JR Hokkaido Seeks Public Aid to Loss-Making Lines

June 18, 2018

Sapporo- Hokkaido Railway Co., or JR Hokkaido, Sunday called for public financial assistance to some of its loss-making rail lines that the company finds it difficult to maintain on its own.

The company said it needs financial assistance from the central government and the prefectural government of Hokkaido until fiscal 2030 when the local Shinkansen line is planned to be extended.

JR Hokkaido also said it aims to make the entire group profitable once the extension of the Hokkaido Shinkansen Line to Sapporo, the capital of the northern Japan prefecture, is completed.

The request was made by JR Hokkaido President Osamu Shimada at a meeting that brought together officials from the transport ministry, the prefectural government and others.

JR Hokkaido sought financial assistance to eight rail sections, including a 183.2-kilometer section between Nayoro and Wakkanai.

The company made the aid request out of concerns that the company's financial difficulties, if left unaddressed, will make its Shinkansen extension plan uncertain. The company did not say how much aid would be needed.

The ministry is expected to come up with support measures for JR Hokkaido this summer. The company posted a record recurring loss of 19.9 billion yen for the year ended last March.

At a press conference after the meeting, Shimada said his company made the aid request on the premise of keeping the loss-making sections in place.

But he added the company will not rule out the possibility of abandoning such sections when it holds talks with local communities on ways to promote their use. Jiji Press