EAST Japan Railway (JR East) has issued revised financial targets for its Transformation 2027 strategy following what the railway describes as the “changes in the business environment following the Covid disaster.”

Rather than running to March 31 2026 as was intended under the original strategy, announced on January 29 2021, JR East is now working to achieve the revised targets by March 31 2028.

Highlights include increasing consolidated operating revenue to Yen 3276bn ($US 24.46bn) by the end of the 2027 fiscal year, which will end on March 31 2028, up from the previous target of Yen 3090bn, and an increase on the Yen 2405.5bn recorded in fiscal 2022, which concluded on March 31 2023. The railway also hopes to record a consolidated operating profit of Yen 410bn in fiscal 2027, a decrease on the previous target of Yen 450bn, but up substantially on the Yen 140.6bn result for fiscal 2022.

Transport services account for the majority of revenue, expecting to reach Yen 2019bn in fiscal 2027. This up from Yen 1618bn in fiscal 2022 and the original fiscal 2025 target of Yen 1970bn. Profit from transport services is expected to reach Yen 178bn in fiscal 2027, up significantly on the Yen 24bn loss in fiscal 2022 but again lower than the original Yen 252bn fiscal 2025 target.

As well as transport, JR East expects improvements in the financial performance of its distribution and services, real estate and hotels and other business areas, all of which are forecast to achieve higher revenue in fiscal 2027 than the original fiscal 2025 targets.

Capital investment

The railway has also clarified revised capital investment plans for fiscal 2023, which it says will help to speed up the pace of change following the Covid-19 pandemic.

In total, the railway expects to invest Yen 7360bn in fiscal 2023, up from Yen 5557bn in 2022. This includes Yen 4580bn on transport and Yen 2780bn on “lifestyle solutions.”

Among the highlights are the start of construction on the Haneda Airport Access Line in Tokyo. This project will make use of disused freight lines and connect directly with the Ueno Tokyo Line near Tamachi station, providing direct access to Haneda Airport from Tokyo station and the Utsunomiya, Takasaki and Joban lines.

In addition, JR East will continue work on a new connection between the Yamagata Shinkansen and the Tohoku Shinkansen at Fukushima station while new Series E8 Shinkansen trains will enter service beginning in Spring 2024. The trains will operate at up to 300km/h and will offer additional wheelchair spaces and more luggage storage space. Green cars will also be introduced on the Chuo Rapid Line.

Investment will also focus on earthquake countermeasures and projects to prevent heavy rainfall from disrupting he Shinkansen high-speed network. Platform screen doors will also be installed at several stations on the Yokohama Line.

Other priorities include strengthening JR East’s concept of station-centred urban development at several sites. It also plans to upgrade the Suica ticket gates and introduce a central server and expand Suica validity to include more stations in the North Tohoku region. JR East is working to reduce carbon emissions by upgrading its eco-station concept and switching to LED lighting.