The JRs

From CroziervisionWiki

Author: Patrick Crozier
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In 1987, Japan National Railway was privatised.

What the state did

The state:

  • split up JNR into:
    • six passenger companies, three on the main island, Honshu, and one each on the islands of Kyushu, Shikoku and Hokkaido
    • a freight company, JR Freight
  • set up the Management Stabilisation Fund, which took (and still takes) from the profitable Honshu JRs and gives to the loss-making island JRs
  • put all the debt (it's a phenomenal sum - over £100 billion (no that is not a typo)) into a fund separate from the railways. Not quite sure how it is supposed to be paid off
  • sold back the Shinkansen lines over the course of a few years
  • sold off the shares in the JRs over the course of a few years. I am pretty sure that the Japanese government no longer has any interest in the JRs

The outturn

The privatised railways:

  • invested massively in new rolling stock
  • massively increased the number of Shinkansen services
  • increased their profitability

JR Central:

  • increased speed and frequency and introduced new rolling stock on their conventional lines
  • built a brand new station (plus skyscraper) at Nagoya

JR East:

  • is investing in new technology that will make disasters like the one at Amagasaki impossible

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