(1)PURPOSE OF THE LAW AND SYSTEM
The objective of this law is to establish order relating to port transportation, to undertake the sound development of the port transportation business, and to thereby promote public welfare.

(2) OUTLINE OF THE LAW AND SYSTEM
Any person intending to engage in the port transportation business at ports other than specified ports shall obtain a license from the Minister of Transport for each type of business and each port (Article 4).
In the case of the breach of the Law, business is suspended or a license is cancelled. Any person engaging in the port transportation business shall decide fares and charges and obtain an approval of the Minister of Transport. (Article 9)
(Notes) Regarding specific ports (Chiba, keihin(Tokyo, Kawasaki, Yokohama ), Shimizu, Nagoya, Yokkaichi, Osaka, Kobe, Moji (Shimonoseki and KitaKyushu), and Hakata ), the port transport business is subject to the permission. Fare and charge is subject to a prior application. (scheduled to enforce in May, 2006)

(3) CABINET ORDER AND MINISTERIAL ORDINANCES
- Enforcement Order of the Port Transportation Business Law
- Enforcement Regulations of the Port Transportation Business Law

(4) OUTLINE OF THE CONTOL
1) Items Covered
Port transportation business, fares and charges

2) Outline of the Control
i. Content of the Control
(a) Any person intending to engage in the port transportation business shall obtain a license from the Ministry of Transport for each type of business and each port.
(b) Any person intending to engage in the port transportation business shall decide fares and charges and obtain an approval of the Minister of Transport.

ii. Procedure for Application
(a) In the case of obtaining a license for the port transportation business, a written application stating the name or title and address, the type of port transportation business and port, etc. shall be submitted to the Minister of transport.
(b) In the case of obtaining an approval of fares and charges, a written application stating the name or title and address, the type of port transportation business and port, amounts of fares and charges to be decided shall be submitted to the Minister of transport.

iii. Certification System
(a) Regarding a business license, conformity with standards is examined, for example, whether or not commencement of the port transportation business will lead to a superfluous supply.
(b) Regarding fares and charges, conformity with standards is examined, for example, whether or not these compensate for appropriate prime cost under the efficient management and include proper profits. Furthermore, fares and charges are determined according to each port and type of operation.

(5) HIGHLIGHTS OF THE RECENT AMENDMENT
1) Revision in 2005 (scheduled to enforce in May, 2006)
"Deregulation of the port transport industry in harbors other than specific harbors" is implemented from the view point of business efficiency and of providing various services by promoting the competition among business sectors based on "three year's plan for the reform of regulation and promotion of opening the market to private industry (cabinet decision on March 19, 2004).

2) The deregulation of the port transport industry implemented in advance limited to specific harbors (Nine main ports: Chiba, Keihin, Shimizu, Nagoya, Yokkaichi, Osaka, Kobe, Kannmon and Hakata) by the revision of Law in 2000 is expanded to harbors in the whole country (94 ports in total) as a uniform regulation system across the country. (Change of the regulation of business participation for a license system to a permission system (abolition of regulation of demand and supply regulation). Change of regulation for fare and charge from licensing system to prior application system)

(6) REFERENCE INFORMATION
Port Management and Operation Division, Ministry of Land, Infrastructure and Transport
Tel: 03-5253-8111
http://www.mlit.go.jp