Prepared by Japan Working Group on Port Investment 20 th APEC TRASPORTATION WORKING GROUP MEETING

Presentation Points (a)Role of the Central Government and Public Sector (b)Law and Regulation on Private Investment (c)PFI System in Japan

Main Roles of Government on Port Management Main Roles of Government on Port Management (a)National Port Policy (b)Authorization of Port Development Plan (c)Port Development Financing (d)Technical Standard (e)Check and Support on PMB Activities

Main Roles of Government on Port Management Body Main Roles of Government on Port Management Body (a)Port Development Plan (b)Port Development Financing (c)Port Management / Operation (d)Port Promotion (e)Private Sector Participation

Types of Port Ownership Service Port Tool Port Landlord Port Infra- structure P.M.B. Super- structure P.M.B. Operator Operation P.M.B.Operator Example SingaporeHouston Rotterdam P.M.B. : Port Management Body

The Port Function Matrix Port Models Land Owner UtilityRegulatory PUBLIC Public PUBLIC/ Private PublicPrivatePublic PRIVATE/ Public Private Public PRIVATE Private

Objectives of Privatization (a)To Increase Efficiency and Productivity (b)To Reduce Public Expenditure (c)To Make Quick Response to the Market Needs (a)Pursuit of Private Profit than Public Service (b)Abuse of Regulatory function Merits Demeri ts

Country Owners hip Regulation on Private Investment Australia LandlordStates Regulation Canada Landlord Canada Marine Act China Service No (Provisional Regulation on BOT) Korea LandlordAct on PPI Japan ToolPFI Law Philippin es ServiceBOT Law Russia Landlord Foreign Investment Law Regulation on Private Investment Regulation on Private Investment

Service Port Tool Port Landlord Port Private Port India Philippines Cambodia Vietnam Singapore UK Thailand Japan USA South Korea New Zealand Netherlands Patterns of Port Management of Major Countries

Examples of Laws on Foreign Investment Build Operate Transfer Law Republic Act No.7718 of 1994 in Philippines Malaysia s Port (Privatization) Act of 1990 (Act 422) Korean Act 5654 on Private Participation in Infrastructure of 1998

Enforcement of the PFI Law in Japan Sep.1999 Enforcement of the PFI Law Mar.2000 Notification of the Principal Policy concerning Implementation of PFI Projects

PFI Incentives for Port Development Cargo handling facilities at container terminals facilities for pleasure Mooring facilities for pleasure boats Revetments for reclamation area Revetments for waste reclamation area Low interest loan by DBJ Exemption of the special land ownership tax

Process of Project Proposal of Project Public Private Establishment of Implementation Policy PublicPublic Selection of Specified Project PublicPublic Selection of Project Promoter PublicPublic Conclusion of Agreement Implementation of Select Project

Port Management by PFI Landlord Port Japan (Tool Port) Japan (PFI) Infra- structure P.M.B. State/ P.M.B. State/ P.M.B. Super- structure OperatorP.M.B. Project promoter Operation Operator Port Transporter Project promoter P.M.B. : Port Management Body

Gantry Crane Transfer Crane Yard Public Type Port Transporter Public Use Constructed by the public(State) Controlled by P.M.B committed by the State P.M.B Constructe d by the public wharf Control House

Gantry Crane Transfer Crane Yard Project Promoter Public Use Constructed by the public(State) Controlled by P.M.B committed by the State P.M.B Constructe d by the public Wharf Control House

LocationLocation Gateway Ports Tokyo BayIse Bay Osaka BayNorth Kyusyu Subsidiary Gateway Ports Ports HokkaidoCentral of the Sea of Japan East TohokuNorth Kanto Suruga BayChugoku South KyusyuOkinawa Hitachina ka Kitakyus yu

Kitakyusyu Port Project NameKitakyusyu Port Hibiki Container Terminal: Construction and Operation Project Proje ct Term 25years after inauguration) Image Project site

Kitakyusyu Port Project Outlin e of CT Depth15m×2berths (1berth under construction) Depth10m×2berths (1berth under construction) Terminal area: 40 ha Outlin e of the Proje ct Construction and maintenance of cargo handling facilities and equipments Development and maintenance of container cargo handling operation system Integrated control and operation of the whole terminal facilities Port sales

Schedul e 2000 Jun Selected the specified project Aug Result of the 1st selection Dec Selected a prior negotiator 2001 Dec Basic agreement and investment agreement Establishment of an operating company Implementation agreement Project undertaking 2003(fiscal year) Inauguration of the terminal Kitakyusyu Port Project

Proposal on the Study (a)The Collection of the Detail Examples of the Private and/or foreign investment Projects (b)The Analyses of the each Condition of Concession and/or Contract (c)To make clear the Standard Terms and Contents of Concession and/or Contract To gather the examples on the private and/or foreign investments to ports for the convenience of the members concerned

Thank for your attention