As a specific effort with regard to the national government administration airports, etc., a bill (“Legislative Bill for Management, etc., of National Government Administration Airports, etc., Through Utilization of Private Sector Business Capabilities” Draft) to enable consignment to the private sector through use of the concession system of public facilities, etc., was submitted to the 180th Diet Session in March 2012. It is scheduled that, as soon as enactment of the bill, an execution policy (basic policy) on reforming management, etc., of the national government administration airports be formulated without delay so that the airport management reform for 27 airports can be realized by around FY2020.

## (Introduction of the Port Operating Company System)

In December 2011, the port operating company system to cover the integrated management of ports/harbors combining the private sector perspective was established, aiming to realize strategic and efficient port operation. Such port operating companies are to carry out operation and port sales, etc. of major container berths, port sales, etc., in an integrated manner. The national government as well as the port management bodies provides comprehensive supports by way of lending of port facilities, lending of interest-free loans, special taxation measures, etc. In FY2012, efficient port operation by port operating companies is expected to start at Tokyo Port, Yokohama Port, Kawasaki Port, Osaka Port, and Kobe Port one after another.

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## Efforts Related to International Strategic Ports ~ Promoting Increased Efficiency in Port Operation from Private Sector Perspective ~

Along with globalization of economy and the economic growth in East Asia, Japan’s container handling volume has been increasing. Meanwhile, among the container goods from/to Japan, there is a rapid increase of those to be exported/imported to/from Europe, the US that are transshipped at some other ports in East Asia such as Busan Port, etc., posing a concern if the relative significance of Japanese ports may become adversely affected.

In the case where the service-level improvement/cost reduction of Japanese ports will fall behind the other East Asian ports, it may result in a decrease in the number of port calls by European or US ships on major service routes, adversely affecting the economy of our nation.

In an effort to realize strategic and efficient port operation through further increasing port operation efficiency by introduction of private sector perspectives in addition to reinforcement of port functions and to sustainably develop Japan's

economy, the “Ports and Harbors Law” was amended in March 2011 by which the port operating company system was established. The ports operating companies are expected to be engaged in integrated operation of ports and harbors by maintaining public responsibility while adopting private sector perspectives. They are also expected to carry out operation of major container terminals as well as port sales, etc. in an integrated manner, for which governmental support measures such as special taxation measures and provision of interest-free loans are taken.

With regard to the Strategic International Container Ports (Hanshin Port, Keihin Port), arrangements are under way among the concerned parties toward introduction of the port operating company system within FY2012.

Source: MLIT