CHAPTER I General Provisions

(Purpose of this Law) Article 1. The purpose of this Law is to provide means for development, utilization and management of ports and harbors through the establishment of Port Management Bodies.

(Definitions) Article 2. In this Law "Port Management Body" means a Port Authority which will be created under the provisions of Chapter II Section 1 or a local public entity which which will be designated or established under the provisions of Article 33. 2 In this Law "major ports" mean those ports and barbors which will be designated as such in a Cabinet Order, being of great importance to the interest of the State;and "minor ports" mean all ports and harbors other than major ports. 3 In this Law "port area" means the water area for which the approval has been given under the provisions of Article 4 paragraph 4 (including the case where these provisions apply mutatis mutandis under the provisions of Article 9 paragraph 2 and Article 33 paragraph 2). 4 In this Law "waterfront area" means an area which has been designated as such under the provisions of Article 10 paragraph 3 of the City Planning Law (Law No.36 1919) or an area which has been decided as such by a Port Management Body with an approval obtained under the provisions of Article 34. 5 In this Law "port facilities" mean the facilities within a port area and a waterfront area, enumerated in the following items: (1) Water facilities: Routes, anchorages and basins; (2) Contour facilities: Breakwaters, sand groins, training walls, sluices, locks, levees and seashore lovees; (3) Mooring facilities: Moorin quays. mooring buoys, bollards, piers, floating piers and landing places; (4) Port traffic facilities: Roads, bridges. railways, tramways and canals; (5) Navigation facilities: Navigation aids, and signals, lighting and communications for the entry and clearance of vessels; (6) Pier facilities: Stationary and overhead rail cranes and sheds; (7) Passenger facilities: Passenger embarkation and debarkation facilities, baggage, waiting and rest rooms; (8) Storage facilities: Warehouses, open storage areas, reservoirs, coal storage, depositories for dangerous goods and oil-storage facilties; (9) Ship's supply facilities: Water-supply facilities, oil-supply facilities and coatling facilities for vessels. 6 In this Law "port construction work" means a work of constructing, improving, maintaining or repairing port facilities. 7 In this Law "port of refuge" means a port whose main object is to give refuge to small-sized vessels in a storm but which is not normally used for loading and unloading of cargoes or embarkation and debarkation of passenges;and which will be designated in a Cabinet Order.

(Provisions concerning Fishing Port) Article 3. This Law shall not apply to ports designated by other laws as exclusively for the use of fishing.

CHAPTER II Port Authority

Section 1 Establishment of Port Authority and Affairs Relating thereto

(Establishment, etc.) Article 4. Any local public entity which actually manages port facilities at the port concerned, which has borne expenses for establishment or maintenance and management of port facilities at the port concerned, or whose area includes the land area bordering the scheduled port area (hereinafter referred to as "the interested local public entity" ) or combination of such local public entities may establish a Port Authority after making out the articles of incorporation separately and jointly, through the decision of respective local assemblies, and by mutual agreement through consultation taking in advance the procedures prescribed in paragraphs 3 and 4. 2 The provisions of the preceding paragraph shall not apply to a port where all or most of water facilities and contour facilities have been established or are maintained and managed by any person or persons other than the State and local public entity, excepting the case where such person or persons request any of the interested local public entities to establish a port authority. 3 Any local public entity which intends to establish a Port Authority in accordance with the provision of paragraph 1 shall in advance make public the intention, the scheduled port area and the period within which the interested local public entities are to offer their opinions on the matter and shall, upon offering of such opinions, make them participate in the consultation as referred to in the same paragraph, provided that the period which the interested local public entities are to offer their opinions shall not be shorter than one month. 4 When the mutual agreement on the establishment of the Port Authority as provided for in paragraph 1 has been reached, the local public entity which intends to establish the Port Authority shall, with respect to the port area to be placed under the jurisdiction of the Port Authority, obtain an approval from the Minister of Transportation or the governor of To, Do, Fu or prefecture, according to the following classification: (1) In case of a major port, the approval of the Minister of Transportation; (2) In case of a minor port and in case the To, Do, Fu or prefecture is one of the parties to the establishment of the Port Authority, the approval of the Minister of Transportation; (3) Of a port other than those specified in the preceding two items, the approval of the governor of the To, Do, Fu or perfecture the area of which includes the land area bordering the scheduled port area. 5 The Minister of Transportation or the governor of To, Do, Fu or prefecture shall, in case he intends to give the approval referred to in the preceding paragraph as to the area of a river as stipulated in Article 2 paragraph 1 of the River Law (Law No.71 of 1896), consult on the port area with the local administrative agency which has jurisdiction over the said river. 6 The Minister of Transportation of the governor of To, Do, Fu or prefecture shall not give the approval referred to in paragraph 4, unless the scheduled port area is a minimum area necessary for management and operation of the water area as an economically single port, and unless it is uninjurious to the interest of the local public entities whose area borders the water area adjacent to the scheduled port area, and also unless, in case of a port the area of which is determined in the Port Areas Law (Law No.175 of 1948), the scheduled port area does not exceed such area. 7 If the agreement as referred to in paragraph 1 has not been reached, the interested local public entities may apply for mediation thereupon to the Minister of Transportation or the governor of To, Do, Fu or prefecture according to the classification as provided for in paragraph 4. In this case, "one of the parties to the establishment of the Port Authority" in paragraph 4 item (2) shall read "one of the parties to the issue." 8 To the application as referred to in the preceding paragraph shall be attached a full account of the consultation and respective views of the interested local public entities. 9 When the application as referred to in paragraph 7 has been made, the Minister of Transportation or the governor of To, Do, Fu or prefecture shall mediate on the matter, taking account of the history of the port, financial condition of the interested local public entities, plan for development of the port in future, degree of utilization of the port and other relations between the said port and the interested local public entities and further, in case of a major port, after consultation with the Prime Minister. 10 In case the governor of To, Do, Fu or prefecture has taken action under the provisions of paragraph 4, or has made the mediation referred to in the preceding paragraph, he shall immediately report to that effect to the Minister of Transportation.

(Juridical Person) Article 5. The Port Authority shall be a nonprofit, juridical person of public law.

(Articles of Incorporation) Article 6. The following matters shall be stipulated in the articles of incorporation of the Port Authority: (1) Name of the Port Authority; (2) Local public entity organizing the Port Authority; (3) Location of the office of Port Authority; (4) Activities of the Port Authority; (5) Port area; (6) Matters concerning the fixed number, term of office, appointment and removal and salary of members of the Board of Directors, and proceedings and decisions thereof; (7) Matters concerning organization of the Secretariat of Port Authority, and personnel thereof; (8) Matters concerning property and accounting of Port Authority; (9) Matters concerning investment and sharing of expenditure by the local public entity organizing the Port Authority; (10) Matters concerning disposition of surplus and loss; (11) Method of public notice. 2 The articles of incorporation or any alteration thereof shall be ineffective unless aporoved by the assembly of the Local Public Entity under which the Port Authority is organized.

(Registration) Article 7. The Port Authority shall register its establishment, change of location of its main office and other matters which will be specified in Cabinet Order in accordance with the procedure set forth in the Cabinet Order. 2 The matters required to be registered as to the Port Authority shall not be set against a third person unless they have been registered.

(Formation) Article 8. A Port Authority shall come into existence in care the registration of establishment has been effected.

(Public Notice on the Port Area) Article 9. The Port Authority shall, immediately after it has come into being, give a public notice of the fact and the port area. The same shall apply to the case where any change has taken place in the port area, 2 The provisions of Article 4 paragraphs 4 to 6 inclusive shall apply mutatis mutandis to the case where the Port Authority intends to alter the port area.

(Non-Taxation) Article 10. The income tax and corporation tax shall not be levied on the Port Authority.

(Application of the Civil Code etc.) Article 11. The provisions of Articles 44, 50, 54, 57, Article 68 paragraph 1, Articles 71 to 80 inclusive, Articles 82 and 83 of the Civil Code (Law No.89 of 1896) and Articles 35, 37 and 37-(2) of the Law of Procedure in Non-Contentious Matters (Law No.14 of 1898) shall apply mutatis mutandis to the Port Authority.

Section 2 Activities of Port Authority

(Activities of the Port Authority) Article 12. A Port Authority shall conduct the following activities: (1) Preserve and maintain the port area and the port facilities under management of Port Authority in good operable and usable condition (including removing of flotsam and other things existing in the port area, which are likely to obstruct navigation); (2) Make plans for the construction and improvement of port facilities which are essential to port development; (3) Execute port construction work necessary to implement the plans as prescribed in the preceding item; (4) Manage on trust those port facilities (including the land necessary for port operation) which are owned by the State or local public entity and which shall be offered for the general public use; (5) Operate itself, of the mooring facilities to be offered for the general public use, those necessary for promoting the public convenience and effect necessary regulation over vessels using the said facilities in respect to the use thereof, including assignment of berths; (6) Provide necessary equipments for firefighting, rescue and guard; (7) Conduct or prepare investigation, study or statistical data necessary for port development and give publicity of to the utility port; (8) Provide services to vessels such as water-supply to vessels and aid to them in mooring or uemooring, in case such services are not rendered properly and sufficiently by others; (9) Lease out those port facilities which are under its management and which need not be offered for the general public use or which are unsuitable to be operated by the Port Authority itself; (10) Regulate the use of port facilities, such as sheds and cargo handling gears under the management of the Port Authority, by the persons who render services necessary for port operation using those facilities, in order to achieve the smooth movement of cargo or effective use of port facilities; (11) Render good officers in offering of sevices necessary for port operation; (12) Establish or manage facilities to increase welfare of ship's crews or port workers such as rest-houses; (13) Make and publish an up-to-date tariff showing scheduled rates and charges covering services or facilities necessary for utilization of port; (14) Other activities necessery for conducting the ones specified in the preceding items. 2 "The tariffs" mentioned in item (13) of preceding paragraph shall include not only rates and Charges established by the Port Authority itself but also statements of other rates and charges prescribed in Article 45 which have been reported to or are known by the Port Authority.

(Non-interference with Private Enterprises, etc.) Article 13. The Port Authority shall not impede fair activities of private enterprises related to transportation and storage such as harbor transportation and warehousing business, or interfere in their business operations, nor shall operate any business in competition therewith. 2 The Port Authority shall not discriminate any persons with regard to the use of port facilities or any other matters belonging to the port management and operation.

Section 3 Organization of Port Authority

(Board of Directors) Article 14. A Port Authority shall have a Board of Directors.

(Powers and Responsibilities of the Board of Directors) Article 15. The Board of Directors shall decide policies of the Port Authority and direct and control the business operation of the Port Authority.

(Organization of the Board of Directors and Appointment of the Members) Article 16. The Board of Directors shall be composed of members not exceeding seven (7) in number, in accordance with the articles of incorporation. 2 The members of the Board of Directors as prescribed in the preceding paragraph shall be appointed by the chief of the local public entity which organizes the Port Authority, with the consent of its assembly, from among persons who have sufficient experiences and knowledge in regard to the port and harbor, or who are of high repute.

(Disqualification as the Member) Article 17. Any person who falls under any of the following items shall not become a member of the Board of Directors: (1) Any member of the National Diet or the assembly of local public entity; (2) Any person who makes it his business to contract for works of the Port Authority or, in case of the said person being a juridical person, any officer thereof;or any person who, whatever his title may be, has official power or actual influence equal to or stronger than that of such officer;(including any person who has come under the above provision during one year before the date of appointment under consideration.); (3) Officer of any organization of such enterprisers as referred to in the preceding item or any person who, whatever his title may be, has official power or actual influence equal to or stronger than that of such officer;(including any person who has come under the above provision during one year before the date of appointment under consideration.) 2 In case any member of the Board of Directors has come to fall under any of the items of the preceding paragraph, he shall retire from his office.

(Term of Office of the Member of the Board of Directors) Article 18. The term of office of the members of a Board of Directors shall not exceed three years, provided that a member who has filled a vacancy of member's post shall hold office during the remaining term of office of his predecessor. 2 The members of the Board of Directors may be re-appointed. 3 The term of office of the members first taking office after the establishment of the Port Authority shall be fixed at the time of appointment by the chief of the local public entity which organizes the Port Authority, so that many members will not retire from the office at the same time.

(Removal of Members) Article 19. The chief of the local public entity which organizes the Port Authority may remove any of the members of the Board of Directors with the consent of the local public entity's assembly, when he considers that the said member cannot perform his duties owing to physical or mental disabilities or when he considers that the member has violated his obligations, or committed a misconduct deemed unfit for membership of the Board of Directors.

(Chairman) Article 20. The Board of Directors shall have a chairman, who shall be designated through election by its members themselves. 2 The chairman shall preside over the meeting of the Board of Directors.

(Method of Making a Decision) Article 21. The decision of the Board of Directors shall be made by a majority vote of all members of the Board of Directors, and in case of a tie it shall be made by the chairman. 2 No member of the Board of Directors shall have his vote in a decision of the Board of Directors on any matter in which he is:specially interested, as shall be determined by the Board.

(Auditors) Article 22. The Port Authority may have an auditor or auditors in accordance with the articles of incorporation. 2 The provisions of Article 16 paragraph 2 and Article 19 shall apply mutatis mutandis to the appointment and removal of the auditor.

(Duties and Powers of Chairman etc.) Article 23. The chairman shall represent the Port Authority and preside over its affairs as the chief thereof. 2 The members other than the chairman shall represent the Port Authority and conduct the affairs of the Port Authority in aid of the chairman, and act as deputy of the chairman in case of his absence, or perform the duties of the chairman in case of his absence, or perform the duties of the chairman in case the post is vacant, in accordance with the provisions of the articles of incorporation. 3 The auditor shall inspect the affairs of the Port Authority.

(Secretariat) Article 24. The Port Authority shall have a Secretariat with necessary personnel, in accordance with the articles of incorporation, in order to manage its affairs.

(Pay for the Chairman, etc.) Article 25. The Port Authority shall pay salary to the members, auditors and personnel who are in full-time service of the Port Authority. 2 The amount of salary as referred to in the preceding paragraph shall be fixed in proportion to the nature of their duties and their resposibilities, and on the same standard as that for those who are engaged in similar duties in the district concerned, provided that it shall not exceed the amount of salary for the chief of the local public entity which organizes the Port Authority (nor exceed the highest of the salaries for the chiefs, if two or more chiefs of local public entities come under this provision). 3 Any member or auditor who receives the salary referred to in paragraph 1 above shall not engage in any other business with remuneration.

(Character as Public Service Personnel) Article 26. The members of the Board of Directors auditors and personnel of the Port Authority shall be regarded as being engaged in public service in accordance with law and ordinance, insofar as application of penal laws is concerned.

(Appointment and Removal of the Members of the Board of Directors, etc. of the Port Authority which is Organized by Two or More Local Public Entities) Article 27. In case a Port Authority is organized by two or more local public entities, the method of exercise by the chiefs and assemblies of these local public entities of their powers concerning appointment and removal of members of the Board of Directors and auditors, as prescribed in Article 16 paragraph 2, Article 18 paragraph 3, Article 19 and Article 22 paragraph 2, shall be fixed in the articles of incorporation of the Port Authority.

Section 4 Finance of Port Authority

(Investment) Article 28. Any person other than the local public entities organizing a Port Authority shall not invest in the said Port Authority.

(Principles of Finance) Article 29. Any expenses incurred by the Port Authority for its business operation (except those required for the port construction work) shall be defrayed from charges for the use of port facilities, etc. under its management, as well as from rent thereof, charges for services it offers, such as water-supply, and other incomes deriving from the management and operation of the port.

(Issue of Bonds and Its Relative Affairs) Article 30. The Port Authority may issue bonds in order to raise money for construction, improvement or rehabilitation of port facilities. 2 The provision of Article 250 of the Local Autonomy Law (Law No.67 of 1947) shall apply mutatis mutandis to the case under the preceding paragraph. 3 The Port Authority shall, in accordance with the articles of incorporation, reserve every fiscal year some amount of money for redemption of bonds which it issued under provisions of the preceding paragraph. 4 The reserve for redemption referred to in the preceding paragraph shall not be used otherwise than for redemption of bonds.

(Disposition of the Profit or Loss) Article 31. The Port Authority shall reserve its surplus money as the reserve for redemption referred to in the preceding Article and as that for losses and shall pay remaining surplus, if any, to the local public entity which organizes the Port Authority in accordance with the articles of incorporation. 2 In case the Port Authority has incurred a loss, the local public entity organizing the Port Authority shall, in accordance with the articles of incorporation, cover any such port thereof as may not be covered by the reserve for losses referred to in the preceding paragraph.

(Inventory, etc.) Article 32. The Port Authority shall prepare the inventory, balance sheet and income and expenditure statement within two months after the end of every fiscal year, and present them to the local public entity which organizes the Port Authority.

CHAPTER III Local Public Entity as a Port Management Body

(Decision etc. on the Local Public Entity as the Port Management Body) Article 33. At a port where no Port Authority has been established, the interested local public entities may, through decision of their respective assemblies and by mutual agreement through consultation, designate one of them, or establish a local public entity under the provision of Article 284 paragraph 1 of the Local Autonomy Law, to be the Port Management Body, after taking the procedures prescribed in Article 4 paragraphs 3 and 4 which are applied mutatis mutandis under the provisions of the following paragraph 2. 2 The provisions of Article 4 paragraphs 2 to 6 inclusive and paragraph 10 shall apply mutatis mutandis to the case referred to in the preceding paragraph, and the provisions of Article 4 paragraphs 7 to 9 inclusive shall apply mutatis mutandis to the case where the mutual agreement referred to in the preceding paragraph has not been reached and the provision of Article 9 paragraph 2 shall apply mutatis mutandis to the case of alteration of port area of the local public entity as the Port Management Body.

(Activities) Article 34. With regard to the activities which a local public entity performs as a Port Management Body, the provisions of Articles 12 and 13 shall apply mutatis mutandis.

(Commission) Article 35. The local public entity as a Port Management Body may have a Commission, an organ to carry out the activities as provided for in the preceding Article. 2 The name, organization and powers of the Commission shall be prescribed in by-law of the local public entity.

(In Case a Port Authority has been Formed, etc.) Article 36. At a port where a local public entity has been the Port Management Body under the provisions of Article 33, when a Port Authority is formed or another local public entity is decided as a Port Management Body under the provisions of Article 33, the local public entity which has thitherto been the Port Management Body shall, so far as the port area of new Port Management Body is concerned, lose its position as the Port Management Body.

CHAPTER IV Port Area and Waterfront Area

(Permission for Construction Work etc. within Port Area) Article 37. In case any person intends to construct water facilities, contour facilities or moorning facilities, or otherwise exclusively use a part of the water area (except for the case of reclaiming the public-owned waters) or to gather sands, within the port area, he shall obtain the permission of the chief of the Port Management Body. 2 The chief of the Port Management Body shall give his permission for the construction, exclusive use or gathering referred to in the preceding paragraph, unless it will remarkably impede the execution of a plan of the Port Management Body for exploitation and development of the port or will otherwise remarkably hamper exploitation and development thereof. 3 In case the State, Japan Monopoly Public Corporation or Japanese National Railways intends to execute the construction, exclusive use or gathering as referred to in paragraph 1, in paragraph 1 "shall obtain the permission of the chief of the Port Management Body" shall read "shall propose to that effect to the chief of the Port Management Body" , and in the preceding paragraph "shall give his permission for" shall read "shall agree to the proposal for" . 4 The Port Management Body may collect charges for gathering sands or for exclusively using a part of the water-area from the person who has obtained the permission as prescribed in paragraph 1. However, this shall not apply to the case where the permission for construction of port facilities or the proposal by the State is concerned.

(Waterfront Area) Article 38. The Port Management Body may demarcate a waterfront area, with the approval of the Minister of Transportation, in an area other than those which have been designated as the city planning areas in accordance with the provisions of Article 2 of the City Planning Law. 2 The waterfront area as referred to in the preceding paragraph shall be of a minimum extent necessary for the management and operation of the port concerned, in the land area bordering the port area.

(Designation of Zones) Article 39. The Port Management Body may designate the zones enumerated in the following items, within the waterfront area: (1) Commercial zone: That zone designated for handling passengers or ordinary cargoes; (2) Special goods zone: That zone designated for handling goods which are usually taken in bulk and in large quantity such as coal, mineral ore etc.; (3) Industrial zone: That zone designated for the establishment of factories and other industrial facilities; (4) Railhead zone: That zone designated for connecting railway and railway-ferries; (5) Fishing port zone: That zone designated for handling marine products or making preparation for fishing crafts to go out; (6) Bunker zone: That zone designated for storing and supplying fuel for vessels; (7) Safety zone: That zone designated for handling explosives and other dangerous goods. 2 The zones referred to in the preceding paragraph shall be designated within the limit of the area of the local public entity which is the Port Management Body (in case the Port Management Body is a Port Authority, the local public entity which organizes the Port Authority).

(Regulation within the Zone) Article 40. Any building or structure which will remarkably hamper the function of each zone and which will be specified by by-law of the local public entity that is a Port Management Body (in case the Port Management Body is a Port Authority, such one of the local public entities which organize the Port Authority and whose areas include the area of the zone concerned as will be designated in the article of incorporation of the said Port Authority), shall not be established within the zones enumerated in the preceding Article. 2 The local public entity organizing the Port Authority shall, in laying down the by-law as referred to in the preceding paragraph, give a high regard to the draft of by-law prepared by the Port Authority.

(Reconstruction of Obstructive Structure, etc.) Article 41. The chief of the Port Management Body may, in case any building or other structure existing in a zone has come to fall under the provisions of the by-law established and enforced as provided for in the preceding Article and remarkably impedes the function of the said zone, order the owner or occupant of the said structure to reconstruct, transfer or remove it. 2 The chief of the Port Management Body shall, in case he intends to give the order as prescribed in the preceding paragraph, hold a public hearing after giving in advance public notice of the date and place thereof, hear opinions of the owner or occupant and other interested persons and take them into full consideration. 3 As to the losses caused by the instruction prescribed in paragraph 1, the Port Management Body shall compensate to the owner or occupant of the structure concerned for the loss which would not have been caused under ordinary circumstances but for the order and the loss of returns which would have been obtained under ordinary circumstances but for the order. 4 Any person who is qualified to receive the compensation in accordance with the provisions of the preceding paragraph may, if he is dissatisfied with the amount of compensation money decided, bring a suit for the increase of the amount within three months counting from the day on which he was notified of the decision on the amount.

CHAPTER V Expenses for Port Construction Work

(Mutual Sharing of Expenses) Article 42. In case at a major port, the Port Management Body executes any important construction or improvement work of water facilities, contour facilities or moorning facilities for the use of the general public, the State and Port Management Body shall each bear 50% of the cost of said construction or improvement work. 2 In case the Port Management Body executes at a port of refuge the construction or improvement work of water facilities or contour facilities, the State and the Port Management Body shall bear 75% and 25% respectively of the cost of the work. 3 The provisions of the preceding two paragraphs shall not apply unless the amount to be borne by the State under these provisions is appropriated in the budget approved by the National Diet through prior application to the Minister of Transportation. 4 The provisions of Article 17 paragraph 1 and Article 19 paragraph 1 of the Local Finance Law (Law No.109 of 1948) apply mutatis mutandis to the Port Authority in the case contemplated in paragraph 1 or 2 above. In this case "the local public entity" in the abovementioned law shall read "Port Authority" .

(Subsidy for Expenses) Article 43. Other than the case under the provisions of the preceding Article, the State may, when deemed especially necessary, grant subsidy within the limit of the budget for the expenses required for port construction work which is executed by the Port Management Body for use of the general public, in accordance with standards set forth in the following two items: (1) Up to 50% as to the construction or improvement of port traffic facilities at a major port; (2) Up to 40% as to the construction or improvement of water facilities, contour facilities, mooring facilities or port traffic facilities at a minor port.

CHAPTER VI Miscellaneous Provisions

(Charges by Port Management Body) Article 44. In case the Port Management Body intends to collect charges for the use of facilities which it provides or for services which it furnishes, it shall in advance fix the rates thereof and publish the rates at least 30 days prior to the time when the rates shall take effect. The same shall apply to the case of alteration of such rates. 2 Any interested person may, when he deems that the rates established by the Port Management Body under the provisions of preceding paragraph are unreasonable or in violation of this Law, bring the matter to the attention of the Minister of Transportation and request him to order the Port Management Body to revise the rates. 3 When the request referred to in the preceding paragraph has been made, the Minister of Transportation may, if he recognizes the said request justifiable, after affording the Port Management Body full opportunity to plead the reasonableness and consistency with this Law of the rates at a public hearing to be held by the Transportation Council within the area where the Port Management Body is located, order that Body to change the rates showing the reasons therefor.

(Charges to be collected by Persons other than the Port Management Body) Article 45. Any person other than a Port Management Body who intends to collect charges for the use of facilities or for performing services necessary for the utilizations of port at the port concerned shall fix the rates for the use of such facilities or the performance of such services and file with the Port Management Body a statement showing the rates to be charged. 2 The provisions of the preceding paragraph shall not apply to services or facilities which are furnished through contract each time.

(Transference, etc. of Port Facilities, the Expenses for which have been shared or subsidized by the State) Article 46. Any person who intends to transfer, mortgage, or lease out any port facilities, the expenses for which have been shared or subsidized by the State, shall obtain the approval of the Minister of Transportation;provided that this shall not apply to the case where the amount of State share or sudsidy has been reimbursed to the State or where the Lessee of such port facilities is to offer them for the general public use and also the term of lease is not to exceed three years. 2 The Port Management Body shall not take any action which will make the port facilities under its management and offered to the general public use unavailable to the general public use, except in the case the approval of the Minister of Transportation has been obtained under the provision of the main clause of the preceding paragraph or in the case prescribed in the proviso to the same paragraph.

(Prohibition of Discriminative Treatment) Article 47. In case the Minister of Transportation deems that a Port Management Body acts against the provisions of Article 13 (inclusive of the case where the provisions of Article 13 apply mutatis mutandis in accordance with the provisions of Article 34), he may order the Port Management Body to stop or change the action.

(Reviewing of Port Planning) Article 48. The Minister of Transportation may, when he deems it necessary for increasing the convenience of general traffic, request the Port Management Body of a major port to file with him a plan for development of the port such as arrangement, construction and improvement of the port facilities. 2 The Minister of Transportation shall review the plan referred to in the preceding paragraph, and may request change thereof when he considers that the plan does not conform to the national port planning for development of all ports and harbors, or that it is remarkably improper from the viewpoint of utilization of the said port.

(Report of Income and Expenditure) Article 49. The Port Management Body of a major port shall prepare and publish annual reports on its business incomes and expenditures and other port matters and submit copies thereof to the Minister of Transportation, in accordance with the procedures to be set forth in a Ministry of Transportation Ordinance.

(Uniformity of Reports on Entrance and Departure) Article 50. The Minister of Transportation may give necessary instructions to Port Management Bodies to provide for uniformity of reports on vessel's entrance and departure which the Port Management Bodies receive.

(Advice) Article 51. With regard to a major port the Minister of Transportation may, when he deems it specially necessary for promoting the utilization of the port, advise the interested local public entities to establish a Port Management Body.

(Direct-Executed Work) Article 52. The Minister of Transportation may directly execute port construction work within the limitation of the budget, in case it is found necessary for increasing the convenience of general traffic in a major port, when agreement has been reached through consultation between State and Port Management Body with respect thereto. 2 The provisions of Article 42 shall apply mutatis mutandis regarding to the expenses of port construction work executed by Minister of Transportation in accordance with the provisions of the preceding paragraph. In this case, "Article 17 paragraph 1 and Article 19 paragraph 1" in Article 42 paragraph 4 shall read "Article 17 paragraph 2 and Article 19 paragraph 2" . 3 The Port Management Body shall bear 50% of the expenses of the construction or improvement work of port traffic facilities which is executed by the Ministry of Transportation in accordance with the provisions of paragraph 1.

(Transfer of Land or Structure) Article 53. The Minister of Transportation may transfer to the Port Management Body and land or structure created through a port construction work as provided for in the preceding Article. In this case, the transference shall be free of charge up to the extent of the value equivalent to the amount of expenses borne by the Port Management Body shall not be charged.

(Lease, etc. of Port Facilities) Article 54. Expect for the case provided for in the preceding Article, the Minister of Transportation ((as to the common property (excluding the public articles) under the provisions of Article 3 of the National Property Law (Law No.73 of 1948), the Minister of Finance)) shall lease to the Port Management Body the port facilities (including the land necessary for port management and operation) created though the port construction works as prescribed in Article 52, or contrust the same with the management thereof. 2 The Port Management Body shall bear the expenses for management of the port facilities which have come under its management in accordance with the provisions of the preceding paragraph. In this case, the charges for the use of said rent thereof shall make an income of the Port Management Body.

Article 55. When a Port Management Body has been established, the port facilities which at that time are owned by or under the management of the State and which are necessary for general public use (exclusive of navigation facilities), shall be transferred or leased to the Port Management Body or entrusted to the same for its management. 2 The provisions of the preceding two Articles shall apply mutatis mutandis to the case contemplated in the preceding paragraph.

(Port with No Port Area Decided) Article 56. In case, at a port whose port area has not been decided, the governor of To, Do, Fu or prefecture has demarcated a water area which is bordered by the area of the said To, Do, Fu or prefecture and has given a public notice thereof, any person who intends to construct water facilities, contour facilities or mooring facilities, or otherwise exclusively use a part of the water area (except the case of reclaiming the public-owned waters) or to gather sands, within the said water area, shall obtain the permission of the said governor of To, Do, Fu or prefecture. 2 The provisions of Article 4 paragraphs 5 and 6 shall apply mutatis mutandis to the case where the governor of To, Do, Fu or prefecture demarcates the water area under the provisions of the preceding paragraph. 3 The provisions of Article 37 paragraphs 2 to 4 inclusive shall apply mutatis mutandis to the case contemplated in paragraph 1. 4 The said governor of To, Do, Fu or prefecture shall pay to the National Treasury the charges for the exclusive use of water area or charges for gathering sands, which he has collected in accordance with the provisions of Article 37 paragraph 4 which apply mutatis mutandis under the provisions of the preceding paragraph.

(Consultation with the Minister of Agriculture and Forestry) Article 57. In case the Minister of Transportation intends to give the permission as referred to in Article 46 paragraph 1 as for facilities mainly offered for the fishing use, or to issue the order or request as referred to in Article 47 or Article 48 paragraph 2 as for matters which are of major interest to the fishing industry, he shall consult with the Minister of Agriculture and Forestry.

(Relations with Other Laws or Orders) Article 58. The provisions of Articles 2 to 5 inclusive of the Urban Building Law (Law No.37 of 1919) shall not apply to the zones as designated in accordance with the provisions of Article 39. 2 The official powers vested to the governor of To, Do, Fu or prefecture under the Law concerning the Reclamation of Public-Owned Water (Law No.57 of 1921) shall be exercised by the chief of the Port Management Body so far as the port area is concerned (provided that, with regard to a port area which is included in the river area as prescribed in Article 2 paragraph 1 of the River Law, the said powers shall be exercised by the governor of To, Do, Fu or prefecture and the chief of the Port Management Body). 3 The provisions of Article 213 paragraph 2 of the Local Autonomy Law shall not apply to the case where the local public entity transfers or leases the port facilities to the Port Management Body or entrusts the same with the management thereof. 4 Special provisions concerning the fishing port zone shall be provided for in the law concerning fishing port. 5 The provisions of the Law for the State Sharing of Expenses for Restoration Works by To, Do, Fu or prefecture of Damages caused by Calamities (Law No.15 of 1911) shall apply mutatis mutandis to the State sharing of expenses of restoration works by the Port Authority. In this case, To, Do, Fu or prefecture in the wording of said Law shall read "the Port Authority" .

(Application of the Law for Special Regulations concerning Administrative Litigations) Article 59. In case where the provisions of the Law for Special Regulations concerning Administrative Litigations (Law No.81 of 1948) apply as to litigations concerning the permission referred to in Article 37 paragraph 1, collection of charges for the exclusive use of water-area and for gathering sands in paragraph 4 of the same Article, instruction as referred to in Article 41 paragraph 1, collection of charges as referred to in Article 44, and the exercise of the official powers provided for in the Law concerning the Reclamation of Public-Owned Water under the provisions of Article 58 paragraph 2, the chief of the Port Authority shall be regarded as the administrative agency.

(Transportation Council) Article 60. With regard to the matters mentioned below, the Minister of Transportation shall consult the Transportation Council and shall take action with high regard to the decision of the Transportation Council: (1) Approval for the port areas under the provisions of Article 4 (including the case where these provisions apply mutatis mutandis under the provisions of Article 9 paragraph 2 and Article 33 paragraph 2); (2) Mediation on the matters concerning the establishment or decision of the Port Management Body, under the provisions of Article 4 paragraph 9 (including the case where these provisions are applied mutatis mutandis under the provisions of Article 33 paragraph 2); (3) Approval for demarcation of a waterfront area under the provisions of Article 38; (4) Matters concerning request for revisions in rates established by Port Management Bodies as provided for in Article 44; (5) Advice on the establishment of Port Management Body under the provisions of Article 51.

(Penal Provisions) Article 61. Any person who has done, without permission, anything for which the permission is required under the provisions of Article 37 paragraph 1 or Article 56 paragraph 1 shall be liable to a fine not exceeding 30,000 yen. 2 In case where any member of the Board of Directors who receives the salary under the provisions of Article 25 paragraph 1 has become an officer of any profit-making organization or where he himself has engaged in a profit-making enterprise, he shall be liable to penal servitude without hard labor not exceeding six months or a fine not exceeding 30,000 yen.

(Punishment on Both the Actual Offender and the Employer) Article 62. In case where any representative of a juridical person, proxy, employee, or the other worker of a juridical person or of a natural person commits the violation under the provisions of the preceding Article paragraph 1 for the business of the juridical person or the natural person, not only the offender be punished, but the juridical person or the natural person concerned shall be liable to a fine under the same Article, unless it is proved that due care and supervision has been exercised in connection with the business of said juridical or natural person in order to prevent such violation by the proxy, employee or other worker thereof.