Matsuura City, Dentsu Kyushu Inc., and NEXT DELIVERY Tackle the "Island Shopping Refugee" Problem with New Smart Logistics (Part 2)

Matsuura City, Nagasaki Prefecture—a depopulated municipality with three inhabited islands—signed a partnership agreementin 2024withfour companies, including Dentsu Kyushu Inc. and AeroNext Inc., to utilize next-generation advanced technologies, including drones, for regional revitalization. This initiative aims to address challenges like "shopping refugees." The city is now working to introduce "New Smart Logistics" using drones.

In this second part of interviews with Takeshi Yamaguchi from Matsuura City's Policy Planning Division, Shogo Furuhashi from NEXT DELIVERY Inc. (a subsidiary of Aeronext), and Kentaro Fuji from Dentsu Kyushu Inc. Regional Value Co-creation Bureau, involved in this initiative, they discuss the details of the proof-of-concept experiments conducted in 2023 ahead of the partnership agreement and future developments extending beyond mere delivery.

Successful Drone Delivery Between Islands in Proof-of-Concept Test

Q. Please tell us about the proof-of-concept test conducted in 2023, prior to the collaboration agreement.

Furuhashi: In the proof-of-concept test conducted on November 29, 2023, we flew drones along two routes.One route ran from "Roadside Station Takarashima," located immediately after crossing the Takashima Hizen Bridge connecting Karatsu City in Saga Prefecture to Takashima Island in Matsuura City, to Funakaratsu Port on the southern side of Takashima Island. The other route ran from the same "Roadside Station Takarashima" to Kuroshima Island. We flew drones along these two routes to verify their usefulness over the sea and within the islands.Although it was late November, a time when rough seas can occur, the demonstration day was blessed with calm, favorable weather. The drone flew without issue, and its usefulness was clearly confirmed in the context of shopping support.

Yamaguchi: Matsuura City aimed to involve as many local residents as possible in this drone flight demonstration. After all, acceptance and understanding can be slow for things people haven't actually seen. The residents who participated were able to see firsthand that the experiment went well, so I believe it deepened understanding within the community.

Q. After the demonstration experiment, what challenges became apparent?

Furuhashi: The weather was favorable, so this wasn't a test where major issues surfaced. However, residents mentioned they'd appreciate the drone being able to carry slightly heavier items, as the current payload limit is set at 5kg. As a potential solution at this stage, we're considering approaches like dividing heavier items into smaller packages for transport.

Yamaguchi: The city publicized the proof-of-concept experiment not only in Kuroshima, Takashima Town, where it was conducted, but also to residents of other remote islands like Tobishima and Aoshima. We received many requests from residents in all areas expressing their strong desire for this service to proceed. We are frequently asked for details, such as how much drone delivery would cost, so determining how to set those rates is our current challenge.

Expectations extend beyond logistics to regional employment and new business creation

Q. Could you share your future outlook and plans?

Furuhashi: Under current aviation regulations, the required drone specifications change significantly depending on whether the maximum takeoff weight (including the drone itself, batteries, cargo, etc.) is over or under 25kg.Therefore, we are currently working to keep the drone body under 10kg, the battery under 10kg, and the payload up to 5kg, aiming for a maximum takeoff weight of 24.9kg or less. However, there is actually no clear rationale established for this 25kg threshold.Therefore, at NEXT DELIVERY, based on the results of this demonstration experiment and initiatives in other areas, we are currently advancing proposals to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) to clarify conditions for such restrictions and for raising the limit to 30kg or 35kg.

Yamaguchi: In this project, we are also concurrently developing bases that will serve as drone takeoff and landing sites.

Furuhashi: On Takashima Island, alongside improving land transportation, we are developing the site of a former supermarket on the island into a logistics hub and a base for drone takeoff.We also aim to establish regular drone delivery services for the smaller islands of Kuroshima, Tobishima, and Aoshima. To achieve this, we are currently working on creating drone delivery schedules and examining how to incorporate ferry delivery as an alternative when drones cannot fly due to rain or rough weather, along with operational considerations.

Yamaguchi: We are also recruiting local part-time workers for this hub, which aligns with one of the collaboration goals: creating local employment. Employment opportunities on the island are limited, so we hope utilizing drones for tasks like shopping support at the hub will lead to increased job creation.

Fuji: For Dentsu Kyushu Inc.'s future role, collaboration with local businesses is crucial. For instance, while new smart logistics like this project often draw attention to drone delivery, the foundation remains ground transportation using light vans.Among businesses on remote islands, there are small shops that handle home deliveries almost free of charge, solely for the sake of the community. However, many of these shop owners are elderly, and they express that "to be honest, it's extremely tough both physically and financially." Therefore, while meeting the needs of local residents is essential, we also want to carefully identify the needs of local businesses and connect them to new service opportunities.

For example, local newspapers, which have established a network of sales outlets throughout their regions, are exploring new business models. Collaborating with such newspapers could allow them to increase sales revenue by delivering various packages beyond just newspapers, making this initiative sustainable.
Moving forward, we want to explore ways to promote new smart logistics by collaborating with local businesses like newspapers and logistics companies.

On the other hand, drones also have entertainment elements, so we could consider using them for tourism or events. Or we could explore business areas beyond logistics, such as monitoring services. Centered on this core project supporting residents' "infrastructure" – the new smart logistics – we at Dentsu Kyushu Inc. hope to support measures that enhance the well-being of local residents by collaborating with players both within and outside the region to address various other local challenges.

Yamaguchi: Regarding new applications, Mayor Matsuura has pledged a "Filial Piety Project" where children living away from Matsuura City order local services or products to be delivered to their parents living in the city. We are considering utilizing the new smart logistics for this project. For instance, a child living in Tokyo could use an app to place an order for their parents living on a remote island, with the delivery made by drone.This would also help stimulate local consumption, so we very much hope to see this become a reality.

With the successful demonstration of drone delivery between remote islands, this project is now nearing practical implementation as details regarding base establishment and delivery logistics are finalized. Moving forward, while addressing anticipated challenges, expectations are also growing for creating new value beyond mere delivery.