Japan looks into port privatisation

JAPAN IS investigating options to privatise its port operations in an effort to improve efficiency and reduce costs, starting with Tokyo Port. The Tokyo Port Terminal Public Corp (TPTPP) will in all likelihood be privatised by April 2008 following a motion by the Tokyo Metropolitan government’s Port and Harbour Bureau, who believe the move would bring savings to the bureau and greater efficiencies to the port. The bureau’s loan burden will be reduced through privatisation and TPTPC expenses limited for improvement to the port and harbour. The purpose of the privatisation will be to make the TPTPC more efficient by avoiding regulations from the central government and carrying out management functions more freely. Tokyo Port Terminal Public Corp currently handles over 70% of the foreign trade container freight at Tokyo Port, but it is believed as a private operator the company will make pier management more efficient, which will directly lead to strengthened global competitiveness. Osaka Port is considering a similar privatisation move.