The Cabinet approved a bill Tuesday to deregulate the harbor transport business in a bid to boost the competitiveness of Japanese ports. The government was to submit the bill to the Diet later in the day, aiming for enforcement this year. The bill, which would revise the Port Transport Business Law, calls for abolishing the current system, which gives licenses only to a set number of operators. The proposed system would grant a license to any operator able to meet designated conditions. It will also allow operators at nine ports to set handling fees by simply registering their rates with the authorities, rather than having to obtain approval, as is the case under the current system. The nine ports are Yokkaichi in Mie Prefecture; Hakata in Fukuoka Prefecture; Shimizu in Shizuoka Prefecture; Nagoya; Chiba; Osaka; Kobe; Keihin, encompassing Tokyo, Yokohama and Kawasaki; and Kanmon in Yamaguchi and Fukuoka prefectures. The ports handle about 95 percent of container cargo coming to and leaving Japan. To prevent shady companies from entering the business, the bill calls for introduction of a penalty system. , subjecting violators to a maximum 3 million yen in fines and up to three years in prison. To prevent abusive undercutting, the Transport Ministry can order firms to change rates when necessary, according to the bill. The proposed revision aims to boost competition among cargo handling firms and prompt the reorganization of the industry, ministry officials said. The competitiveness of Japanese ports has been declining due to high stevedoring fees and inefficient services in contrast with the growing presence of those in other parts of Asia, they said. For example, Pusan, South Korea, increased its container handling volume from 2.2 million TEU (20-foot equivalent units) in 1988 to 5.8 million TEU in 1998, whereas Yokohama's volume increased from 1.5 million TEU in 1988 to 2.2 million TEU in 1998.