Prepared by JapanPrepared by Japan

Working Group Working Group on Port Investmenton Port Investment

Working Group Working Group on Port Investmenton Port Investment

20th APEC TRASPORTATION WORKING GROUP MEETING

Presentation Points Presentation Points Presentation Points 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 Main Roles of Government on Port Government on Port

ManagementManagement

Main Roles of Main Roles of Government on Port Government on Port

ManagementManagement

(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 Main Roles of Government on Port Government on Port Management BodyManagement Body

Main Roles of Main Roles of Government on Port Government on Port Management BodyManagement Body

(a) Port Development Plan(b)Port Development Financing(c) Port Management / Operation(d)Port Promotion(e) Private Sector Participation

Types of Port Types of Port OwnershipOwnership

Types of Port Types of Port OwnershipOwnership

Service

Port

Tool

Port

Landlord

PortInfra-

structure P.M.B. P.M.B. P.M.B.

Super-structure P.M.B. P.M.B. Operator

Operation P.M.B. Operator Operator

Example Singapore Houston Rotterdam

P.M.B. : Port Management Body

The Port Function The Port Function MatrixMatrix

The Port Function The Port Function MatrixMatrix

Port

Models

Land

Owner Utility Regulatory

PUBLIC Public Public Public

PUBLIC/

PrivatePublic Private Public

PRIVATE/

PublicPrivate Private Public

PRIVATE Private Private Private

Objectives of Objectives of PrivatizationPrivatizationObjectives of Objectives of PrivatizationPrivatization

(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

Demerits

Country Owners

hipRegulation on

Private Investment

Australia Landlord States Regulation

Canada Landlord Canada Marine Act

China ServiceNo

(Provisional Regulation on BOT)

Korea Landlord Act on PPI

Japan Tool PFI Law

Philippines

Service BOT Law

Russia LandlordForeign Investment Law

Regulation on Private Regulation on Private InvestmentInvestment

Regulation on Private Regulation on Private InvestmentInvestment

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 C

ountries

Examples of Laws Examples of Laws on Foreign Investmenton Foreign Investment

Examples of Laws Examples of Laws on Foreign Investmenton Foreign Investment

Build Operate Transfer LawBuild Operate Transfer LawRepublic Act No.7718 Republic Act No.7718 of 1994 in Philippinesof 1994 in Philippines

Malaysia’s Port (Privatization) Malaysia’s Port (Privatization) Act Act of 1990 (Act 422)of 1990 (Act 422)Korean Act 5654 on Private Korean Act 5654 on Private Participation in Infrastructure of Participation in Infrastructure of 19981998

Enforcement of the PFI Enforcement of the PFI LawLaw

in Japanin Japan

Enforcement of the PFI Enforcement of the PFI LawLaw

in Japanin 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 PFI Incentives for

Port Development

Cargo handling facilities at container terminalsCargo handling facilities at container terminalsMooring facilities for facilities for pleasure pleasure boatsMooring facilities for facilities for pleasure pleasure boats

Revetments for Revetments for waste reclamation area reclamation areaRevetments for Revetments for waste reclamation area reclamation area

＊ Low interest loan by DBJ　＊ Exemption of the special land ownership tax

Process of Process of ＰＦＩ ＰＦＩ ProjectProjectProcess of Process of ＰＦＩ ＰＦＩ ProjectProject

Proposal of ProjectProposal of Project PublicPublic ／／ PrivatePrivatePublicPublic ／／ PrivatePrivate

Establishment of Implementation PolicyEstablishment of Implementation Policy PublicPublicPublicPublic

Selection of Specified ProjectSelection of Specified Project PublicPublicPublicPublic

Selection of Project PromoterSelection of Project Promoter PublicPublicPublicPublic

Conclusion of AgreementConclusion of Agreement

Implementation of Select ProjectImplementation of Select Project

Port Management by Port Management by PFIPFI

Port Management by Port Management by PFIPFI

Landlord

PortJapan

(Tool Port)

Japan

(PFI)

Infra-structure P.M.B.

State/

P.M.B.

State/

P.M.B.

Super-structure Operator P.M.B.

Project promoter

Operation OperatorPort

TransporterProject

promoter

P.M.B. : Port Management Body

Gantry Crane

Transfer Crane

Yard

Public TypePublic TypePublic TypePublic TypePort Transporter

Public Use

Constructed by the public(State)→Controlled by P.M.B committed by the State

P.M.BConstructed by the

public

wharf

Control House

Gantry Crane

Transfer Crane

Yard

ＰＦＩＰＦＩＰＦＩＰＦＩＰＦＩ Project Promoter

Public Use

Constructed by the public(State)→Controlled by P.M.B committed by the State

P.M.BConstructed by the

public

Wharf

Control House

LocationLocationLocationLocation

Gateway Gateway PortsPorts

Tokyo Bay Ise Bay

Osaka Bay North Kyusyu

Subsidiary Subsidiary GatewayGateway

PortsPorts

Hokkaido Central of the

Sea of Japan East Tohoku North Kanto

Suruga Bay Chugoku

South Kyusyu Okinawa

HitachinakaHitachinaka

KitakyusKitakyusyuyu

Kitakyusyu Port Kitakyusyu Port ＰＦＩ ＰＦＩ ProjectProjectKitakyusyu Port Kitakyusyu Port ＰＦＩ ＰＦＩ ProjectProjectNam

eKitakyusyu Port Hibiki Container Terminal: Construction and Operation Project Proje

ct Term

25years （ after inauguration)

Image

Project site

Kitakyusyu Port Kitakyusyu Port ＰＦＩ ＰＦＩ ProjectProjectKitakyusyu Port Kitakyusyu Port ＰＦＩ ＰＦＩ ProjectProject

Outline of CT

Depth15m×2berths (1berth under construction) Depth10m×2berths (1berth under construction) Terminal area: 40 ha

Outlineof the Project

◆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

Schedule

2000Jun Selected the specified projectAug Result of the 1st selectionDec Selected a prior negotiator2001 Dec Basic agreement and investment agreement Establishment of an operating company Implementation agreement Project undertaking2003(fiscal year) Inauguration of the terminal 　　　

Kitakyusyu Port Kitakyusyu Port ＰＦＩ ＰＦＩ ProjectProjectKitakyusyu Port Kitakyusyu Port ＰＦＩ ＰＦＩ ProjectProject

Proposal on the Study Proposal on the Study Proposal on the Study 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