Osaka municipal subway to be privatized on April 1

March 25, 2018

Osaka- The Osaka municipal subway system in western Japan with a history of 85 years will be privatized on April 1, marking the first privatization of a public subway in the country.

The subway will be operated by a new stock company, Osaka Metro, whose shares are held entirely by the city of Osaka. Its first president is Hideaki Kawai, 63, a former executive of electronics giant Panasonic Corp.

Privatizing the subway was one of the key campaign promises made by former Osaka Mayor Toru Hashimoto.

Hashimoto submitted a bill needed to realize the privatization twice to the municipal assembly, but the bill was rejected both times.

His successor, Hirofumi Yoshimura, won the assembly's approval after proposing that the municipal government own all shares in the new company. A relevant ordinance passed the assembly in March last year.

In a recent interview, Kawai showed willingness to improve the subway's customer service by changing the mindset of its workers, most of whom experience a status change from civil servants.

"We need a system that will reward those who have worked hard with merit-based pay," Kawai said.

"I would like to take full advantage of the strength of its transportation network crisscrossing the center of Osaka," Kawai also said. Jiji Press