Port Terminal Public Corporation (PTPC) system
The Port Terminal Public Corporation System (PTPC), formerly a Foreign Trade Terminal Public Bodies (FTTPB), was organized to respond to the rapid increase in container trade in the mid-sixties and to promote quick procurement of funds as well as exclusive use of berths. There are three players-the PMB, the PTPC, and an exclusive terminal operator who provides a service to an exclusive carrier. The terminals in this type of system are operated by stevedoring companies that have been organized by the carriers, or are closely related with them, and are leased by carriers. There are 38 berths of these types of terminals in the major ports of Tokyo (8), Osaka (5), Yokohama (10), Kobe (14), and Nagoya (1) where Isewan Terminal Service Co., Ltd. was the first case in Japan for a stevedoring company to become a lessee for a PTPC terminal. The financial support for loans to invest in wharf development is a 40% no interest loan from the MOT and PMB with each sharing 20%; a 30% low interest loan from PMB to PTPC; and a 30% investment from the lessee. The financial support for loans to invest in wharf development 15meters depth and over is a 60% no interest loan from the MOT and PMB with each sharing 30%; a 20% low interest loan from PMB to PTPC; and a 20% investment comes from the lessee. The terms for wharf development loans are 20 yrs with 3 years deferred and payments semi-annual. The type of lease is based on “flat-rate” principle. PTPC Ieases are usually for a 10-year period. Those responsible for terminal equipment, buildings, land, and leasehold improvements are as follows:
the PTPC is responsible for the wharf,
the PMB/PTPC is responsible for backyard,
the PTPC is responsible for the yard pavement,
the PTPC is responsible for the gates, CFS, and buildings,
the PTPC is responsible for the gantry cranes, and
the Lessee is responsible for the handling equipment.
The advantages of the Port Terminal Public Corporation (PTPC) system model is that it places a smaller burden on port management bodies for the construction of wharves. The operational aspects are under the control of the lessee (shipping companies or terminal operators). The difficulties with the PTPC model is its facilities cannot be reused for the purposes other than foreign trade container terminals. There is currently no flexibility in choosing a lease.18 The PTPC's berths are a deeper depth so the cost is greater and needs to be covered in the lease.19
Joint Stock Company (JSC)
A Joint-Stock Company System is a private/public partnership that consists of organizations that are qualified under the Ports and Harbors Law to develop and manage specific port facilities including container terminals. The only two that exists in Japan, Nagoya and Yokkaichi. The financial support for loans to invest in wharf development is by a 10% no interest loan from the MOT; a 30% low interest loan to the PMB that is passed on to the JSC as a sub-loan; each 10% investment by PMB and shipping company; and a 40% investment by the private partners. The terms for wharf development loans are 20 yrs with 3 years deferred and payments semi-annual. The type of lease is annual and is based on the flat-rate principle. Once the JSC is established, it is responsible for building and operating the terminal.
New system
The “New System” for container terminals was introduced in 1998. It is directed to the future development of deep depth, high standard container terminals to be located in Yokohama, Nagoya, and Kobe.
