 2008, former prime minister Rudd

property services, vocational training, recreational, music and

identified financial services as the ‘fourth pillar’ of Australia’s

performing arts and hospitality services.

relationship with Japan, noting that it constituted only eight

Concerning Japan's long-term social, cultural and demographic trends, Austrade believes that Japanese consumers will spend more time on leisure and recreation.

per cent of two-way trade between the two countries and highlighting the potential for growth.

Negotiations toward an Australia-Japan free trade

There are potential opportunities in recreational sports,

agreement include discussions on a pathway to enable

hobbies, pets, arts and entertainment, and in health and

professional and financial services companies to establish

lifestyle related areas such as aromatherapy and nutrition.

themselves in Japan.

Australia is an internationally competitive provider of

A 2009 OECD report identified Japan as the world’s

banking services, financial services and infrastructure

fifth-largest aid donor. When the value of loans is included,

services and has important regional advantages. Although

it is the second largest. Its total aid disbursements in 2007

the provision of Australian services in countries such as

reached $US7.7 billion, reflecting its deep interest in the

China, Singapore and Malaysia has been strong, the provision

economic and political security of Asia.

of these services in Asia as a whole has been limited, and there is considerable growth potential.

The international competitiveness of Japanese service consultancies suffers from the closed nature of Japan’s domestic market and the predominance of English in these

Japan supports infrastructure development and the transfer of knowledge in the region through official development assistance (ODA) and supports private sector investment and trade through loans for large-scale projects.

Japan is the second largest contributor to the United

areas. A recent Austrade report points out that, traditionally,

Nations. Over the past 50 years, Japan has helped to create a

Japan has preferred to expand its international activities in

better world, with a foreign policy agenda squarely aimed at Trusted friends | 21

promoting global peace and prosperity. It has been a clear voice on the world stage for the non-proliferation of nuclear weapons.

It is a major provider of development assistance around the globe.

These co-operative relationships are implemented through economic partnership arrangements and, more recently, through public-private partnerships (PPPs)—an area where Australia has considerable experience and expertise.

The Sydney Harbour Tunnel was one such PPP collaboration between Australia and Japan, and there is considerable scope for Australian companies to engage in further collaborations of this type with Japanese entities.

By co-ordinating its ODA with investment and trade, Japan has contributed significantly to South East Asia’s strong economic development—and Australia is poised to become an active participant.

As Peter Drysdale of the Crawford School of Economics has observed, “Given the focus of Japan’s aid program on Asia, and Japan’s recognition of Australian experience in the Pacific as well as Asia, Australia’s share of these [development procurement] contracts and its participation in development studies consultancies could be significantly increased.”

The Australian automotive sector is one of Australia's largest export industries.

Identifying then realising potential While the provision of Australian construction services in Japan and other parts of Asia is in its infancy, there are signs of growth and there is strong potential in this area. Several Australian companies have successfully bid for major construction projects across Asia. For example, Leighton Holdings

22 | Australia—Japan

has completed transport and other infrastructure projects in Asia, including

The value of Australian automotive

the very fast train project in Taiwan in 2007. John Holland has been making

exports to Japan exceeds that of

strong gains in infrastructure work in the oil and gas and resources sectors,

traditional commodities such as

and some architectural companies have worked on key urban construction

wheat, wool and beef.

projects in Indonesia and China.

The Australian automotive sector is one of the country’s largest export industries, exceeding traditional commodities such as wheat, wool and beef, while automotive imports make Australia the world’s third-largest market for passenger cars manufactured in Japan. At the epicentre of this vibrant industry is Toyota Australia, the most successful of the three local car producers, and the largest exporter of passenger vehicles from Australia.

On a visit to the Toyota head office in Nagoya in June 2008, former prime minister Kevin Rudd announced the provision of $A35 million from the new Green Car Innovation Fund as an incentive to assemble cars at Toyota’s Altona factory in Melbourne. The Victorian government matched the amount, and Toyota now builds 10,000 hybrid Camry vehicles per year at the plant. Indicative of the expanding collaboration in this sector, Toyota invested $A125 million in a new engine plant in Melbourne to build new petrol-powered Camrys.

Exports of new vehicles now exceed 160,000 units, nearly half of domestic production. The industry is increasingly reliant on markets the Middle East, the United States and New Zealand, although there are opportunities for growth in emerging markets such as China, Russia and India. Following the financial support provided to Toyota’s subsidiaries in Thailand by the Trusted friends | 23

parent company and the Thai government in the wake of

Australia and Japan are negotiating a free trade agreement

the Asian financial crisis of 1997, imports to Australia from

(FTA) that would create significant economic benefits for

Toyota Thailand have become the fastest growing segment

both counttries. Negotiations have been underway since

of the Australian automotive industry. Peter Drysdale of the

2007 (as at February 2012, 14 rounds had been held). While

Crawford School of Economics believes that, as no reciprocal

agriculture is a sensitive area for Japan in the negotiations,

access rights have been granted for Australian automotive

an FTA could help strengthen food trade relations, helping

products entering Thailand, the Australian government’s

Japan to realise its food security objectives and providing

partnership with Toyota can be a means of providing a more

export opportunities for Australia.

balanced trade flow in this area.

IBIS World forecasts exports from the Australian car

Surveys conducted by Austrade and JETRO emphasise the need for Australian companies establishing businesses

industry will expand by an average 4.8 per cent per annum

in Japan to ensure they have sufficient capital, resources and

over the next five years, reaching $A5.4 billion.

information, and they are fully prepared for the difficulties

In the area of agricultural food products, Japan is

generally encountered whilst developing new and unfamiliar

Australia’s largest export market, accounting for 20 per cent

markets. They need to overcome intangible barriers, such

of total exports, providing $A22 billion in export revenue. In

as a lack of knowledge of the local business environment,

2008, Japan imported 22 per cent of its wheat, 40 per cent of

and have adequate resources to sustain their presence in the

its sugar, 89 per cent of its beef and 37 per cent of its natural

market. Co-operation between governments and businesses

cheese from Australia.

of both countries can assist in smoothing the way to

Many Japanese food companies have created a supply

profitable trade.

chain to their local market. These include Kirin Australia’s barley malt production in Perth, Snow Brand’s dairy

Mutual interest and trust

processing facilities in Victoria, and Nippon Meat Packers’

According to a recent survey conducted by Japan’s Ministry

feedlots and processing facilities in Queensland and New

of Foreign Affairs, 70 per cent of Australians believe that

South Wales. Nippon Ham, Japan’s largest meat processor,

Australia and Japan should be closer in every respect, 70

has joint ventures in Australia and several other countries

per cent believe that Japan-Australia relations are good

which export processed meat products to Japan.

or excellent and 80 per cent believe that Australia should

Japanese companies play a major role in the Australian food

encourage more Japanese to come to Australia. The same pool

and beverage industry, and the products are sold mainly in

revealed that fewer than 10 per cent were aware that Japan is

Australia and Japan. There is considerable scope for Australian

one of Australia’s largest export markets.

beer, dairy products, animal feed, wine and other beverages to

A Lowy Institute survey published in 2007 found that

be distributed through Japanese subsidiaries in Asia.

Australians trusted Japan “to act responsibly in the world”

In supplying the Japanese domestic market with

more than any other country. The familiarity and trust that

agricultural food products, Japanese companies have the

Australians have for Japanese companies suggest there are

advantage of expertise in Japanese regulations concerning

opportunities for Australia and Japan to strengthen bilateral

additives and food labelling.

co-operation in trade and investment in the region.

24 | Australia—Japan

Toyota i-REAL personal mobility concept car: Japan is a world leader in the design and production of futuristic vehicles of all types.

Trusted friends | 25

A poll by the Japanese government broadcaster, NHK,

of September 2010, six states and 101 cities in Australia

in 2009 showed that, of Japan’s international partners,

had sister relationships with Japan. Most Japanese who

Australia is the only country in which Japanese trust and

come to Australia do so on short-term visits as tourists and

interest have been rising over the last decade.

businesspeople (Japan is Australia's third-largest source of

The diverse relationship between the Japanese and

tourists). In the 2009 calendar year, Japan was the source

Australian people includes co-operation between Australian

of approximately 355,000 visitors (Tourism Australia). In

and Japanese lifesavers on Japanese beaches, participation

2008, 212,000 Australians visited Japan (Japan National

by Australian artists in Japanese rural regeneration projects,

Tourist Organisation). As of the end of 2009, there were

125,000 Japanese visitors to the unique indigenous art

71,000 Japanese residents in Australia and just over 10,000

contained in the “Emily” exhibition of 2008, and the

Australian residents in Japan. During that year, 90,000

collaboration between Australian and Japanese musicians to

people travelled to Australia for educational purposes, 16,000

create a unique blend of jazz. Links created through tourism

of which studied full-time in Australia. These links were

have spawned a recent increase in the numbers of Australian

further enhanced by the Working Holiday program, which

visitors to Hokkaido and Nagano to enjoy the snow.

was initiated between Japan and Australia

Strong people-to-people links include students who spend time on homestay programs, learning the language and culture of the other country.

Much of this activity has flourished because Japanese is

on 1 December 1980.

In 2006, the Australia-Japan Year of Exchange commemorated the 30th anniversary of Basic Treaty of Friendship and Co-operation between Japan and Australia,

taught widely in Australian schools. It has long been one

and was marked by a variety of events to expand bilateral

of the most popular foreign languages studied in Australia,

ties. Today, people-to-people links are enhanced by

with over 360,000 students. In recognition of this fact, the

16 Australia-Japan and 46 Japan-Australia societies.

Australian government has committed $A62 million to

These add a grassroots dimension to the relationship,

the teaching of Asian languages in Australia. There are 658

which includes countless community relationships,

sister school relationships between Australia and Japan. As

university programs, school programs and exchanges.

26 | Australia—Japan

The Japanese business community in Australia, represented by the Australia-Japan Business Co-operation Committee (AJBCC) and its Japanese counterpart, the

private levels to jointly realise the very significant economic opportunities that exist for both countries in Asia.

The Australia-Japan friendship is one of closeness and

Japan-Australia Business Co-operation Committee

vital importance. It has a strong record of achievement in

(JABCC), has held conferences in Australia and Japan

collaboration in a range of bilateral areas. More importantly,

annually since 1963. The last meeting ran over three

it is a relationship that is full of potential, through which

days in Kyoto in October 2011, and was attended by 235

Australia and Japan can co-operate to meet the challenges of

delegates representing business leaders, former diplomats

a rapidly changing world.

and others from Australia and Japan. Titles of participants’ presentations included “Strengthening the Japan-Australia relationship to balance the growth of China and India” and “Sustainable growth—the challenges for the Japanese and Australian economies”. The next conference, the commemorative 50th event, is to be held in Sydney in October 2012.

Conferences such as these represent a remarkable diplomatic achievement and indicate the value that both sides place in the friendship. While the governments of Australia and Japan are supportive of such events, it is the broader business and private communities that have ensured their success.

They add a vital dimension to our friendship with Japan.

Australia and Japan can now employ the deep sense of familiarity and goodwill they have developed at public and Trusted friends | 27

Lend Lease Japan, Inc. Headquartered in Sydney, Lend Lease is one of the world's leading fully integrated property and infrastructure solutions providers, employing more than 17,000 people around the world.

Our clients, partners and investors can choose to leverage our strengths and local expertise at any stage of the property and infrastructure spectrum—from development, investment management, project management and construction, to asset and property management —or partner with us right through the complete journey.

With a strong focus on construction management, project management and building consultancy services, Lend Lease has been in Japan since 1988 and now has over 700 employees in 10 cities across the country. We have the capability to deliver the most complex of projects, from concept through to completion with a strong commitment to providing cost transparency to secure value for money, ensure health and safety and deliver a sustainable built environment. Whether it be a fit-out of an office space, a large-scale construction, new telecommunications infrastructure or sustainable building consultancy services, Lend Lease has been providing certainty of delivery second to none.

Core skills in our Japan team are diverse, allowing us to undertake a wide range of projects in roles ranging from task-specific support to fully integrated project management.

As an experienced builder, planner and manager, we tailor our services to the needs of each project, leveraging the capabilities and customs of the local market while drawing upon our worldwide experience to produce creative and economical ways to implement and manage building projects in Japan.

Restoration in the disaster area after the Great East Japan Earthquake

28 | Australia — Japan

Okinawa Institute of Science and Technology

Over the years, our approach has been refined specifically to respond to increasing demand

At Lend Lease, we are committed

in Japan for an independent “client advocate� who can provide professional construction

to working with communities,

planning and project management services on a pure consultancy basis.

clients and our colleagues in Japan

Lend Lease is absolutely committed to being a part of rejuvenating Japan, from

to create positive legacies, from

implementing the best globally available, sustainable building solutions right through to

funding a project right through

supporting our Japanese friends on the ground after the Tohoku natural disaster by repairing

to developing and constructing

parts of the telecommunications infrastructure.

state-of-the-art buildings and

In recent years, there has been a growing appetite for Japanese developers and investors

infrastructure.

to look for avenues for growth in international markets. We have significant relationships with our Japanese partners in Australia and, increasingly, in other parts of Asia which are prospering. We will continue to foster these relationships to meet the broad range of property related needs of our Japanese friends and partners.

AUSTRALIA–JAPAN | 29

Australia and New Zealand Banking Group Limited

With a proud heritage spanning more than 175 years, ANZ is the leading Australian bank

ANZ capitalises on its global

in Asia. We are committed to delivering institutional, commercial, retail, wealth and private

scale and local expertise in the

banking solutions to more than six million customers across 32 markets worldwide.

Asia Pacific. In 2011, ANZ won

We opened our first representative office in Tokyo in 1969 and were awarded a banking

the award for the Best Foreign

licence in 1985. We were the first Australian bank to open a branch in Osaka in 1990 and

Exchange Bank in Japan for

a sub-branch in Nagoya in 2010.

Australian and New Zealand dollars

With 130 staff in Japan, we are the only Australian bank to offer a wide range of services to retail banking customers, corporate and institutional clients, and multinational corporate customers in Japan. In 2011, corporates and financial institutions voted ANZ the Best Foreign Exchange Bank in Japan for Australian and New Zealand dollars for the 19th consecutive year.

“As the world’s third-largest economy with rapidly growing links to emerging Asia, Japan is crucial to ANZ’s super regional strategy. Our corporate and institutional customers in Japan are increasingly looking to emerging Asia to generate growth, and they are growing in the same region that ANZ is growing,” said Alex Thursby, ANZ CEO, Asia Pacific, Europe & America.

ANZ remains one of a select group of banks globally that have a AA category credit rating and emerged from the global financial crisis with the same rating it had when it commenced.1 With an extensive network and in-depth insights, we aspire to be a bank where relationships and knowledge drive superior client performance.

• Institutional banking products: project finance, ECA finance, corporate finance, trade and supply chain, payments and cash management, commodity, foreign exchange and interest rate hedging • Retail banking and wealth management products: a suite of wealth management products including deposits, dual currency investments, mutual funds and foreign exchange 1. Aa2 from Mood’s and AA- from Standard & Poor’s (as at December 2011)

30 | Australia — Japan

for the 19th consecutive year.

Western Australia and Japan Creating and connecting opportunities Japan has very important trade and investment ties with Western Australia. Japanese companies and investors played a pioneering role in the development of the modern Western Australian economy over the last 40 years, and that role continues to grow and deepen through Japanese participation in a number of recent major developments.

Looking outward, as one of the world’s largest and most sophisticated consumer markets, Japan presents myriad opportunities for export-ready and focused Western Australian companies.

Assisting with inbound investment The North Asia Agency of the Government of Western Australia, with offices in Tokyo and Kobe, plays a pivotal role in assisting Japanese companies interested in investing in Western Australia. Our Tokyo office has extensive ties with Japanese government departments, company headquarters and market movers in Tokyo. Now in its 31st year, our Kobe office co-ordinates our comprehensive sister-state relationship with Hyogo Prefecture, and provides a direct portal for doing business in the vibrant Kansai Region economy.

Expanding Western Australian exports to Japan For Western Australian companies looking to expand their business in Japan, the North Asia Agency is able to assist with all facets of businessmatching and market entry. The expanding list of WA exports to Japan extends beyond the now traditional sectors of resources and produce, to include specialist and value-added products and services that may

View over the CBD of Perth and the pristine Swan River

have either general or niche market appeal in Japan.

A wider list of potential exports to Japan includes: • Resources (all minerals and petroleum/LNG) • Renewable energy • Agricultural products, including food and wine • Education and training • ICT • Environmental technologies and products • Health and aged care • Tourism We strongly urge any Western Australian business interested in entering the Japanese market to contact us to discuss the opportunities available.

AUSTRALIA–JAPAN | 31

2 Australia–Japan Business collaboration in Asia and around the world

AustraliaJapan business

Collaboration in Asia and around the World The similarities between a Nikon camera and a glass of Tooheys beer are not immediately obvious, yet Mitsubishi makes both products.

In 1893, when Hisaya Iwasaki assumed the presidency of the Mitsubishi shipping firm founded by his father Yataro 23 years earlier, he diversified the company’s operations, creating, among other things, the Kirin Brewery. In 2009, Kirin bought a 100 per cent stake in Australia’s Lion Nathan, the maker of Tooheys, James Boag, Swan and Hahn beers, and merged it with National Foods to create Lion.

Nikon belongs to an array of companies that make up Mitsubishi’s precision machinery division.

Cornerstones of bilateral trade Mitsubishi Holdings is one of a handful of vast Japanese trading companies whose interests encompass the globe and whose activities are intertwined with much of the world’s trade and commerce. Little is generally known about these entities, even in Japan. The way they operate, and why they operate in the manner they do, remains something of a mystery.

Such companies’ business activities are difficult to define because they defy conventional

BHP Billiton has approved an iron ore export facility at Port Hedland's

categories. The models customarily used to define corporate structures and operations are

outer harbour that will produce

based on Western antecedents, leaving us poorly equipped to contemplate these amorphous

100 million metric tonnes a

entities. Their activities span commodity trading, wholesaling, banking, manufacturing and

year. Pre-commitment for the

mining, yet none of these categories encapsulate their operations.

construction of the facility is valued

It has been suggested that their closest Western counterpart was the Dutch East India Company. The objectives of the Japanese companies are equally elusive. While their 34 | Australia—Japan

at $A856.1 million.

Source: The Australian

The combined cycle gas turbine at

operations are the cornerstones of some of the largest Australia-Japan trade

Aurora Energy's Tamar Valley Power

deals, a rapid return on investment seems a low priority. They are understated

Station was constructed by Japanese

in their character, but universally acknowledged as immensely powerful. They

multinational, Mitsubishi,

affect the lives of much of the world’s population.

Some of the names are familiar, such as Mitsubishi and Sumitomo. But others, such as Sojitz, Itochu, Mitsui and Marubeni, have failed to lodge in our collective awareness.

The trading companies were born from Japan’s need to develop and procure raw materials for its local industries. They pioneered most of Japan’s bilateral relations with its trading partners, including Australia, and, thanks to the sheer size of Japan’s economy, have come to account for a sizeable proportion of international trade.

Japan has approximately 11,000 trading companies. Many are small, specialised operations performing routine import-export functions. Nineteen, however, are considered major trading houses. The Japan Foreign Trade Council monitors their activities.

In the 1890s, Kanematsu (now Sojitz) was the first to initiate bilateral trade with Australia, drawn by the quality of Australian wool. Despite the abolition of the wool trading structures in 1991, wool remains a significant trade item for many of Japan’s trading companies.

Mitsui and Mitsubishi were established in Australia by the 1940s, and became instrumental in Australia’s trade in minerals and ores following World War II. By the 1960s, all of Japan’s major trading companies had fully operational bases in Australia. The oil shocks of the 1970s elevated

36 | Australia—Japan

the strategic role of the trading companies in acquiring the raw materials for Japan’s primary energy. The need to alleviate the damaging effects of high energy prices on Japan’s economy ushered in an expanded role for the trading companies, and paved the way for the first largescale investments in Australia.

The trading companies assembled the financial resources required to create joint ventures, engage in collaborative exploration and invest directly in new sources of raw materials for primary energy.

This heightened level of activity took the trading companies beyond their traditional role in development and procurement for Japanese industry, and their sales and marketing roles for Japanese manufacturers in overseas markets. They became major players in global financial markets and, through their expertise in international industry, were relied on increasingly by Japanese businesses seeking non-competitive offshore manufacturing capacity.

In the 1990s, the trading companies expanded into new business areas in Australia, such as wholesale and retail distribution. Based on their Australian business experience and their worldwide trade networks, the trading companies are expanding into trade and investment in third countries. They have created wholesale, retail and business services networks across the world to facilitate the flow of trade and investment.

Today, Mitsubishi is Australia’s second-largest exporter, eclipsed only by Mitsui. Japan’s major trading companies oversee 60 per cent of Australia’s exports to Japan and 20 per cent of Australia’s imports from Japan. The role of trading companies as buyers of raw materials and intermediaries in wholesale trade has changed as many Japanese companies developed their own capacities to manage trade operations and overseas investment through their worldwide affiliates. In response, Japanese trading companies have restructured and diversified, becoming venture capital investors and partners in high technology industries.

Business Collaboration | 37

In response to strong demand from buyers in Japan, BHP Billiton's mineral mining operations in Port Headland have grown significantly.

38 | Australia—Japan

Japan’s trading companies—history, capitalisation, activities and interests in Australia Itochu Australia Ltd

Metals and mineral resources: Through its subsidiary,

Itochu Australia’s parent company, Itochu Corporation,

Mitsui-Itochu Iron Pty Ltd, Itochu has been a partner with

was established in 1858 when the company’s founder,

BHP Billiton in the Mount Newman iron ore joint venture

Chubei Itoh, started trading in linen, prior to diversifying

in the Pilbara region of Western Australia since it was

into drapery, thread and yarn. In 1918 the company, then

formed in 1967.

trading as C Itoh & Co., listed on the stock exchange and

In 1987, Itochu Australia established Itochu Minerals &

opened a New York branch. Expansion followed, and the

Energy of Australia Pty Ltd, through which it partners with

company merged with other manufacturing and trading

BHP Billiton and Mitsui, amongst others, in a range of iron

companies, including Marubeni Co. Ltd, in a series of

ore mines.

restructures before separating in 1948 to become Itochu Corporation.

Today Itochu Corporation is capitalised at over ¥200 billion, with nine Japanese and 117 overseas offices, and

Itochu is also a key player, together with BHP Billiton and Sojitz, in the Worsley Alumina Refinery, the largest and most cost-competitive alumina producer in the world, which operates at a capacity of 4.6 million tonnes per annum.

4300 employees. Its business activities include trade in textiles, machinery, energy, metals, minerals, chemicals,

Energy: Through its subsidiary, Itochu Minerals & Energy

forest products, general merchandise and food. It is also

of Australia Pty Ltd, Itochu is an active player in energy

engaged in information and communications technology,

exploration and production in Australia, including liquid

construction, realty, finance, insurance, logistics and

natural gas, uranium and dimethyl ether (DME).

business investment.

Itochu Australia Ltd established its base in Sydney in

Infrastructure: Itochu’s technical expertise was

1957, and has offices in Melbourne, Brisbane and Perth.

instrumental in the Aquasure Consortium winning the bid to

The company’s operations encompass coal, metals and

construct the Victorian desalination plant.

mineral resources, alumina, energy, machinery, general

Itochu will contribute $A100 million as a major equity

merchandise, ceramics, chemicals, beef and dairy produce,

investor in the project. The plant will have a capacity of 150

and wool.

gigalitres per year and meet 30 per cent of Melbourne’s medium-term water requirements.

Coal: Through its subsidiary, Itochu Coal Resources

Itochu is currently evaluating other major infrastructure

Australia Pty Ltd, Itochu Australia has interests in nine coal

projects in the areas of desalination and treatment plants,

projects in Australia and Indonesia, including the Newlands,

railways, freeways and bridges.

Collinsville & Abbot Point Project in partnership with Xstrata Coal Queensland. Other interests are Sumisho Coal

General merchandise: Itochu Australia, together with its

Australia, the Oaky Creek Project, the Rolleston project,

joint venture partner, Nippon Paper Industries, is one of the

the Wandoan project and the Cumnock joint venture.

largest and longest established exporters of woodchips.

Business Collaboration | 39

Open-cut mining: BHP Billiton's Mount Newman

In addition, in partnership with Oji Paper, Itochu harvests 24,000 hectares

iron ore joint venture in the Pilbara region of

of renewable eucalypt plantation.

Western Australia.

Ceramics: In June 1990, Itochu Ceratech Corporation (Japan) established

CI Ceramics Australia to sell a wide range of refractory products, such as magnesia, alumina and silica, for use in iron and steel, glass, cement and mineral processing.

Beef, dairy, marine and other produce: Itochu was instrumental in

establishing a beef cattle feedlot in Condamine, Queensland, together with Teys Bros, the largest Australian-owned meat processor, and Prima Ham, one of Japan’s largest meat packers.

Given the steadily increasing demand for the limited global supplies available, Itochu sees dairy products as a growth area.

The company is involved in the export of a range of Australia’s dairy products. Through initiatives like the acquisition of 45 per cent of Burra Foods (Victoria) in 2009, Itochu is continuing to expand in this area.

Australia is one of the world’s leading producers of premium-quality seafood, particularly lobsters, tiger prawns, and the southern blue fin tuna, and Itochu is closely involved in their export. Itochu has close relationships with the growers and accumulators of wheat, barley, rice, canola and other grains, and is engaged in their export.

Wool: From 1966 to 2005, Itochu Australia was the single largest buyer of 40 | Australia—Japan

Australian wool. It remains closely involved in the Australian wool industry today, working closely with the Textile Material & Fabric division of Itochu Osaka.

Marubeni Marubeni and Itochu share a common ancestry, having their origins in a linen and drapery shop founded by Chubei Itoh in May 1858. In 1949, Marubeni formally became a separate entity, although the two companies have enjoyed a series of close corporate links through mergers and acquisitions over the past 150 years that continues to the present day. In 2001, for example, Marubeni and Itochu merged their steel products divisions to create MarubeniItochu Steel Inc. Today, Marubeni is capitalised at over ¥260 billion, and employs 4020 people in Japan and 1769 people overseas. It has nine offices in Japan, and 119 overseas offices across 69 countries.

Marubeni is involved in the import and export of food materials, food products, textiles, materials, pulp and paper, chemicals, energy, metals, minerals and transportation machinery. It engages in offshore trading, and has interests in power projects and infrastructure, plants and industrial machinery, finance, logistics and information, and real estate development and construction.

Marubeni Australia is based in Sydney, and has branches in Melbourne and Perth.

Marubeni’s subsidiaries and affiliates in Australia are: • Rangers Valley Cattle Station Pty Ltd (subsidiary), Glen Innes, New South Wales Production of premium-quality grain-fed beef for export to Japan and other markets • Yokohama Tyre Australia Pty Ltd (affiliate), Sydney Sale and distribution of automotive tyres Business Collaboration | 41

• Southern Plantation Forest Pty Ltd (subsidiary), Melbourne Management of hardwood plantations • WA Plantation Resources Pty Ltd (affiliate), Bunbury, Western Australia Exports one million tonnes per annum of woodchips to Japan and manages sustainable blue gum plantations in the south west of Western Australia.

• Marubeni Aluminium Australia Pty Ltd (subsidiary), Melbourne Investment in aluminium production facilities, including the Portland aluminium smelter, sale of aluminium ingots • Marubeni Coal Pty Ltd (subsidiary), Brisbane Investment in coalmines, including West Wallsend Colliery near Lake Macquarie, New South Wales, the Hail Creek Mine, near Mackay in Queensland’s Bowen Basin, and Westside Colliery, near Newcastle, New South Wales • Resource Pacific Holdings Pty Limited (subsidiary), Sydney Investment in coalmines, including the Ravensworth underground Sojitz Coal Mining Pty Ltd's Minerva coal

coalmine and the Newpac No. 1 colliery near the Hunter Valley in

mine in central Queensland produces

New South Wales.

2.8 million tonnes of premium thermal

• Marubeni Automotive Holding (Australia) Pty Ltd. (subsidiary), Sydney

coal per annum.

Investment and management of automotive group companies in Australia • Hitachi Construction Machinery (Australia) Pty Ltd (affiliate), Greystanes, New South Wales Distribution of Hitachi and John Deere construction forestry and mining equipment • Kubota Tractor Australia Pty Ltd (affiliate), Truganina, Victoria

42 | Australia—Japan

Wholesale importer of Kubota tractors, agricultural machinery, construction machinery, power equipment and spare parts

Sojitz'’s woodchip planation forests have been in operation in Victoria

• Smithfield Power Partnership (subsidiary), Smithfield, New South Wales

since the 1990s. These plantations

IPP in New South Wales, Australia

now cover 10,000 hectares.

• Energy Infrastructure Investments Pty Limited (affiliate), Sydney Operation of gas pipelines, power-generating facilities, gas processing plants and interconnectors

Sojitz Australia Ltd Sojitz can trace its history back to November 1892, with the establishment of the Japan Cotton Trading Co. Ltd, which, in 1949, listed on the Tokyo Stock Exchange and Osaka Securities Exchange as Nichimen Co. Ltd. Nissho Co. Ltd was established independently in 1928, and through a series of mergers and acquisitions became Nissho Iwai Corporation in 1968. In April 2003, Nissho Iwai and Nichimen merged to become Sojitz Corporation and listed on the Tokyo Stock Exchange and Osaka Securities Exchange.

Sojitz Corporation is capitalised at ¥160 billion, and has seven domestic and 91 overseas offices. In addition, it has 139 Japanese and 361 overseas affiliates. In all, the company employs 18,000 people.

Sojitz Australia Ltd is headquartered in Melbourne, and has branches in Perth and Sydney.

The company manages its substantial interests in coal, alumina and rare earth metals through its Australian subsidiaries. Sojitz Coal Mining Pty Ltd, via its 96 per cent shareholding, manages and operates the Minerva coalmine, an open-cut mine approximately 45 kilometres south of Emerald in central Queensland’s Bowen Basin. The mine produces 2.8 million tonnes of premium thermal coal per annum with a 180-strong workforce.

Business Collaboration | 43

Sojitz Coal Resources Pty Ltd is a joint venture partner in three projects and seven operating mines, including Jellinbah, Lake Vermont, Coppabella, Moorvale and Moolarben.

It is also a shareholder in the 14 megatonne per annum PT Berau operation.

Together, these operations provide Sojitz with 7.5 million tonnes of coal annually.

Two of its subsidiaries, Japan Alumina Associates (Australia) Pty Ltd and Sojitz Resources (Australia) Pty Ltd, manage Sojitz’s investment in the Worsely Alumina Refinery in Western Australia.

On 30 March 2011, Sojitz and Japan Oil, Gas and Metals National Corporation agreed to provide Lynas with $US250 million through loans and equity in exchange for an allocation of Lynas’ rare earth products totalling 8500 tonnes per annum for 10 years. The deal makes Sojitz Japan’s largest importer of rare earth metals.

Mitsubishi In 1870, two years after the Meiji Restoration, Yataro Iwasaki started a shipping firm with three dilapidated steamships. His brother, son and nephew expanded the business during their respective terms as president, and created the foundations of the Mitsubishi organisation.

From shipping, the company expanded into shipbuilding and mining, and diversified into banking insurance and warehousing. Yataro's son, Hisaya, made private investments that are part of the Mitsubishi group today. He purchased the Kobe Paper Mill, which is now called Mitsubishi Paper Mills, and he backed the founding of Kirin Brewery. His cousin Toshiya founded Asahi Glass, Japan's first successful manufacturer of plate glass. The company was disbanded after World War II to become the Mitsubishi group of independent companies that exists today.

The name Mitsubishi refers to the three diamonds in the company logo. It literally means three water chestnuts, and is derived from the Iwasaki family crest of a three-tiered water chestnut stylized into three diamond shapes.

Mitsubishi Australia Ltd has offices in Melbourne, Sydney, Perth and Brisbane, and is engaged in a broad range of businesses through its trading activities and investments.

The company’s business areas include energy, metals, machinery, chemicals, food, general merchandise, automotive tooling, equipment and materials, and business development.

Metals: BHP Billiton Mitsubishi Alliance (BMA) (affiliate)

Operates as Australia's largest coal miner and exporter, and the world's largest supplier to the seaborne coking coal market.

44 | Australia—Japan

Sojitz Corporation's out-cut coal mine 45km south of Emerald City in Queensland. Sojittz's Australian operations provide the corporation with over seven million tonnes of coal per year.

Business Collaboration | 45

• Mitsubishi Development Pty Ltd (subsdiary) Acts as the holding company of Mitsubishi's mineral resources investments in Australia.

Owns a number of export coalmines, including Blackwater,

At the end of World War II, however, the Allied powers ordered that Mitsui be dissolved, which resulted in over 200 new companies being established. One such company, Daiichi Bussan, imported a range of products to meet the demand

Clermont, Crinum, Goonyella, Gregory, Kenmare, Norwich

for clothing, food and housing. It quickly expanded its trade

Park, Peak Downs and Saraji.

to include timber, canned foodstuffs, marine produce, fats

• MC Iron & Steel Pty Ltd (subsidiary)

and oils, pharmaceuticals, glass and other products. During

Holds a 10 per cent interest in the HIsmelt Kwinana

the rapid economic growth of the late 1950s, Daiichi Bussan

Joint Venture project, a direct iron making process,

brought together the companies formerly affiliated with

in Western Australia.

Mitsui & Co and re-established the company.

• The Ryowa Development Group of Companies Manages Mitsubishi's equity interest in the Boyne Island

The new Mitsui embarked on a program to vertically integrate its activities, ranging from the procurement of raw

aluminium smelter and the Gladstone Power Station

materials to the production of finished articles. It developed

in Queensland.

new markets, expanded its financial capabilities and

Automotive: Hirotec Australia Pty Ltd (affiliate)

A joint venture company between Hirotec Corporation of

strengthened its anticipatory investment.

During the 1960s, its activities ranged from copper mining

Japan and Mitsubishi Corporation. Acts as a tier-one supplier

in Australia to laying the groundwork for computerisation

to the automotive industry, specialising in the manufacture

in Japan. In the 1970s, it was a key partner in the Abu

of door, engine hood and deck lid assemblies.

Dhabi LNG project in the United Arab Emirates. The 1980s saw Mitsui expand its operations in the downstream areas

General Merchandise: Cape Flattery Silica Mines Pty

of fashion and food services. In other areas, the company

Ltd (affiliate) Mines and sells silica sand, the primary raw

fostered the creation of one of the world’s first laptop

material for glass products, to destinations such as Japan,

computers and co-founded Japan Communications Satellite

South Korea and Taiwan.

(now SKY Perfect JSAT), which launched Japan's first commercial communications satellite in 1989, creating a new

Food: Intermix Australia Pty Ltd (affiliate)

Manufactures a range of dry-mix finished ingredients as well

satellite communications market.

From the 1990s to the present, Mitsui has continued to

as blends and pre-mix additives for end-use applications in

extend the vast reach of its sales networks and to expand

the beverage, dairy, bakery, confectionery, nutritional and

its already broad repertoire of business activities to include

snack food sectors of the food processing industry.

metals, infrastructure projects, machinery, chemicals, energy, food and retail, consumer-related business, IT,

Mitsui Mitsui & Co. Ltd was founded in 1878, shortly after Japan

finance and logistics.

Today, Mitsui & Co. is capitalised at ¥340 billion and

opened its ports to foreign vessels, with the objective of

employs 40,000 people globally. It has 12 offices in Japan

exporting Japan’s surplus goods and importing goods to

and 142 overseas offices in 67 countries. Mitsui’s business

meet domestic demand. Through a carefully developed

activities take in iron and steel products, mineral and

distribution system, the company expanded its activities

metal resources, infrastructure projects, motor vehicles,

from exporting rice to the importation of spinning

marine and aerospace, chemicals, energy, foods and retail

machines and the sourcing of raw cotton from China, India

services, consumer services, information, electronics and

and the United States. After Word War I, the company

telecommunications, finance and logistics. In Australia,

diversified into the development of new products and the

Mitsui provides financing for a range of projects, and creates

cultivation of business plans to foster regional industries.

new trade flows through investment in new industries.

46 | Australia—Japan

Mitsubishi Australia Ltd Division

Activities

Energy

Develops oil and gas projects in Australia, New Zealand and Papua New Guinea.

Ferrous Raw materials

Trades in and mines products such as coking coal for steel mills, iron ore, nickel, chromium, molybdenum, manganese, ferrosilicon, coal for electricity generation and uranium.

Non-ferrous metals

Trades in non-ferrous metals such as bauxite, alumina, aluminium copper, lead, zinc, and precious metals.

Steel products

Supplies a wide range of steel mill products to Australian industry.

Automotive tooling, equipment & materials

Specific business areas include turnkey body shop assembly tooling projects, the supply of capital equipment and production tooling, such as stamping dies and injection moulding dies.

Machinery

Supplies and installs a wide range of machinery across many industries.

Commodity chemicals, functional and advanced chemicals

Supplies essential chemicals and chemical products, including chlor-alkali chemicals, raw materials for synthetic resins and fibres, chemical fertilisers, inorganic raw materials, plastics and electronics materials.

Food

Exports dairy products, fruit juice and frozen fish to primary export markets in Japan, South-East Asia, the European Union and the Middle East. Imports instant noodles and other products.

General Merchandise

Consists of four businesses – paper, housing and construction, lifestyle materiald and raw textiles.

Area

Affiliate/Subsidiary

Activities

Energy

Japan Australia LNG (MIMI) Pty Ltd (affiliate)

A joint venture with Mitsui & Co. Holds a one-sixth interest in the North West Shelf Project, Australia’s largest resource project.

Diamond Gas Resources (DGR) Pty Ltd (subsidiary)

Markets and sells the company’s allotment of condensate and crude from the North West Shelf Project.

Diamond Resources Australia (DRA) Pty Ltd (subsidiary)

Conducts oil and gas exploration.

BHP Billiton Mitsubishi Alliance (BMA) (affiliate)

Operates as Australia's largest coal miner and exporter, and the world's largest supplier to the seaborne coking coal market.

Mitsubishi Development Pty. Ltd. (subsdiary)

Acts as the holding company of Mitsubishi's mineral resources investments in Australia.

Owns a number of export coalmines, including Blackwater, Clermont, Crinum, Goonyella, Gregory, Kenmare, Norwich Park, Peak Downs and Saraji.

MC Iron & Steel Pty. Ltd. (subsidiary)

Holds a 10 per cent interest in the HIsmelt Kwinana Joint Venture project, a direct iron making process, in Western Australia.

The Ryowa Development Group of Companies

Manage Mitsubishi's equity interest in the Boyne Island aluminium smelter and the Gladstone Power Station in Queensland.

Automotive

Hirotec Australia Pty. Ltd. (affiliate)

A joint venture company between Hirotec Corporation of Japan and Mitsubishi Corporation. Acts as a tier 1 supplier to the automotive Industry specialising in the manufacture of door, engine hood and deck lid assemblies.

General Merchandise

Cape Flattery Silica Mines Pty. Ltd. (affiliate)

Mines and sells silica sand, the primary raw material for glass products, to destinations such as Japan, South Korea and Taiwan.

Food

Intermix Australia Pty. Ltd. (affiliate)

Manufactures a range of dry-mix finished ingredients as well as blends and pre-mix additives for end-use applications in the beverage, dairy, bakery, confectionery, nutritional and snack food sectors of the food processing industry.

Metals

Business Collaboration | 47

Mitsui industrial salt mined in Australia for export to Japan.

Coal: Mitsui’s investment in Australian coal dates back to

Mitsui & Co., Ltd (Japan) participates in the North

the 1960s. Today, Mitsui has interests in eight Australian

West Shelf project through its 50 per cent share in Japan

mines (six in Queensland and two in New South Wales).

Australia LNG (MIMI) Pty Ltd. The North West Shelf

The company exports about 14 million tonnes

project is Australia’s largest resource project, exporting

of coking and steaming coal per year, made up of

about 12 million tonnes per annum of LNG to Japan,

approximately nine million tonnes from Queensland and

Korea and other Asian markets. MIMI has supplied gas

five million tonnes from NSW. Mitsui is Japan’s largest

to the Western Australian market since 1984 and LNG

importer of coal, and handles 15 per cent of Australia’s

to Japan since August 1989.

total coal exports.

In 1995, Mitsui established the Wandoo Petroleum joint venture to purchase a 40 per cent interest in the Wandoo

Chemicals: Mitsui’s Chemicals division handles products

crude oil field in northern Western Australia, which has

ranging from raw materials to finished products, including

produced up to 40,000 barrels of oil per day. Wandoo

organic chemicals, inorganic chemicals, plastics, fertilizers

Petroleum also has interests in the Cliff Head project in

and fine chemicals. Mitsui works with Australian mining

Western Australia and the Bass Gas project in Tasmania.

companies to produce mineral sands and industrial salts for export to Japan and many other countries in Asia.

Food: Mitsui handles large volumes of grains, such

as wheat, barley, rice, canola and various feed crops.

Energy: Mitsui E & P Australia Pty Limited, based in

The company also has significant involvement in

Perth, is the regional headquarters of Mitsui’s oil and gas

meat, ethanol alcohol, malt for beer production, juice

exploration and production. The company’s production

concentrates and dairy products such as cheese, milk

of oil and gas has increased dramatically, from less than

powders and butter. Of these products, dairy products

two million barrels of oil equivalent per annum in 2003

and juice concentrates are experiencing particularly

to 18 million barrels in 2011. Mitsui has four producing

strong growth.

fields and three projects under development, as well as a

Mitsui is continually striving to expand its role in

further 20 exploration permits spanning Australia, New

the Australian food industry through new business

Zealand, PNG and East Timor.

development and investment.

48 | Australia—Japan

Business Collaboration | 49

The Mitsui wind farm in southeast Victoria incorporates 52 wind turbines, each capable of generating two megawatts of electricity.

Forestry and general merchandise: Mitsui Plantation

Metals: Mitsui has interests in a diverse range of mineral

Development (Australia) Pty Ltd, in partnership with MCA

resource development and refining projects with a focus on

Afforestation and Nippon Paper Industries, is engaged in

copper, zinc, nickel, aluminium and rare metals. It is currently

plantation developments in Western Australia, Victoria

broadening its investment strategy for nonferrous metals.

and South Australia. The operations provide raw material for paper production as a sustainable alternative to non-

Steel: Mitsui’s steel products are supplied by the world’s

plantation supplies.

leading manufacturers, and range from highly finished products through to commodity-type products. They include

Iron ore: Mitsui’s interest in Australian iron ore began in the

electrical steel, coated steel for automotive use, steel plate,

early 1960s when surveys revealed that Australia’s reserves

pipes, stainless steel and all other commodity products such

were far greater than previously supposed.

as cold-rolled and hot-rolled coils and shapes.

In 1970, Mitsui & Co., Ltd in Japan (80 per cent) and

Mitsui works with its customers to continually develop

Mitsui Australia (20 per cent) established a joint venture

new markets for steel products.

called Mitsui Iron Ore Development Pty Ltd to develop

Toyota Tsusho

the Robe River iron ore project in Western Australia in

Toyoda Kinyu Kaisha, the predecessor of Toyota Tsusho

partnership with Rio Tinto.

Corporation, was established in 1936 to provide consumer

The project has become the world’s most reliable and costeffective supplier of iron ore and is the world’s fourth-largest seaborne iron ore supplier.

Mitsui Iron Ore Development anticipates increasing

finance for Toyota vehicles.

During World War II, its activities expanded to include trade, and in the 1950s it opened its first overseas offices in Thailand and the United States to facilitate the first exports

demand for the commodity, principally in the

of Toyota vehicles. Toyota Tsusho (Australasia) Pty Ltd is

industrialising countries of Asia, and is conducting

a wholly owned subsidiary of Toyota Tsusho Corporation,

feasibility studies into additional mine sites in Australia

which was founded in 1971 as a trading and supply-chain

and elsewhere in the region.

specialist for the Toyota Group.

50 | Australia—Japan

Over the past four decades, the company has evolved

its Australian subsidiary, Toyota Tsusho Gas E&P Trefoil

from a trader in a restricted number of commodities and

Pty Ltd, acquired an 11.25 per cent equity interest in the

finished goods to a multi-business enterprise. It combines

BassGas Project in Bass Strait and a small interest in a

international trading with a wide range of domestically

nearby gas exploration permit.

targeted functions that includes supply-chain services,

The BassGas Project is operated by Origin Energy, and

intermediate goods processing and third-party logistics.

consists of an offshore production platform connected to

Internationally, the company trades in vehicles, parts and machinery, metals, industrial materials, chemicals, wheels

the Yolla gas field and an onshore processing plant.

The gas exploration permit supplements a suite of

and accessories, textiles, life products and services, logistics

offshore and onshore permits in which Toyota Tsusho

and supply chain management.

has an interest, mainly in Western Australia, Victoria

Toyota Tsusho (Australasia) has three Australian offices

and Queensland.

(Melbourne, Sydney and Perth) and a representative office in

Sumitomo

Auckland. The parent company, Toyota Tsusho Corporation,

In the early 1600s, Masatomo Sumitomo opened a book

has 224 subsidiaries and other affiliates worldwide, employs

and medicine shop in Kyoto, where he formulated a set of

31,000 people and is capitalised at ¥65 billion.

business principles known as the Founder’s Precepts. At the

On 1 October 2010, Toyota Tsusho acquired all the issued shares in CalEnergy Gas (Australia) Ltd. The acquisition gave Toyota Tsusho a five per cent share of

same time, his brother-in-law pioneered copper smelting technology to extract silver from crude copper.

Over the next 300 years, the family descendants expanded

the Otway Gas Project in Port Campbell, Victoria, together

the company’s copper mining interests and diversified into

with associated exploration permits and licences.

thread, textiles, sugar and medicines. The family’s Besshi

The takeover was part of Toyota Tsusho’s strategy of obtaining gas exploration and development rights to create a value chain to help meet Japan’s demand for liquefied natural gas. On 8 December 2011, Toyota Tsusho, through

Copper Mine opened in 1691 and operated for 283 years until 1964, serving as the basis of the Sumitomo business.

The company entered related business fields, such as the machine and coal industries, electric cable manufacturing and Business Collaboration | 51

forestry. The finance business operating in Osaka developed

became eager to find alternative sources of these critical

into a banking business. The warehousing business, which

minerals. Lynas needed financial backing to construct its

was a part of this banking business, became independent,

advanced materials plant in Malaysia to separate and refine

and developed into a modern financial group focusing on

the rare earth products from its Mount Weld mine. Lynas and

mining, manufacturing and financing.

Sojitz agreed to work together, but cost of the expansion was

Today, Sumitomo has 24 offices in Japan and 114 overseas offices in 65 countries. Its affiliated companies in Japan and

even beyond the realm of Sojitz’ relatively deep pockets.

Sojitz turned to the Japan Oil, Gas and Metals National

overseas bring the number close to 300. It is capitalised at

Corporation (JOGMEC) for assistance. JOGMEC is a

¥220 billion and employs 65,000 people

government-owned entity tasked with supporting the

On 1 December 2011, Sumitomo integrated its subsidiary,

offshore exploration and production of mineral resources.

Australian Bulk Alliance Pty Ltd, with its associate company,

According to a press release issued jointly by JOGMEC and

Emerald Group Australia Pty Ltd. The move came in response

Sojitz, JOGMEC reviewed the proposed collaboration and

to growing demand in Asia and the Middle East for grain,

concluded, “the transaction will contribute to diversifying

such as wheat, oilseeds and feed grain, due to increasing

the sources of supply and achieving stability and reliability in

population and changes in dietary habits. The integration

supply of the rare earth products to the Japanese markets”.

allows Sumitomo and Emerald to streamline their services

Suiting action to their words, JOGMEC invested a quarter

throughout the entire supply chain, from origination to

of a billion dollars in loans and equity to support the deal,

storage, logistics, port access, shipping and marketing to

provided from a supplementary budget earmarked for rare

overseas customers.

earth elements that had been approved by the Japanese

On 13 April 2010, Sumitomo announced the purchase of Viterra’s share of Australian Bulk Alliance.

On 5 March 2010, Sumitomo acquired a 50 per cent stake

cabinet in October 2010.

To finalise the deal, JOGMEC and Sojitz established the Dutch-domiciled Japan Australia Rare Earths Besloten

in Emerald Group Australia Pty Ltd. Emerald was established

Vennootschap to channel the funds to Lynas, and through

in 2004 and has grown rapidly following the deregulation of

this entity, JOGMEC and Sojitz concluded an allocation

the grain industry. The acquisition supplements Sumitomo’s

agreement with Lynas to receive 8500 tonnes of rare earth

investments in grain storage and export terminal operations

products per year for 10 years. Sojitz and Lynas entered into

in Australia since 2005.

a separate deal to give Sojitz sole distribution and sole agency rights for the products.

Facilitating investment in Australia’s resources

JOGMEC operates under the Agency for Natural Resources

After Sojitz signed its strategic alliance agreement in

and Energy, which is administered by the Ministry of

November 2010 with Australia’s Lynas as a prelude to

Economy, Trade and Industry (METI). The agency supervises

procuring a large proportion of the rare earth elements from

24 affiliated organisations, which take in the Japan Patent

the Mount Weld mine, the main obstacle standing in the way

Office, assorted think tanks and research bodies, such as the

of a major tie-up was financing. China, a key supplier of rare

Research Centre for Hydrogen Industrial Use and Storage,

earth elements, restricted its exports in 2010, and Japan

and organisations like JOGMEC that are actively involved in

52 | Australia—Japan

Mount Weld, located in Western Australia, contains the richest known deposit of rare earths in the world,

Business Collaboration | 53

procuring the natural resources to sustain Japanese industry.

The Japan External Trade Organisation (JETRO) is one

Exploration Financing Agency of Japan that was founded in 1963 to improve the competitiveness of Japan’s metal mining

such organisation affiliated with the Agency for Natural

industry. Its latest balance sheet indicates assets totalling

Resources and Energy, and its functions most closely mirror

$US16 billion, of which $US1.25 billion is cash on hand.

those of Austrade. Yet many of the affiliated organisations

In addition to providing financial assistance for exploration

seem to share objectives and interests that resemble those of

and production, JOGMEC manages Japan’s stockpiles of oil,

the Sogo Shosha trading companies. And in the case of the

liquefied petroleum gas (LPG) and rare metals, and it actively

Lynas-Sojitz collaboration, they work alongside the trading

conducts overseas field surveys where current geological or

companies and become an integral part of the deal.

geophysical data is insufficient to evaluate the potential of

JOGMEC is a non-profit entity that provides assistance

private companies’ exploration activities.

in the form of grants and liability guarantees to private companies for surveys and exploratory work conducted with

Compellingly interdependent

a specific view to acquiring exploration and production rights.

Statistics concerning the world’s coal transactions paint a

Although government-owned, it operates as an independent

compelling picture of Australia and Japan’s interdependency

administrative institution. It submits to the Ministry of

in this area:

Economy, Trade and Industry a five-year, medium-term

• Japan is the world’s largest importer of coal, purchasing

management plan, and receives funding from the ministry on

roughly 20 per cent of the 900 million tonnes of coal

approval of the plan.

traded each year.

Any earnings that JOGMEC generates are accumulated as retained earnings and returned to the ministry at the end of the five-year period. JOGMEC grew out of the Japan Petroleum Development Corporation (JPDC), which was

• Australia produces 30 per cent of the world’s trade in coal.

• Australia has 9.2 per cent of the world’s 826 billion tonnes of proven recoverable coal reserves.

• Japan relies on Australia for 61 per cent of its coal

established to ensure a stable and inexpensive supply of oil for

requirements, buying 44 per cent of Australia’s total

Japan. In February 2004, it merged with the Metallic Minerals

coal exports.

54 | Australia—Japan

• Only 15 per cent of the world’s coal production is traded,

members of the Australian Coal Association in the area

with the other 85 per cent being consumed by the

of carbon capture and storage. JCOAL and the Japanese

countries that produce it, principally China, the United

government are active participants in the Canberra-based

States and India.

Global Carbon Capture and Storage Institute founded by the

Pivotal to this relationship are the Japan Coal Energy

Australian government in 2008.

Centre (JCOAL) and the New Energy and Industrial

The Callide Oxyfuel Project, an Australia-Japan

Technology Development Organisation (NEDO). Both

collaboration, applies oxyfuel combustion technologies

operations are stablemates to JOGMEC – incorporated

and carbon capture and storage to coal-fired thermal power

administrative organisations affiliated with the Agency for

stations. The project draws on the expertise of J-Power, IHI,

Natural Resources and Energy.

Mitsui and JCOAL from Japan, as well as the Queensland

Like JOGMEC, they are non-profit, government owned and government funded. Like many other such organisations affiliated with the Agency for Natural Resources and

government, the Australian federal government, CS Energy, Xstrata and others.

There are several projects working on the production

Energy, they have played and continue to play an integral

of substitute natural gas from brown coal. Nippon Steel

part in the development of Australia’s resources sector.

Engineering is involved in integrated coal gasification in

Following a petition by the Japanese government and power

Victoria, and a feasibility study for a wider brown coal

companies in the early 1970s, Australia lifted its export

gasification project is underway between Australia and Japan.

control policy on natural resources in 1974. Coal exports to

The use of coal-fired thermal power is continuing to

Japan subsequently reached 30 million tonnes in 1980, and

increase in both advanced and developing countries in

increased fourfold to close to 120 million tonnes by 2010.

response to expanding global energy demands. However,

Today, Japanese and Australian co-operation is

due to growing environmental concerns over carbon dioxide

progressing in a vast array of projects alongside the direct

emissions, Japan and Australia are collaborating to achieve

mining and export of coal. For example, JCOAL spearheads

the long-term goal of a zero-emission coal-fired power station

a consortium of 19 Japanese companies working with

through the use of carbon capture and storage technologies.

Business Collaboration | 55

Mount Tom Price iron ore mine: the current resources boom has made Western Australia the most affluent non-metropolitan region in the nation.

56 | Australia—Japan

In the short term, the two countries are working to improve

Joint projects under examination include the conversion

the emissions of existing coal-fired power stations, first,

of brown coal to liquid/gas fuel using partial hydro-pyrolysis

by replacing antiquated facilities, and second, by including

technology. The proposed test site is Nippon Steel’s Yawata

biomass in the fuel used to fire them.

Works in Melbourne

While Japan has the world’s most efficient and least

The assistance that Australian technology provides to

polluting coal-fired power stations, they continue to play an

Japanese coal mining operations around the world was

important role in Japan’s energy mix, accounting for 25 per

formalised on 3 June 1997, when CSIRO Deputy Chief

cent of energy requirements, behind LNG (26 per cent) and

Executive Dr Colin Adam signed a major mining research

nuclear power (30.6 per cent). Forecasts suggest an increase

agreement with the Coal Mining Research Centre of Japan

in coal-fired power as Japan loses its appetite for nuclear

(CMRCJ). Under the agreement, the CSIRO represents the

power in the wake of the Fukushima disaster.

Australian coal mining industry and co-ordinates research

JCOAL estimates that if China, the United States and India

funding from mining industry groups such as the Australian

upgraded their coal-fired power plants to a level comparable

Mining Industry Research Association (AMIRA), mining

to facilities in Japan, there would be an annual reduction in

companies and mines.

carbon dioxide emissions of 1.3 billion tonnes.

The collaboration between Australia and Japan spans a range of activities, including: • R&D for controlling mine gas at the Dartbrook Coal Mine in the Hunter Valley (JCOAL and the CSIRO) • R&D into new exploration technology featuring the development of a neutron-gamma recording system at the Bowen Basin in Queensland and the Gunnedah Basin in New South Wales (involving JCOAL and the Queensland and New South Wales governments) • A collaborative study to evaluate the production and use of ultra clean coal (JCOAL and the CSIRO) • Research into waste coal gasification technology (JCOAL, IHI and the CSIRO) • The Enhanced Coal-Bed Methane Project, under the Asia-

The agreement follows a coalmine safety research agreement between CMRCJ signed four years earlier and renewed in 1996.

These agreements were preludes to a series of collaborations, including: • The Aichi Coal R&D joint statement between JCOAL and the CSIRO (2005) • The Enhanced Aichi Coal R&D joint statement between JCOAL, the CSIRO and ACR (2006) • The Re-enhanced Aichi Coal R&D joint statement between JCOAL, the CSIRO, ACR and ACALET (2009) • A Memorandum of Understanding between ACA and JCOAL (2009) The collaborations between Japan and Australia are set to continue and expand into the future, with a particular focus

Pacific partnership on clean development and climate,

on clean energy. Australia has established the Japan office

aimed at maximising the recovery rates of carbon dioxide

of the Global Carbon Capture and Storage Institute, and will

and methane and verifying the reliability of carbon

continue to collaborate on infrastructure and other projects

dioxide storage (JOCAL, the CSIRO, the Australian federal

across the region based on the complementary strengths of

government and Australian and international industry)

two trusted friends.

Business Collaboration | 57

Mitsui & Co. (Australia) Ltd. Mitsui & Co. (Australia) Ltd. is the wholly owned Australian subsidiary of Mitsui & Co. (of Japan), one of the world’s most diversified trading, investment and services enterprises.

Over the past five decades Mitsui has steadily expanded and diversified its business in Australia. Today Mitsui’s business covers iron ore, coal, gas, oil, salt, woodchips, chemicals, steel products, power generation and food.

In each of these businesses, Mitsui utilises one or more of its areas of expertise in investment, development, finance, marketing, procurement and logistics.

Mineral resources and energy Mitsui is recognised as having played a pioneering role in Australia’s resource sector.

Responding at the time to an acute need by Japanese industry to secure a stable, long term supply of coal, in 1963 Mitsui formed a joint venture with an international consortium to develop the Moura coal mine (present day Dawson mine) in Central Queensland’s Bowen Basin. Mitsui took an equity stake in the project and secured a contract to sell coal into the Japanese market. The joint venture project was the first of its kind by a Japanese company in Australia and would go on to serve as a template for other foreign investments that followed in Australia’s resources sector.

Today, Mitsui’s affiliate company, Mitsui Coal Holdings, has interests in nine producing coal mines across Queensland and New South Wales, including a 49 per cent stake in the Dawson mine, operated by Anglo American, and a 20 per cent stake in the Kestral coal mine operated

by Rio Tinto.

In Western Australia, Mitsui affiliate company Mitsui Iron Ore Development has a 33 per cent stake in the Robe River joint venture operated by Rio Tinto. Mitsui also has a 7 per cent stake in three respective iron joint ventures with BHP Billiton, two of which are held by Mitsui Iron Ore Corporation, and the third by Mitsui Itochu Iron Ore Pty Ltd. In oil & gas, Mitsui & Co. affiliate, Mitsui Exploration & Petroleum Australia, has interest in four producing assets. This includes a 40 per cent stake in the Vincent and Enfield oil projects

A Mitsui forestry plantation in Western Australia’s Bunbury Region.

58 | Australia — Japan

off the coast of Western Australia, operated by Woodside Energy Limited. Mitsui & Co. is

Operations at Shark Bay Salt

also an investor in Western Australia’s North West Shelf LNG project, through a 50:50 joint

in Western Australia.

venture with Mitsubishi Corporation (Japan Australia LNG Pty Ltd), which holds a one-sixth stake in the project.

Raw materials for growing Asia Mitsui anticipates that Asia’s growing economies will require an increasingly diverse range of raw materials in the coming years. In response to rising demand for salt for food and chemicals applications, Mitsui & Co. acquired 100 per cent of the Shark Bay Salt project in Western Australia in 2005, then acquired Onslow Salt in 2006.

Similarly, in anticipation of growing demand for paper products in the Asia region, in recent years Mitsui has rapidly expanded its investment in forestry plantations and has acquired interest in two woodchip processing and export facilities in Victoria and Western Australia.

Infrastructure Mitsui is an active player in Australia’s power sector. Mitsui & Co., through a joint venture with International Power, holds a 30 per cent stake in the Loy Yang B coal-fired power station in Victoria and a 21 per cent stake in the Kwinana gas-fired power station in Western Australia. Mitsui Australia is currently developing the Bald Hills Wind Farm, a 106MW facility located in South Gippsland Victoria, which is scheduled to commence operations in 2014.

Imports and exports Mitsui Australia also trades in a variety of commodities to and from Australia. Mitsui’s major imports include steel products, chemical products and solar panels. Its major exports are food commodities such as grains, meat, juice concentrates and dairy products.

AUSTRALIA–JAPAN | 59

Mitsubishi Heavy Industries Ltd Mitsubishi Heavy Industries Ltd (MHI) manufactures a very broad range of products, including aerospace rockets, nuclear and thermal power plants, ships, industrial machines and air conditioners. To meet the global common challenge of maintaining “sustainable growth”, MHI identifies increasing opportunities to leverage its experience and knowledge to the development of the world’s infrastructure; the core support for society and industry MHI is an enterprise without parallel in the world, possessing cutting-edge solutions for achieving a low carbon society.

MHI CO2 capture technology MHI is a world leading post-combustion CO2 capture (PCC) technology supplier. The KM-CDR ProcessTM, together with the proprietary KS-1TM solvent, enables clients to efficiently reduce their CO2 emissions. Worldwide, MHI currently has nine commercial PCC plants (max 450 ton/day) and one 500ton/day black coal-fired demonstration plant (the world’s largest) in operation. MHI is currently completing in a pre-feasibility study with partners LoyYang Power, TRUenergy, WorleyParsons and Mitsubishi Corporation to utilise MHI’s PCC technology for Victorian brown coal.

Concentrated solar hot air turbine power generation system MHI is also developing the solar Brayton system driven by high-temperature air generated with solar energy. No water is required for power generation, which is very attractive for the Sun Belt area where water resource is quite limited. Working with an Australian national research institute, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), MHI completed the 600kWth receiver pilot test successfully in 2011.

Pilot test at CSIRO. Solar Energy is concentrated to

The 2.5MW demonstration system is planed to commence its operation

the receiver by heliostat (lots of mirrors), where the air

in 2013 or 2014 and the 10MW system will be commercialised afterward.

inside the receiver is heated to very high temperature.

MHI Group companies in Australia Mitsubishi Heavy Industries Australia Pty Ltd (MHIAU), established in 1999, has been promoting business opportunities of MHI products to contribute to Australian society and industry. In 2009, MHIAU’s air conditioning and refrigeration division commenced operation under the name of Mitsubishi Heavy Industries Air-Conditioners Australia Pty. Ltd. (MHIAA). MHIAA has its head office in Sydney and its branch offices in Melbourne, Brisbane and Perth.

60 | Australia — Japan

North West Shelf Australia LNG North West Shelf Australia LNG markets liquefied natural gas (LNG) from Australia’s largest oil and gas resource development, the Woodside-operated North West Shelf Project.

The $A27 billion North West Shelf Project facilities include offshore gas platforms and oil production facilities, as well as an onshore gas processing plant near the town of Karratha, in the spectacular Pilbara region of Western Australia.

From this remote but resource-rich area of Western Australia, the North West Shelf Project produces more that 40 per cent of Australia’s oil and gas production and has the capacity to produce more than 16 million tonnes a year of LNG. In addition to LNG, the North West Shelf Project produces natural gas for domestic

The North West Shelf Project is

sale, liquid petroleum gas (LPG), condensate and crude oil.

Australia's largest oil and gas

International demand for cleaner sources of reliable energy is growing. Over the past

resource development. Liquefied

22 years, the North West Shelf Project has enjoyed a long and mutually beneficial business

natural gas from the project is

relationship and firm friendship with its LNG customers in Japan and has helped to establish

an important source of power for

Australia’s reputation as a major LNG exporter and trade partner.

Japan's major industrial regions.

Since the first shipments of LNG were made to Japan in 1989, the North West Shelf Project has delivered more than 3200 LNG cargoes to customers in the Asia Pacific. End customers include some 90 million Japanese people, in addition to millions of consumers in other countries in Asia. LNG is an important source of power for Japan’s major industrial regions.

The North West Shelf Project participant companies include BHP Billiton (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, CNOOC NWS Private Limited, Chevron Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, Shell Development (Australia) Pty Ltd and Woodside Energy Ltd (Operator).

AUSTRALIA–JAPAN | 61

3 Strong commercial partners

Strong commercial partners

In the 21st century, Japanese and Australian business leaders continue to build upon the vision their predecessors showed by signing the 1957 Commerce Agreement—a document that transformed the economic destinies of Japan and Australia.

Since Japan became a major investor in Australia in the 1970s, trade and investment have brought jobs and prosperity to many Australians. Today, Australia’s exports to Japan deliver the equivalent of $A5000 worth of benefits to every Australian household. That figure would be higher if we include Japan’s investment in Australia. Our trade with Japan has produced our largest bilateral trade surplus—$A25 billion in 2010. This figure does not include goods produced by Japan externally using global supply chains that include Australian manufacturers.

Australia’s relationship with Japan covers a wide range of areas. Some key aspects of the nations’ close affiliation are explored below.

Lynas: Meeting 30 per cent of Japan’s rare earth requirements In March 2011, Australia’s Lynas Corporation entered into agreements with Sojitz Corporation, Japan’s leading trader in rare earth elements, and Japan Oil, Gas and Metals National Corporation (JOGMEC), to supply 8500 tonnes of rare earth elements per annum for 10 years.

Rare earth elements, which comprise the Lanthanide group of elements in the periodic

Tokyo's Roppongi Hills shopping

table, were first mined in India and Brazil prior to the 1950s. Since that time, the elements

centre comprises more than 200

have found an increasing range of scientific, medical and industrial applications, from oil

shops, restaurants and cafes.

refining to laptop hard drives, headphones, hybrid engines, catalytic converters, X-ray units,

©Yasufumi Nishi/©JNTO

64 | Australia—Japan

Queensland desert region: thanks

lasers, wind turbines, and television and computer screens. While rare earth elements are

to discoveries in remote locations

not as rare as previously thought—some are more abundant than copper and lead—they are

like this, Australia has become

found in small, widely dispersed concentrations and are difficult to exploit. World demand

one world's leading miners and

for rare earth elements in 2010 was estimated at 136,000 tonnes, with global production at

suppliers of rare earth elements.

around 133,6000 tonnes. The shortage is covered by reprocessing previously mined, aboveground stocks.

With demand expected to increase to 185,000 tonnes per annum by 2015, and with new mines taking five to 10 years to reach full production, vigorous efforts are underway to find new sources of the metals. Concerns over rare earth elements have intensified over the recent actions of China, which controls about 60 per cent of world supply, either through production or stockpiles. The ready availability of rare earth elements from China has traditionally kept prices low, causing many rare-earth mines elsewhere to become unprofitable. In September 2010, however, China imposed export restrictions in rare earths and suspended all export of the minerals to Japan. From 2007 to 2010, China’s exports of rare earth elements halved, and world prices for the metals doubled.

Today, rare earth mines that were previously unviable are being brought back online, although full production is still several years away.

To reduce its reliance on the supply of these critical minerals from China – an outcome that remains far from certain, despite some relaxation in their trade—Sojitz, a major Japanese trading company, has held negotiations with Australia’s leading rare earths mining company, Lynas Corporation Ltd. Lynas has two key operations: a mining and concentration plant at Mt Weld in Western Australia; and a refining facility under construction in Kuantan, Malaysia. The Mt Weld facility produces light, rare earth elements that are sold directly to other countries for further

66 | Australia—Japan

refining. Some of the mine’s production will become feed stock for its facility in Malaysia.

On 30 March 2100, Sojitz, entered into definitive agreements with Lynas to provide $US250 million through loans and equity that will enable Lynas to complete construction of its mining plant in Malaysia. Lynas has agreed to provide Sojitz with 8500 tonnes of rare earth products per annum for 10 years, a volume that represents 30 per cent of Japanese demand for the minerals.

As part of the deal, Sojitz becomes sole distributor of the products and Lynas’ sole agent in Japan, enabling Sojitz to provide its clients with a reliable supply of high-quality rare earth products. Following the signing of a strategic alliance between Sojitz and Lynas in November 2010, the two companies have explored opportunities for trade in the metals, including joint marketing to identify customers in Japan and the financing for phase two of Lynas’ operations.

In response to a request for financial assistance from Sojitz, JOGMEC, a semi-government agency tasked with securing reliable supplies of natural resources for Japanese industry, agreed that the deal with Lynas would help Japan to diversify its sources of rare earth elements and achieve a more stable and reliable supply. JOGMEC released the supplementary budget in the Rare Earth Package for fiscal 2010, which the Japanese cabinet approved in October 2010, enabling the deal to proceed.

Japan’s mythical giraffe, Kirin, and Australia’s Lion: One of the world’s largest food and beverage alliances Lion can trace its origins back to 1795, when James Squire, convicted highway robber, one-time policeman and legendary publican, produced Australia’s first commercial ale at the Malt Shovel Brewery in Sydney’s Camperdown.

STRONG COMMERCIAL PARTNERS | 67

Tokyo skyscrapers are yet to upstage Mt. Fuji, Japan's tallest mountain, which is 3776 metres high. Photo: © Shimizu, JNTO

From these beginnings, Lion has become a leading food

leader. Kirin's overseas brewery operations, achieved through

and beverage company with a portfolio that includes many

strategic alliances, subsidiaries and affiliates, extend to China,

household brands of beer, spirits, wine, milk, fresh dairy

Taiwan, the Philippines, Europe, New Zealand and the United

foods, juice, cheese and soy beverages. Lion was formed in

States. The company also handles the domestic distribution

October 2009 when Kirin Holdings of Japan purchased Lion

of several foreign brands, including Budweiser and Heineken.

Nathan and merged the business with National Foods, which Kirin acquired in 2007. In 2011, the company became known

The company is capitalised at over ¥100 billion and employs nearly 32,000 people worldwide.

as Lion. Today, Lion employs nearly 8000 people in Australia agricultural goods. It has become an integral component of

Mercian and Lion: Blending Australian wine to suit Japanese tastes

the retail, hospitality and tourism industries. The company has

In March 2011, Mercian Corporation, the Japanese winery

operations in every Australian state, as well as New Zealand,

and wine importer, launched in Japan eight wines from the

Singapore, Malaysia, Indonesia and the United States.

St Hallett winery in South Australia.

and New Zealand and is the region’s largest purchasers of

The genesis of Kirin dates back to establishment of the

Six of the wines are imported into Japan directly from

Japan Brewery Co. Ltd. in 1885. Three years later, the

the Barossa Valley, including St Hallett Gamekeepers Shiraz

company introduced German-style beer under the Kirin

Grenache, St Hallett Eden Valley Riesling, and St Hallett Faith

name, and in 1907 the company became known as Kirin

Shiraz. Two wines, St Hallett Tatiara in cabernet-shiraz and

Brewery Co. Ltd. The name comes from the Chinese Qilin,

chardonnay varieties, are blended in Australia and bottled

a mythical hoofed chimerical creature whose spontaneous

at Mercia’s Fujisawa plant to reflect the characteristics of

appearance is said to herald the imminent birth of a great sage

Australian wine, while ensuring optimum appeal for the

or ruler, and whose stylised depiction adorns the Kirin logo.

discerning Japanese consumer.

Today, Kirin sells two of the most popular beers in Japan:

The initiative is the result of the synergies emerging within

Kirin Lager, the country's oldest beer brand, and Ichiban

the Kirin Group following its acquisition of Mercian in 2007

Shibori. In the low-malt category, Kirin Tanrei is the market

and Lion in 2009, and reflects a high level of co-operation

68 | Australia—Japan

Japan's Kurushima-kaikyo-ohashi Bridge spans more than four kilometres.

Photo: © JNTO

between Australian and Japanese winemakers. The St Hallett

capacity of 27,000 tonnes and supplied barley and pilsener

winery is one of seven owned by Lion, and its products have

malts to breweries in Australia, South Asia and other

recently joined the ranks of leading Australian wines, such as

international markets. In 1982, Kirin acquired full ownership

Taylors and Jacobs Creek, in earning a strong position in the

of the plant and increased annual production to 42,000

Japanese market.

tonnes. In 1984, the KBB Malting Company was renamed

Following the success of the St Hallett Tatiara varieties,

Kirin Australia Pty Ltd and today the plant produces 46,000

Mercian expanded the range in February 2012 to include

tonnes of malt per annum. The success of Kirin beer on

rosé, and released the popular cabernet-shiraz and

the international stage has established Australian malt’s

chardonnay varieties in smaller 180 millilitre bottles for more

worldwide reputation for being of premium quality and

casual enjoyment. The rosé is a dry, lively wine that goes well

available for export in dependable quantities to anywhere in

with light dishes featuring spring greens and vegetables.

the world.

Bottling the wine in Japan ensures consistent quality, and makes it possible to use lightweight bottles to reduce the environmental impact. The wine is transported in specially designed, low oxygen-permeability bags.

Transfield and Kumagai Gumi: Easing Sydney’s congestion with Japanese tunnelling expertise Sydney’s town planners have long observed that the city’s

Kirin Australia: Australia’s premium malt on the world stage In the early 1970s, the Barret Burston Malting Co. Ltd,

crown jewel, its harbour, is something of an obstruction to the free flow of traffic.

When the first proposal for a tunnel crossing emerged in

which established Australia’s malting industry in the 1860s,

1885, Sydney’s roads were choked with wagons, drays, horse-

approached Japan’s Kirin Brewery Co. Ltd with a view to

drawn carriages and hansom cabs. The harbour’s ferries were

setting up a joint-venture malting plant. The result was

found to be a relaxing but inefficient means of conveying

the formation of the K.B.B. Malting Company Pty Ltd at

large numbers of commuters to the city centre. Over the next

Welshpool, Perth, in June 1976. The plant had an annual

100 years, no fewer than 12 proposals for a harbour tunnel STRONG COMMERCIAL PARTNERS | 69

Sydney's Cross City Tunnel was built as a private investment by Transfield in partnership with Kumagai Gumi.

70 | Australia—Japan

were submitted and rejected, with the number abating only

twin 900-metre land tunnels on the northern approach,

slightly after the opening of the Sydney Harbour Bridge

twin 400-metre land tunnels on the southern approach and

in 1932. By the mid-1980s, research indicated that, as 46

a 960-metre immersed tube structure. The tunnel falls 55

per cent of commuters on Sydney’s north shore use public

metres from the northern entrance and 35 metres from the

transport, improving public transport would have limited

southern entrance to its deepest point, 25 metres below sea

benefit in easing congestion on the Harbour Bridge. Instead,

level. The immersed portion of the tunnel was constructed

the preferred option was a harbour tunnel that would enable

from eight precast concrete units, fabricated in a casting

some lanes on the Harbour Bridge to be dedicated to buses,

basin at Port Kembla, 100 kilometres to the south. A trench

thereby improving travel times.

was dredged for the concrete units and they were lowered

In 1986, the New South Wales government accepted a proposal by Transfield and Kumagai Gumi to build a harbour tunnel as a private investment.

In partnership, these two entities had already notched

into place using a system of pontoons and control towers. The units were then backfilled with protective rock.

The completed tunnel is able to withstand earthquakes and marine hazards, such as anchors and sinking ships. The total

up some successes in the Perisher snowfields in southern

cost of the tunnel was $A553.8 million, which was largely

New South Wales. Perisher is Australia’s largest ski resort

funded by 30-year inflation-index bonds underwritten by

with 47 ski lifts and a capacity to lift 51,000 skiers per

the Australian banking megalith, Westpac. The joint-venture

hour. Together, Transfield and Kumagai were responsible

partners provided a loan of $A40 million, and the New South

for the development and construction of the Blue Cow Ski

Wales government provided an interest-free loan of $A223

Resort, the Station Resort at Jindabyne and the Skitube

million. Ownership of the tunnel transfers to the New South

Rack Railway—an underground train with three station

Wales government in 2022, at which time the value of the

terminals, delivering skiers from Thredbo Valley directly to

tunnel as an infrastructure asset is expected to be some $2

the snowfields.

billion in today’s terms.

Kumagai Gumi, based in Shinjuku, Tokyo, employs 2300

After building the Sydney Harbour Tunnel, Kumugai Gumi

people worldwide. It is one of Japan’s oldest and most

completed the Eastern Harbour Crossing in Hong Kong in

respected civil engineering firms, starting operations on

1989, employing the cut-and-cover method similar to that

1 January 1900. It has offices in Hong Kong, Vietnam,

used in Sydney.

Sri Lanka and Taiwan, and has completed many major constructions throughout South-East Asia.

Its constructions include roads, bridges, subway tunnels, hydroelectric power stations, hotels, hospitals, schools and

In 1997 it completed Hong Kong’s Western Harbour Crossing. In 2007, Kumagai Gumi constructed the 2.2-kilometre New MetroRail City Project for the Public Transport Authority of Western Australia.

factories. Its office towers include the 500-metre, 101-storey Taipei 101 financial centre in Taiwan.

The New South Wales government enshrined the proposed

Diagnostics: Australia at the international forefront

construction in the Harbour Tunnel Act, 1987. The tunnel,

Several years ago, a bullet train travelling at 270 kilometres

2.26 kilometres in length, was constructed in three sections:

per hour with 800 people on board travelled 36 kilometres STRONG COMMERCIAL PARTNERS | 71

Professor Graeme Clark (right), surgeon and inventor of the Cochlear ear implant, with the first recepiant of his device, Mr Rod Saunders, on the 30th anniversary of the procedure. AAP Image/Julian Smith.

Cross City Tunnel administration building, Sydney.

Photo: AAP Image/Peter Ryan.

with the driver asleep. Automatic backup systems stopped the train without incident, and it was revealed that the driver suffered from sleep apnea. Australia is a world leader in sleep diagnostic equipment, with companies like ResMed, based in Bella Vista, Sydney, and Compumedics, based in Abbotsford, Melbourne, having an established presence in the Japanese market.

The incident sparked heightened interest in Australia’s sleep diagnostic equipment, and Compumedics reported a twofold increase in sales in Japan in the subsequent six months.

ResMed is another outstanding achiever in this field, and has grown from a modest operation in Sydney’s North Ryde in 1989 to become a global leader with offices in Japan and 30 other countries.

These devices belong to an array of Australian medical products that have found strong demand in the Japanese marketplace. With only 60 per cent of Japan’s $A37 billion medical devices market being met by local companies, Australia’s long-established expertise in this area is finding a natural home, to the benefit of both countries. Some of the devices are 72 | Australia—Japan

well known, such as Cochlear’s implantable hearing devices, which have experienced strong

Australian internatinional singing star

growth international growth, particularly in Japan, over the last 15 years. Others are less

Kylie Minogue visiting nine-year-old

well known, but no less remarkable. Adelaide-based RianCorp has pioneered medical laser

Natasha at the Royal Children's

products for photochemical applications, and is the only company in the world to have

Hospital in Melbourne. Minogue's

conducted randomised double-blind clinical trials on the effects of low-level laser therapy on

visit to the hospital was her first

lymphoedema. The company has three Japanese distributors for its products.

public appearance after undergoing

CryoLogic in Melbourne manufactures a range of cryopreservation systems, temperature

surgery for breast cancer.

control products and cell fusion/activation systems for use in the medical, veterinary and biological sciences. Japan is one of CryoLogic’s 35 export destinations.

Vision Biosystems, also based in Melbourne, manufactures automated tissue processors, automated immunohistochemistry systems, and a range of optical electron microscopy products, and has achieved considerable success in the Japanese market.

OptiScan is a global leader in the development and application of microscopic imaging technologies for medical markets, and is known for its patented miniaturised confocal microscopes. In 2002, the company began collaboration with Pentax in Tokyo to develop the world’s first flexible endomicroscope.

The alliance bore fruit in 2006, with the Pentax ISC 1000 being given regulatory approval in Europe and the United States, and finding ready acceptance worldwide. In 2008, Hoya Corporation joined the collaboration after acquiring Pentax, and Hoya continues to market endomicroscope in Japan under the Pentax brand.

In the rapidly advancing field of proteomics, which is the study of proteins expressed by a genome, cell, tissue or organism, Australia and Japan have collaborated to pioneer a range of diagnostic products and drug treatments. Proteome Systems, a Sydney-based medical research company with facilities in Boston and Osaka, specialises in respiratory disease, STRONG COMMERCIAL PARTNERS | 73

neurodegenerative disease and aging. The company works with the High Q foundation to identify the biomarkers for Huntington’s disease, the Institute for the Biotechnology of Infectious Diseases at the University of Technology, Sydney, in the area of antimicrobial drug discovery, Westmead Hospital and Westmead Children’s Hospital in Sydney in research into ovarian cancer, and the Royal Children’s Hospital in Brisbane under its cystic fibrosis program.

Technologically, the company has a strong partnership with Shimadzu Biotech, a subsidiary of the 135-year-old, Kyoto-based medical instruments specialist Shimadzu Corporation. Together, the companies developed the Xcise robotic gel cutter, lauded by the Harvard School of Public Health as “a powerful technology platform that automates gel processing for high throughput proteome analysis”, and the innovative Chemical InkJet Printer (ChIP), which delivers picolitre volumes of reagent to a target surface.

Following the success of these products, the US arm of Proteome tightened its collaboration with Shimadzu Scientific in the US to promote the products throughout America.

Prime Minister Gillard inspects solar panels at the CSIRO Energy Centre. © Julia Gillard

Another leading collaboration in the field of biotechnology is Stem Cell Sciences, devoted to embryonic stem cell research, with research centres in Scotland and Japan. Each centre is affiliated with stem cell centres of excellence, including the Australian Stem Cell Centre and Melbourne’s Monash University, and the RIKEN Centre for Developmental Biology in Kobe.

Despite the strong competition from Japanese pharmaceutical companies for a share of the country’s $A75 billion medications market, Adelaide’s Mayne Pharma has achieved considerable success with its innovative

74 | Australia—Japan

Cleantaste acetaminophen and ambroxol, which allow a polymer coating

Above: The head of a silkmoth, including

to be applied to small particles up to 150 microns in diameter. The

brain and antennae, sits mounted on a

technology can be used to improve taste or to achieve sustained-release

wheeled machine. Japanese scientists found

characteristics in medications.

that motor commands sent to the vehicle in response to odour stimuli could be translated

Itochu and the CSIRO: One of a growing number of biotechnology alliances

into signals to steer the machine.

AFP PHOTO/Yoshikazu TSUNO

Early biotechnologies, such as fermentation, enzyme production and fermented foods, have played a critical role in Japan’s culture and industry for

Above left: The CSIRO's 64-metre Australia

over a thousand years.

Telescope National Facility in Parkes, central-

Representative of Japan’s eagerness to embrace the benefits of new

western New South Wales.

forms of biotechnology, such as those of the pharmaceutical industry, is the Biotechnology Strategy Council, a high-level government organisation whose members include the Prime Minister and the ministers of five key portfolios.

This initiative, coupled with tax breaks to support research and development and government support for the establishment of clinical trials for medical products, has provided fertile ground with affiliations between Japanese trading companies and Australian research institutes.

The affiliation between the CSIRO and the Japanese trading giant Itochu dates back to February 1996 when the two entities signed an agreement in Tokyo designed to facilitate Australia’s access to Asian food markets. The agreement provided for a CSIRO representative to work at Itochu’s research division to study how Japanese companies conduct their operations and to find market opportunities for Australian companies. The initiative was part STRONG COMMERCIAL PARTNERS | 75

of the Food into Asia program, conducted by CSIRO and the Department of Industry Science and Technology (now the Department of Industry, Innovation, Science, Research and Tertiary Education).

Under the agreement, Itochu helped to commercialise CSIRO technologies in Japan and other Asian countries, with Itochu and CSIRO sharing the financial rewards of the venture.

This affiliation paved the way for further alliances with Itochu, and in 2001 the company joined forces with three Australian research institutes, including the CSIRO, to market their biotechnology products. The other two entities were the Australian Institute of Marine Science (AIMS) and Queensland University’s Institute for Molecular Bioscience (IMB).

Initially, Itochu marketed biotech software developed by CSIRO and IMB for genetic diagnosis and protein analysis, as well as cosmetics developed by AIMS using a chemical His Royal Highness Prince William of Wales, KG,

compound derived from coral. Itochu also introduced

prepares to board research vessel Southern

the institutes’ biotechnology products to Japanese

Surveyor to view robotic marine instruments that

pharmaceuticals companies and other Asian companies.

have revolutionised ocean observations and climate science. © Commonwealth of Australia

The latest success in this affiliation is CSIRO’s new soybean variety, the Bunya, which is proving to be the ideal ingredient for many traditional Japanese dishes. CSIRO bred the

76 | Australia—Japan

Japan's SPring-8, the world's largest and most powerful synchrotron facility. The construction of a synchrotron in Australia will complement this facility and mark the start of a new era in Japanese-Australian scientific partnerships.

soybean from an old Japanese variety, with some American

this purpose. Where an individual Bunya crop fails to meet

and Australian ancestry, aiming to increase yields and

the quality required for human consumption, there is a ready

improve culinary quality.

market for the crop as stockfeed.

The result is a new soybean that is twice the size of

Bunya is particularly liked by the Japanese because its

conventional varieties, with improved yields for growers

superior quality makes it suitable for edamane, a preparation

and processors. The Bunya produces a range of proteins that

of baby soybeans in the pod, as well as miso, the traditional

quickly form a stiff gel, making it the perfect base for many

Japanese seasoning, and tofu.

soy-based foods, such as tofu and custard. First released in

While Itochu has cultivated a long-standing affiliation with

2006, the Bunya now accounts for 20 per cent of Australia’s

CSIRO and other institutes, another Japanese trading giant,

100,000-tonne annual soybean production. It gives better

Sojitz, has been working with Neurosciences Victoria as an

yields and, as the beans are of better quality, it attracts

exclusive agent to promote neuroscience research projects in

a premium price of $50 to $100 per tonne above other

the Japanese market. Neuroscience Victoria provides access

soybean varieties.

to a range of core scientific capabilities via a network of

The steady growth of genetically modified crops, including soybeans, has created a market niche for non-GM soybean for human consumption. The Japanese market is particularly

neuroscience platforms operated by members of the worldclass Melbourne Neuroscience Cluster.

The disease specialisations represented by the neuroscience

sensitive to genetically modified crops, and there is high

cluster include multiple sclerosis, schizophrenia, dementia,

demand for crops such as the Bunya that have been bred

epilepsy, depression, Huntington's disease, neurotrauma,

using non-GM techniques.

Parkinson's disease and stroke.

The Bunya targets the high-value, human-consumption

Neuroscience Victoria was established by experts from

market, where soybeans are used to make tofu is of the

the University of Melbourne, the Howard Florey Institute

highest value, followed by that for soymilk and soy flour.

of Experimental Physiology and Medicine, Monash

Stockfeed products occupy the lower end of the market, and

University, and the National Stroke Research Institute. Other

Australia imports 400,000 to 600,000 tonnes annually for

participants include Sydney University, the Brain Research STRONG COMMERCIAL PARTNERS | 77

Institute, John Curtin School of Medicine and the Mental

in research and development has been steadily growing, and

Health Research Institute. Given the aging of society in the

is currently equal to 10 per cent of revenue. During its 20

industrialised world, there is compelling medical demand for

years of operation, CISRA has filed more than 1300 patent

neuroscience research. The world market for neuroscience-

applications on behalf of Canon, and has generated exports

related medicine was estimated to be worth $US130 billion

valued at $A50 million.

in 2010. The Japanese government has placed particular

Established in 1990, CISRA plays a key role in Canon’s

emphasis on diseases such as Alzheimer’s, which may benefit

future direction, together with other research centres the

from neuroscientific research.

company has established in the United States, France, India

The agreement signed with Sojitz (formerly Nissho

and Beijing. Although the costs of operating an R&D centre

Iwai) allows Neuroscience Victoria to seek partnership

in Australia are higher than in other countries in the region,

opportunities with Japanese pharmaceutical companies to

the superior talent of Australian researchers more than

commercialise its projects, while Sojitz provides functions

compensates for any additional outlay.

ranging from business development, arranging contracts, marketing, trading and distribution to financing.

The federal government’s tax incentives play an important role in supporting Australian research and innovation, and the National Broadband Network (NBN), which will create new

Canon R&D: the Asia-Pacific’s hub of technical expertise

opportunities and support research initiatives, demonstrates the government’s commitment to this vital area.

Canon Australia is a leading provider of advanced, simple-to-

At the ceremony in June 2010 to commemorate 20 years

use imaging solutions for businesses and consumers. Canon’s

of achievement at the facility, managing director Mr Hayao

Australian R&D company, Canon Information Systems

Ozu observed that the future of CISRA lies with closer

Research Australia (CISRA), develops customised solutions

collaboration with Australian universities and government

for local customers and exports digital imaging technologies

research organisations. He said that a critical challenge was

for use in Canon products worldwide.

to create a global software development system that can be

Canon’s extensive line-up of digital products, which encompasses copiers, printers, scanners, image filing systems, cameras and lenses, camcorders, broadcast equipment and optical equipment, enables business users and consumers to capture, store and distribute information.

CISRA employs people with a wide range of expertise,

more cheaply implemented.

Since its establishment, CISRA has had a number of technological accomplishments.

In 2003, CISRA released its ZoomBrowser EX software application designed for the rapidly expanding digital camera market. The software facilitates downloading and

including research engineers, software engineers, hardware

managing images, and features a user interface that zooms

engineers, usability experts, user interface designers,

to provide quick and easy image browsing and a novel way to

verification and validation engineers and technical writers.

organise and annotate photo collections. ZoomBrowser EX is

With a workforce numbering close to 300, CISRA is one

distributed with cameras in Canon’s digital still range. Around

of Australia’s leading private sector research employers,

the same time, PhotoRecord made its debut, which enabled

ranking alongside Google and Cochlear. Canon’s investment

home users to easily create high-quality photo albums.

78 | Australia—Japan

The Australian government has committed $A62.4 million over four years to National Asian Language and Studies in Schools programs in Australian universities.

STRONG COMMERCIAL PARTNERS | 79

Japan's Minister for Foreign Affairs, Katsuya Okada, speaking with students during a visit to the Japan Club of Sydney.

PhotoRecord provides automatic album layout through an

Education: Promoting people-to-people links

intuitive, innovative and highly interactive user interface. The

To increase the opportunities for Australian school students

software is bundled with Canon digital cameras, photo-grade

to become familiar with the languages and cultures of our

bubble jet printers and high-end scanners. Over 100 million

key regional neighbours, particularly Japan, the Australian

copies have been distributed worldwide to date.

government has committed $A62.4 million in funding over

CISRA’s unique ultra fast rendering (UFR) technology allows low-cost, high-performance, high-resolution colour and monochrome page processing in a wide variety of printer

four years for the National Asian Language and Studies in Schools Programs (NALSSP).

The program provides funding in four key areas: state

products. This unique process is employed across Canon’s

and territory government and non-government educational

entire print product range, from inexpensive consumer

authorities; organisations, including universities, providers

models that use computer drivers, through to networked

of higher education, businesses and Asian communities

office multifunction imageRUNNERs, and professional

(the Strategic Collaboration and Partnership Fund); schools

imagePRESS models.

operated by the Asia Education Foundation (Becoming Asia

CISRA’s PosterArtist software enables the user to create professional-quality large-format posters through its intuitive but powerful interface and its library of ready-to-use poster

Literate); and Australian government national projects.

The first round of funding generated strong demand, with 117 organisations applying to receive funding.

templates. PosterArtist is ideal for small business and inhouse print shops and is available internationally bundled

Language translation/instruction: A major player in

with Canon's large-format printers.

the area of translation and language instruction is Benesse

In 2003, CISRA’s CANVAS (video monitoring security application) was publicly demonstrated for the first time at the ASIS International exhibition (one of the world’s

Holdings Inc., based in Okayama, Japan, which has 33 subsidiaries throughout Asia and the United States.

Member companies include Berlitz and Simul

largest security exhibitions) and has since become a strong

International. Its local arm, Benesse Global Career Acadmey

source of revenue for the company.

Pty Ltd in Crows Nest, Sydney, partners with the Northern

80 | Australia—Japan

Productictive relationship are constantly developing between Australian and Japanese students at Australian universities.

Sydney Institute of TAFE NSW to support Japanese high-

differences in lifestyle, education systems and culture.

school students wishing to come to Australia to embark on an

The comprehensive system of individualised worksheets

international career.

allows students to work at their own pace and experience the

The academy provides a 10-month TELC language course

fulfilment of solving problems on their own.

to allow the students to attain English proficiency and adapt to Australian styles of instruction.

While studying at TAFE, the students are mentored by a Japanese staff member and provided with comprehensive support in career counselling and their student life.

Students who have undertaken part of their tertiary

Recruiting staff: Established in 1991, Staff Solutions

Australia Pty Ltd offers assistance to Japanese expatriates in recruiting, visa consultation and education consulting.

It has approximately 12,000 multilingual staff in placements nationwide, and its clients include many of

education in Japan can choose from the wide range of courses

Japan's largest and most prestigious corporations, as well

that TAFE offers, and gain credit for the subjects they have

as many multinational conglomerates.

already completed back home.

The company operates as a consultant to international students wishing to study at Australian universities, TAFE

Self-paced learning: Based on the self-paced teaching

or other colleges, or language schools. Its visa consulting

principles of high school mathematics teacher, Toru Kumon,

division assists in a range of visa applications, and its

in Osaka in 1954, the Kumon Method of Learning has

interpreter and translation division dispatches NAATI-

spread to 46 countries and has 4.3 million enrolments

accredited professionals.

worldwide.

In Australia, Kumon has hundreds of learning centres

With its head office in Sydney, it has branches in Cairns, Brisbane, the Gold Coast, Melbourne, Adelaide and Perth.

in the capital cities and scores more spread throughout

The company targets people emerging from the Japanese

regional areas.

education system who have broad-based skills and who

The Kumon Method has remained consistent for over 50 years and is readily accepted in many countries, despite

are looking to further their careers abroad in a more specialised area.

STRONG COMMERCIAL PARTNERS | 81

prepare a statue for airfreighting

Shipping and Logistics: No job too big for Nippon Express

to the University of Pennsylvania

The curators at the Musée du Louvre might think carefully before entrusting the Venus de

Museum of Archaeology and

Milo or the Mona Lisa to a freight company for dispatch to an international exhibition.

Anthropology.

On both occasions this circumstance has arisen, once in 1964 and again in 1974, the curators

Above: Nippon Express staff

chose Nippon Express, known in Japan as Nihon Tsu-un, or simply Nittsu.

Above right: ANA (All Nippon

During its 140-year history, the company has transported some of the world’s most

Airways) pilots training to fly the

delicate and priceless treasures, and, in the process, established a reputation for care and

new Boeing 787 Dreamliner.

attention to detail.

The Japanese government became involved with Nippon Express in 1937. This led to the addition a number of small-scale transport entities and six rival companies. The result was a central transport company, partially funded by the government, which serviced all of the nation’s major cities.

Nippon Express was relaunched as a private concern in 1950, and it subsequently opened overseas offices, first in New York (1958) then in Taipei and Sydney in 1967. Today, Nippon Express operates in 382 locations in 37 countries around the world, and employs over 15,000 people.

Fine art transport is one of three specialty services provided by Nippon Express. The company also provides a comprehensive international relocation service that includes inspection and estimation, packing, customs clearance, shipping, insurance, storage, delivery and reassembly/set-up.

In addition, the company specialises in the transport of heavy construction machinery, and is able to organise the dispatch of modules weighing up to 3000 tonnes by sea. The company offers international multi-modal transport under the Arrow International

82 | Australia—Japan

brand, making optimum use of the network linking its domestic branch offices, overseas

The first Boeing 787 Dreamliner

subsidiaries and affiliated agencies. Another logistics operation that continues to expand its

aircraft delivered to ANA (All Nippon

operations each year is Mitsui OSK Lines.

Airways).

Founded in 1878 to transport coal from Kuchinotsu in Japan to Shanghai, the company changed its name to Osaka Shosen Kaisha (OSK Lines) in 1884. In 1942, the large Japanese trading company, Mitsui & Co., spun off its shipping division to create Mitsui Steamship Co. Ltd In 1964, Mitsui OSK Lines was born through the merger of the two companies.

Today, the company has 38 offices in around the world, including one in Sydney and one in Perth. In 1930, the company launched the high-speed cargo ship, the Kinai Maru, which reduced the travel time on the Yokohama-New York route by 25 per cent, from 35 days to less than 26 days. Since then, the company has continued to set the benchmark for international shipping.

Today, the company operates the world’s largest fleet of bulk carriers, one of which, the Brasil Maru, specialises in iron ore. Each vessel in the fleet is designed and constructed to meet the unique characteristics of each cargo, and tailored to the needs of specific ports.

Its fleet of oil tankers ranges from very large crude carriers (VLCCs) of more than 200,000 deadweight tonnes, to mid-size and small tankers, known as Suezmaz and Aframax tankers.

In 1993, the company negotiated the contract for the Qatar Project, the world’s largest LNG transport contract, on behalf of a Japanese consortium, and transports six million tonnes of LNG per annum from the Middle East to Japan. The company is now involved in about 25 per cent of the world’s LNG transport.

To meet the burgeoning export needs of Japanese car manufacturers, Mitsui OSK Lines launched the world’s first purpose-built car carrier in 1965. These vessels now form an important part of the world’s shipping operations. Their capacity has increased from STRONG COMMERCIAL PARTNERS | 83

Australian solar energy company Dyesol is drawing on experience gained at solar statons like this one in Spain to help meet increasing Japanese demand for solar power.

84 | Australia—Japan

1200 cars in 1965 to 6400 cars today. Mitsui OSK Lines

take advantage of the expanding opportunities offered by

operates one of the world’s most extensive networks of

the Japanese renewable energy market. Following Tokyo’s

container routes, serviced by a fleet of over 100 container

introduction of an emissions trading scheme in April 2010,

ships ranging in size from 700 to 8000 TEUs (20-foot

and as Japan prepares to launch its national scheme in

equivalent units). One TEU is the volume of one standard

2013, companies engaged in renewable energy are finding

20-foot shipping container, or 38.5 cubic metres.

investment decisions are much more favourable than before.

Each year, 1.5 million people relax aboard the company’s

Dyesol is a pioneer of dye solar cell (DSC) technology,

ferries and coastal liners as they travel around Japan’s

a third-generation solar technology that, when integrated

sprawling archipelago.

with building materials, has the potential to turn normal

The company launched Japan’s first cruise ships, the Fuji

structures into inexpensive power generators. With the

Maru (23,235 gross tons) and the Nippon Maru (21,903

recent completion of several pilot programs in Wales and

gross tons). Today, leisure cruises are an area of strong

America, Dyesol and its joint venture partners are on track

growth for the company.

to offer DSC as a large-scale commercial product within the next few years. Dye solar cell technology is based on the

Dyesol: Capitalising on Japan’s rekindled love of solar power

natural process of photosynthesis, and captures energy in

In his last act before stepping down as prime minister in

just as in photosynthesis, at the interface between the light-

August 2011, Naoto Kan signed into law legislation that will

absorbing dye and the semiconductor nanoparticles. The use

compel Japan’s utilities to purchase mandated amounts of

of nanoparticulate titanium dioxide as the semiconductor

renewable energy. The move marks a major shift away from

eliminates the need to use high-purity artificial

the New Energy Strategy prepared by Japan’s Ministry of

semiconductors or rare materials in the manufacturing

Economy, Trade and Industry (METI) in May 2006 that

process, thereby avoiding high materials costs and potential

calls for, amongst other things, the construction of nine

supply shortages.

new nuclear power plants by 2020. Japan’s demand for solar

much the same way as a leaf. The separation of charge occurs

The main feature of Dyesol’s technology is that it

energy is augmented by the premium prices paid by Japanese

generates electricity consistently. The cell voltage is

electric power companies for surplus solar energy Japanese

determined by the conduction band of titanium oxide,

households sell back to the grid.

and remains consistent in a wide range of light conditions.

As Japanese households make the transition to solar

This feature makes it ideal for use in shaded urban

power, foreign companies are entering the market at an

environments—and when used in buildings, it can generate

increasing pace. In an industry traditionally dominated by

power from both the external and internal light. An added

Kyocera and Sharp, the new market entrants are experiencing

feature is that it is substantially cheaper to manufacture

considerable growth and are starting to erode the market

due to the low-temperature processes involved and the

share of the Japanese players. Dyesol, based in Queanbeyan,

absence of high-vacuum technology needed for conventional

New South Wales, has had a presence in the Japanese

solar devices. Dyesol partners with leading international

market since it established a subsidiary in Tokyo in 2007 to

manufacturers of building materials in Europe, England and STRONG COMMERCIAL PARTNERS | 85

In partnership with Tata Steel, Dyesol has produced the world’s largest dye-sensitised photovoltaic module for micro energy generation.

America to integrate its technology, creating dye sensitised

the door to an array of collaborations with major Japanese

photovoltaic modules in glass or steel. In June 2011, the

corporations in the field, especially in consumer electronics.

Japanese Ministry of Economy, Trade and Industry selected

other leading renewables companies share in the ¥2.5 billion

Toyota Technical Centre: Cornerstone of the largest automotive company in Australia

($A31 million) subsidy and will work with leading Japanese

Toyota Technical Centre Australia is perhaps the most

researchers to develop advanced versions of the dye solar cell

advanced purpose-built autom otive design facility in

materials and devices. The main objective of the collaborative

Australia, and is staffed by engineers with the experience and

research is to increase the efficiency of the DSC technology.

technical expertise required to design a range of models for

Dyesol to receive a prestigious research grant to establish a regional research laboratory in Japan. Dyesol and four

Beyond the substantial financial injection, the grant delivers Dyesol many benefits. The new Japan R&D centre

the international market.

The centre’s rapidly expanding payroll of 160 staff is

will give Dyesol an unprecedented ability to create intellectual

engaged in a range of local, regional and global projects that

property and facilitate strong working relationships with

encompass all stages of the vehicle design process. It is one of

centres of research in Japan.

Toyota’s five technical centres around the world.

Enhancements to its existing intellectual property for the

Since its establishment in 2003, the company’s primary

next-generation technology will enable Dyesol to achieve

focus has been on product development for Australia and

greater industrial efficiency.

Asia, notably body design, chassis design, evaluation and the

The facilities will be a substantial expansion of Dyesol’s R&D activities in Japan and will allow it to expand its ability

development of specifications.

More recently, the centre’s engineers have beem taking

to service the Asian marketplace with the best quality and

on greater responsibility for the development and design of

performance in DSC materials and devices. Most importantly,

Japanese, European and American models. The centre has

the project provides Dyesol with the government imprimatur

six departments: body engineering, chassis engineering,

highly coveted by foreign companies because it can open

customer quality engineering, electronics engineering, vehicle

86 | Australia—Japan

Toyota's revolutionary hydrogen fuel-cell/electric car with a pre-collision safety system designed to protect and assist the driver.

evaluation, and support. The Body Engineering Department

with the Technical Centre in Japan to develop software for

has four teams, three of which consist of specialists highly

global vehicle projects, such as the electric motor control

skilled in the design and development of specific parts

system for hybrid vehicles. The Wire Harness Group is

that are common to different vehicles. The teams engage

responsible for the complete design and development of

in the design of the body shell and functional parts, such

wire harnesses for local and global vehicles. The Electronics

as glass and the fuel system, the exterior design, such as

Engineering and Evaluation Group designs and develops

the bumpers and grilles, and the interior design, which

body electronics, which control the clock, remote keyless

includes the leather and fabrics, the instrument panel, the

entry and the navigation and multimedia systems.

trim and airbags. The fourth team is a cross-functional unit

The Vehicle Evaluation Department is involved in the

responsible for vehicle body systems and components from

evaluation of locally made and imported Toyotas. The group's

concept to production, typically for a single model.

activities include dynamic testing, competitor benchmarking,

The Chassis Engineering Department is responsible for systems relating to running, stopping and turning. The team

overall vehicle evaluation and environmental studies.

The support team comprises members from human

is also involved in the development of chassis components,

resources, IT, accounting, finance, and engineering

including pipes within the hydraulic brake system, as well

administration, and assists with the control and management

as the braking systems, the suspension, and the tyres and

of engineers’ design drawings.

wheels. The Customer Quality Engineering Department participates in after-sale quality review and improvement, and operates on the principle that early detection equals early resolution.

The Electronics Engineering Department comprises three groups responsible for the development and inclusion of cutting-edge technologies that increase vehicles’ safety and functionality. The Software Development Group works closely STRONG COMMERCIAL PARTNERS | 87

SOJITZ CORPORATION New way, New value Sojitz Corporation is a general trading company created through the merger of Nichimen Corporation and Nissho Iwai Corporation, which were established more than 100 years ago.

As a company that creates new businesses and new value, Sojitz is involved in a broad range of operations worldwide, including automobiles, plants, energy mineral resources, chemicals and food resources.

In Australia, Sojitz develops new businesses and conducts trading through its wholly owned subsidiary, Sojitz Australia, with its head office in Sydney and branches in Melbourne,

The Minerva coal mine, located

Perth, Brisbane and Papua New Guinea. Leveraging the comprehensive strengths of the

approximately 45km south of

Sojitz Group, we handle a wide spectrum of industries and products originating in Australia,

Emerald City in Queensland.

from natural resources to chemicals and consumer products.

We export approximately 7 million metric tons of coal to Japan and China annually from our own mining interests in the Minerva Coal Joint Venture, Moolarben Coal Mine and other sources as well as from independent suppliers in Queensland and New South Wales.

We have raised our stake in the Minerva Coal Joint Venture to 96 per cent and assumed control of operations with the intention of further expanding the scope of this business.

In rare earths, we collaborated with the government of Japan to invest in and provide loans to Lynas Corporation Limited for the expansion of a mine in Western Australia. We will serve as sole distributor and agent in Japan, supplying approximately 8,500 tons annually of rare earths produced by Lynas, which is equivalent to approximately 30 per cent of Japan’s current demand. In 2007, we acquired a 30 per cent interest in the Southdown Magnetite Project.

Iron ore concentrate produced by this joint venture is expected to total 7 million metric tons per annum for more than 30 years from 2013. We also have a 10 per cent stake in Dampier Salt Limited, which produces about 10 million metric tons of industrial salt per annum.

In the woodchip business, we have been involved in the operation of tree plantations in Victoria since the 1990s. These plantations now cover a total of 10,000 hectares.

Wheat and beef are two other major exports from Australia. Every year, we export more than 1 million metric tons of wheat from Western Australia and Victoria to Indonesia, Japan and other Asian countries, as well as frozen beef and live cattle.

Abundant yields, political stability and proximity to Asian countries make Australia one of the Sojitz Group’s most competitive sources of energy, mineral, food, forest and other natural resources. We aim to expand earnings by accurately meeting strong demand in China and other Asian countries in addition to supplying Japan’s needs. With our sights set on sustained growth, we will continue to emphasize acquisition of prime natural resource assets and improvement of efficiency through optimal asset reallocation.

88 | Australia — Japan

JX Holdings JX Holdings, Inc., is an integrated energy, resources, and materials business group founded in April 2010 through the integration of Nippon Oil Corporation and Nippon Mining Holdings. The group is centred on three core operating companies: JX Nippon Oil & Energy Corporation, JX Nippon Oil & Gas Exploration Corporation and JX Nippon Mining & Metals Corporation, all market leaders in their respective fields in Japan and active overseas, including in Australia.

JX Nippon Oil & Energy conducts refining and marketing of petroleum and petrochemical products, and boasts the No. 1 share in the fuel sales market, the largest number of service stations (ENEOS brand) and the biggest paraxylene supply capacity in Asia.

In its operations in Australia, the company collaborates closely with Xstrata, an

JX group operates Japan’s biggest petroleum refining and marketing

international resource giant, in maintaining the stable supply of coal from the Bulga coal

business, an oil and natural

mine in New South Wales, which has become one of the bestselling brands of Australian

gas exploration and production

thermal coal in Japan.

business, and a metals business

JX Nippon Oil & Gas Exploration conducts an oil and natural gas exploration and

(picture: Bulga coal mine).

production business, and is a leading company in Japan in terms of production of natural gas and crude oil. Its overseas operations comprise such fields as crude oil, LNG and oil sands.

The company is involved in crude oil production and exploration in Australia, where the Mutineer-Exeter oil fields of the north-west produce low-sulfur, high-quality crude oil.

JX Nippon Mining & Metals conducts a metals business, and is one of the global leading producers of electrolytic copper and electronic materials. In Australia, the company is engaged in the exploration of metal resources and the development of a hydro-metallurgic method called the Nikko chloride process, which enables the effective recovery of nonferrous metals such as copper and gold from low-grade copper concentrates. An Australian company, Newcrest Mining Limited, is assisting JX Nippon Mining & Metals with demonstration tests for this technology at a pilot plant.

AUSTRALIA–JAPAN | 89

Woodside Woodside is the biggest operator of oil and gas production in Australia. We are Australia’s largest independent dedicated oil and gas company.

Throughout Woodside’s 57-year history we have strived for excellence in our safety and environment performance and we aim to ensure that wherever we operate, the community benefits from our presence.

Woodside produces around 700,000 barrels of oil equivalent each day from an extensive portfolio of facilities which we operate on behalf of some of the world’s major oil

Woodside is Australia's largest oil

and gas companies. Our operated facilities include six liquefied natural gas trains (five in

and gas producer. The natural gas

operation, one in commissioning phase), four offshore platforms (three in operation, one in

we produce and market helps meet

commissioning phase) and four oil floating production storage and off-loading (FPSO) vessels.

the demand for cleaner energy

We are the most active exploration company in the deepwater provinces of Australia, having participated in around 40 per cent of Australia’s deepwater exploration wells.

We have been operating our landmark Australian project, the North West Shelf, for more than 25 years and it remains one of the world’s premier LNG facilities.

The natural gas we produce and market helps meet the demand for cleaner energy from customer countries, including Japan, China, Korea, Australia and other Asia Pacific nations.

Our international assets include deepwater production facilities in the USA's Gulf of Mexico plus exploration acreage in the USA, Brazil, Peru and South Korea.

In 2012 Woodside will begin production from the Pluto LNG Project. At full capacity it will add more than 100,000 barrels of oil equivalent a day to our operated production. We are seeking to expand the Pluto facilities and build new standalone projects including our Browse and Sunrise LNG developments.

Through the depth of our experience, the capability of our people, and our strong relationships with customers, co-venturers, governments and communities, we seek to be the partner of choice.

90 | Australia — Japan

from customer countries, including Japan, China, Korea, Australia and other Asia Pacific nations.

Baker & McKenzie Baker & McKenzie combines an uncompromising commitment to excellence with fluency in the way we think, work and behave—an instinctively global perspective, commercially pragmatic advice, a genuinely multi-cultural approach and a passion for collaborative relationships.

Our 170 lawyer team in Tokyo includes over 10 Australian lawyers and several Japanese lawyers with experience in Australia. Our Sydney and Melbourne offices have over 290 lawyers, a number of whom have worked in Japan and are fluent in Japanese.

We have operated for over 40 years in each country and have a significant track record of transactions between the two countries.

We have an ongoing exchange of staff between our offices and, as with all Baker & McKenzie’s global offices, our offices in Tokyo, Sydney, and Melbourne are seamlessly linked, providing fluent legal services to clients looking to expand their businesses in Japan and Australia.

We frequently advise Australian companies with their

Top left to right: Anne Hung (Tokyo) and Paul Davis (Tokyo).

business in Japan and have been at the forefront in assisting

Bottom left to right: Richard Lustig (Melbourne) and Ben

Japanese companies investing in Australia.

McLaughlin (Sydney).

Recent recognition of our expertise can be seen with the following awards: “Legal Advisor of the Year” Financial Times-mergermarket Asia Pacific M&A Awards 2010 and 2011 “International Law Firm of the Year” 2011 Macquarie Bank ALB Australasian Law Awards “The ALB 50—Asia’s Largest Law Firms” published by Asian Legal Business has recognised our firm as the largest international firm in Japan for three consecutive years outnumbering the second largest firm by more than 40 lawyers.

AUSTRALIA–JAPAN | 91

Allens Arthur Robinson Allens Arthur Robinson (Allens) is a leading international law firm with over 1,500 personnel in 14 cities in Australia, South East Asia and China (and most recently Mongolia).

With more than 180 years of commercial practice experience, Allens has a distinguished reputation, having acted for many years as principal lawyers to many of the leading corporations and financial institutions from around the world.

Allens has a long association with Japan and major Japanese corporations with significant dealings in Australia and the Asia Pacific region.

Allens is able to provide unparalleled support to its Japanese clients through the Co-operative Alliance it

Tim Lester (left) is co-head of the firm’s corporate finance practice in Perth

enjoys with Nagashima Ohno & Tsunematsu, one of

and Head of the Allens’ Japan Practice. Michael Rose (right) is the Chief

Japan’s premier law firms.

Executive Partner of international law firm, Allens Arthur Robinson.

The value that Allens provides to our Japanese and international clients is enhanced and strengthened by the teams we have across our offices that offer a detailed knowledge of the legal systems and business practices of Japan, Australia and the key countries across the region.

FOCUS PUBLISHING If you don’t tell your story, who will?

Focus has a 22-year record in creating high-quality corporate and industry books. Focus Publishing provides a turnkey service tailored specifically to the requirements of each project, from concept development, interviewing and writing through to editing, design, production, print management and distribution.

Our service includes: Planning · Content development · Sponsorship · Design and artwork · Project management · Print management · Distribution and marketing · Digital and Web design.

Every industry has a unique story and different corporate communication needs. Focus creates unique, relevant and targeted industry annuals and special event books.

92 | Australia — Japan

Clayton Utz "As a top tier Australian law firm, with market-leading expertise and experience, we are dedicated to bridging the gap between the Japanese and Australian legal systems, cultures and languages to ensure our clients' businesses grow and succeed."

Clayton Utz's long-standing and successful relationship with various types of Japanese corporations and government entities, coupled with the excellent relationship we have with the major Japanese law firms, ensures our reputation for being a leading firm with the expertise and experience to assist our Japanese clients.

Our highly dedicated team of Japanese qualified bengoshi and Australian lawyers with Japanese legal, language and cultural knowledge provides a

At Clayton Utz, we are dedicated to bridging the gap between the Japanese and Australian legal systems.

wealth of experience in this area. We have acted for Japanese clients across a wide range of industry sectors on transactions relating to securities, mergers and acquisitions, exploration, mining and mine development, corporate, taxation, licensing, distribution and supply, competition, employment, insolvency, litigation and dispute resolution.

Deloitte Our Commitment Deloitte Touche Tohmatsu’s Japanese Services Group (JSG) focuses on meeting the needs of Japanese companies worldwide through more than 500 Japanese bilingual professionals, including more than 20 in Australia’s major cities.

The JSG’s multidisciplinary services include internal audit, risk management, mergers and acquisitions, international tax, transfer pricing, international assignment and corporate restructuring, as well as human resources, strategy and organisational consulting.

The Australian JSG is committed to providing quality services to Japanese corporations operating throughout Australia.

Recent Awards: Kennedy names Deloitte a global leader and fastest-growing

Providing quality services to Japanese corporations operating throughout Australia.

in Information Management and Analytics 2010 – 2013; BRW Client Choice Awards 2011 for Best Accountancy Firm (revenue over $500 million); Deloitte Australia was named the Australian Tax Disputes Firm of the Year for 2011 at the International Tax Review, Asia Tax Awards; 2011 Australian Business Award for Product Innovation for our unique smartphone platform, Bamboo®.

AUSTRALIA–JAPAN | 93

4 Partners in international engagement

Partners in international engagement

Asia is home to the world’s two most populous nations, the country with the largest Muslim population (Indonesia), the world’s second and third biggest economies, and the largest democracy in the word.

By 2020, Asia will account for around 45 per cent of global GDP and one-third of global trade.

It will be home to 56 per cent of the world’s eight billion people.

These rapid changes are indicative of the world’s changing strategic balance, transcending mere economic and demographic changes. This is the Asia-Pacific century.

However, the stability of our region is subject to a range of risk factors: climate change, financial crises, weapons proliferation, transnational crime, environmental degradation, energy security, health pandemics, poverty and inequality.

In each of these domains, Japan is a key strategic, security and economic partner.

The list of areas in which Australia and Japan co-operate—both within the region and globally—is extensive.

In 2008, Australia and Japan agreed to a joint statement on comprehensive strategic, security and economic partnership. In the same year, the nations signed a joint statement on nuclear non-proliferation and disarmament and worked together to establish the International Commission on Nuclear Non-Proliferation and Disarmament.

In 2009, the nations expanded their joint declaration on security co-operation. In 2010, they signed the Australia-Japan Acquisition and Cross-Servicing Agreement—the only such

Osaka Business Park's attractions

agreement that Japan has with any country other than the United States.

include its high-rise convention

Australia participates in a trilateral strategic dialogue with Japan and the United States.

centre and its river water bus.

Australia and Japan hold regular joint meetings of foreign and defence ministers, the so-called

© Osaka Convention & Tourism

“2+2” meetings. The level of co-operation in security and strategic affairs is continuing to rise.

Bureau/©JNTO

96 | Australia—Japan

Mutual support and respect Japan is Australia’s most important security partner in Asia. Many in Japan regard Australia as Japan’s second most important partner after the United States. Australia’s co-operation with Japan in the Asia-Pacific region is strengthened by the fact that both countries are allies of the United States.

The two countries work together on the ground as well. They support each other in times of trouble: Australia’s assistance in March 2011 after the Tohoku earthquake and tsunami was second only to that of the United States, with a 76-person search and rescue team and defence operation-response officers providing much-needed support in the devastated region.

Australia sent all of its operational RAAF C-17A heavy-lift aircraft, delivering more than 400 tonnes of supplies and equipment to some of the most severely affected areas. It also sent two of the C17 aircraft to a US base Following the 2011 Tohoku earthquake, Australia used all its operational RAAF C-17A heavylift aircraft to ship equipment and supplies to affected areas in Japan.

in Japan to move essential fire-fighting equipment to Fukushima.

Japan and Australia have worked together in third countries like Iraq, where members of their armed forces provided security for Japanese engineers. In the Pakistan floods, the ADF provided airlift capacity for Japanese medical teams.

At a more local level, people stepped in to assist those in need after the destructive Tohoku earthquake and tsunami.

In August 2011, Meat & Livestock Australia delivered hay to Tohoku farmers for their cattle in Soma, in the Fukushima prefecture. Earlier, on 14 May, Meat & Livestock Australia launched its Together with Japan program to help the Japanese beef industry rebuild after the earthquake.

98 | Australia—Japan

The event centred on a celebrity BBQ, which raised more than $A250,000 in assistance.

The Japan Centre, School of Culture, History and Language, College of Asia and the Pacific, ANU, in conjunction with the ANU Japan Club and the ANU Kabuki Club, held a second-hand book sale as a fundraising activity for those affected by the disaster. On 24 June 2011, the Isabella a cappella choir group from Australia’s Southern Cross University Choir performed for the residents of Futaba, Fukushima, at an evacuation centre in Saitama Prefecture.

On 24 June 2011, the staff of the Tokyo Embassy played a goodwill 20/20 cricket match and helped raise an estimated ¥700,000 for the victims of devastation in Akishima City, in Tokyo’s west.

More information on the initiatives of Australians in helping those affected by the devastation is available from the website http://australiahelps.gov.au/japan/

Above top: Prime paddocks in Boorowa, New South Wales.

Photo: Holly Bradford.

Above: Inquisitive Australian lambs

Operation Pacific Assist In March 2011, the Australian Defence Force (ADF) launched Operation Pacific Assist to help in disaster relief following the Tohoku earthquake and tsunami. An integral part of the operation was the C-17A Globemaster III, a large Royal Australian Air Force aircraft used to airlift personnel and cargo. The C-17As are used to support Australian and Coalition forces in the Middle East, and have proven themselves equally suited to regional disaster relief operations. Australia and America were the only two countries that provided military airlift assistance within Japan.

Trusted friends | 99

Supplies being unloaded in Japan following delivery from an RAAF base in Australia. Photo: LACW Jessica Smith Š Commonwealth of Australia

100 | Australia—Japan

Operation Pacific Assist was the ADF component of a

world (OECD, 2009), and the second largest in terms of

joint effort between the ADF and Emergency Management

total disbursements, including the value of loans. Japan’s

Australia (EMA), whose mission was to provide an

total aid disbursements in 2007 amounted to $US7.7 billion.

emergency services task force to help the victims of the

Asia is consistently designated as a priority region for

disaster. The task force brought together the New South

Japanese development assistance.

Wales police, fire and ambulance services, Australian Capital

Japan supports infrastructure and human resource

Territory fire fighters and search and rescue dog handlers

development in the Australia-Japan region through official

from Queensland. The ADF provided a strategic airlift for

development assistance (ODA), and facilitates private sector

the task force to Yokota Airbase, Japan, arriving in the early

investment and trade through large-scale project lending.

hours of Monday 14 March, three days after the disaster.

More recently, these economic co-operation relationships

The C-17A remained in Japan for two weeks and undertook

began being institutionalised as economic partnership

23 sorties, conducting intra-country airlifts of vital stores and

arrangements, and many take the form of public-private

equipment assisting in the humanitarian effort, including

partnerships (PPPs).

food and bottled water. During its deployment, the C-17A

Peter Drysdale, of the Crawford School of Economics

and its crew moved more than 450 tonnes of cargo, including

and Government, observes that Australian business is

41 vehicles and 135 passengers.

very experienced in these arrangements and that there is

Two additional C-17As undertook a mission from Australia

considerable opportunity for Australian consultant groups to

to Japan carrying a remotely operated water cannon system

participate in Japanese development projects, such as India’s

to assist with containment operations at the Fukushima

Delhi-Mumbai Industrial Corridor.

nuclear power plant.

Drysdale says, ”Given the focus of Japan’s aid program on

The C-17A aircrew, normally stationed with the No. 36

Asia, and Japan’s recognition of Australian experience in the

Squadron in Queensland, performed well in negotiating the

Pacific as well as Asia, Australia’s share of these contracts and

unfamiliar, icy conditions in northern Japan, and limited

its participation in development studies consultancies could

infrastructure and services, such as air traffic control.

be significantly increased.”

The conventional interpretation of Article 9 of Japan’s

Promoting stability

pacifist constitution imposes severe restrictions on the

Elsewhere in the region Japan and Australia work together

overseas deployment of its Self-Defence Forces and their

to promote stability and economic development in countries

capacity to co-operate with other military forces beyond the

in the Pacific. Japan makes a strong contribution to the

scope of UN-mandated operations. This restriction frequently

development of these island states, both as a significant aid

results in requests from the Japanese government for the

donor and as a regional partner with Australia in support

Australian Defence Force to supplement the humanitarian

of good governance. Japan and Australia work in unison

work of the Self-Defence Forces by providing protection or

to promote the nation building and development efforts

logistical support.

of countries such as the Solomon Islands and East Timor.

In absolute terms, Japan is the fifth-largest aid donor in the

For example, when Japan sent a contingent of soldiers to al-Muthanna in southern Iraq in 2003 to engage in a series Trusted friends | 101

An F/A-18 Hornet providing security for Japanese soldiers sent to Iraq in 2003 to help reduce the threat Iraq posed to the Middle East.

Photo: Ronnie Bell, RAAF.

of humanitarian and reconstruction projects, the Australian

he has since observed, the Japanese saw Australia as a truly

Defence Force was called upon to provide the security.

valued security partner.

Australian forces first deployed to Iraq in 2003 as part of

In 2006, Alexander Downer commented, “Both Australia

the international coalition efforts to reduce Iraq’s potential

and Japan have sophisticated defence forces. I think they can

threat to the region. The role developed into Operation

play an effective role in the region, and co-operation might be

Catalyst to create a secure and stable environment in Iraq

in relief or emergencies.” He predicted—accurately—that the

and to assist national recovery programs. A naval frigate and

two forces would become more familiar in working together

naval training team, RAAF C130 transport and P3 Orion

through joint exercises and training. He was keen for the

surveillance aircraft, defence civilian advisors from the Iraqi

two forces to build upon their humanitarian co-operation in

Ministry of Defence, and the security detachment (SECDET)

Aceh and earlier peacekeeping roles in East Timor. On the

provided protection. More than 20,000 Australian Defence

question of joint exercises in Australia, he was keen to avoid

Force personnel served in Iraq as part of Operation Catalyst

the aggressive military training the ADF undertook with the

between 2003 and 2009.

US military. The experience at al-Muthanna was the impetus

The historic deployment of the Self-Defence Forces was a success—there were no Japanese fatalities.

for Alexander Downer to work towards the 2007 strategic alliance with Japan.

Australia’s military spending totals $US20 billion, the

Pivotal Iraqi commitment

world’s thirteenth-largest in absolute terms, accounting for

Australia’s former foreign minister Alexander Downer

1.5 per cent of the world’s military spending. At $US51.4

argues that the significance of Australia’s commitment in

billion, Japan’s military budget is the world’s sixth largest,

al-Muthanna should not be underestimated. He says that

accounting for 3.3 per cent of the world’s military spending.

the nation was asked to provide security and would not have

As a percentage of GDP, Australia’s military spending, at 1.9

made the commitment if not for its close relationship with

per cent, is about double that of Japan (1.0 per cent).

Japan. Downer believed that the Iraqi commitment was pivotal in strengthening bilateral relations. From that point, 102 | Australia—Japan

For many years, there have been moves to revise Japan’s constitution to enable the Self-Defence Forces to be

Prime Minister Julia Gillard talking to Australian Defence Force personnel at Tarin Kot, a multinational base in Afghanistan.

recognised as a regular military. With a view to achieving this

involvement in Cambodia—accompanied by lengthy and

objective, former prime minister Shinzo Abe, for example,

widespread debate amongst Japan’s constitutional lawyers,

upgraded the status of the Defence Agency to that of a fully-

analysts and members of the public.

fledged department with its own minister in cabinet. But

In March 1992, the United Nations Transitional Authority

these efforts have generally had a muted overall effect. While

was established under the 1991 Paris Agreement to supervise

there is some ambiguity about the details of implementing

a ceasefire and general election in Cambodia. Australian

the pacifist provisions (for instance, the constitution allows

diplomacy from 1989 to 1991 assisted the successful

the manufacture of computer components, but would

conclusion of the agreements.

prohibit their subsequent use in a missile guidance system), the spirit of Japan’s pacifist constitution has proven resilient.

The Australian Defence Force contingent consisted of 502 personnel, comprising the 488-member Force Communications Unit and 14 staff members working at

Joint battle against tsunami

the transitional authority’s various 60 locations throughout

Another sphere of co-operation between Australia and

Cambodia, alongside members of Japan’s Self-Defence Forces.

Japan that established a precedent for closer ties was the

Today, Japan remains Cambodia’s top donor country,

2004 Indian Ocean tsunami. In the wake of the disaster,

having provided $US1.2 billion in official development

Australia and Japan joined forces with India and the United

assistance (ODA) since 1992. Much of this money has gone

States to form a core group of donor states to conduct

to education and landmine eradication.

rescue operations, co-ordinate aid efforts and streamline the

Co-operation between the Australia and Japan was evident

provision of immediate assistance. These efforts paved the

again in 1999, when, in response to a request from the

way for further systematic co-ordination in subsequent years.

United Nations, Japan dispatched civilian police officers to

After World War II, Japan was reluctant to assume

the UN mission in East Timor (UNAMET). The mission was

direct involvement in regional security affairs. However,

established on 11 June 1999, in accordance with Security

1992 saw an historic shift away from this position, with

Council Resolution 1246, comprising political, electoral,

Japan deploying troops in support of the United Nations’

civilian police, military liaison, information, administrative/ Trusted friends | 103

Above: HMAS Warramunga returning to Australia

financial and human rights components. After the Japanese officers

after completing exercises off Hawaii with the Japan

underwent training in Darwin, they travelled to Dili to support local police.

Maritime Self-Defence Force destroyer, JS Akebono.

The deployment was part of Japan’s commitment to establishing peace in East Timor, and came in addition to the dispatch of political affairs officers, a

Above centre: Prime Minister Gillard discussing

$US10.11 million contribution to the UN Trust Fund, and assistance in kind

Australia’s contribution to Afghanistan with its president,

of 2000 items of electrical equipment.

Hamid Karzai, at the Presidential Palace in Kabul.

All rights reserved by Julia Gillard.

In response to the unprecedented floods that ravaged Pakistan in 2010, affecting 20 million people, Japan sent emergency supplies from its regional warehouse in Singapore, and followed it up with further supplies of tents and water purifiers as the catastrophe became increasingly protracted. Japan also dispatched an emergency medical team, as well as a task force comprising six helicopters and 200 staff members to assist in the relief effort.

Supporting Japan in relief efforts was the ADF, who provided two RAAF C-17A Globemaster bulk airlift aircraft from the Amberley base west of Brisbane. Using the C-17As, the ADF also delivered $US1 million worth of emergency relief, including tents, tarpaulins, plastic sheeting, generators, water purification equipment and water containers to help more than 10,000 affected families.

Post World Trade Centre 2001 Following the attacks on the World Trade Centre in 2001, Japan and Australia have worked together as part of the United States multinational force against the Taliban in Afghanistan to improve security in the region.

Immediately after the attacks, Japan deployed its Maritime Self-Defence 104 | Australia—Japan

Force vessels in the Indian Ocean under its Anti-Terrorism Special Measures Law to refuel naval ships, while its Air Self-Defence Force airlifted supplies in support of the manoeuvres.

In January 2002, after the fall of the Taliban, Japan held the International Conference on Reconstruction Assistance to Afghanistan. The conference authorised the provision of $US1.2 billion in official development assistance (ODA) to Afghanistan as well as the support of the Maritime Self-Defence Force in the Maritime Interdiction Operation to prevent the flow of terrorists and arms in the Indian Ocean. As part of its contribution to Afghanistan’s

Above: HMAS Tarakan beaching at Lautaim, East Timor,

reconstruction, Australia dispatched 1550 personnel under Operation Slipper

to collect Pacific Partnership 2010 personnel who had

as part of a peace-enforcement exercise and has maintained a continuous

been conducting medical, dental and veterinary clinincs

maritime presence in the form of the ANZAC class frigate, HMAS Parramatta.

in the region. Photo: © Royal Australian Navy

In addition, the ADF launched Operation Palate II as its contribution to the United Nations Assistance Mission to Afghanistan (UNAMA). UNAMA

Top right: Australian Army Captain Sarah Vesey talks

is a political mission established in March 2002 under UN Security Council

to Afghan children at the women’s hospital in Tarin Kot,

Resolution 1401 to promote reconciliation and rapprochement, and manage

Afghanistan. Photo: © Aust Defence Force

humanitarian relief, recovery, and reconstruction in Afghanistan Australia’s military contribution to Afghanistan is part of the government’s comprehensive approach to supporting global security and Australian national security by countering terrorism and supporting efforts to prevent Afghanistan from being used as a safe-haven and training ground for terrorism.

In a further strengthening of the military allegiance between Australia and Japan, Japan’s former foreign minister, Seiji Maehara, on 4 March 2011, Trusted friends | 105

Prime Minister Gillard meeting with the Emperor of

issued a formal apology to Australian prisoners of war for their suffering at

Japan at the Imperial Palace, Japan.

the hands of the Japanese military in World War II. He also announced that

All rights reserved by Julia Gillard.

Japan would return to Australia the historical records of the former POWs that Japan has held since the War. Japan originally offered the war records to Australia in 1953, but Australia chose not to take up the offer at the time, believing that they did not contain any new information.

Key bilateral agreements and joint programs On 16 June 1976, Australia’s former prime minister, Malcolm Fraser, and Japanese prime minister of the time, Takeo Miki, signed an agreement that, in scope and purpose, went far beyond anything that either side had ever signed. It was the Basic Treaty of Friendship and Co-operation between Australia and Japan. It came into force on 21 August 1977.

Built on the foundation of strong and expanding trade ties, the treaty drew together all the threads of the longstanding relationship with a focus on the two countries’ common and complementary areas. It stands as a multifaceted relationship between countries with different political and cultural heritages.

The treaty arose out of a desire to broaden Australia-Japan relations beyond their natural economic partnership.

Negotiations on a treaty to extend and strengthen the relationship began with the advent of the Whitlam government in 1973. Over the next three years, Australian and Japanese officials worked closely to draw up an equitable and mutually advantageous agreement that broadened and enhanced ties in political, economic, trade, commercial, social, cultural and other fields.

106 | Australia—Japan

The treaty was prepared in the face of great political change in the Asia-

Prime Minister Gillard inspecting tsunami damage

Pacific region, underscored by an acceptance on the part of Australia and

in Minami Sanrriku, Japan. All rights reserved by

Japan of the need to strengthen their natural partnership by diversifying

Julia Gillard,

beyond the trade and economic policies that had been operating so well.

It underpinned the success and importance of the 2006 Australia–Japan Year of Exchange, initiated by then prime ministers Howard and Koizumi in 2003 to mark the 30th anniversary of the signing of the Basic Treaty.

In recognition of the importance of the Australia-Japan relationship (one of the most successful bilateral relationships in the Asia-Pacific region), the prime ministers of both nations embarked on a process to strengthen the relationship further to meet the challenges of the 21st century.

In line with this objective, Sydney hosted the Australia-Japan Conference for the 21st Century in April 2001, inviting leaders from various sectors.

The attendees engaged in a series of productive discussions on the future bilateral partnership in such areas as the strategic and political relationship, trade and economic linkages, culture and social issues and science/technology.

The fruits of the discussions were the publication of the Sydney Declaration for Australia-Japan Creative Partnership, which gave recommendations concerning new initiatives for co-operation.

In May 2002, former prime minister John Howard and his visiting Japanese counterpart Junichiro Koizumi agreed on specific co-operation in a wide range of areas. One outcome of the partnership has been the Australia-Japan Joint Statement on Co-operation to Combat International Terrorism, delivered by John Howard during his visit to Japan in July 2003.

Trusted friends | 107

Earlier, when then prime minister Hashimoto visited Australia in April 1997, the two countries agreed to hold a prime ministers' meeting every year so that active bilateral talks could be held at a number of levels.

The first Australia-Japan Conference was held in Sydney on 29–30 April 1997. The most recent event was held in Brisbane on 4 November 2011.

In March 2006, Japan, the United States and Australia inaugurated a three-way security dialogue of foreign ministers, known as the Australia-Japan-United States Trilateral Strategic Dialogue. The initiative was announced in 2005 as a means of funnelling Australia and Japan’s Top left: Australian Minister for Defence, Stephen Smith.

expanding roles as independent regional and international

Above: Able Seaman Aviation Technician Aircraft, Vanessa Roedel,

security players into a more cohesive mechanism. This

takes a break from helicopter maintenance on the flight deck of HMAS

mechanism has enabled Australia and Japan to co-ordinate

Warramunga. © Australian Defence Force

their dialogue and policy planning with their American ally.

The dialogue, which some commentators have referred to as “an axis of democracy”, is believed to have caused some consternation in China, although Australia and Japan have downplayed China’s concerns, referring to the talks as strictly ministerial-level meetings.

The purpose of the dialogue is to be a catalyst for extending the traditional bilateral security arrangements to include more co-operative multilateral security diplomacy, and to build on

108 | Australia—Japan

successful instances of non-traditional security politics, such as peacekeeping and disaster

Above centre: Australian Wing

relief, to co-ordinate future responses to natural disasters and other non-military threats.

Group Captain Geoff Harland (centre) answering questions from

Joint Declaration on Security Co-operation

local and Japanese media during

In March 2007, Japan’s then minister for foreign affairs Taro Aso and former Australian

an Australian/Japanese/US defence

prime minister John Howard signed the historic Joint Declaration on Security Co-operation,

exercise in Guam.

the first such accord between Japan and any country other than the United States.

The declaration provides a framework for the two countries to work together on common

Above left: Members of Australia's

global and regional security challenges. As Japan remains Australia's most important

No.2 Airfield Defence Squadron

export market, the declaration places it next to the United States as one of Australia's most

protect a C-130J Hercules aircraft

important security partners.

during training in north Queensland,

The declaration is based on a common recognition by Australia and Japan that international terrorism cannot be fought solely with military means. Both countries realise that they need to

Australia. Photos by David Gibbs Š Commonwealth of Australia

collectively pursue a more broad-based strategy that addresses security as well as governance, economic development and reconciliation.

Against this backdrop, the declaration provides for wide-ranging security provisions relating to border security, the fight against transnational crime (including trafficking in illegal narcotics and precursors), people smuggling and trafficking, counterfeiting currency and arms smuggling, and counter-terrorism activities. The activities also include peacekeeping operations and activities to prevent the proliferation of weapons of mass destruction and their means of delivery.

The two parties will exchange strategic assessments and related information and participate in maritime and aviation security. Humanitarian relief operations, including disaster relief, also fall under the agreement, as does contingency planning, including Trusted friends | 109

planning for pandemics. Japan’s prime minister at the

The 2007 Security Declaration marks a broader phase in

time, Shinzo Abe, told a joint press conference after the

the Australia-Japan relationship and comes after 50 years

signing, “Prime Minister Howard and I agreed that the joint

of highly profitable trade ties. The declaration created a

declaration offers a framework for concretely stepping up

much closer relationship in defence, and formalised the

security ties between our two countries.” Australia’s John

increasing number of co-operative initiatives in which the

Howard stated prior to the signing, “Australia has no better

two countries were engaged.

friend or more reliable partner within the Asia-Pacific region than Japan. We are great Pacific democracies.”

The declaration commits both sides to a range of

Nuclear non-proliferation and disarmament In 2008, Japan and Australia established the International

undertakings, namely, intelligence sharing, joint defence

Commission on Nuclear Non-Proliferation and Disarmament.

force exercises, law enforcement, anti-terrorism measures,

The commission was co-chaired by Yoriko Kawaguchi,

disaster relief, foreign and defence ministerial dialogue, and

a former environment minister and foreign minister, and

support for Japan’s permanent membership of the United

Gareth Evans, a former foreign minister, both of whom

Nations Security Council. The foreign and defence ministerial

brought extensive experience to the commission. It held its

dialogue has been formalised as the joint meetings of

first meeting in Sydney in October 2008 and received strong

Australia’s and Japan’s foreign and defence ministers, the

international support. The objective of the commission is

so-called “2+2” meetings which strengthen the trilateral

to reinvigorate global efforts to prevent the proliferation of

relationship with America. The declaration paved the way

nuclear weapons and to seek a recommitment to the ultimate

for further joint military interaction between Japanese and

goal of a nuclear weapon-free world.

Australian forces similar to that undertaken in Iraq and in

The report prepared by the commission was submitted

Sumatra, Indonesia, after the 2004 Indian Ocean tsunami.

to then prime ministers Yukio Hatoyama and Kevin Rudd

Commenced during the 1980s under the Hawke government,

in December 2009 in the presence of the commission’s co-

it provided for Australia’s greater enmeshment with Asia by

chairs, Gareth Evans and Yoriko Kawaguchi.

cultivating relationships with the major players in the region and multinational organisations such as ASEAN and APEC. The declaration also enabled Japan to adopt a new

Australia and Japan believe that the elimination of nuclear threats is a matter of necessity. The world’s 23,000 nuclear weapons—many still deployed on high alert—can destroy life

assertiveness in its international relations, breaking away

on earth many times over. That the horror of Hiroshima and

from years of Yoshida-style foreign policy doctrines, where

Nagasaki has not been repeated owes more to luck than to

its diplomatic activities were so often conducted in response

good policy management.

to foreign pressure.

Despite the signing of the declaration, the United States

Despite the new leadership in the United States and Russia, the policy challenges are immense. It is necessary

will continue to be the principal source of both Japan’s and

to persuade every state with nuclear weapons to give them

Australia’s military security. Japan hosts 40,000 US troops at

up, and it is necessary to ensure that every state without

various bases throughout the country and Australia is home

nuclear weapons does not want them or is not able to

to vital US intelligence facilities at Pine Gap and elsewhere.

acquire them. And it is necessary to ensure that the peaceful

110 | Australia—Japan

The Hiroshima Peace Memorial Park honours all those killed by the atomic bombing of the city on 6 August 1945. Š JNTO

Trusted friends | 111

World leaders enjoying a fireworks

uses of nuclear energy are free of security risk. This report, submitted to former prime

display at the Sydney Opera House

ministers Yukio Hatoyama and Kevin Rudd, was the work of an independent commission

during an APEC conference.

of global experts sponsored by Australia and Japan. Its purpose was to guide global

Photo by Corporal Chris Moore

policymakers through the maze toward non-proliferation and disarmament. It maps both

© Australian Defence Force

the opportunities and obstacles, and fashions the recommendations into a clear set of short-, medium- and long-term agenda activities.

On 20 May 2010, Australia’s then defence minister, John Faulkner, visiting Japan for security talks, signed the Australia-Japan Acquisition and Cross-Servicing Agreement (ACSA) with his Japanese counterpart, Toshimi Kitazawa.

The accord facilitates the reciprocal provision of supplies and services between the SelfDefence Forces of Japan and the Australian Defence Force. It is Japan's second cross-service agreement, following a similar arrangement with the United States signed in 2004.

Australia’s former foreign minister, Stephen Smith, said the signing of the agreement marked a new beginning for the Australia-Japan security relationship. He said it would usher in “a new phase of more frequent, practical and ambitious bilateral security co-operation between Australia and Japan".

He said the agreement meant that Australia and Japan could provide better disaster assistance, for example, through Australian C-17A aircraft providing airlift support to transport Japanese personnel to disaster zones. He was optimistic that the accord would provide new opportunities to support efforts in international peacekeeping operations.

Reflecting the substantial strengthening of bilateral defence and security ties between Australia and Japan, Stephen Smith and John Faulkner visited Japan in May 2010 for the third “2+2” joint meetings of foreign and defence ministers. The consultations are one of three such conferences Australia has worldwide. The others are with the United States and

112 | Australia—Japan

the United Kingdom. Japan’s former minister for foreign affairs, Katsuya Okada, and former minister for defence, Toshimi Kitazawa, represented the Japanese side in the meetings.

The occasion was marked by the signing of an agreement concerning the reciprocal provision of supplies and services between the Japan Self-Defence Forces and the Australian Defence Force.

Stephen Smith believes that Australia and Japan’s comprehensive economic, security and strategic partnership—built on common goals and values—represents an important contribution to peace, security and stability in the Asia-Pacific region. Meetings such as this are a good opportunity for Australia’s Foreign Minister to meet with other Japanese ministers to discuss international, regional and bilateral developments. On this occasion, Stephen smith discussed the bilateral Free Trade Agreement, APEC, the WTO and the G20.

John Faulkner also met with Toshimi Kitazawa to discuss progress in bilateral defence engagements, covering areas such as logistics co-operation, exercises and training, peacekeeping and disaster relief responses.

Australia and Japan share a multilateral approach to diplomacy that is aimed at enhancing stability in the Asia-Pacific region. Both countries contribute actively and constructively to regional bodies, such as APEC, the ASEAN Regional Forum and the East Asia Summit.

Regional economic reform APEC, established over 20 years ago through the active engagement of Australian and Japanese diplomacy, is a clear example of how Australia and Japan work together to establish a regional architecture that is essential for peace and prosperity. APEC has evolved into a powerful and influential economic forum, representing countries that, combined, account for over half of the world’s gross domestic product. Former Australian Trusted friends | 113

The Japanese Imperial Palace (centre) in Central Tokyo. © Y.Shimizu/© JNTO

114 | Australia—Japan

prime minister Bob Hawke first floated the idea of APEC

implement the Japan-Australia Joint Declaration

during a speech in Seoul in January 1989. Later that

on Security Co-operation and the Enhancement of

year, representatives from 12 Asia-Pacific nations met in

Co-operation on Climate Change and Energy Security.

Canberra to establish APEC. The founding members were Australia, Brunei Darussalam, Canada, Indonesia, Japan,

ASEAN Regional Forum

Korea, Malaysia, New Zealand, the Philippines, Singapore,

Founded in 1994, the ASEAN Regional Forum (ARF)

Thailand and the United States.

has become a key forum for security dialogue in Asia. It

China, Hong Kong and Chinese Taipei joined in 1991.

complements a range of bilateral alliances and dialogues

Mexico and Papua New Guinea followed in 1993, with Chile

in the Asia-Pacific region and provides a setting in which

joining in 1994. In 1998, Peru, Russia and Vietnam joined,

members can discuss current regional security issues

taking the membership to 21.

and develop co-operative measures to enhance peace and

Between 1989 and 1992, APEC met as an informal, seniorofficial and ministerial-level conference. In 1993, former

security in the region.

The forum comprises 27 countries—the 10 ASEAN

United States president Bill Clinton called the first annual

member states (Brunei, Burma, Cambodia, Indonesia, Laos,

APEC Economic Leaders' Meeting.

Malaysia, Philippines, Singapore, Thailand and Vietnam) the

Membership of APEC has always been restricted. However,

10 ASEAN dialogue partners (Australia, Canada, China, the

it has been increased at various times in APEC’s history. Since

EU, India, Japan, New Zealand, South Korea, Russia and the

the most recent intake, 12 countries have indicated their

United States), one ASEAN observer (PNG), North Korea,

desire to participate, including India, Mongolia, Pakistan,

Mongolia, Pakistan, East Timor, Bangladesh and Sri Lanka.

Laos, Bangladesh, Costa Rica, Colombia, Panama, Ecuador

The ARF is driven by consensus and avoids institutionalism

and Guam. India, while it does not border the Pacific, was

as far as possible. In its first 17 years, ARF focused on

invited to attend the 2011 APEC meeting as an observer.

confidence-building measures, and it has made good progress

As the leading Asia-Pacific economic forum, APEC’s

toward building a sense of strategic community. Efforts

objective is to support sustainable economic growth and

to develop tools for preventive diplomacy and conflict

prosperity in the Asia-Pacific region. It says its mission is

management are underway.

“to build a dynamic and harmonious Asia-Pacific community

The ARF Ministerial Meeting of July 2009 endorsed a

by championing free and open trade and investment,

vision statement to provide a roadmap for the ARF up to

promoting and accelerating regional economic integration,

2020. The ARF subsequently adopted the Hanoi Plan of

encouraging economic and technical co-operation, enhancing

Action to implement the vision statement.

human security, and facilitating a favourable and sustainable business environment. Our initiatives turn policy goals into

East Asia Summit

concrete results and agreements into tangible benefits.”

The East Asia Summit (EAS) is a regional leaders' forum

During the APEC Leaders' Meeting in September 2007,

for strategic dialogue and co-operation on key challenges

the Japan-Australia Prime Ministers' Meeting was held,

facing the East Asian region. The EAS is a significant regional

and the two prime ministers agreed to an action plan to

grouping with an important role in advancing closer regional Trusted friends | 115

Above: Sightseeing at Royal Botanic Gardens in

integration and co-operation at a time of particular dynamism in East Asia.

Sydney. Photo by James Pipino © Destination NSW

Australia and Japan participated as founding members in the inaugural EAS held in Kuala Lumpur on 14 December 2005.

Above right: Sydney Harbour, Sydney Harbour Bridge

The EAS comprises the 10 ASEAN countries (Brunei, Cambodia,

and the Sydney central business district. Photo by

Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand,

Andrew Gregory © Destination NSW

Vietnam), Australia, China, India, Japan, New Zealand, the Republic of Korea, the United States and Russia. The 18 EAS member countries together represent 55 per cent of the world's population, 55 per cent of global GDP, and receive more than 74 per cent of Australia's total exports.

The centrepiece of the EAS year is an annual leaders' summit, usually held together with the annual ASEAN summit.

At the sixth EAS, held in Bali in November 2011, Australia’s Prime Minister announced a number of new initiatives to contribute to regional development and integration. These include $A24 million to combat infectious diseases, $A1 million to support a disaster co-ordination secretariat in the ASEAN Humanitarian Assistance Centre in Jakarta, $A8 million for the World Food Program to improve emergency preparedness in the region, and the hosting of two seminars exploring how East Asian cities can become more sustainable and adapt to climate change. Australia provided essential support for Japan’s successful bid for a non-permanent seat on the United Nations Security Council in 2009, and will continue to support a permanent seat for Japan on the reformed Security Council. Australia is seeking election to the Security Council as a non-permanent member for the 2013–2014 term, and looks forward to Japan’s support for its efforts.

116 | Australia—Japan

At the fifth Australia-Japan Conference in Tokyo, 19 November 2008, the participants agreed that climate change presents real and significant global challenges that require a co-ordinated global response, and that Australia and Japan should work closely and actively together to help shape that response. It was noted that decisions by both governments on emissions reduction will present both opportunities and challenges, and will lead to structural reform in both economies. The attendees agreed on the vital role that new technology must play in responses to climate change and urged both governments to collaborate intensively on efforts to find technological solutions to alleviate the problems it presents. The attendees welcomed Australia’s carbon capture and storage (CCS) initiative and Japan’s proposed sectoral approach as important elements of the global policy response. It was also agreed at the conference that Australia and Japan should continue to build capacity in developing countries to tackle climate change and alleviate its impact, including technological transfer and support.

Australia and Japan are natural partners, globally and in the Asia-Pacific

Australian Minister for Trade, Dr Craig Emerson (right), meets Japan’s Minister for Economy, Trade and

region. In a challenging world, both Australia and Japan have strong

Industry, Mr Akihiro Ohata, at the 22nd APEC Ministerial

interests in sustaining an open, prosperous and secure global and

Meeting in Yokohama, Japan.

regional environment.

Trusted friends | 117

BP BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. We are committed to making a real difference in providing the energy the world needs today, and in the changing world of tomorrow. We have major interests in the Japanese and Australian markets.

BP divides its activities into an upstream (comprising exploration, development and production divisions), a downstream (comprising the refining and marketing of fuels and lubricants), and an alternative energy business. BP operates across six continents, and its products and services are available in more than 80 countries, providing the energy that a growing population needs to generate progress and prosperity.

Our recent projection of energy trends, BP Energy Outlook 2030, indicates in its ‘base case’ that primary energy use could grow by nearly 40 per cent over the next 20 years, with more than 90 per cent of demand growth coming from emerging economies. Whatever precise trajectory demand takes, all forms of energy will be required to meet rising demand, with fossil fuels remaining an essential part of the energy mix for decades.

In the upstream energy business, our strategy is to grow long-term value by continuing to build a portfolio of enduring positions in the world’s key hydrocarbon basins, focused on deepwater, gas and giant fields. We explore for oil and gas with the aim of commercially developing and producing it. We also manage crude oil and natural gas pipelines as well as being major participants in liquefied natural gas (LNG) plants in Trinidad and Tobago, Indonesia and Australia – all of which supply LNG to Japan.

For the downstream energy business, our strategic focus is on holding a portfolio of quality, integrated, efficient positions and accessing available market growth in emerging markets.

We refine crude oil into usable products, including high quality gasoline and diesel as well as some of the chemicals used in everyday items.

And in alternative energy, our focus is on low-carbon businesses and future growth options that we believe have the potential to be a material source of low-carbon energy and are aligned with BP’s core capabilities, such as biofuels for example.

The North West Shelf Venture's onshore gas plant in Karratha manufactures LNG which is exported to Japan.

118 | Australia — Japan

BP in Australia

BP has been supplying Japan with

In Australia, BP’s upstream businesses include the North West Shelf Venture, which has been

LNG for more than two decades via

supplying liquefied natural gas (LNG) to Japan for more than 20 years. We are developing

LNG tankers.

other gas projects off the coast of Western Australia in the Browse Basin and in the Greater Gorgon area. And we have recently commenced exploration for oil and gas in the Great Australian Bight, off the continent’s southern coastline. BP also operates a downstream business, including refineries in Western Australia and Queensland, as well as a network of terminals and service stations which provide a secure supply of quality fuels to Australian motorists and businesses.

BP in Japan BP Japan KK has worked in Japan for almost half a century. BP has been involved in about half of the LNG projects supplying Japan, the world's largest market. In addition to LNG sales, our work here involves selling automotive and industrial lubricants, as well as oil products such as marine fuel and bulk chemicals. BP and Castrol lubricants have an excellent reputation and a strong position in the Japanese market.

BP Facts and figures (source www.bp.com) Number of employees

79,700 (at 31 Dec 2010)

Proved reserves

18,071 million barrels of oil equivalent

Retail sites

22,100

Upstream

Active in 29 countries

Refineries (wholly or partly owned)

16

Refining throughput

2426 thousand barrels per day (year 2010)

AUSTRALIA–JAPAN | 119

About BHP Billiton BHP Billiton is a leading global resources company. We create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources.

We are among the world’s top producers of major commodities, including aluminium, energy coal, metallurgical coal, copper, manganese, iron ore, uranium, nickel, silver and titanium minerals, and have substantial interests in oil and gas.

Our strategy is clear and remains unchanged since 2001. We focus on large, long-life, low-cost, expandable, upstream assets, diversified by commodity, geography and market. Our disciplined approach to capital deployment has enabled BHP Billiton to invest in the expansion of high-quality assets and further diversify our portfolio.

We are committed to the highest level of governance and strive to foster a culture that values and rewards exemplary ethical standards, personal and corporate integrity and respect for others. The Board governs the Group in a manner consistent with our long stated business strategy and commitment to a transparent and high-quality governance system.

Paramount to the way we operate is growing our business safely, in an environmentally sound manner, and in a way that demonstrates our unqualified commitment to working with integrity. We believe we can be a business that does not suffer serious injuries, illnesses and fatalities.

The only way to achieve a steep reduction in injuries and eliminate fatalities is through strong, accountable leadership that will focus on identifying hazards, implementing appropriate controls and the ongoing measurement of control effectiveness.

Our operations are diversified by commodity and geography, which means we are part of many local communities. We take the responsibility of managing our environmental and community impact very seriously.

Across our business, our goal is to minimise negative social impacts while maximising the opportunities and benefits that the company’s presence brings to each community in which we operate. Our community investment is driven by our desire to ensure we make a positive contribution and improve the quality of life of the people in these communities.

120 | Australia — Japan

BHP Billiton facility at Port Headland and shipments of Iron Ore to Port Hedland, 426 kilometres by rail.

Mount Whaleback mine is the largest open cut iron ore mine in the world, with a pit length of 5.5 kilometres.

We continue to invest in the future and have a deep inventory of growth options. Our operations and investments are designed to ensure that we remain stable in the long term and responsive to market volatility in the short term.

Our global operations comprise around 100,000 employees and contractors working in more than 100 locations in over 25 countries.

Our people strategy is founded on attracting, developing and retaining talented employees from around the world. We require our leaders to visibly hold themselves and others accountable for living up our company values, as outlined in Our Charter. We have an unwavering belief that by working in a way that is consistent with Our Charter, we will continue to build on our success both today and into the future.

BHP Billiton Limited has a primary listing on the Australian Securities Exchange and BHP Billiton Plc has a premium listing on the London Stock Exchange, with a secondary listing on the Johannesburg Stock Exchange.

In addition, BHP Billiton has two American Depositary Receipt listings on the New York Stock Exchange. BHP Billiton’s global headquarters are located in Melbourne, Australia.

AUSTRALIA–JAPAN | 121

Toll “To be the most successful provider of ‘integrated logistics solutions’ to the Asian region providing customers with global reach.”

Toll Express Japan.

Toll was founded in 1888 by Albert Toll in Newcastle NSW, hauling coal with horse and cart.

It became part of the Peko Wallsend Group in the 1960s, when it transported goods associated with diversified mining and manufacturing activities.

In 1986 Toll was sold to a management buyout team led by former Managing Director Paul Little and Toll's first Chairman Peter Rowsthorn, and in 1993 Toll listed on the ASX. Since listing on the ASX, Toll has progressively built and grown its unique logistics model in response to increasing customer demand for a complete end-to-end logistics solution, incorporating the critical components of operational expertise, scale, diversity of services and technology solutions.

Today, Toll is one of the 30 top companies listed on ASX, Australia’s largest provider of integrated logistics services, operating in 55 countries, 1,200+ business sites, with 45,000+ employees globally.

Back in July 2006, Toll completed acquisition of Sembcorp Logistics Ltd in Singapore, which owned 35% shares of Footwork Express Co., Ltd. in Japan. In October 2009, Toll completed 100% acquisition of Footwork Express Co., Ltd., one of the ten largest road transportation companies in Japan, providing B to B road transportation services, 3PL and warehouse services. As a member of Toll, this Japanese entity has been renamed to Toll Express Japan Co., Ltd. on 30 March, 2012.

Toll is Australia's largest supplier of integrated logistics services.

We operate around the world via 1,200 business sites and employ 45,000 people globally.

122 | Australia — Japan

Current Representative Director and CEO Neil Pollington of Toll Express Japan mentioned,

Through Toll Express Japan

“Toll’s massive global experience in providing integrated logistics solutions and operational

Co., Ltd., we provide high quality

expertise enables us to provide a high quality domestic as well as international logistics

services to the market via more

service for businesses in Japan related to a wide range of industries, including; agriculture

than 120 local operation sites.

and fishery, food, chemicals, medical products and pharmaceutical, construction, raw materials and manufactured goods, wholesale and retail, transportation, communication, financial and insurance.”

Toll Express Japan has the capability to provide high quality domestic LTL/FTL road express services, 3PL services, SCM consulting services, warehouse services, domestic air and rail forwarding services, custom clearance services, international air express and international air/ocean freight forwarding services. Our services are supported by over 120 local operational sites and Toll’s global network.

Toll’s core values encompass: – Brand – People – Safety – Relationships – Innovation – Choice – Integration – Infrastructure – Environment – Community These values help us form a mutually beneficial business partnership with our customers.

AUSTRALIA–JAPAN | 123

5 Culture and Lifestyle

Culture and Lifestyle

When Japan opened its doors to the West after the Meiji Restoration in 1868, Japanese people embraced many Western ideas, including new image-creation techniques such as photography.

Older Japanese art forms, in particular ukiyo-e woodblock prints, fell out of fashion, and these traditional images of the “floating world” or “the world of fleeting pleasures” made their way into the West as mere wrapping paper for inexpensive imported products.

Woodblock wonder Europeans, meanwhile, were impressed by the beauty of these images, which became a major source of inspiration for Impressionist, Cubist, and Post-Impressionist artists, including Vincent van Gogh, James Abbott McNeill Whistler, Claude Monet, Edgar Degas, Mary Cassatt and Henri de Toulouse-Lautrec. Today in Japan, there are many books devoted exclusively to this topic, juxtaposing the work of Western painters and the examples of the ukiyo-e from which they are said to have drawn their inspiration.

The ukiyo-e prints also influenced early Modernist poetry, strongly affecting the imagery and aesthetic sentiments of Imagist poets such as Ezra Pound, Richard Aldington and Amy Lowell. These woodblock prints trace their origins to the distinctively Japanese artistic sensibility that first emerged in 794 AD, when the Heike Clan achieved political supremacy and ushered in 400 years of peace and tranquillity. This period, known as the Heian Era, saw a marked decline in Chinese influence.

The Heian courtiers encouraged sophistication and sensitivity in all things, particularly

The Bicycle Museum Center was opened in 1992 in Sakai, where

with regard to the visual and literary arts. This period of cultural concentration gave rise to

40 per cent of the bicycles in Japan

a characteristically Japanese painting style, the yamato-e, which was used to depict natural

are produced. ©JNTO

126 | Australia—Japan

Trusted friends | 127

Above: Darling Harbour, Sydney, a popular tourist

scenes or illustrate Japanese literature. As a mark of refinement, female

attraction and a venue for celebrations of all sorts.

members of the nobility of this time wrote cursive script with a brush,

Photo: Hamilton Lund, Destination NSW

abbreviating the Chinese characters to create the Hiragana syllabary that forms part of Japan’s writing system today.

Above centre: Brian Eno's artwork projected onto

This period saw the cultivation of waka poetry and other distinctive

the Opera House for the Vivid Sydney Festival 2009.

literary forms, such as the narrative tales (monogatari) and diaries (nikki). In

Photo: Hailton Lund, Destination NSW

architecture, too, Heian achievements have endured: the Heians built Kyoto as the Imperial capital.

Despite these achievements, the ukiyo-e prints stand out as the one art form that has significantly influenced Western practitioners.

A form of theatre that originated in Kyoto and that has enjoyed success outside Japan is kabuki, which features dialogue about the afterlife and themes from classical Japanese legend, lively music and stunning costumes.

In 1976, the Australian National University founded Za Kabuki, which has become the longest running kabuki troupe outside Japan. Directed by Mr Shun Ikeda of the ANU Japan Centre, with a cast and crew consisting mainly of ANU Japanese students, the troupe performs traditional Kabuki plays almost entirely in classical Japanese, with some English translation and adlibs inserted to assist the mainly English-speaking audiences.

Vibrant nightlife Late night pedestrians in any Australian capital city, taking in the flea markets or 24-hour cafÊs and restaurants, or dropping in on one of an array of late-night Asian dessert houses or 24-hour karaoke bars, are getting a taste 128 | Australia—Japan

of the vibrant nightlife that is a feature of many of Japan’s cities and towns. Australia, renowned for early-morning jogs along the beach or though the park followed by breakfast at the neighbourhood café, has been steadily adopting the nocturnal habits of its Asian neighbours. The number of late-night establishments in Australian cities and towns is continuing to proliferate.

The influences of Hironobu Sakaguchi’s Final Fantasy, a science-fantasy role-playing video game created 25 years ago, which has expanded to include motion pictures, anime, print media and other merchandise, has become evident in the gelled, spiky hairstyles of many Australian young men. Trendsetters on Australian city streets can be seen with shoulder bags bearing the telltale ‘L’ emblem from Tsugumi Oba’s and Takeshi Obata’s darkly intriguing manga, Death Note.

Many young women are adopting the fashion modes of the heroines of popular manga, sporting floral knee-high socks, flared miniskirts and heels with contrived bouffant and collectable models.

Musical influences Japan is increasingly subject to Australian influences, as the spread of our ‘organic’ back-

Hironobu Sakaguchi, creator of the

to-basics music on Japanese music labels attests. Twenty-seven-year-old acoustic/folk/

popular role-playing video game,

rockabilly artist from Melbourne, Justin Carter, who recently appeared at the Okinawa

“Final Fantasy”, one of the lead

MUSIX festival with a follow-up three sell-out concerts in Tokyo, is just one of Australia’s

characters of which is Lightning

talented musicians finding ready acceptance in Japan.

(pictured above).

Trusted friends | 129

The Australian band, John Butler Trio, played to sell-out audiences during a recent series of concerts in Japan.

130 | Australia—Japan

Since forming in 2006, Sydney blues/rock trio, Chase the

at the renowned Summersonic music festival, where they

Sun, have amassed widespread critical acclaim for their soul-

appeared alongside artists such as Gwen Stefani, Bloc Party

tinged song writing, blues sensibilities and powerhouse live

and Black Eyed Peas. During the visit, they signed a record

performances known for their early ZZ Top and Stevie Ray

deal to release a Japanese version of their debut 2006 album,

Vaughan influences. The band took out top honours at the

Stand Up. The outfit has garnered a strong reputation in

Australian Blues Awards in both 2008 and 2011, debuted on

Japan for its critically acclaimed live shows, and it performs

the US Billboard Charts at No. 13 and released two albums in

regularly at the Green Room festival in Yokohama.

Japan through P-Vine Records. The lead track from the album

In 2008, Ohad Rein, better known by his stage name,

You Gotta Go received saturation airplay in the month of

Old Man River, became the most frequently played foreign

its release, which led to the album being signed to Japanese

artist on Japanese radio. The single “La” (from his debut

label, P-Vine Imports.

album, Good Morning) topped both the Japanese local and

The record company also released the group’s follow-up

international charts, and achieved considerable commercial

album, Rednecks & Gentlemen, in December 2009 to critical

success in Europe. After following up his success with many

acclaim.

visits to and concerts in Japan, Ohad has developed many

Also represented in Japan by P-Vine Imports is the veteran

strong personal relationships there. He was immensely

eclectic roots and jam band, the John Butler Trio. With every

shocked at the March 2011 earthquake and tsunami, and he

album since 2004 debuting at No. 1 on the Australian album

set about making 1000 paper cranes and delivering them to

charts, it was the song “Better Than”, from the 2007 album

the affected regions.

Grand National, which launched the band’s international career. The group toured Japan in 2008 on the strength of the

Food and beverages

album, with live television broadcasts, and the band returned

With Japanese demand for saké having reached something of

in 2011 to play sell-out concerts at the Club Quattro in

a plateau in recent times, brewers of the traditional Japanese

Nagoya and other venues in Tokyo.

spirit have started to look further afield for potential markets.

Jeff Lang, singer, songwriter and slide guitarist, who is

Fortunately for them, the rapidly spreading popularity of

known to shun set playlists during his performances and

Japanese cuisine, particularly in Australia, America and

allow the unique energy of each night to shape his songs,

South-East Asia, look like providing guaranteed exponential

released Engines Moan in 2009 to widespread acclaim. The

growth in demand for the time-honoured beverage.

album, a Japan-only live CD of a Melbourne show, featuring

The Japan Saké Brewers Association reports that annual

Grant Cummerford on bass and Danny McKenna on drums,

sales of saké in Japan were a lacklustre 664,000 kilolitres in

established the artist in Japan as an icon of Australia’s back-

2003, some way off the peak sales reached in the 1970s of

to-basics blues movement. In 2012, Jeff is building on his

around 1.5 million kilolitres. This trend has been mirrored in

success in Japan with appearances at the TakuTaku in Kyoto,

the level of annual individual consumption, which fell from

the Tokuzo in Nagoya and UNIT in Tokyo.

11.5 litres to 6.4 litres during the same period.

The eight-piece, Melbourne-based urban roots band, Blue King Brown, returned to Japan in 2009 to perform

In contrast, exports have been on the rise, spearheaded by insatiable demand in Korea, Hong Kong, China, East Asia, Trusted friends | 131

A woman drinking saké through the stem of a Lotus leaf at a temple in Uji city in Kyoto prefecture. AFP PHOTO / JIJI PRESS

A saké winery in Amanohashidate. ©Kyoto Prefecture/JNTO

North America and Australia. Exports to Australia have notched up double-digit growth since 2005. The figures reflect the steady annual increase in per capita alcohol consumption in Australia since 2006.

Secrets of saké In one highly successful initiative to promote the liquor, Tetsuya Wakuda, owner and chef of the world-famous Tetsuya’s restaurant in Sydney, collaborated with the Consulate-General of Japan in July 2009 to host a reception called An Evening with Saké Samurai. The event was held at the official residence of the Consul General of Japan in Sydney, with executives from eight saké breweries—members of the Japan Saké Brewers Association Junior Council—in attendance. Guests and journalists were served choice saké from these breweries as an accompaniment to the delectable Japanese cuisine created by Tetsuya Wakuda.

Saké featured prominently at the inaugural Japanese food booth at Fine Food Australia, Australia’s largest foodservice exhibition, in September 2009. Hosted by the Japan External 132 | Australia—Japan

Trade Organisation (JETRO) and sponsored by a consortium of local Japanese companies,

Above right: Having tasted

the event showcased a wide array of Japanese food products. Organisers reported that the

Japanese saké for the first time,

booth was frequently filled to capacity. Some visitors were heard to say that they had never

most Australians say they are more

previously had the opportunity to enjoy saké, but having tried it, they would be sure to have it

than happy to try it again.

again. Others remarked how delicious and pleasant on the palate it was.

Photo: © JNTO

The steady growth of this traditional Japanese liquor in Australia may be attributed to the fact that it is a superior quality product with intrinsic health and beauty benefits.

Above left: Saké spirits are stirred

It contains anti-aging agents and is widely believed to enhance the radiance of the skin

in 120-year-old vats at the Mori Izo

and reduce cholesterol. There is considerable scope at the luxury end of the market to

distillery outside Kagoshima.

develop the product.

Photo: ©Kagoshima Prefectural

The complexity and flavour profile of saké enhances the flavour of food by cleansing the

Tourist Federation/©JNTO

palate and sensitising the taste. Saké is the perfect accompaniment for seafood, fried or barbecued food and spicy fusion cuisine. Sake’s properties as a moisturiser make it an active ingredient in massage lotions for athletes and in cosmetics.

Sun Masamune, Australia's first and only saké brewery, makes the highly popular Go-Shu Australian saké . This pure and healthy rice wine respects the traditions of the finest saké, and is made from the superior Australian medium-grain Japonica rice from Murrumbidgee and Murray River Basins. Visitors to the purpose-built facility, located in the Blue Mountains foothills in the western part of Sydney, can experience saké -making first-hand and learn about its long history, culture and tradition. All Go-Shu sakés display the mark of highquality saké—a mellow blend of the five basic flavours—sweetness, sourness, pungency, bitterness and astringency. Saké is brewed like beer, but it is served like a fine wine. It is frequently used for cooking and is a key ingredient in many Japanese recipes. Saké can be enjoyed warm or chilled, although many modern high-grade sakés are usually slightly chilled.

Trusted friends | 133

Wagyu goes worldwide Another traditional Japanese product that has mirrored the steady increase in popularity of saké is Wagyu beef. Since 2001, Wagyu (literally, Japanese cow) has rapidly gained widespread acceptance around the world, and particularly in Australia. In that time, it has played an important role in increasing the overall meat quality of the Australian beef herd.

In response to the growing sophistication of today’s consumers, quality assurance and the branding of beef products has become paramount. The infusion of Wagyu into the commercial beef herds has significantly increased meat quality by increasing the marbling, by producing finer meat texture and by reducing subcutaneous fat. These three attributes are an important part of the beef grading process of Meat Standards Australia (MSA). As part of the grading process, meat is labelled with a guaranteed grade and optimum cooking method, satisfying the most discerning consumer.

Wagyu is used by many Australian restaurants and hotels in signature dishes. Two examples are Sushi Choo and Sushi-e, two Japanese restaurants that belong to Merivale’s clutch of fine restaurants in Sydney’s CBD. Chef Nobuyuki Ura of Sushi E says that his 500-day grain-fed Wagyu, served with a white miso and sesame sauce, grated radish, chives and sautéed enoki Natural partners like saké and Wagyu beef are

mushrooms, is always a hit with diners looking for a unique Japanese flavour.

increasingly popular Australia wide.

Similarly, Sushi Choo reports that one of their favourite dishes is the Wagyu Beef Carpaccio with Yuzu pepper dressing.

One of the many events held around Australia to raise money for the victims of Tohoku earthquake and tsunami was an auction dinner held in

134 | Australia—Japan

April 2011, attended by the head chefs of 13 of Sydney’s finest Japanese

Australian-born Shaun Presland has earned accolades

restaurants. Co-ordinated by Haru Inuaki of the French-Japanese bistro,

to rival those of even the most accomplished of

Blancharu, in Sydney’s Elizabeth Bay, the event showcased the skills of chefs

Japanese chef.

from such well-known Japanese eateries as Qaqu, Rengaya, Kyushu and Yoshii. Guests enjoyed a seven-course meal with saké before bidding for the items for sale. The food, wine and saké served at the event were donated, as were the items auctioned, and the staff donated their time. The event raised $A45,000, which was donated to Red Cross Australia as part of the Japan and Pacific Disaster Appeal.

A taste of rivalry In the domain of Japanese cuisine, a field not surprisingly dominated by chefs from Japan, Australian-born Shaun Presland has earned accolades to rival even the most accomplished Japanese-born chef.

After starting his training in a ryokan in the mountains of central Japan and mastering the craft of preparing the local cuisine, Shaun returned to Australia and established Sushi-e and several other restaurants for the Merivale group. During this time, he was spotted by the celebrated chef, Nobu, and asked to set up a restaurant in the Bahamas. After completing this commission, the 37-year-old star of Masterchef returned to Australia and began discussions with restaurateur John Szangolies on the concept of establishing a contemporary Japanese restaurant with a focus on shared dining and creating premium-quality dishes from sustainable produce.

The result was the Saké Restaurant & Bar, staffed by Shaun’s handpicked Trusted friends | 135

The Bento box, a traditional Japanese midday meal that includes rice,

Artwork on display in Hyde Park in Sydney's central business district.

sushi and vegetables.

Photo: City of Sydney.

team of committed cooks dedicated to creating a great

guest programs at Holland America. “The culinary arts centre

environment in which to savour his new and exquisite

offers experiences that guests can take home and share with

taste tonalities, complemented by an impressive selection

their friends and family, from learning regional recipes to

of unique saké and shochu. The restaurants have won the

party planning and more.” Shaun will conduct two 45-minute

highly coveted Sydney Morning Herald Good Food Guide

cooking demonstrations and one 90-minute cooking class on

Chef’s Hat each year since opening, and visitors now

board MS Volendam’s 14-day New Zealand Discovery voyage,

come from around the world to experience the ultimate in

sharing his extensive knowledge of traditional Japanese

Japanese dining at his establishments on Eagle Street in

techniques with his fellow seafarers.

Brisbane and The Rocks in Sydney.

Augmenting Shaun’s impressive record of culinary

Bento versus lunchbox

achievement is an invitation to work aboard the prestigious

The work of Ms Tomomi Maruo in Tokyo highlights a sharp

MS Volendam, Holland America Line’s 240-metre ocean liner,

difference in Australian and Japanese attitudes to the school

when it sets sail for the South Pacific in early 2012. Holland

lunchbox. Unlike in Australia, where schoolchildren can look

America plans to present the world’s most celebrated chefs in

forward to some simple sandwiches in plastic wrap and some

its culinary arts centres on all 15 of the line’s vessels. On each

fruit, the Japanese bento or lunchbox has long been a work of

voyage, guests will have the opportunity to attend culinary

considerable devotion. Ms Maruo has taken this art form to

demonstrations and participate in cooking classes with either

new heights, with a range of creations fashioned from boiled

guest chefs or Holland America’s specialist on-board chefs.

rice, nori (thin sheets of edible seaweed) and other simple

The culinary arts centres are spacious demonstration

ingredients. She holds classes for parents eager to expand

kitchens that feature large video screens to display overhead

their repertoire of lunchbox culinary excellence.

close-up shots of food preparation techniques. “We know that Australians love their chefs and high-quality food, so we’re

Anime and Magna

very proud to add Shaun to our mix of talent,” says Richard

It’s rare for a loanword to enter one language then re-enter its

D Meadows, executive vice president of marketing, sales and

original language in its altered state. For example, “dubbing”

136 | Australia—Japan

Snorkeling in the Royal National Park, just south of Sydney. Photo by James Pipino © Destination NSW

used to mean editing or modifying a soundtrack by adding

become a global sub-cultural phenomenon, and originated

another sound input, usually in a studio. The term “da-bi-n-

in Tokyo’s Akihabara district, otherwise known to many

gu” entered Japanese to mean simply copying a soundtrack

veteran expats as Tokyo’s retail centre for discount electrical

between audio devices, and the term has acquired the same

appliances. Akihabara affords the Otaku unrivalled

meaning in English.

opportunities to surround themselves with memorabilia and

Similarly, the term “anime”, derived from the first three

other merchandise of their chosen interest, many of whom

Japanese characters of the loanword “a-ni-me-e-shyo-n” has

are obsessive consumers of science fiction, manga, video

returned to English to represent a particular style of Japanese

games and anime.

animated cartoon.

Today’s characteristic anime style emanates from the work

Evidence of this global trend is SMASH!, an acronym for the Sydney Manga and Anime Show, an annual convention

of Osamu Tezuka in the 1960s that became popular through

specifically targeting the countless fans of Japanese pop

series such as Tetsuwan Atomu (literally, “Iron-Arm Atom”,

culture in Sydney that brings together artists, directors,

known is Australia as Astro Boy) and Janguru Taitei (“The

musicians and enthusiasts. The event grew from the germs

Jungle Emperor”, or Kimba the White Lion).

of an idea of Katie Huang and Paul Aeria, to present the

Manga (meaning “whimsical sketches”) have a longer

material with a strong focus on the art. Other members

history in Japanese culture, dating back to the 19th century.

quickly joined Katie and Paul, and together they formed the

They became popular in the post-war years following

incorporated non-profit organisation SMASH Inc. to expand

America’s occupation, and today represent an industry in

the event into a large-scale anime and manga convention. The

Japan worth over ¥400 billion ($A5 billion).

first event was held at the Roundhouse at the University of

Both anime and manga attract large numbers of devoted

New South Wales in 2007, attracting 1435 aficionados. The

enthusiasts in Australia and other Western countries, some

event is now held at the Sydney Convention Centre over two

of whom border on the eccentric, and the phenomenon

days, and draws up to 6000 enthusiasts.

itself has spawned its own term—Otaku culture—meaning the culture of “fanatics” or “geeks”. The Otaku culture has

Highlights include the spectacular array of Cosplay (costume play) creations, the Maid Café, the numerous stores Trusted friends | 137

that sell a vast array of anime merchandise, such as figurines,

and illustrator who was born in Hong Kong, but migrated to

coloured contact lenses, plastic guns, cat ears, key chains

Australia with her family in 1986 when she was six years old.

and badges, as well as manga, anime DVDs and video games.

Queenie Chan scored a publishing coup in 2004, when

Attendees can make their own anime-themed music video,

she was contracted by the American-based manga publisher

compete in a Street Fighter gaming competition or just line

Tokyopop to produce a three-volume manga series set in

up for a turn at karaoke.

Australia, titled The Dreaming. Queenie’s story not only

Revered luminaries of Otaku culture who have appeared

illustrates the increasingly globalised nature of comics

at the convention include Shinichi Watanabe, director of the

publishing, but embodies the societal shifts that Australia

Excel Saga series, who gave a master class on anime, Kenji Ito,

has undergone in the last 20 years, as its growing exposure to

composer, who gave a presentation, and games whiz Hiroki

different Asian cultures brought about a reassessment of its

Kikuta, who offered insights into various game strategies and

place in the Asia-Pacific region.

tactics. The convention also gives exclusive screenings of selected anime.

The president of SMASH!, Thomas Munro, says, ''When

Queenie’s first submission to TokyoPop was an actionadventure tale, Chinese Ghost Story. After this story and several others were rejected, her editor suggested a horror

people think of cartoons, they tend to think of simplistic

story, such as a haunted school story. The suggestion led to

children's things. But the Japanese tend to make use of

her ground breaking, three-part manga series, The Dreaming.

horror themes or romance themes—things you could

The highly charged supernatural atmosphere of The

probably do in live action - but it's a much richer experience

Dreaming is well suited to the frenetic visual style of manga

when they animate it.'' Fans also like to dress up as their

and evokes Joan Lindsay’s classic 1967 novel, Picnic at

favourite manga characters, but Munro says SMASH! fans

Hanging Rock.

are a bit more ''hardcore''. ''They tend to have to make the costumes themselves rather than buy them,'' he says.

Kevin Patrick, a freelance writer and former magazine editor/publisher, based in Melbourne, and creator of the Comics Downunder blog, observes that the cultural traffic

Kevin Patrick notes that, as an ostensibly Australian story, produced by a Hong Kong-born, Chinese-Australian, and published by an American company, The Dreaming raises the contentious issue of what constitutes ‘authentic’ manga.

He says that, for Queenie, however, the conscious decision

with anime and magna has been running both ways between

to create manga stories removed from their ‘traditional’

Australia and Japan in recent years. As more and more comic

Japanese settings was an easy one to make.

creators beyond Japan are exposed to manga and anime,

Queenie says: “I feel that you should always write and

they have adapted Japanese comics’ storytelling traditions

draw about what you know and are familiar with. I don’t

for their own purposes, crafting tales that reflect their own

understand the need to do manga stories set in Japan, as

culture and experience. Such works are often labelled OEL

there are tonnes of Japanese manga artists, living in Japan,

(original English-language) manga to differentiate them from

who are doing the same thing. I think that non-Japanese

Japanese manga.

manga creators trying to be Japanese won’t sell as well

Patrick says nowhere is this trend more evident in Australia than in the work of Queenie Chan, a Sydney-based writer 138 | Australia—Japan

as the real thing.” The Dreaming Volume 3 (ISBN 978-159816-384-1) was published by Tokyo Pop on 11 December

Japanese fictional character Queenie Chan reflects the increasingly international nature of publishing: Japanese origin; American publisher; Australian setting.

Trusted friends | 139

2007. Tokyo Pop titles are distributed in Australia and New

Hokkaido that is popular amongst Australian skiers, Quentin

Zealand by Funtastic Publishing.

believes it will be some time before the Australian presence

For the full interview with Queenie Chan and other

dominates in Hakuba. He says that Hakuba is a more

insights into anime, please visit Kevin Patrick’s blog,

international resort. Already many Europeans and North

http://comicsdownunder.blogspot.com.

Americans are starting to visit and, together with visitors from Singapore, Hong Kong and China, the Australian

Tourism The Hakuba valley, located deep in the Japanese Alps in

influence is less prevalent.”

Quentin Nolan’s success in Hakuba follows the inroads

Nagano Prefecture, incorporates 10 ski resorts, more than

Australian enterprises have made into Japan’s ski fields.

200 runs and 139 lifts. The area has towering peaks that

The Australian Alpine Club’s Niseko resort high in Hokkaido’s

receive 11 metres of snow each year. The local village is lined

snowfields gives guests access to 57 ski runs, 38 ski lifts

with ski and snowboard shops, a combination of traditional

and over 47 kilometres of carefully maintained slopes.

and western restaurants and aprés ski entertainment. The

The longest run is 5.6 kilometres and the terrain offers first-

area is the heart and soul of snow sports in Japan and was

timer slopes, half-pipes, quarter-pipes, tabletops, mogul fields

host to many events during the 1998 Winter Olympics,

and tree runs.

including downhill skiing, ski jumping and the super G. One highly successful tour company based in the Hakuba

The facility is operated as a membership-only ski lodge and is located near Hokkaido’s highest mountain, the majestic

Valley is Liquid Snow Tours, owned and operated by Quentin

Mount Yōtei. Because of its northern location, Niseko is

Nolan, a former retail-marketing executive.

fed by frequent weather fronts from Siberia. The resort is

Quentin’s initiative started with tours to the New South

internationally renowned for its consistently good falls of

Wales and Victorian ski resorts. He recalls, “Our first season

light powder snow and its long ski season, which runs from

was quite successful and I saw an opportunity to run a group

late November until early May. While the snow may not be

trip to Japan. We took a group to Hakuba in 2006, and a

as dry as other areas in Hokkaidō, the volume is high, with

year later I took 15 groups. Then we bought our ski lodge,

the average snow depth in March reaching 351 centimetres.

the Lab Hakuba. “I have a passion for snowboarding, and

In 2007, Niseko was listed as the world's second snowiest

saw an opportunity to travel and meet interesting people,

resort with an annual average snowfall of 15.11 metres, and,

and the potential to earn a great income.” It was the short

in March 2008, was voted the world’s sixth-best ski resort.

stint working in the travel industry organising group ski trips for a Sydney-based wholesaler that gave Quentin a

Rugby

healthy taste for setting up his own business. “That job gave

With the aim of cultivating rugby union in Japan and

me the opportunity to learn about the industry and spot

allowing the national team, the Cherry Blossoms, to become

a gap in the market before jumping right in,” he adds.

more competitive, the Japanese Rugby Football Union

“Now we are expanding into more resorts on [Japan’s main

(JRFU) established the Top League in 2003, a professional

island of] Honshu.”

Super 14-style competition, initially comprising 12 teams.

Unlike the Niseko resort on Japan’s northern island of 140 | Australia—Japan

The Top League, which was expanded to 14 teams in 2006,

Hakuba valley, deep in the Japanese Alps in Nagano Prefecture, incorporates 10 ski resorts, more than 200 runs and 139 lifts.

runs from September to February. The 2008–2009 series

adviser to South Africa when the Springboks won the

attracted around 400,000 spectators to the 13 rounds

2007 World Cup in France. His contract with Suntory

and finals.

was due to run until 2014.

Japanese rugby has triggered considerable interest in

In the 2010–2011 season, Suntory finished runners up

Australia since the Kubota Spears signed former Wallabies

in the Top League and won separate national championships

lock Hugh McMeniman, and since the popular Craig Wing

under Eddie’s stewardship, and eight straight wins have

defected to Mark Gerrard’s second division club, NTT

recently put them in a strong position for the 2011–2012

Communications.

season.

In addition to the Top League, or first division, there is the

At the press conference held in Tokyo to announce his

second division called the Top Challenge Series, which also

appointment, Eddie, who guided the Wallabies to the 2003

includes some well known Australians and New Zealanders,

World Cup final, said his target was to make the Japanese

such as Stephen Larkham for Ricoh, Sam Harris for Honda,

side one of the world’s top 10. “We need to develop the style

Nathan Grey, Tim Atkinson and Tom McVerry for Kyuden,

of play that suits Japanese players, that allows us to beat

and Caleb Ralph for Sanix. Jone Tawake and Troy Flavell also

countries like Scotland and Wales. We’ll quickly identify 30

feature in the second division for the Secom Rugguts and

or 40 players that we are going to take to the next World Cup,

Mitsubishi Dynaboars respectively.

and get them to understand the Japanese way of rugby. It’s

On 26 December 2012, former Wallabies coach Eddie Jones was appointed the head coach of Japan’s national

going to be a very exciting four years.’’

Japan’s best world ranking was 12th in mid-2010, and

rugby team, replacing All Blacks legend John Kirwan. Jones

the team currently ranks 15th under its outgoing coach, All

takes up his new position in April 2012 and the appointment

Blacks star John Kirwan. Eddie emerged as John Kirwan’s

is for four years. He has been managing Japan’s Top League

likely successor after Japan returned home from the 2011

side, Suntory Sungoliath, since 2009 and was technical

Rugby World Cup in New Zealand without a win.

Trusted friends | 141

Japan's Daisuke Ohata scores a

Jones started his professional coaching career in Japan in 1996 with Tokai University,

try against the Arabian Gulf team

before coaching Japan to an Asian Championship and then signing a three-year contract

in the 2007 Rugby World Cup in

with Suntory.

Tokyo. AP Photo/Itsuo Inouye

After three months at Suntory, he was offered the coaching job at the Brumbies, prompting Suntory to agree to release him from his contract.

Subsequently, after two years at English club Saracens, Suntory wasn’t going very well, and the team managers travelled to London to persuade him to return. Eddie started at Suntory full-time 13 years after his first stint with the team, which became Japan’s champion within one year. Eddie says that Rugby Union is just shy of being a top 10 sport in Japan. "Rugby Union has fallen in popularity, but, with the Rugby World Cup in Japan in 2019, there is optimism that it can become a top 10 sport.”

Another star of Japanese Rugby Union is former Wallabies and Brumbies captain George Gregan, who currently plays for Suntory. George played with the ACT Brumbies from the inception of the Super Rugby competition in 1996 through to 2007. He believes that with players from Australia and other Southern Hemisphere countries heading to Europe to further their careers, more players should head to Japan. He says, "It’s a great experience being in Europe because they have longer seasons, but Japanese Rugby is improving. Japan is easy for some people to adapt to, while some find it hard. Some players embrace and love it and then there are others who struggle with it. But they really take care of you in Japan.

"Rugby in Japan has improved over the last few years. I saw it evolving whilst I was there.

There are a lot more players heading that way, especially international players."

After the Rugby World Cup, many Australian and New Zealand players are expected to head for Japan. All Black Mils Muliaina, Springboks Danie Roussow and Fourie Du Preez, and former Australian player George Smith are just a few.

142 | Australia—Japan

Junior Rugby

Some of Australia's most

It isn’t only at Test Match level that rugby has provided a bridge between the two nations

successful ambassadors to Japan

In September 2011 the Lindfield Junior Rugby Club, from Sydney’s northern suburbs,

have been the members of touring

sent a representative team of 11- and 12-year-old boys to play a series of games in the

junior rugby union teams. Eleven-

south of Japan. It was part of a long-standing exchange with Lindfield’s sister club, the

year-old James Davis (centre) and

Kawanishi Rugby School, based near Osaka, and took the young Aussie rugby hopefuls to

Junior Rugby team mates making

Kyoto, Hiroshima and Matsuyama, in addition to Osaka.

their first trip to Japan.

Kawanishi sends a team to Australia every second year, where they are billeted with Lindfield families, providing continuing ties and fostering some long-lasting friendships.

One of the 2011 tourists, 11-year-old James Davis, was making his first trip to Japan and learnt a great deal.

“I just loved staying with our host family, who were so friendly, and trying to speak some of the language, and travelling on the bullet trains, and living the way the Japanese lived. I want to go work there when I am older—or maybe I can play professional rugby there.”

If James succeeds in moving to Japan to play professional rugby, he will join former George Gregan, Ben Darwin, Mark Gerrard, Stephan Larkham and many other former Wallabies who have played for local teams.

Trusted friends | 143

Shell Shell is a global, integrated energy company with operations in more than 90 countries and territories. Our businesses include oil and gas exploration and production, refineries and chemical plants, processing and marketing of liquefied natural gas (LNG) and gas-to-liquid (GTL) products, marketing and shipping of oil products and chemicals, and renewable energy sources, such as biofuels.

Shell in Australia Shell has been operating in Australia since 1901, with our business divided into "upstream" and "downstream" activities. The downstream business, headquartered in Melbourne, manufactures petroleum products, supplying 25 per cent of Australia's petroleum requirements. The upstream business, headquartered in Perth, finds, develops and supplies LNG, condensates and liquefied petroleum gas (LPG) to overseas markets and natural gas to domestic customers in WA. LNG is a particular focus for Shell in Australia, contributing to our position amongst international oil companies as the world’s largest producer of LNG. Currently, as well as being a 24 per cent shareholder of Woodside and a 50 per cent owner of the Arrow Energy coal seam gas business in Queensland, Shell’s upstream interests in Australia include a one-sixth share in the North West Shelf LNG Joint Venture, a 25 per cent share in the Gorgon Joint Venture and a 6 per cent interest in the Wheatstone Project. Shell also holds interests in a number of other discovered gas resources, such as the Browse joint venture and Sunrise joint venture, whose development plans are yet to be sanctioned.

Shell also operates the Prelude Floating LNG (FLNG) development based on discovery of the Prelude and Concerto gas fields off the northwest coast of Australia in 2007. Shell announced in May 2011 that it would develop these fields using the world’s first FLNG facility. This groundbreaking technology, which has been developed by Shell, will process the gas at the site of the gas field, reducing the cost and environmental footprint of development.

Shell will develop the recently discovered Prelude and Concerto gas fields off Australia’s northwest coast using the world’s first floating liquefied natural gas facility.

144 | Australia — Japan

With its non-operated and operated activities in Australia’s LNG industry, Australia is key

To help meet its global LNG

to Shell’s LNG growth aspirations globally. Shell is looking at some $30 billion of investment

production ambitions, Shell

in Australia over the next five years, making Shell one of Australia’s largest investors.

expects to invest $30 billion in LNG production in Australia

Shell in Japan

over the next five years.

Shell companies have been active for over a hundred years in the energy business in Japan, supporting its development and growth through the supply of oil products, petrochemicals and gas.

Japan is the world's largest single market for LNG. LNG projects with Shell involvement, including Australia's North West Shelf LNG joint venture, provide over 40 per cent of the LNG imported into Japan. Japan is thus a key market for Shell, a market that has been built on the basis of strong and enduring relationships with Japanese electric power generating companies and gas utilities.

As a consequence of the March 2011 earthquake and tsunami, natural gas is expected to have an even more prominent role in the energy mix of Japan going forward.

Shell will continue to support the energy needs of Japan by developing new and diverse supply sources, and through groundbreaking innovations such as Shell's recent Prelude FLNG Project in Western Australia, making gas even more available to LNG customers.

AUSTRALIA–JAPAN | 145

NAB National Australia Bank Limited Established in 1858, The National Australia Bank Group is a financial services organisation with over 12 million customers and 50,000 people, operating more than 1,750 branches and service centres globally. It is one of Australia’s largest banks, and its major financial services franchises in Australia are complemented by businesses in New Zealand, Asia, the United Kingdom and the United States.

The bank’s Asian operations comprise three lines of business—Wholesale Banking, Business and Institutional Banking, and Personal Banking—represented by over 400 people across offices in Hong Kong, Singapore, Japan, China, India and Indonesia. NAB has been operating in Japan since 1969, and currently has over 50 staff dedicated to servicing local and international clients from its Tokyo and Osaka offices.

In Asia, NAB supports its clients through the provision of banking services arising from the flows of business, trade, investment and people between Australia/New Zealand and Asia. By leveraging its industry specialisation across the resources, energy & utilities and food & agricultural sectors, NAB’s Business and Institutional Banking team in Japan and across the region deliver a range of corporate finance solutions including corporate debt, loan syndications, project and export finance, trade finance, foreign exchange, and debt capital markets services.

Through its expertise in the AUD and NZD currency markets, NAB also provides its personal clients with a range of deposit products, including foreign currency and structured term deposits, as well as offering finance for both local and overseas property acquisition.

In the broader Asia region NAB continues to build its network and presence with the recent opening of new branches in Shanghai and Mumbai, as well as a representative office in Jakarta, Indonesia.

TOP: National Australia Bank Tokyo Branch reception.

BOTTOM: Muromachi Higashi Mitsui Building, home to National Australia Bank’s Tokyo Branch office.

146 | Australia — Japan

MLA Meat & Livestock Australia (MLA) is a red meat industry organisation that is funded by Australian cattle, sheep and goat producers. MLA’s head office is based in Sydney, with overseas offices including Tokyo.

MLA is responsible for the implementation of marketing programs to promote nutritious, safe, and consistent quality of Australian red meat produced in the clean and green environment. MLA also undertakes research and development programs, working in partnership with the industry partners and Australian government to achieve a sustainable red meat and livestock industry in Australia.

The Australian beef industry exports over two thirds of its annual production, and of our export markets, Japan has been the largest since the mid-1990s. Worth over $1.8 billion (CY2010), the Australian beef industry places a high priority and respect on the trade relationship with Japan.

In Japan, Aussie Beef has become an iconic brand, with close to 100 per cent of Japanese consumers aware of the Aussie Beef logo. Australia has been supplying beef to Japan since the 1950s, and has become the premier supplier of imported beef into Japan. Now, Australia supplies approximately 41 per cent of beef consumed in Japan (2010), and is recognised as being

Three farmers from tsunami-affected Tohoku visit

a safe, nutritious and good value source of beef in Japan.

Australia. Left to right: Hiroshi Sano, Mutsuko Ozawa

The Australian beef industry hopes to continue to expand the close

and Shin Yamada.

relationship, working with the Japanese beef industry and customers on recovering beef consumption in Japan. An FTA with Japan would greatly strengthen this important trade relationship.

In 2011, after the devastating tsunami and nuclear accident in Tohoku, MLA launched the ‘Together with Japan’ initiative to show our support of Japanese beef producers in Tohoku. Through this program, we have created scholarships for Japanese agricultural high school students to travel to Australia, provided support to producers in the form of hay deliveries to tsunami/nuclear affected areas and conducted many BBQs in evacuation centres in the aftermath of the tsunami.

AUSTRALIA–JAPAN | 147

6 Business Directory Australia-Japan business

PARTNER COMPANIES

Allens Arthur Robinson Level 28, Deutsche Bank Place, 126 Phillip Street (Corner of Hunter & Phillip Streets), Sydney, NSW 2000, Australia Tel: +61 2 9230 4000 Fax: +61 2 9230 5333 Email: japanservices@aar.com.au www.aar.com.au

Australia and New Zealand Banking Group Limited 833 Collins Street, Docklands, Victoria 3008, Australia Tel: +61 3 9683 9999 For online enquiries visit: www.anz.com/common/forms/Online-Enquiry www.anz.com

Baker & McKenzie Level 27 AMP Centre 50 Bridge Street, Sydney, NSW 2000

Level 19, 181 William Street, Melbourne, VIC 3000

Tel Sydney: +61 2 9225 0200

Tel Melbourne: +61 3 9617 4200

Fax Sydney: +61 2 9225 1595

Fax Melbourne: +61 3 9614 2103

Email Sydney: ben.mclaughlin@bakermckenzie.com Email Melbourne: richard.lustig@bakermckenzie.com www.bakermckenzie.com

Baker & McKenzie The Prudential Tower, 10th Floor, 2-13-10 Nagatacho, Chiyoda-ku, Tokyo 100-0014, Japan Tel: +81 3 5157 2700 Fax: +81 3 5157 2900 Email: anne.hung@bakermckenzie.com Email: paul.davis@bakermckenzie.com www.bakermckenzie.com

PARTNER COMPANIES | 149

PARTNER COMPANIES

BHP Billiton Limited 180 Lonsdale Street, Melbourne, Victoria 3000, Australia Tel +61 1300 55 47 57 Fax +61 3 9609 3015 www.bhpbilliton.com

BP BP Developments Australia Pty Ltd Level 8, QV1 Building, 250 St Georges Terrace, Perth, Western Australia 6000 Tel +61 8 9420 1801 Fax +61 8 9420 1818 www.bp.com.au

Clayton Utz Brisbane: Level 28, Riparian Plaza, 71 Eagle Street, Brisbane, QLD 4000, Australia Sydney: Level 15, 1 Bligh Street, Sydney, NSW 2000, Australia Tel: Brisbane +61 7 3292 7000

Tel: Sydney +61 2 9353 5992

Fax: Brisbane +61 7 3221 9669

Fax: Sydney +61 2 8220 6700

Emails: ahay@claytonutz.com

hkano@claytonutz.com

www.claytonutz.com

Deloitte Japan: MS Shibaura Building 4-13-23, Shibaura, Minato-ku, Tokyo, 108-8530, Japan Australia: Level, 9 Grosvenor Place, 225 George Street, Sydney, NSW 2000, Australia Tel Japan: +81 3 3457 7321

Tel Australia: +61 2 9322 7000

Fax Japan: +81 3 3457 7426

Fax Australia: +61 2 9322 7001

www.deloitte.com/japan

www.deloitte.com.au

150 | AUSTRALIA—JAPAN

JX Holdings, Inc. 6-3 Otemachi 2-chome, Chiyoda-ku, Tokyo, Japan Tel: +81 3 6275 5002 Fax: +81 3 3276 1248 Email: jxhdinformation@hd.jx-group.co.jp www.hd.jx-group.co.jp/english/

Lend Lease 3F Akasaka Enokizaka Mori Building, 1-7-1 Akasaka, Minato-ku, Tokyo 107-0052, Japan Tel: +81 3 6866 5600 Fax: +81 3 6866 5607 Email: bd.japan@lendlease.com www. lendlease.com

Mitsubishi Heavy Industries, Ltd. Japan: 16–5, Konan 2-chome, Minato-ku, Tokyo 108-8215 Australia: Level 6, 160 Queen Street, Melbourne, Victoria 3000 Tel Japan: + 81 3 6716 3111

Tel Australia: +61 3 9670 9799

Fax Japan: +81 3 6716 5800

Fax Australia: +61 3 9670 4197

www.mhi.co.jp/en/

Mitsui Australia: Level 46, Gateway Building, 1 Macquarie Place Sydney, NSW 2000 Japan: 2–1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-0004 Tel Australia: +61 2 9256 9500

Tel Japan: +81 3 3285 1111

Fax Australia: +61 2 9251 1788

Fax Japan: +81 3 3285-9819

www.mitsui.com/au

www.mitsui.com/jp

PARTNER COMPANIES | 151

PARTNER COMPANIES

MLA Meat & Livestock Australia 12th Floor World Trade Centre Building 2-4-1 Hamamatsucho Minato-ku Tokyo Japan 105-6112 Tel: +81 3 3435 6300 Fax: +81-3-3438-1677 Email: mbrock@mla.com.au www.aussiebeef.jp

NAB National Australia Bank Limited 800 Bourke Street, Docklands, VIC 3008, Australia Tel: +61 3 8641 9083 www.nabgroup.com

North West Shelf Australia LNG Australia: Level 16, Alluvion, 58 Mounts Bay Road, Perth, WA 6000, Australia Tel: +61 8 9213 4670 Fax: +61 8 9213 4671 www.nwsalng.com

Shell Upstream Australia 2 Victoria Avenue, Perth, WA 6000, Australia Tel: +61 8 9338 6000 Fax: +61 8 9338 6691 www.shell.com.au

152 | AUSTRALIA—JAPAN

Sojitz Corporation 1–20, Akasaka 6-chome, Minato-ku, Tokyo 107-8655, Japan Tel: +81-3-5520-5000 Fax: +81-3-5520-2390 Email: http://www.sojitz.com/en/contact/index.html www.sojitz.com/en

Toll Street Addressing, Suburb, Country Australia: Level 7, 380 St Kilda Road, Melbourne, VIC 3004, Australia Japan: Level 5, NF Esaka Building 1-13-41, Esaka-cho, Suita-city, Osaka 564-0063, Japan Tel: Aust. +61 3 9694 2888 | Japan +81 6 6380 3021 Fax: Aust. +61 3 9694 2880 | Japan +81 6 6380 3071 Aust: www.toll.com.au | Japan: www.tollexpressjapan.com

Western Australia Government— North Asia Agency 13F Fukoku Seimei Building, 2-2-2 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011, Japan Tel: +813 5157 8281 Fax: +813 5157 8286 Email: wa.tokyo@wajapan.net www.wajapan.net

Woodside Woodside Plaza, 240 St Georges Terrace, Perth, WA 6000, Australia Tel: +61 8 9348 4000 Fax: +61 8 9214 2777 Email: companyinfo@woodside.com.au www.woodside.com.au

PARTNER COMPANIES | 153

154 | Australia—Japan

7 INDEX A–Z ACKNOWLEDGEMENTS

| 155

INDEX

A Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias

156 | AUSTRALIA—JAPAN

eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

B Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

C Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio

quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

D Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae

volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio

E Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio

F Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i INDEX | 157

INDEX

A

A

A

Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

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Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

158 | AUSTRALIA—JAPAN

A

A

A

Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. .

Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.

Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis

INDEX | 159