JR Hokkaido withdraws proposal to share costs for loss-making sections

SAPPORO – Hokkaido Railway (JR Hokkaido) has said it will withdraw a proposal to ask local municipalities to share the cost of maintaining loss-making sections in the prefecture.

JR Hokkaido made the announcement Wednesday after it faced opposition from municipalities to the proposal, which concerned eight sections it considers difficult to maintain on its own.

The company will instead seek to establish a new council led by the central government to discuss measures to keep the sections in service, and has asked the Hokkaido Prefectural Government to join the council.

The central government has asked the company to draw up fundamental measures to improve the financial situation of the eight sections by the end of fiscal 2026, which ends in March next year.

In April, JR Hokkaido announced four reform proposals, including one under which the company would continue train operations while municipalities would own and manage the tracks and other facilities.

The proposal drew strong opposition from the municipalities along the sections over concerns about increased financial burdens.

JR Hokkaido President Yasuyuki Watanuki said at a news conference Wednesday, “I would like to offer my apologies having received harsh criticism from various parties after making the proposal a topic of discussion.”

The new council will aim to formulate improvement measures by examining possible strategies to enhance the value of the sections, through the use of tourist trains as well as the transfer of railway assets, such as station buildings, to local governments.

Also on Wednesday, Watanuki and Tomoyuki Ishizuka, head of the Hokkaido District Transport Bureau at the transport ministry, held talks with Hokkaido Gov. Naomichi Suzuki and asked the prefectural government to participate in the council as its secretariat.

Suzuki said, “Frankly, I must say it will be difficult to compile (improvement measures) within the remaining six months.” He called for the compilation process to proceed carefully so as not to reach a hasty conclusion.

Some municipalities along the sections took the announcement positively.

An official of Kitami said the city welcomed the withdrawal of the earlier proposal, which did not make clear how financial burdens would be shared. “We hope the central and prefectural governments will carefully consider improvement measures in light of the significance of the sections,” the official said.