The Institutional Barrier Around Fisheries Ports
Structural problems under the former Act that hindered utilization
Designated fishing ports in Japan
2,768 ports
Fisheries Agency, as of April 1, 2026
Maximum business period under the utilization system
30 years
Fishing ports with a utilization promotion plan (as of 10 September 2026; the first was Kafuri on 7 January 2025)
9 ports
Kaigyo business categories
5
Japan has 2,768 designated fishing ports: 2,031 class 1, 524 class 2, 101 class 3, 13 designated class 3 and 99 class 4. However, structural changes in the fishing industry and declining fisher populations have left many port facilities underutilized.
Under the former Fisheries Port and Fishing Ground Development Act, port facilities were principally restricted to "fishery use." Using port grounds or water areas for non-fishery purposes required special-use permits from the port manager (prefectural governor or municipal head). The fundamental problems with this system were:
- Short permit duration: Special-use permits were valid for one year in principle, with no long-term rights assurance even through renewals
- Investment recovery difficulty: Permit instability prevented private operators from committing to capital investment
- Ambiguous legal positioning: The very label "special use" positioned business activities at ports as exceptional and passive
- Subsidy eligibility limitations: Special-use activities often failed to qualify for national subsidy programs
This structure formed an institutional "wall" that systematically hindered port utilization.
Overview of the Amendment
Three pillars of the 2023 amendment and the significance of the law's name change
Background of the 2023 Amendment
The amendment promulgated on May 26, 2023 took effect on April 1, 2024. It comprises three pillars:
| Pillar | Content |
|---|---|
| Creation of Fishery Port Facility Utilization Business | Providing direct legal foundations for port utilization |
| Substantive revision of the law's purpose | Adding "promotion of fisheries port utilization" to the purpose clause |
| Amendment of the Fisheries Cooperative Association Act | Establishing legal foundations for cooperatives conducting kaigyo |
The Significance of the Purpose Clause Change
The amendment added "promotion of fisheries port utilization" to Article 1 (purpose clause). This is not merely textual revision. Where the former Act focused on "port development and maintenance," the amended Act legally declares ports as regional revitalization hubs to be actively utilized.
Fishery Port Facility Utilization Business Design
Definition, plan development procedures, business periods, and rights framework
Definition
The Fishery Port Facility Utilization Business is defined as a business that, while considering the fishery use of the port, utilizes port facilities, water areas within the port zone, and public open spaces to contribute to the development of the relevant port's fishing industry and stable supply of fishery products (amended Article 4-2).
Critically, the precondition "while considering fishery use" means kaigyo is not designed to replace fishing but to coexist and co-prosper — expanding port functionality alongside continued fishery operations.
Promotion Plan Development
Port managers can develop "Promotion Plans" based on the "Basic Policy on Promotion of Fishery Port Facility Utilization Business" (established December 21, 2023). Plans must specify:
| Plan Element | Content |
|---|---|
| Basic direction for promotion | Policy for promoting Fishery Port Facility Utilization Business |
| Business content | Types, scale, and details of business activities |
| Implementation period | Up to 30 years (a dramatic increase from 1-year special-use permit renewals) |
| Facilities and areas to be used | Identification of target port facilities, water areas, and public spaces |
| Restoration measures | Requirements for restoring facilities and areas when the utilization period ends |
| Ensuring fishery use | Specific measures guaranteeing coexistence with fishing operations |
Benefits of Transitioning from Special-Use Permits
| Item | Special-Use Permit (Former) | Fishery Port Facility Utilization Business (Amended) |
|---|---|---|
| Business period | 1 year in principle (renewable) | Up to 30 years |
| Legal positioning | Exceptional, passive | Direct institutionalization |
| Investment stability | Renewal refusal risk | Stable rights based on approved plans |
| Subsidy eligibility | Limited | Eligible for national subsidy programs |
| Financial institution assessment | Low (1-year renewals limit collateral value) | Long-term business plans enable lending decisions |
Five Kaigyo Business Categories and Revenue Models
Revenue structures and success requirements for each category
Based on the Fisheries Agency's case study collection and the National Federation of Fisheries Cooperatives' typified examples:
Category 1: Lodging, Experience, Tourism
Accommodation and tourism businesses offering fisher lifestyle and fishing village cultural experiences — fisher homestays, fishing experience tours, village walking guides.
Revenue structure: Accommodation and experience fees. We have found no published figure for typical spending per guest nationally, so substitute the rates charged by comparable operators nearby. Seasonal variation is significant, making year-round content development essential.
Category 2: Fishing and Marine Leisure
Fishing ponds, charter boats, sea kayaking, diving, and other marine leisure activities.
Revenue structure: Usage fees + equipment rental. Stable customer flow is achievable, but safety management infrastructure is essential.
Category 3: Dining and Sales
Direct sales outlets, restaurants, and BBQ facilities for fishery products.
Revenue structure: Gross margins of 30–50% on sales. Linking with local catches is the key differentiator. At Muroto Cape Port in Kochi Prefecture, private operators running dining facilities have become regional attraction anchors.
Category 4: Port-Based Aquaculture
Land-based or sea-based aquaculture utilizing the calm waters within port zones.
Revenue structure: High initial investment but stable revenue potential. High eligibility for Fisheries Agency subsidy programs.
Category 5: Market Tours and Processing Facility Utilization
Auction viewing, fishery processing experiences, and sixth-sector industrialization facility operations.
Revenue structure: Experience fees + processed product sales. Strong affinity with educational tourism and inbound visitors.
Institutional Connections with PPP
Legal analysis of compatibility with small concessions and Designated Manager System
Compatibility with Small Concessions
Fishery Port Facility Utilization Business has strong compatibility with Small Concessions. Both share:
- Target assets: Idle real estate owned by local government (port managers)
- Project scale: Too small for PFI Act application
- Private vitality introduction: Utilization through private operator creativity
In practice, port managers would establish a Promotion Plan and conduct operator solicitation using the small concession approach within that framework.
Relationship with Designated Manager System
The Designated Manager System and Fishery Port Facility Utilization Business have different legal bases (Local Autonomy Act vs. Fisheries Port Act), but practical combination is feasible. For example, a designated manager could operate "public facilities" within the port (rest areas, tourist information centers) while kaigyo activities in port water areas and open spaces proceed under the utilization system.
First Case — Itoshima City
The first utilization promotion plan nationwide was established on 7 January 2025 for Kafuri Fishing Port in Itoshima City, Fukuoka Prefecture. A legal analysis of the case has also been published. Leveraging its rich fishery resources and excellent access from the Fukuoka metropolitan area, Itoshima positioned its port as a kaigyo hub. This pioneering case serves as a critical reference point for other port managers.
Utilization Potential for Fishing Cities — Shimoda City as an Example
Concrete utilization scenarios for Shimoda City and similar fishing municipalities
Shimoda City boasts top-tier national kinmedai (splendid alfonsino) catch volumes and multiple ports along its approximately 47km coastline. With a Fiscal Capacity Index of 0.46, the Fishery Port Facility Utilization Business merits attention as a new revenue source.
Utilization Scenarios for Shimoda City
| Scenario | Business Category | Revenue Source |
|---|---|---|
| In-port kinmedai direct sales outlet and restaurant | Category 3 (Dining/Sales) | Facility usage fees from sales revenue |
| Institutionalized fishing experience tours | Category 1 (Lodging/Experience) | Experience fees + accommodation partnerships |
| Charter boat and marine leisure hub | Category 2 (Fishing/Marine Leisure) | Usage fees + equipment rental |
| Fishery processing experience facility | Category 5 (Market Tours/Processing) | Experience fees + processed product sales |
Institutional Hurdles to Address
- Consensus building with fishers: Port utilization coordination cannot proceed without fisher understanding. Early dialogue with cooperatives is essential
- Port manager capacity: Internal organizational capacity for developing promotion plans, soliciting operators, and monitoring
- Tourism coordination: Designing synergies with existing tourism assets like the Kaikoku Shimoda Minato roadside station
- Disaster preparedness compatibility: Ensuring consistency with tsunami countermeasures
ISVD Perspective
The "Fishery Port Facility Utilization Business" created by the amended Act is a historic reform that institutionally opens ports that were exclusive to fishing for approximately 70 years.
However, legislation alone does not transform harbors. Of the 2,768 designated ports nationwide, nine have established a utilization promotion plan, as of 10 September 2026. Fisher understanding, port manager capacity, and private operator interest — all three must align before the amendment's vision can take root on the ground.
For fishing cities with limited fiscal capacity, this system is particularly significant in that it "leverages existing port stock" — returning to the PPP principle of working with what exists rather than building new. Starting with one port's track record while utilizing Fisheries Agency support programs: ISVD aims to serve as an accompaniment partner in these emerging harbor revitalization stories.
Related Articles
PPP/PFI Introduction — The First Article for Municipal Staff
From PPP vs PFI distinctions to the full seven-method overview
Selecting PPP Methods by Fiscal Capacity Index
Optimal solutions across five tiers from 0.3 to beyond 1.0
Small Concession Practical Guide
From system overview to operator selection — step-by-step
What to do next
When considering PPP/PFI, review the facility conditions and the municipality's rules.
| # | What to check or consider | Responsible team or contact |
|---|---|---|
| 1 | Check the project's cost against the national reference thresholds of ¥1 billion for projects including construction and ¥100 million a year for operation-only projects, and against your municipality's rules | Budget team |
| 2 | Check the municipality's priority review rules. If none exist, consider developing them with reference to Cabinet Office guidance | Planning team |
| 3 | Check whether user charges are collected and assess expected income. For facilities that can charge users, also examine concession requirements | Departments responsible for each facility |
| 4 | Compare applicable methods using project cost, facility type and expected user fee income. Park-PFI may be an option for urban parks, and small concessions for idle facilities | Responsible department and planning team |
| 5 | Choose a facility to pursue and ask private operators about their interest and project requirements | Market sounding |
Check project cost and the municipality's rules to establish whether priority review applies, then compare methods suited to the facility's use and expected income.
References
On the Amendment of the Fisheries Port and Fishing Ground Development Act — Fisheries Agency, Kaigyo Promotion System Study Team (2024)
New Systems for Promoting Kaigyo at Fisheries Ports — Amendment of the Fisheries Port and Fishing Ground Development Act — Sasakawa Peace Foundation, Ocean Policy Research Institute (2023)
Introduction of Private Vitality for Kaigyo Promotion at Fisheries Ports — Fisheries Agency Planning Division (2024)
Establishment of the First Kaigyo Promotion System Plan — TMI Associates (2025)
