Jeopardy of Local Railway

Hokkaido Railway Company, or JR Hokkaido, released its estimated financial balance in FY 2016 on Friday. The company found that no line out of all twenty-eight in Hokkaido Island could earn profit in FY 2015, jeopardizing its business as a private company. JR Hokkaido considers discontinuing some local lines, which suffer from heavy burden for its financial balance. Having built for the purpose of developing untouched island, anyway, the railway in Hokkaido should be kept by national government with perspectives of homeland security.

The loss in its business amounts to ¥23.5 billion in FY 2016, recording the worst from its establishment in 1987. Compared to initial estimation, the damages caused by consecutive storms in this summer accumulated the red by ¥8 billion, with the cost for retrieval and the loss from cancellation. In this spring, the company started running bullet train to Hakodate, the southernmost city in Hokkaido, connecting for the first time between Tokyo and Hokkaido. Nevertheless, its financial balance was not improved.

According to the calculation by JR Hokkaido, each of six lines spent the cost of ¥1,000 or more to earn ¥100 in FY 2015. In the worst line between Rumoi and Mashike, the trains transported only 67 people in average for one kilometer a day. It spent ¥2,538 to earn ¥100. The line is fated to be ending its operation on 4^th of December, despite requests of the users, mainly high school students or old people who do not drive cars.

JR Hokkaido also considers ending its operation in four lines, each of which spends a great amount of cost, and turned its transportation from railway to bus. In other lines with the red, the company is suggesting to separate its operation, train operation for JR Hokkaido and maintenance of railway for local government. JR Hokkaido, in short, does not want to continue its business.

It is reasonable for a private company that seeks genuine profit to restructure its business by cutting cost off. However, the railway in Hokkaido was laid for the purpose of public interest. The development of Hokkaido was national policy for Meiji Government to counter Southward Policy of Imperial Russia in the second half of 19^th century. Laying railway was the center of the development policy to settle Japanese people to that rural area with a number of indigenous people called Ainu.

Shrinking railway network indicates the end of that development policy of Japanese government. Although Russia does not show any attitude to invade Hokkaido, as Joseph Stalin demanded northern half of Hokkaido for a result of World War II, its influence in Hokkaido might be increasing in such other forms as investment. It may not be Russia, but China or other ambitious countries. In terms of homeland security, Japanese government is responsible for maintaining railway in Hokkaido to offer preferable environment to the residents.