Positioning of Local Railway Grouping in Japan’s Railway Passenger Transport |
More than 100 of the 200 railway operators supporting
passenger transport in Japan are classified as being in the
grouping of ‘smaller private railways’, making this grouping
the largest in terms of number of operators. Smaller
private railways were once perceived as having trains
with few carriages and connecting regional cities or rural
areas, but today more than 20 companies are included in
this grouping, such as those operating commuter railways
in Tokyo and other urban areas with modern equipment,
and quasi-public railway infrastructure operators. This has
blurred the definition of the character of such railways. Table
1 shows Japan’s passenger railway operators separated
into six groupings by number of operators, line length,
passenger-km, and revenue data. While the smaller private
railways grouping includes more than 63% of operators, it
only has a line length of 13% of the total and just 2% or 3%
of passenger-km and revenue.
Recent Ministry of Land, Infrastructure, Transport and
Tourism (MLIT) materials include a grouping called ‘regional
railways’. This is a grouping of railway operators where
passenger transport other than shinkansen, trunk railways,
and urban railways is conducted by smaller private sector
or quasi-public operators. This article proposes arguments
with operators and railway transport for this regional railways
grouping in mind. There are 91 railway operators in the regional railways
grouping as of April 2014, but the number fluctuates yearby-
year due to factors such as railway closures. These
operators are further broken down into 49 private railways
and 42 quasi-public railways. The majority of quasipublic
operators are operating lines transferred from other
operators. Of these, 20 took over and operate unprofitable
lines discontinued by Japanese National Railways (JNR) or
post-privatization Japan Railways (JR) companies, and 13
operate ‘new regional lines’. These new regional lines were
planned in the 1970s across Japan and were to have been
operated by JNR, but plans were put on hold in 1979 due to the JNR financial crisis and the lines were transferred
eventually to private or quasi-public railways that restarted
construction and opened the lines. Many do not see much
business, but some such as Hokuetsu Express and Chizu
Express have trunk-line transport functions. Hokuetsu
Express runs many limited express trains as a shortcut
between the Joetsu Shinkansen (JR East) and the Hokuriku
region, and is a high-performance line running trains at a top
speed of 160 km/h. About half the operators of new regional
lines operate lines discontinued by JNR, forming either a
single line or a railway network when combined with new
regional lines.
Conventional lines running parallel to shinkansen lines
are one example of where, with the opening of a new
shinkansen section, the local community establishes an
operator to take over the railway facilities that would be
discontinued ordinarily and operate a service running
parallel to the new shinkansen. They mainly function as
local transport, but are characterized by high-performance
trunk-line facilities, and could accept through-services by
JR Freight trains and passenger trains. With the opening of
the Hokuriku Shinkansen between Nagano and Kanazawa
in spring 2015, three operators will be added to these
operating conventional lines running parallel to shinkansen lines for a total of seven companies.
More examples are being seen of quasi-public operators
being established to preserve unprofitable lines of private
railways and introduce new railways in regional cities, with
these being added to the regional railways grouping. In
the examples of Wakasa Railway and Iga Railway, vertical
separation of railway operations was introduced to preserve
unprofitable railways. Wakasa Railway uses infrastructure
owned by the trackside local governments, and the
quasi-public company runs trains on that infrastructure.
Iga Railway runs the trains of Iga Line spun-off from the
network of Kintetsu Corporation, Japan’s largest private
railway, to preserve that unprofitable line. Kintetsu owns
the infrastructure and rolling stock and the quasi-public Iga
Railway financed by local governments and Kintetsu runs
the trains. Toyama Light Rail is another example of a quasipublic
operator, running the LRT introduced by Toyama City. |
Table 1: Basic Data on Japan’s Passenger Railway Operators (Fiscal 2011) |
Unprofitability of Passenger Railway Transport
and Hardships of Local Railway Operators |
Table 2 shows a breakdown of Japan’s profitable and
unprofitable passenger railway operators by their
classification. Data for fiscal 2010 was used because the 2011 financial data was affected adversely by the 2011 Great
East Japan Earthquake. Business income and expenditure
data for Japanese railway operators generally does not
include public subsidies, but with public and quasi-public
operators, the burden borne by local governments for public
discount fares, such as for the elderly and disabled, is
sometimes included. Japan’s major passenger railway operators are
viewed with awe by developed nations even today for
their ability to continue profitable management without
outside assistance. Achieving such profitability without
vertical separation has been observed in examples such
as US transcontinental freight transport and sightseeing
railways around the world, but operating successfully in the
black is a rare phenomenon for operators running broadranging
railway networks and urban commuter railways
like in Japan. In particular, all 24 companies composed of
the three JRs on the main island of Honshu, major private
railways, and quasi-major private railways, operate in the
black. These 24 companies comprise 64% of track-km
and 90% of passenger-km (FY2010), demonstrating their
overwhelming dominance, and they form the foundation of
Japan’s railway policy model, which stands out amongst
developed nations.
On the other hand, business conditions are tough for
operators in the regional railways grouping, with those in the
red outnumbering those in the black. Those in the red make
up the vast majority, especially in the grouping that operates
lines transferred from JNR or JR (transferred lines). There
are many operators in the red in the grouping of smaller
private railways, but many of these operators are well known
for aspects such as high-quality transport service, low fares,
and unique sightseeing transport, or they have continued
long stable business due to efficient management. Even
so, this grouping is characterized by many operators in a
position where they are forced to discontinue service due
to aging facilities. In the 11 years from 2000, 35 unprofitable
lines with a length of 674 km have been discontinued, and
77% are in the grouping of smaller private railways.
More than a few smaller private railways make up for
losses in small city and rural transport with supplemental
businesses in areas such as real estate and retail. The
problem in such cases is the poor business environment
where natural disasters and accidents can lead to closure
of railways. On the other hand, more cases have been
seen in recent years where operators burdened with
unprofitable lines have gained cooperation from entities
such as local governments to introduce new business schemes and preserve their railway business. Typically,
this is accomplished by introducing vertical separation or
converting from private to quasi-public companies. Vertical
separation may involve clear organizational separation,
but there is also accounting separation where railway
infrastructure expenses are removed from the user burden to
become a local public burden as seen with operators such
as Joshin Dentetsu, Jomo Electric Railway, and Echizen
Railway. Hitachinaka Seaside Railway is a case of a railway
business being preserved by converting the loss-generating
private railway Ibaraki Kotsu to a quasi-public business.
In the grouping of quasi-public companies operating
transferred railways/new regional lines, the vast majority are
running discontinued JNR (and JR) lines, so their business
environment is much more difficult than for the grouping of
smaller private railways. However, modernization of facilities
using public funds at transfer to the private-sector railways
often helps keep down maintenance expenses. Quasi-public
companies have a benefit of low barriers to receiving public
subsidies for facilities investment or operations. However,
more than a few operators are being forced to close lines
due to factors such as reduced passenger numbers and
natural disasters. Hokkaido Chihoku Railway, which operated
140 km of railway in a snow region, went out of business in
2006 and local bus operators took over transport using bus
services. Takachiho Railway had a famous sightseeing area
along its line, but the destruction of bridges and track bed
by a typhoon forced it out of business in 2008.
|
Table 2: Profitability of Passenger Railway Operators (Fiscal 2010*) Table 3: Profitability of Regional Railways by Average Transport Density (Fiscal 2010)
Photo: Quasi-public Hitachinaka Seaside Railway, formerly Ibaraki Kotsu (Hitachinaka Seaside Railway)
Photo: Wakasa Railway railcar bound for Tottori (Wakasa Railway)
Photo: Popular steam locomotive operation on Oigawa Railway (Oigawa Railway)
Photo: Izuhakone Railways’ Series 7000 running against backdrop of Mt Fuji (Izuhakone Railway Co. Ltd.)
Photo: Hiroshima Electric Railways’ Green Mover Lex railcar running against backdrop of Atomic bomb dome (Hiroshima Electric Railway)
Photo: Toyama Light Rail running through central Toyama City (Toyama Light Rail Co. Ltd.) |
Profitability of Local Railways Seen from
Index of Average Transport Density |
Table 3 shows profitable and unprofitable regional railway
operators in line with average transport density (passengers
per km per day) along with company data as a whole.
Average transport density is not used much in other
countries, but it is frequently seen in railway transport data
in Japan because it is the key index when evaluating the
profitability of railway transport. Indexes between 8000
and 4000 show a line plays an important role in regional
railway transport in Japan, because JNR used an average
transport density of 8000 as the boundary for classifying
networks as a trunk line or local line. It analyzed data for all
its lines, determining that a line with an index of less than
8000 would have difficulty maintaining profitability even
with efficient management. It further classified lines with an
average transport density of less than 4000 as candidates
for closure.
From Table 3, we can assume today that an average
transport density of 5000 to 6000 is an appropriate
indicator for determining whether or not a line is profitable.
The difference from 8000 reflects increased management
efficiency and further capital intensification of operators
in recent years. The number of operators showing losses
from railway operations increases sharply at an average
transport density of less than 5000. Of the 49 companies
with an average transport density of less than 2000, 32 are
in the grouping of railways transferred from JNR (or JR).Just five of the 29 companies with an average transport
density of less than 1000 are smaller private railways (one of
which discontinued railway business in 2012). This situation
is related to JNR having selected lines to close using the
criteria of an average transport density of less than 2000 in
1980. Even with special exemptions, such as peak transport
of 1000 or more passengers (in one direction), lack of roads
parallel to the line, and heavy snow areas, JNR closed 83
lines totalling 3167 km; 45 of these closed lines switched to
bus transport, and 38 lines totalling 1307 km were preserved
by quasi-public or private-sector operators to form the
grouping of transferred railways.
All the transferred railways with an average transport
density of less than 2000 are loss-generating. Wakasa
Railway, which introduced vertical separation, is the only
quasi-public operator with a profit in all its business. The
company president was chosen by open recruitment
and the railway is known for its active management with
measures such as ‘hands-on’ driving events on weekends
using preserved rolling stock. Oigawa Railway, a smaller
private railway with an average transport density of less than
1000 turns a profit by putting effort into sightseeing services using steam operation and an Abt rack-and-pinion railway. It
is famous as a location for TV and cinema dramas. |
Decline of Local Railway Transport in Railway
Powerhouse Japan |
Japan is the world’s pre-eminent powerhouse in terms of
passenger transport with data such as railways’ high share
of transport (35.7% on passenger-km basis for fiscal 2009)
and railway passenger-km per person (3079 km for fiscal
2010) showing the railways’ high retention rate in society.
The nationwide average transport density for railways is
close to 40,000 or 2.75 times that of The Netherlands in
the second place position. Meanwhile, private automobile
ownership in Japan is close to saturation levels, with more
than 1.5 cars per household mainly in regional areas. The
high retention rate of railways even under such conditions
is a testament to the presence of an enormous transport
market where railways exhibit their mass transport capacity
in a way that cannot be emulated by other modes. Japan’s land area of 370,000 km2 is about the same
size as Germany, but most of this land is covered in
mountains; the habitable land area is just 31% of the total.
For this reason, many areas of high population density
have developed in the flat narrow coastal strip, such as the
three major conurbations of Tokyo, Nagoya and Osaka,
comprising the so-called ‘Tokaido megalopolis’. Although
Japan’s population is about 128 million, 87% of these
people live in urban areas and 45% live in Tokyo, Nagoya
and Osaka. The high-density metropolises and megalopolis
combining the large cities are an ideal market for railways
where major operators can operate profitably without
external government assistance by carrying passengers
within the urban areas and along the transport corridors between them.
In contrast, most of the operators in the regional
railway grouping have territories in regional areas with
small and declining local populations and high levels
of private automobile ownership, so they are following a
difficult path. In 1960, there were 98 smaller private railway
companies totalling 3158 km, but this figure had dropped to
58 companies and 1766 km by 1975. In the 10 years from
1965 to 1975 in particular, 1246 km of track was closed and
many railway operators disappeared. After 1983, there was
large-scale closure (83) of unprofitable JNR or JR lines,
which had been prevented by political pressure before then.
This provided the opportunity to establish many transferred
railways and new regional lines, greatly increasing the
number of operators in the regional railways grouping. Of the 91 companies in the regional railways grouping
in 2014, 76 operators have existed much in their current
form since 1990. These 76 companies have seen a 20.1%
drop in transport volume and a 20.2% drop in average
transport density in the 20 years from 1990 to 2010. The
47 companies in the smaller private railways grouping have
also seen a 27.6% drop in average transport density over
the same 20 years, demonstrating that the move away from
railway use is even more severe for them.
According to a 2014 survey of 91 regional railways by
the Japan Railway Construction, Transport and Technology
Agency, operators in the regional railways grouping can be
further classified into six groupings according to stability
of management and transport functions (functions as lines
used for day-to-day life, functions as sightseeing lines).
These six groupings are: (1) 10 operators doing good
business with vast business resources; a grouping with
relatively stable management made up of (2) 23 operators
with functions as both lines used for day-to-day life and as
sightseeing lines and (3) five operators with functions as
sightseeing lines; a grouping with low management stability
made up of (4) 23 operators with functions as lines used for
day-to-day life, (5) 22 operators with functions as both lines
used for day-to-day life and as sightseeing lines, and (6)
eight operators with functions as sightseeing lines. Of these,
the two groupings of (4) and (5) related to functions as lines
used for day-to-day life under poor business conditions have
urgent issues in terms of transport policy.
Figure 1 shows the 30-year change in average transport
density (grouping average) for 36 of the 47 smaller private
railways operating regional railways existing from 1980
Figure 1 Changes in Railway Transport Density Seen by Groupings According to Business Situation
0
2000
4000
6000
8000
10,000
12,000
14,000
1980 1985 1990 1995 2000 2005 2010
Doing Good Business
(8 companies)
Stable Management
(16 companies)
Low Level of Management Stability
(12 companies)
Quasi-public (transferred railways)
(29 companies)
Average Transport Density by Operator Grouping
36 regional smaller private railways (local railways) existing at least since 1980 other than
sight-seeing railway operators and operators with major changes in business organization chosen
for change from 1980 to 2010
13 Japan Railway & Transport Review No. 65 • Mar 2015
Transportation Policy in Japan
minus operators that operate sightseeing railways and
those that have undergone major changes to their business
organization. These companies are reorganized into three
types of groupings based on (1), (2), and combined (4)
and (5) of the six groupings above. Moreover, the 20-year
change in average transport density is shown for 29 of the
quasi-public operators of JNR or JR transferred lines from
1990 (many established in the late 1980s). From Figure 1,
there is a major gap in average transport density between
the grouping doing good business and not doing good
business; the scale of transport demand has almost halved
over the past 30 years for the (3) grouping with relatively
stable management as well as the (4) and (5) grouping with
low management stability, demonstrating how operators of
regional railways have maintained railway transport in tough
business conditions. The business environment is even
more difficult for the grouping of transferred railways with an
average transport density of less than 2000, but the trend in
reduced transport volume is not as prominent. Note that the
10,000 passenger transport density result for the Aichi Loop
Line, which was used as a railway to reach the 2005 World’s
Fair in Aichi Prefecture and now functions as a commuter
railway in the greater Nagoya area, affected the data. |
Figure 1: Changes in Railway Transport Density Seen by Groupings According to Business Situation
|
Progress in Liberalization and Measures
to Revitalize and Rehabilitate Local Public
Transport Systems |
‘Hardships faced by regional railways’ is a negative
phenomenon of railway passenger transport in Japan’s
railway powerhouse. However, this problem is not limited to
operators in the regional railways grouping and their users.
The very fact that Japan is a railway powerhouse means
that there is another problem related to local railways that
is difficult to see. It is the problem of many unprofitable
lines incorporated in the network of the six JR companies
and major private railways relying on revenues from major
urban areas and trunk lines—cross subsidy—to continue
operations.
Lines classified as ‘local lines’ by JNR but which avoided
closure and continue to be operated by the JR companies
have reached 92 lines totalling 6427 km; this exceeds the
3413 km of the 91 regional railways. While data for individual
lines is not disclosed by the JR companies or major private
railways, analysis of fiscal 2011 data by railway journalist Jun
Umehara shows that the average transport density of 47 of those 92 lines is less than 2000 and that 26 lines have an
average transport density of less than 1000. Seventy lines have an operating coefficient (operating expenses/operating
revenue x 100) in excess of the 200 guideline figure for implementing cross-subsidy. According to Umehara, 42 lines operated by major private railways also have an operating coefficient in excess of 200. The phenomenon of railway operators with financial strength, such as the three JR companies on Honshu and major private railways, using cross-subsidy to support unprofitable lines occurred in developed nations when the railway business had a monopoly. That this phenomenon continues today in Japan demonstrates how major railway businesses are greatly favoured by a strong transport market. However, even among unprofitable lines with similar characteristics, the strong financial strength of
railway operators supports some lines while lines of smaller private railways cannot survive on their own and are forced
to close. This demonstrates a major problem in terms of fairness in transport policy. Since this is a problem in local
public transport supporting the day-to-day lives of trackside residents, we must recognize that it is a problem related
to minimum necessary levels of welfare for citizens and sustainability of local society.
Japan started full-scale liberalization of transport policy at the start of the 21st century. Following the 1991
liberalization of truck transport, economic regulations covering the transport industry as a whole in areas such
as railway transport, domestic air transport, and bus/taxi transport were reduced or eliminated between 2000 and
2002. Liberalization also applied to regional public transport such as railways and buses; restrictions regulating supply
and demand were eliminated, and restrictions on exiting business were reduced to allow closure by advance notice
alone. However, price regulations such as authorizing one type of fare per operator based on the fully distributed cost
method applied to railway passenger transport and local bus transport were maintained, with just reduced regulation
by only authorizing upper limits to fares.
Local public transport in Japan relies heavily on commercial business as seen by even commuter transport in major urban areas being left to commercial businesses. Providing public subsidies to commercial businesses run by private-sector operators has many difficulties in Japan due to legal restrictions. And it is even more difficult when the
operator posts profits and provides shareholder dividends. On the other hand, no matter how high the awareness of
public interest, they have to decide to close unprofitable lines so the company may continue. This creates a dilemma
in Japan’s public transport policy.
Major changes occurred in local public transport based on a series of liberalizations in bus transport, not railway transport. Most bus operators do not have the financial strength to cross-subsidize unprofitable lines, so many
bus lines were closed after liberalization. In just 5 years from 2006 to 2011, bus lines closed 11,160 km (2.7% of national total) of routes. The exit of these operators from local bus transport caused loss-of-movement problems for people who cannot use personal automobiles. TV programmes showed sensational scenes of elderly people
with advanced dementia driving to hospital. Backed by this
increased concern about the crisis in day-to-day transport,
the Act on Revitalization and Rehabilitation of Local Public
Transportation Systems was passed in October 2007.
This law clarifies that local municipalities bear responsibility for securing day-to-day transport and should play a leading role in its provision. It prescribes that regional councils bearing responsibility for establishing and implementing plans to secure such transport be held under the initiative of local municipalities, while the national government provides support for projects decided by the councils. Based on this law, the number of local governments operating community buses increased and
projects to preserve or restore bus operation in small cities and rural areas spread across Japan by local governments operating buses themselves or commissioning their operation. Unconventional modes of transport also spread as a supporting role to local public transport. These include bus operation using taxis, shared taxis using ondemand operation, and fee-based transport using private automobiles (under-populated area transport and welfare transport). Unlike railways, the national government amended its subsidy policy for local bus transport in 2001, providing subsidies for loss-generating lines instead of lossgenerating operators. As a result, cross-subsidy by bus operators was alleviated and bus transport made advances
ahead of railway transport in the area of streamlining local public transport policy. |
Changes in Local Public Transport Policy
Intended by Basic Act on Transport Policy |
Momentum in discussing the importance of transport policy
in line with the rapid aging of Japanese society and the
decline of local public transport occurred with the proposal
by the Democratic Party of Japan (DPJ), which took power
in 2009, of a Basic Act on Transport that alludes to people’s
right of movement. The 2013 Basic Act on Transport Policy
was enacted as the first basic legislation in Japan on
transport policy under the Liberal Democratic Party (LDP),
recently returned to power. It has functions for securing
people’s independent living and social activity, active interregional
interaction and international interaction, and smooth
flow of goods. It clarifies the fundamental principles of
transport policy in that transport functions are sufficiently
exercised for increasing the stability of peoples’ lives and
advancing the national economy and the importance of
basic demand for transport being appropriately satisfied.
It prescribes specific actions for transport policy that
must be taken as well as the necessity of proceeding with comprehensive and systematic measures. The law states that the national government shall create
a transport policy basic plan and make a Cabinet resolution
on that. It expresses 12 key items to be incorporated when
creating the basic plan and it prescribes 16 measures,
such as securing means of transport imperative for day-today
life and measures for smooth movement of the elderly,
disabled, and pregnant. Transport policy in Japan prior to
2013 was debated within the framework of laws by individual
transport industry such as the Railway Business Act, Road
Transportation Act, and Aircraft Manufacturing Industry Act,
and measures were established and enacted according
to the administrative organizations of the MLIT bureau.
While this was effective in promoting competition between
transport modes and in modernizing individual transport
systems, it had major problems such as ad-hoc transport
policies, excessive reliance on commercial operation
of public transport, and major delay in comprehensive
transport policies that emphasize linkage and connections
between modes.
The Basic Act on Transport Policy prescribes that
national government and local public entities should
appropriately divide the roles each play. Basic items cover
a broad range such as ‘reduction of environmental burden’
and ‘securing traffic safety’, but emphasis is placed first
on ‘securing and improving transport functions’ because
public transport is further declining in regional areas where
the declining birth-rate and aging of society is becoming
prominent, making that the most important item for transport
policies to make efforts in.
The Basic Act on Transport Policy has received praise
and was welcomed by various parties such as transport
operators. However, seen from the perspective of other
countries, the question may come up of why operation
of transport related to a variety fields did not suffer major
obstacles under ad-hoc transport policies. As stated above,
profitable management without external assistance was
emphasized as the basis of Japan’s transport policies, and
public transport services were provided and improved while
maintaining profitability at the same time. That emphasis on
profitability will remain unchanged into the future. This cause
of disparity between Japan and other countries in transport
policies lies not in the differences of fundamental principles
behind the policies; rather, it is important to recognize that
it strongly reflects the disparity in market conditions of
transport modes within and outside of Japanese society
(including transport infrastructure). However, under transport
policies that rely too heavily on the principle of transport
business making a profit, it becomes difficult to foster
sustainable transport systems that contribute to overcoming
global environmental issues, deal with the greying society,
and supply transport services that will satisfy the populace,let alone secure people’s day-to-day transport.
Without question a deepened awareness of this
issue led to the establishment of the Basic Act
on Transport Policy.
|
Efforts of Local Railway Operators/
Regional Governments and
Remaining Issues |
Against this backdrop of transport policies
emphasizing the profitability of transpor t
business, transport businesses with high
ethical levels (awareness of public benefit) and
management efficiency were created across
Japan. Choshi Dentetsu employees cooking
rice crackers sold at stations when not busy
with train duties, veteran train drivers of various
operators periodically competing in train driving
skill competitions, and other stories are very
typical Japanese railway scenes. Wakayama
Electric Railway, which attracted tourists from
Japan and abroad to the railway by promoting
a stray cat living at the station to stationmaster
(currently company executive), is an example
of successful viral marketing. Railways such as Izuhakone Railway, Hiroshima Electric Railway, Nagasaki
Electric Railway, Shizuoka Railway, Enshu Railway, and Iyo
Railway with an average transport density on the same level
as major urban areas are typical examples of successes
in regional urban transport; Nagasaki Electric Railway is
famous for running ultra-low fare trams called ‘¥100 trains’
(currently ¥120). Enshu Railway made innovative changes
to its timetable to provide services over a single-track line
equivalent to the level of double-track. Quasi-public Sanriku
Railway suffered major tsunami damage to facilities, but was
able to restart service with the support of local communities
and the national government to become a symbol of
recovery after the 2011 Great East Japan Earthquake. In
contrast, destroyed facilities of JR East’s Yamada Line
connecting with Sanriku Railway have been left as-is
because they were unable to receive public subsidies, and
there is an active movement to transfer the line to Sanriku
Railway to facilitate service restoration. The situation of
railway operators with high levels of management efficiency
supporting local public transport is the same in major urban
areas. Private-sector railway operators (the JRs, private
railways, Tokyo Metro) handle 87% of railway passenger
transport in Japan’s three major urban areas (in 2010). Even so, looking at the other side of management efforts taken by transport operators, we see regional local
government (prefecture and municipality) efforts for local
public transport have made a late start. The centralized
administration system where authority and responsibility
for transport policies overall is concentrated at the
national government level causes delays in regional local
governments making assertive efforts in terms of transport
policies. However, with the establishment of the abovementioned
two new laws, the responsibility of regional
local governments for local public transport is clarified and
a target focused at decentralization related to transport
policies at the local level has come into view.
There are some case examples of regional local
government taking an active role in public transport policies.
For Toyama City to achieve its compact city strategy, it went
beyond just introducing LRT, making ambitious efforts to
improve local public transport by means such as forming a
pact with local Toyama Chiho Railway to introduce low fares
for the elderly and petitioning JR West to revise its timetable
to induce modal shift. The public-owned/private-run model
where local government builds railway infrastructure that
quasi-public Toyama Light Rail operates supporting the
LRT business introduced by Toyama City, became a trigger
for the national government’s new public subsidy system.The Toyama City endeavour came about by it recording
the highest ratio of personal automobile use over public
transport for the 47 prefectural cities in Japan.
The Act on Revitalization and Rehabilitation of Local
Public Transportation Systems spread efforts such as
those taken by Toyama City to local governments across
Japan. Its aims go beyond just enhancing and improving
public transport systems to include securing and improving
day-to-day transport through cooperation between local
government, transport operators, and residents. However,
the actual situation does not always go as intended by
the law. Local governments lack experience and ability in
implementing local public transport policies, and there are
insufficient local government financial resources to support
them. Transfer of authority for transport policies from the
national to local level and transfer of finances for transport
policies must be more than just a slogan. Actual progress
must be seen whereby transfer for projects to improve public
transport as targeted by the law come to fruition. While localled
efforts in areas such as community buses and shareride
taxis have increased, we can see this as simply being
examples of local-side response in line with the framework
for regional councils prepared by the national government.
It will be difficult to secure a means of transport
imperative for day-to-day life as prescribed by the Basic Act
on Transport Policy through unrealistic expectations about
the financial strength of public transport operators and by
simply turning over responsibility for local public transport
policies to individual regions. Good results will not be
achieved by simply piling up small subsidy systems ad-hoc
for public subsidy policies as is done now. To enhance local
transport policies starting with public transport, we need to
study efforts in other developed nations on this point and
introduce those that are deemed to be favourable in Japan.
There is much to learn from case examples of other countries
on methods of procuring public funds for improving local
public transport. Moreover, there is a strong chance that
old-fashioned government regulations, such as regulating
prices for railway operators, are impeding streamlining and
modernization of local public transport policies.
There are still many issues that the national government
should make efforts about to achieve decentralization of
authority for local public transport.
|
Further Reading |
Railway Transport Agency Survey Report, Third Conference on Revitalizing
and Rehabilitating Local Public Transport Systems (2014, Japan Railway
Construction, Transport and Technology Agency)
Jun Umehara, Disclosure of Balance of Payment Management Factor
Calculation Formula for All JR & Private Railway Lines, Weekly Toyo Keizai
No. 6512 (20 February 2014) |