Fifth Symposium(Presentation of Kochi : Kochi Prefectural Government)

The Role of a Port Administrator in Economic Exchange Promotion
Among INAP Members
～ Activities of the Port of Kochi　～

Hisaaki Kato
Director
Port, Harbour and Airport Bureau
Kochi Prefecture

Ladies and gentlemen,
It is my very great pleasure to see INAP 2003 held here in the People’s Republic of China, a country with one of the fastest developing economies in the world, hosted by the Port of Qingdao, where remarkable progress is observed. It is also my great honor to have the chance to make a presentation today in front of INAP members and distinguished guests.

The title given to me today is ‘The Role of a Port Administrator in Economic Exchange Promotion among INAP Members’ and I would like to introduce you to our activities in the Port of Kochi as a point of reference for promoting industries in each country through fully utilizing the INAP network.

Firstly, I would like to talk briefly about Kochi Prefecture and the Port of Kochi.
Situated in western Japan facing the Pacific Ocean, Kochi Prefecture is the home of 810,000 residents living in an area of approx. 7,000 square kilometers.

The main industries are agriculture, forestry and fishery, especially horticulture, pelagic and inshore fishing, and aquaculture. As for secondary industries, Kochi ships out characteristic products such as battery separators, high quality paper product, vibration-proof machine tools, and high quality calcium carbonate for printing ink, although the value of product shipments standing at approx. 600 billion yen, is on a small scale in Japan.

This is data concerning international trade in Kochi in 2002.
The largest export destination from Kochi is the United States, followed by Singapore, Germany and P.R. China. The most noteworthy export items, in terms of value are metal products for semiconductors and ships. However, products unique to Kochi Prefecture such as paper products, limestone-related products, agricultural machines and implements, and machine tools are also exported.

The largest source of imported items to Kochi is P.R. China, followed by New Zealand, U.S.A., and Russia. In terms of items, Chinese coal is the largest item imported into Kochi, followed by raw pine wood and pulp from New Zealand.

The Port of Kochi is located in the center of the prefecture, on the Pacific Ocean and mainly imports coal and raw wood, and exports limestone, which is Kochi Prefecture’s main natural resource. The total volume of import and export cargoes handled in the Port of Kochi is approx. 11 million tons annually. The port is connected with Tokyo and Osaka via a regular ferry boat service.

The handling of container cargoes was started in 1998. The Port of Kochi is open for import/export cargoes with various corners of the world via regular container shipping lines through the Port of Busan in South Korea, but the volume of transactions still remains small.

Given its situation on the Pacific Ocean, we believe the New Port of Kochi has the goal potential to develop as a gateway for western Japan to the world, as compared with other major ports in Japan, the cost required for calling at the port is lower and fewer governmental regulations are imposed. In addition, the Port of Kochi has convenient access to Kansai area via sea and land transportation.

The Port of Qingdao and other INAP member ports are much larger than the Port of Kochi in terms of size, and are showing dramatic progress in the world. Kochi, therefore, would like to expand the volume and type of transactions at the port, including economic, technical and friendship exchange activities with INAP member ports, as its major policies, whereby we, in Kochi Prefecture, expect the growth of the port and augmentation of container cargoes handled there.

Now, let me show you successful examples of our exchange activities with INAP member ports.

【The Port of Colombo in Sri Lanka】

Our exchanges with the Port of Colombo in Sri Lanka started in April 1998 when the sister port agreement was established between us, and since then, we have dispatched and accepted delegations, both of port administrators and representatives of the private sector, to and from the port. Utilizing each and every chance, we have been trying to raise awareness of our sister port relationship among private companies in Kochi Prefecture, and formed an economic delegation with the participation of representatives of companies in Kochi interested in Sri Lanka, each time an administrative delegation to the country was organized.

In order to acquire a better understanding of Sri Lanka, we have Sri Lankan advisor living in Japan who has a wide network of personal connections with Sri Lanka, for valuable proposals and advice on maintaining good relations between our prefecture and Sri Lanka. Through them we became acquainted with some high-level Sri Lankan politicians, government officials and private companies.

Such activities have led to increased initiatives in exchange activities with Sri Lanka, mainly by representatives of the private sector, and also increased trade transactions. I will show you two successful examples of transactions started between Kochi and Sri Lanka.

One of them, which involves coconut shell fiber products, focuses on their use as an eco-friendly civil engineering material.

The story started when an economic delegation visited Kochi from Sri Lanka to search for a new opportunity for economic transactions with companies in Kochi Prefecture. Incidentally, on the side of Kochi Prefecture, civil engineers were looking for eco-friendly materials. We at Kochi Prefecture Government acted as a match maker between them to develop a new product using coconut fiber produced in Sri Lanka.

The product is used to protect slopes of river banks and roads. It is highly eco-friendly and resource cycling product as it returns to soil with the natural process of decay after performing the expected functions. The patent applications are being filed for the product development and construction method by Kochi Prefecture and companies in Kochi. The coconut shell fiber product is being promoted for civil engineering use in Kochi and PR activities are currently underway with the hope that this product may be used for civil engineering works throughout Japan. The import and actual nationwide advertising activities are being actively promoted by Kochi Trade Service Co., Ltd. Increase in the use and sale of coconut shell fiber products in Japan will directly lead to big increase in cargoes imported from the Port of Colombo to the Port of Kochi.

Another successful example of our transactions with Sri Lanka is the export of used construction machinery to Sri Lanka.

The minister in charge of housing and construction of Sri Lanka visited Kochi through an introduction by the Sri Lankan advisor to Kochi Prefectural Government whom I have mentioned earlier, and had a meeting with Governor Hashimoto. There, the minister revealed that, in the process of political stability and development of Sri Lanka, public works were expected to grow and that there was a problem stemming from the lack of construction machinery in the country.

After the meeting, we made a follow-up meeting with the advisor and mid-sized construction companies in Kochi Prefecture. We all agreed that the export of used construction machines to Sri Lanka would be a promising business, and shortly thereafter, the export of the machinery commenced. To promote the business, Kochi Prefectural Government became actively involved and extended its support. Now the export is showing steady growth and has been extended to include used cars and agricultural machinery, with a win-win benefit to both countries.

【Port of Qingdao, P.R.China】
Exchange activities with the Port of Qingdao are carried out most frequently and now commonly receive the active support and assistance of the People’s Government of Qingdao City as well as the Port of Qindao. An economic delegate is organized and dispatched to the city from Kochi every year, and reciprocally, we often accept delegates from companies and the agricultural field in Qingdao.

As in the case of our exchange activities with Sri Lanka, valuable proposals and advice are given by advisor living in Kochi who maintains various personal connections with people in China.

Kochi is home to a variety of horticulture, and is recognized as the largest ginger producing prefecture in Japan, occupying half of the ginger market. Many companies in Kochi deal with the import of ginger, and a large amount of ginger is imported from Qingdao and its outskirts. Major silk thread and yarn producers and tea manufacturers are in business in Kochi, and large volume of silkworm cocoons and tea are imported from China. We once had a regular container shipping line between the Port of Kochi and the Port of Qingdao, though currently closed due to the severe competition among shipping companies. The Chinese products are currently imported into Japan through Busan lines and other ports. We hope to resume direct shipping lines with Qingdao, by realizing an expanded volume of trade transactions in the future.

These are the products we are actively involved in selling.
In front of you, there is a 500ml PET bottle of deep sea water. The deep sea water is potable water taken from a depth of more than 300 m under the sea. After removing the salt content, deep sea water is sold as drinking water. Deep sea water is extremely pure after several hundreds years flowing deep under the sea, and full of minerals including microelements necessary for the human body. Research has revealed that deep sea water is effective in strengthening our immune system. Potable deep sea water was commercialized by a company in Kochi for the first time in Japan. It sells very well in Japan as people tend to be health-conscious. A similar phenomenon is gradually being observed in South Korea and Taiwan as well.

We handed out deep sea water to you for advertising purpose hoping to see the product sold in China in the near future. Please try it. Thanks to the People’s Government of Qingdao, this deep sea water is being actively promoted in various international events held in the city.

Currently we have very active ongoing transactions with these two ports, but at the same time we search for various exchange activities with other INAP member regions. I will show you some of the most noteworthy activities involving other member ports.

【Subic Bay Port and the Port of Cebu in the Philippines】
We are currently examining the possibility of starting eco tours to the tropical rain forest in Subic. The interest in eco tourism is growing in Japan and the possibility is currently being examined of having a chartered plane from Kochi to the Philippines, with the collaboration between an NPO in the Philippines which already has some experience in this field being actively involved in planting mangrove trees, and companies in Kochi.

Also under examination is the academic cooperation of universities in both countries by concluding sister university agreements, as well as the possibility of export of used cars to expand cargo volumes handled.

【The Port of Tanjung Perak in Indonesia】
We have trade relations with Surabaya and import high quality fertilizers for horticulture and agriculture such as sugar cane top and baggas. Also an increased volume of furniture and sundry goods are imported from Indonesia.
Surabaya City is a sister city of Kochi City and exchanges delegates every year. This year, a Yosakoi dancing team was dispatched to Surabaya city. The Yosakoi Festival is the most famous dance festival, in Japan, which is very unique and peculiar to Kochi Prefecture.

These are some examples of activities supported by the Port of Kochi in order to promote economic exchanges with INAP member ports and regions.

It is true that information exchange between port administrations and the climate of marine transportation is vital for promoting exchanges among INAP members. Equally important is to revitalize the economic development of each region by the efforts of ports, which are major players in the international distribution, especially in terms of economic exchanges.

We, Kochi Prefectural Government, are Port Administrator of the Port of Kochi. Control of the port by an administrative organ is very convenient in maintaining smooth collaboration between various industrial sections, trade unions and companies in the prefecture, in addition to the control and operation of the port, as we have staff members of the industrial promotion department within the same organization. Any inquiries in relation to Kochi Prefecture can be directed to Kochi Prefectural Government and Kochi Trade Service Co., Ltd.

Each INAP member operates in a different political climate with regional features. We hope the port administrators perform their function as a driving force of economic growth with collaborative works in the INAP network so that each INAP member can contribute to economic development of its own region.

It is my hope that my presentation today will be useful to a revitalized economic exchange among INAP members aiming at ‘Peace, Development and Win-win Policy’ the main theme of our symposium this year.

Thank you very much.