INTERVIEW: JR Hokkaido Eyeing Aid from Japan Govt until FY 2030

July 26, 2018

Sapporo- Hokkaido Railway Co. will ask the Japanese government to provide financial support until fiscal 2030, Chairman Yasutomo Shirakawa has indicated in a recent interview.

The railway operator, also known as JR Hokkaido, will extend the Hokkaido Shinkansen Line to Sapporo, the capital of the northern prefecture of Hokkaido, for opening in the year starting in April 2030.

Shirakawa, 71, also showed a willingness to start leasing of spaces under elevated railway tracks between stations for use by other businesses in and around Sapporo as part of the firm's strategy to improve its earnings.

Regarding unprofitable train lines, Shirakawa, who took office as chairman on June 20, said JR Hokkaido will rush talks with local authorities to switch means of transportation from trains to buses for four sections, including the Rumoi Line.

The sections are either disrupted by a disaster or see transport density, or the average number of passengers transported a day per kilometer, fall below 200 people.

The government is working to provide financial support to struggling JR Hokkaido over the two years from fiscal 2019.

The company will stay in "an extremely tough situation" at least until the Hokkaido Shinkansen extension opens, said Shirakawa, a former executive of East Japan Railway Co. or JR East.

He emphasized the need to receive long-term aid until the company gets a boost from the extension.

Shirakawa also said the firm must clearly show its improvement to the central and local governments over the next two years.

It is essential for JR Hokkaido to develop profitable businesses to make up for the loss from its railway services.

JR East attracted many commercial facilities to spaces under elevated railway tracks of the Chuo Line, Shirakawa said, expressing a wish to make a similar attempt in Hokkaido.

Shirakawa said he hopes to share know-how on such projects with new part-time director Minori Osawa, 54, who played a key role in such operations at the JR East group. Jiji Press