3.2 New Approach for Container Terminal Operation

  A new law was passed in December 2002 enabling for the first time in Japan a long-term 
lease (maximum 30 years) of the public container terminals to the private sector. Making 
full use of this scheme, the NPA intends to invite an experienced terminal operator through international competitive bidding to perform terminal operation. The NPA will provide basic infrastructure (quay and yard) and even quayside gantry cranes.

  Given that the ultimate goal of the project is the economic development of Okinawa 
through promoting industrial development under reduced maritime transportation costs, 
local and central governments fully support the project. Local port-related industries are also lending their support.

  The NPA will provide favorable conditions to the terminal operator. The long-term lease 
scheme could result in significant business opportunities to terminal operators. Even prior to the opening of the bidding process, the NPA launched a campaign to attract shipping lines 
by reducing quay gantry crane charges in November 2002 from JPY59,000/hour 
(approximately US$490/hour) to JPY42,000/hour (approximately US$350/hour), amounting 
to a 30% discount. Additional similar reductions related to NPA charges are under consideration.