Sixth Symposium(Presentation of Kochi : Kochi Prefectural Government)

Utilization of the Private Sector at the Port of Kochi

（Greetings）
First of all, I would like to show my utmost appreciation to the Port of Cebu for having prepared INAP 2004 in Cebu. I am also very honored to have the chance to make a presentation about our port, the Port of Kochi.

Today, I would like to show you some examples of our activities in ‘utilizing the private sector at the Port of Kochi.’

（Outline of Kochi Prefecture）
　Let me show you Kochi Prefecture

−Location of Kochi Prefecture−
Facing the Pacific Ocean, Kochi Prefecture is located in western Japan and is an area of forest and beautiful ocean. To the north is the Shikoku Mountain Range, and to the south is a coastline in the shape of a recessed arc in the Pacific Ocean. The total prefectural area is approx. 7,100km2, making Kochi the 18th largest prefecture in Japan. Of this area, approx. 84% is covered by forest. The ratio is among the largest of all the prefectures in Japan. The main industries are agriculture, forestry and fishery. Fully utilizing its mild weather, horticulture is very popular in Kochi, and the prefecture is Japan’s largest producer of eggplant, “nira”(Japanese leek) and “myoga”(Japanese ginger).

−Picture of greenhouses, eggplants and bell peppers−

Having a long coastline extending 713 km east to west, Kochi is also famous for fishing, thanks to the warm current off the coast.

−Picture of Ipponzuri−

As secondary industries, Kochi produces separators for batteries, high quality paper products, non-vibration machine tools, civil engineering devices that are capable of forecasting landslides, high quality calcium carbonate products for printing ink and other distinctive products, though the volume of shipping is small compared to other places in Japan.

I would like to show you some examples of distinctive items Kochi produces

−Rock crusher−

Developed jointly with Kochi University of Technology, opened in 1997, a new type of rock crusher has been produced by a company in Kochi. This crusher is capable of crushing rocks using compressed air only. Compared with other conventional models, the space-saving crusher is very competitive, reducing the price by about 30%. It does not contaminate the environment like other crushers which use a hydraulic monitor and is therefore very useful in well digging. The compressed air rock crusher is a product of cooperation between the academic world, local administration and industry in Kochi.

A group of economic delegates is participating in this INAP conference. We sincerely hope that in addition to coconut dust a new trade starts from the INAP conference among Kochi and other member ports such as Philippine-made furniture, which is very popular in the world. We also expect that some of our distinctive products will be of great help in contributing to the development of each region of INAP members by fully utilizing the friendship exchanges among INAP members.

−Made-in-Kochi Products−

Now, let me introduce you to the culture of Kochi. Kochi was once called Tosa, and people in pre-modern Japan often said such things as, ‘Liberalism comes from the mountain area of Tosa.’ Tosa is the home of many great names who founded modern Japan. Citizens in Tosa in those days had a spirit of liberty and were cheerful. And still now, people in Kochi maintain the same sense of liberty and cheerfulness.

−Yosakoi Festival−

The Yosakoi Festival exemplifies the cheerful Kochi people, in which teams of dancers follow a course around the city in step with modern and traditional interpretations of the original Yosakoi melody. This cheerful and energetic festival born in Kochi is now held in many places around Japan as well. Yosakoi Festival is held early August every year. If you have a chance, please visit Kochi in early August to enjoy the Festival.

（Outline of the Port of Kochi）
Next, I would like to show you the present outline of the Port of Kochi.

−Full View of the Port of Kochi−

The Port of Kochi is located at the center of Kochi Prefecture. Kochi produces high quality limestone, which is one of its major products, and supplies 70% of Japanese demand. Most of this is shipped out from the Port of Kochi. Around the coastal area of Kochi Prefecture are various cement factories. Coal, one of the major items imported into Kochi, is used as fuel at these factories. In 2003, a total of about 9 million tonnes of cargo was shipped from the Port of Kochi.

−Cement factories and bulk cargo ships−

The role of the Port of Kochi is not limited to the transportation of goods. It is an important transportation terminal for passengers as well. The Port of Kochi is connected to Tokyo and Osaka via ferry services. Thanks to our efforts at inviting cruise ships by promoting our abundant sightseeing resources, many cruise ships have called at the port.


−Picture of ferry boats and cruise ships−

Started in 1998, container cargos are being exported throughout the world through a regular shipping line between the Port of Kochi and the Port of Busan in South Korea. The volume itself is comparatively small, but in 2003 the volume of cargo handled at the port increased by 10.5% compared to the previous year.

The New Port of Kochi, where container cargo is handled, is still in the process of development. Currently two docks, 8m in depth and 12m in depth, are partially in service to handle container cargo and bulk cargo. Horticultural products are shipped out to Tokyo using a ferry service.


−Container yard and Gantry cranes−


Future port development for the New Port of Kochi includes the construction of a ferry terminal on the west side of the port to concentrate departure and arrival of ferry boats to and from Kochi. Also a dock of 14m in depth will be constructed in the south of the port so that large-sized vessels can also use our port facility. We are striving to improve the New Port of Kochi to make the port a hub of international logistics and economics to support Kochi’s economy.

−Rendering of the New Port of Kochi−

In order to realize this aim, it is essential to listen to the users before finalizing the development plan. To this end, we have conducted several hearing sessions with the interested entities to improve the plan and we will continue to follow this process in the future as well.

When the construction of the facilities is completed, it is imperative for us to operate the port facility flexibly by introducing the vitality of the private sector into the operation and management of the port. I would like to take the opportunity of showing you how the private sector is being utilized in the Port of Kochi now, and in the future, in relation to the theme of this INAP symposium entitled ‘Port Privatization or Private sector Participation in Port Operation.’

（Utilization of the private sector in the Port of Kochi so far）
There are two tasks in which the private sector is involved in the Port of Kochi.

−Business Relationship of Kochi FAZ−

One is facility management and improvement such as warehousing.
In the New Port of Kochi, Kochi FAZ Co., Ltd. leases land from Kochi Prefecture, constructs cold and ordinary item storage warehouses and other buildings which are then leased to warehouse companies and transportation companies for a charge. In the case of other prefectures, some prefectures themselves pay for the construction of buildings for lease.

The introduction of the private sector to the New Port of Kochi has the advantage of decreasing investment in warehouses and other facilities on the part of the prefectural authority, and for the private sector, it is a good chance to grasp new business opportunities. In addition, it benefits users by providing them with unique and creative services.

−The Port of Hibiki−

Some ports in Japan introduced Private Finance Initiative (PFI) for improving their port facilities, in which construction of docks and basic buildings and landfill are paid for by the public, while gantry cranes and cargo handling facilities such as yard cargo handling machines are upgraded by the private sector.



−Service Consignment−

Second is the service consignment of port business to the private sector from the prefecture, as port facility controller.
The service consigned to the private sector includes:-
・ daily inspection of docks, cargo handling facilities, gantry cranes and others
・ cleaning of port facilities
・ admission control to the wharf
・ water supply
・ collection of port facility utilization charges and public utility charges such as electricity and water, etc.

Use of the private sector is beneficial for both users and administrators. For users, swift and integrated professional services are immediately at hand at their site. For administrators, significant cost-cutting possibilities are available.

（Future utilization of the private sector）
I have explained the current status of utilizing the private sector for our port business. Now, I will explain how the private sector will be utilized in the future.

The law regarding public facility management and operation in Japan was amended last year.

−Outline of the Amendment−

・ The private sector will now be allowed to issue their own permission for use of prefecturally-owned facilities.
・ The charges collected shall serve as private sector income. The private sector shall have the right to set the charges flexibly subject to certain restrictions.


It is expected that in the future, the involvement of the private sector in the operation and management of ports in Japan will be greater than ever before.

This amendment will contribute to improving the quality of service that meets the requirement of users, as the private sector gains more income as the number of users is increased due to their efforts.

Since the New Port of Kochi is in the process of improvement as I have previously explained, and since certain restrictions remain in the amended law, the New Port of Kochi will not be in a position to introduce the private sector immediately. However, the administration is examining the possibility of utilizing the private sector in the management of the port so that high quality, cost competitive services can be offered to users, once the port facilities are completed.

（Last Comment）
It would be my greatest pleasure if this presentation today on the activities of Kochi Prefecture is a useful reference for each INAP member for its future and on-going port developments.

Thank you very much for your patience.