TAKAHASHI-Disaster risks and port management system-ID1247-IDRC2014_b

Disaster Risks and Port Management System:
Involvement of the Central Government in
Disaster Risk Management in Port Operations
5th International Disaster and Risk Conference IDRC 2014
‘Integrative Risk Management - The role of science, technology & practice‘ • 24-28 August 2014 • Davos • Switzerland
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Koji TAKAHASHI, Yasuo KASUGAI, Isao FUKUDA
Port and Airport Research Institute, Japan

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Ａｕｔｈｏｒｓ：Ｏｆｆｉｃｉａｌｓ
PARI: Port and Airport Research Institute
Independent Administrative Institution
ＭｉｎｉｓｔｒｙｏｆＬａｎｄ，Ｉｎｆｒａｓｔｒｕｃｔｕｒｅ，ＴｒａｎｓｐｏｒｔａｎｄＴｏｕｒｉｓｍ
ＪａｐａｎｅｓｅＧｏｖｅｒｎｍｅｎｔ
a. OUTLINE OF THE OPERATION SYSTEM OF JAPANESE PORTS
b. PORT MANAGEMENT DURING DISASTERS
c. DEFECTS IN THE PORT OPERATION SYSTEM
d. IMPACT OF FUTURE LARGE-SCALE NATURAL DISASTERS
e. ADDED VALUE FOR THE POST 2015 FRAMEWORK FOR DISASTER
RISK REDUCTION
d. CONCLUSIONS

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Locations of Container Terminals
(Top 100 Ports by Handling Volume)

Classification of Main World Ports
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Public Private
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Trend of Management Form
of the World Ports
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Land
-lord
Private
Public
Tool
Private
Public
Asset Ownership
Service Operation

OUTLINE OF THE OPERATION SYSTEM OF JAPANESE PORTS
CHIBA
TOMAKOMAI
MURORAN
SAKAI-SENBOKU
International Strategic Port
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AMAMI-OKINAWA area
Major Port
KOBE
OSAKA
NAGOYA
HIMEJI YOKKAICHI
MIZUSHIMA
HIROSHIMA
TOKUYAMA
SHIMOTSU
SHIMONOSEKI
KITAKYUSHU
HAKATA
SHIMIZU
TOKYO
KAWASAKI
YOKOHAMA
FUSHIKITOYAMA
NIIGATA
SENDAI-SHIOGAMA
Location of Ports in Japan
WAKAYAMA-SHIMOZU
Major International Port

Classification of Ports and Harbors
International Strategic Ports
KEIHIN HANSHIN
TOKYO YOKOHAMA KAWASAKI
OSAKA KOBE
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Major International Ports
Major Ports
Local Ports
Harbors of refuge
･･･Refuge to small craft in case of a storm and are not
used for the loading and uploading of cargo or boarding
of passengers under normal circumstances

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Port Management
• Basis supporting a national logistics
public participations
legal support
financial support.
• Management right of main ports were transferred to local
governments from national government
• Many policies: privatization, concession.
8

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Port Management
• Recently, many countries have been changing their public
participation policies.
• One country increases private investment and reduces public
financial support.
• Another country backs up logistics activity with public support.
• Suitable port management?
9

Administration of Ports and Harbors
The maintenance and administration
of ports and harbors is governed mainly by
 Port and Harbor Act
Law Concerning Dissolution of
Port Development Authorities and
Succession of Their Functions
Emergency Measures Law
for Port and Harbor Development
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Besides,

Port and Harbor Act
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The purpose of the law :
・Orderly development and appropriate
management of ports and harbors,
together with the development and maintenance
of waterways, while considering the environmental
conservation.
with the aim of contributing to
・the development of transportation
・suitable utilization and balanced growth
of the national land

Port and Harbor Act
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Main features :
• Port management is assigned to port authority
or local government.
• The cost-sharing scheme between the National
Government and local port management bodies
is clearly defined.
• It prohibits the port management bodies from
being engaged in port-related business that
private sector is capable of carrying out.
• It confirms the National Government’s right to
review and authorize the master of port
development plans.

Port Management System in Japan
The National government does not directly operate
ports/harbors
The operations performed by port authorities not
only concern the interests of one region, but also
significantly affect the interests of the whole nation.
Port and Harbor Act specifies the matters
related to the involvement of the National government
in the administration of ports.
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Port Management System in Japan
Port and Harbor Act specifies the matters
related to the involvement of the National government
in the administration of ports.
Example of involvement of the National government…
(1) Approval of Port Area
(2) Examination of Port Plan
(3) Standardization of forms for reporting arrival at
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or departure from the port
Etc…

Major Roles in Port Management
Port Authority:
Local Government
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National Government
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• Policy formulation for the
development and
administration of
nationwide ports and
harbors
• Establishment of necessary
laws and regulations
• Providing advice and
guidance on port
administration and
operation to PA
• Formulation of port
development / management
plan
• Construction and
maintenance of port
facilities
• Permission for and
restrictions on facility use
in port management
districts (marine districts,
land districts)
• Leasing & management of
port facilities

Port Authority:
Local Government
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National Government
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• Authorizing development
plans for major ports
• Financial assistance for PA
in relation to port
construction projects
• Implementation of port
construction projects
(projects under the direct
control of the NG)
• Improvement and
maintenance of shipping
channels outside the port
area
• Setting and collection fees
for use of port facilities
• Establishing conditions for
providing port services
• Land reclamation in harbor
districts
• Environmental protection in
ports and harbors
• Statistics collection for
ports and harbors

Port Authority:
Local Government
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National Government
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• Establishment of
technological standards
for planning, design, and
construction of ports and
harbors
• Surveys and research
concerning port
technology
• Marketing and promotion
of ports and harbors

PORT MANAGEMENT DURING DISASTERS
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Great Earthquake
brought serious damage
to the world economic activities
○Hanshin Awaji Great Earthquake in 1995
$100billon
○East Japan Great Earthquake in 2011
$200 billion – $300 billion
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Location of Ports and Harbors in Japan
CHIBA
TOMAKOMAI
MURORAN
SAKAI-SENBOKU
International Strategic Port
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AMAMI-OKINAWA area
Major Port
KOBE
OSAKA
NAGOYA
HIMEJI YOKKAICHI
MIZUSHIMA
HIROSHIMA
TOKUYAMA
SHIMOTSU
SHIMONOSEKI
KITAKYUSHU
HAKATA
SHIMIZU
TOKYO
KAWASAKI
YOKOHAMA
FUSHIKITOYAMA
NIIGATA
SENDAI-SHIOGAMA
WAKAYAMA-SHIMOZU
Major International Port

Great Earthquake Disaster
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Port suffered serious damage
Function of Port Authority was Paralyzed!
Japan was able to get Three Big Lessons
about the Port Authority System
of Local Government
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Three Big Lessons
1st Big Lesson
Devising an essential backup system
〇National Government carried out
the cooperation adjustment function
〇Among plural Port Authorities
& secured a supplement function
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Distribution of
goods from ports
on the Japan Sea
side (left)
to ports on the
Pacific side (right)

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Three Big Lessons
2nd Big Lesson
Loss of functions of a port management body
〇Damaged Local Governments were pressed by
correspondence duties
such as suffering inhabitants
○Restoration Revival of Port duties with
Full-Scale Support of National Government
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Role of Local Governments according
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to the Local Autonomy Law
• The task of a local government shall be to promote the
welfare of its residents, for which purpose it shall carry out a
wide range of tasks in the autonomous and comprehensive
performance of local public administration.

Role of Local Governments according
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to the Local Autonomy Law
2.
• In order to accomplish the purpose of the preceding
paragraph, the role of the State shall in the main be to attend
to: matters relating to its position as a nation in the
international community; matters concerning basic rules on
national activities or local autonomy that should be
standardized nationally; or matters concerning policies and
programs to be implemented on a national level or from a
national viewpoint. As a rule, administrative matters close to
the people shall as far as possible be referred to local
government entities, so that there is an appropriate sharing of
roles with local government.

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Three Big Lessons
3rd Big Lesson
Financial problems caused by the annual
accounting system and complex ordering
procedures
○Limit of Human Resources
○Limit of Financial Power
○Delay of Investment by Accounts System &
Ordering System of National / Local Gov’t
○Delay by Complexity of Procedure
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Defects in the Port Operation System
a. Limitations of port management and operations by local
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governments bordering the sea
b. The disconnect between the port management system and
the spirit of the Local Autonomy Law
c. Risk of breakdown in port management and operations
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IMPACT OF
FUTURE LARGE-SCALE NATURAL DISASTERS
Cabinet Office, Government of Japan

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IMPACT OF
FUTURE LARGE-SCALE NATURAL DISASTERS
• 40% of all the marine container shipments in Japan would
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need to be handled by healthy ports as backup.
• The Sea of Japan side would also play important roles as
backups for stricken ports.

RISK MANAGEMANT SCENARIO
FOR ESTABLISHING A BACKUP SYSTEM
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• Scenario １
Overall support provided by backup ports
• Scenario ２
Deciding on domestic hub ports as backups
and collaboration with feeder transportation
• Scenario ３
International cooperation among the Port of
Busan, Port of Shanghai, and other ports

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Nankai Trough Earthquake
Scenario １
Overall support provided by backup ports

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Scenario ２
Deciding on domestic hub ports as backups
and collaboration with feeder transportation
Hub port

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Scenario ３
International cooperation among the Port of
Busan, Port of Shanghai and other ports
Busan
Shanghai

ADDED VALUE FOR THE POST 2015 FRAMEWORK
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FOR DISASTER RISK REDUCTION
The case of Japan as an example shows that:
It is vital for the central government to bring about changes in
the operational authorities so as to implement immediate
backup scenarios and restoration services in the event of such
large-scale natural disasters.

CONCLUSIONS
• If a major large-scale disaster strike, local governments will
be constrained in managing ports and getting them to
function normally as soon as possible after the disaster.
• In the event of a large-scale natural disaster, ports operated
by the local governments would be at high risk of breakdown.
• In case of Japan, 40% of all the marine container shipments in
Japan would need to be handled by healthy ports as backup.
• The Sea of Japan side would also play important roles as
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backups for stricken ports.
• Three possible scenarios.

CONCLUSIONS
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To manage these risks:
• Other bodies (and not local governments) should be
entrusted with the management of ports.
• The central government would have to allow changes in the
organizations operating the ports.
• The central government should prepare backup functions for
the afflicted ports.
• It would be prudent to implement the needed changes
immediately.
• Port authorities throughout the world would do well to plan
for such future contingencies using the examples and
scenarios presented in this study.

Added value for the Post 2015 Framework for
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Disaster Risk Reduction
• How did your work support the implementation of the Hyogo
Framework for Action:
– In the Great East Japan Earthquake, quick restoration of the port
which suffered a great deal of damage was useful for transportation of
urgent goods, relief, and economic early restoration.
– After the Great East Japan Earthquake, the research institute has
explained that strengthening the port facilities to be tenacious is
connected with disaster reduction.
– Now, research institute is advancing research of tenacious port
facilities against the large-scale earthquake and tsunami expected to
be occurred in the future.

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• From your perspective what are the main gaps, needs and
further steps to be addressed in the Post 2015 Framework for
Disaster Risk Reduction in
– Research:
The damage caused by the large-scale earthquake and tsunami of one
certain country leads to the stop of global industry such as automobile
and electronic industry. Since a catastrophic disaster leads to the risk of
stagnation of the world economy, early restoration of industry is
required.
In the Pacific Rim where a risk of suffering the damage of large-scale
earthquake and tsunami is high, it is important for the research
institutions of the world to advance the joint research on the disaster
reduction of large-scale earthquake and tsunami.

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• From your perspective what are the main gaps, needs and
further steps to be addressed in the Post 2015 Framework for
Disaster Risk Reduction in
– Education & Training:
Preventing the weathering of disaster experience by progress of time
leads to reduction of a disaster risk. National/local government should
enforce children's education on the method of the hazard drill in
collaboration with the local residents and private enterprises so that the
fear of large-scale earthquake and tsunami may not be weathered with
progress of time.

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• From your perspective what are the main gaps, needs and further
steps to be addressed in the Post 2015 Framework for Disaster Risk
Reduction in
– Implementation & Practice:
For reduction of the disaster risk of the large-scale earthquake and
tsunami of coastal areas, the information disclosure on the facilities of the
private enterprises located in these areas is required. However, since
disclosure of the risk-related information of private enterprises leads to
deterioration of the corporate value, such as a fall of the stock price in the
economic market, private enterprises' resistance is strong to disclosure of
risk-related information. Even if private enterprises disclose their risk-related
information, the economic institution which does not demote the corporate
value needs to be established immediately.
On the other hand, preventing the weathering of disaster experience by
progress of time leads to reduction of a disaster risk. The industrial,
administrative and academic sectors should draw up a business continuing
plan (BCP) together, and should conduct joint training periodically.

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• From your perspective what are the main gaps, needs and further steps to
be addressed in the Post 2015 Framework for Disaster Risk Reduction in
– Policy:
On the other hand, one characteristic of the Japanese port management system is
that all ports are managed by local governments. The national government is not
directly involved in port management, confining itself to mandating basic policies for
port construction and management or technological standards for facilities. The power
of the national government is limited because it entrusts port management to port
authorities, although port management seriously impact the national interest. From
the aspects of enhancement of the disaster response capability, port operation
requires powerful leadership of the national government.
Japan experienced two great earthquakes in 1995 and 2011, both of which
devastated major ports, forcing Japan to face challenges related to its port
management system. I use the case of Japan as an example and propose that it is vital
for the national government to bring about changes in the operational authorities of
Japanese ports, so as to implement immediate backup scenarios and restoration
services in the event of such large-scale natural disasters. Port authorities throughout
the world would do well to plan for such contingencies using the examples and
scenarios presented in my study.

TAKAHASHI-Disaster risks and port management system-ID1247-IDRC2014_b

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