Japan's buses and taxis will be freer to carry packages along with passengers starting in September as the government cuts regulations to battle an increasingly severe shortage of drivers at the nation's shippers.

The transport ministry currently favors the use of trucks for cargo delivery and buses and taxis for carrying passengers, with this specialization meant to ensure passenger safety. Though mixed-use projects have been attempted, buses by law may carry only up to 350kg of cargo at any time, and taxis may not transport cargo without a passenger riding along.

But in September, the ministry intends to issue a notice breaking down these divisions. Though specifications on factors such as cargo load have yet to be revealed, the 350kg limit for buses will be abolished, enabling fixed-route buses across Japan that receive the proper permits to create specialized cargo bays and carry large loads in addition to their passengers.

The government's panel on regulatory reform has recommended such steps to cope with a labor shortage in the logistics industry. Yamato Holdings unit Yamato Transport, Japan's leading door-to-door delivery service, has said a combined passenger-cargo approach will create new possibilities for the transport business outside major cities.