• JUser::_load: Unable to load user with id: 79
May 04, 2010

Road toll cut stifles Japanese rail revenues

Written by 
  • Print
  • Email
TOUGH economic conditions and a reduction in road tolls have had a negative impact on the revenues of Japan's three largest railways, which all saw their income decline in the 2009-10 financial year.

JR West was the hardest hit as revenues fell by 6.7% to Yen 1190 billion ($US 12.6 billion), while profits plummeted 54.4% to Yen 24.8 billion. JR Central saw revenues fall 5.3% to Yen 1486 billion with a 27.2% fall in profits to Yen 91.7 billion. JR East revenues dipped 4.6% to Yen 2573 billion and profits declined by 35.8% to Yen 120.2 billion. Other JR companies are also expected to publish poor results.

Despite its commitment to cut carbon emissions, Japan's Democratic Party won last year's national election with a manifesto pledge to reduce expressway tolls by around 30% on weekdays, with a rate of Yen 1000 on weekends and national holidays. The Ministry of Land, Infrastructure, Transport and Tourism is planning to trial toll-free expressways in the near future, and is also considering a Yen 2000 limit on rail fares. 

The JR companies have urged the government to reconsider its policy on road pricing and capping rail fares.

Get the latest rail news

IRJ Rail Brief newsletter covers global railway news