Japan Railways
Encyclopedia
The Japan Railways Group, more commonly known as , consists of seven for-profit companies that took over most of the asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...

s and operations
Operations management
Operations management is an area of management concerned with overseeing, designing, and redesigning business operations in the production of goods and/or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as little resources as needed, and...

 of the government-owned Japanese National Railways
Japanese National Railways
, abbreviated or "JNR", was the national railway network of Japan from 1949 to 1987.-History:The term Kokuyū Tetsudō "state-owned railway" originally referred to a network of railway lines operated by nationalized companies under the control of the Railway Institute following the nationalization...

 on April 1, 1987. Most of the liability of the JNR was assumed by the JNR Settlement Corporation
JNR Settlement Corporation
was a corporation formed to handle long-term debts and redundancies following the privatization and breakup of Japanese National Railways on April 1, 1987....

.

The JR Group lies at the heart of Japan's railway network, operating a large proportion of intercity rail service (including the Shinkansen
Shinkansen
The , also known as THE BULLET TRAIN, is a network of high-speed railway lines in Japan operated by four Japan Railways Group companies. Starting with the Tōkaidō Shinkansen in 1964, the network has expanded to currently consist of of lines with maximum speeds of , of Mini-shinkansen with a...

 high-speed rail lines) and commuter rail service. A strong distinction is still made between JR and other private railway companies; for instance, the two are generally denoted differently on maps.

Companies

The group consists of seven operating companies and two other companies that do not provide rail service. The operating companies are organized into six passenger operators and a nationwide freight operator. Unlike some other groups of companies, the JR Group is made up of independent companies, and it does not have group headquarters or a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 to set the overall business policy.

The six passenger railways of the JR Group are separated by region. Nearly all their services are within the prescribed geographic area. However, some long-distance operations extend beyond the boundaries. The Shirasagi train service between and , for instance, uses JR West rolling stock but the segment of track between Nagoya and is owned by JR Central, whose crew manage the train on that section.

Japan Freight Railway Company
Japan Freight Railway Company
, or , is one of the constituent companies of Japan Railways Group . It provides transportation of cargo nationwide. Its headquarters are in Shibuya, Tokyo near Shinjuku Station....

 operates all freight service on the network previously owned by JNR.

In addition, the group includes two non-operating companies. These are the Railway Technical Research Institute
Railway Technical Research Institute
, or , is the technical research company under the Japan Railways group of companies.- Overview :RTRI was established in its current form in 1986 just before Japanese National Railways was privatised and split into separate JR group companies. RTRI conducts research about everything related to...

 and Railway Information Systems Co., Ltd.

To cover various non-railway business areas, each regional operator in the JR Group has its own group of subsidiary companies with names like "JR East Group" and "JR Shikoku Group."
Business Company Logo / Symbol color Stock Regions of operation Note
Passenger Not listed Hokkaido
Hokkaido
, formerly known as Ezo, Yezo, Yeso, or Yesso, is Japan's second largest island; it is also the largest and northernmost of Japan's 47 prefectural-level subdivisions. The Tsugaru Strait separates Hokkaido from Honshu, although the two islands are connected by the underwater railway Seikan Tunnel...

operates Kaikyō Line
Kaikyo Line
is an 87.8-kilometre railway line operated mainly by the Hokkaido Railway Company. The line runs from Naka-Oguni Station in Sotogahama, Aomori, through the Seikan Tunnel between Honshū and Hokkaidō, and on to Kikonai Station in Kikonai, Hokkaidō...

 in Tohoku
Tōhoku
Tohoku region
The is a geographical area of Japan. The region occupies the northeastern portion of Honshu, the largest island of Japan. The region consists of six prefectures : Akita, Aomori, Fukushima, Iwate, Miyagi and Yamagata....

, Kantō
Kanto region
The is a geographical area of Honshu, the largest island of Japan. The region includes the Greater Tokyo Area and encompasses seven prefectures: Gunma, Tochigi, Ibaraki, Saitama, Tokyo, Chiba, and Kanagawa. Within its boundaries, slightly more than 40 percent of the land area is the Kantō Plain....

, Kōshin'etsu
Tōkai
Tokai region
The is a sub-region of the Chūbu region in Japan that runs along the Pacific Ocean. The name means "East sea" and comes from the Tōkaidō, one of the Edo Five Routes...

operates Tōkaidō Shinkansen in Kantō and Kansai
Hokuriku
Hokuriku region
The is located in the northwestern part of Honshū, the main island of Japan. It lies along the Sea of Japan within the Chūbu region. It is almost equivalent to Koshi Province and Hokurikudō area in pre-modern Japan....

, Kansai, Chūgoku
Chugoku region
The , also known as the , is the westernmost region of Honshū, the largest island of Japan. It consists of the prefectures of Hiroshima, Okayama, Shimane, Tottori and Yamaguchi. It has a population of about 7.8 million.- History :...

operates Sanyō Shinkansen
Sanyō Shinkansen
The is a line of the Japanese Shinkansen high-speed rail network, connecting Shin-Ōsaka in Osaka with Hakata Station in Fukuoka, the two largest cities in western Japan...

 in Kyushu
Not listed Shikoku
Shikoku
is the smallest and least populous of the four main islands of Japan, located south of Honshū and east of the island of Kyūshū. Its ancient names include Iyo-no-futana-shima , Iyo-shima , and Futana-shima...

Not listed Kyushu
Kyushu
is the third largest island of Japan and most southwesterly of its four main islands. Its alternate ancient names include , , and . The historical regional name is referred to Kyushu and its surrounding islands....

Freight Not listed Nationwide
Research organization Not listed
IT Services Not listed

Network

JR maintains a nation-wide railway network as well as common ticketing rules that it inherited from JNR. Passengers may travel across several JR companies without changing trains and without purchasing separate tickets. However, trains running across the boundaries of JR companies have been reduced.

JR maintains the same ticketing rules based on the JNR rules and has an integrated reservation system known as MARS
MARS (ticket reservation system)
, which stands for MAgnetic electronic seat Reservation System or, more recently, Multi Access seat Reservation System, is a train ticket reservation system used by the railway companies of Japan Railways Group and travel agencies in Japan.The host of the system is located in Kokubunji, Tokyo and...

. Some types of tickets (passes), such as Japan Rail Pass
Japan Rail Pass
The is a railpass for overseas visitors sold by the Japan Railways Group, and is good for travel on all major forms of transportation provided by the JR Group, with a few exceptions. The Rail Pass is designed to stimulate travel and tourism throughout the country....

 and Seishun 18 Ticket
Seishun 18 Ticket
The is a special discount ticket issued in Japan that allows holders one-day unlimited rides on the local trains of Japan Railways Group during limited periods of year....

, are issued as "valid for all JR lines" and accepted by all passenger JR companies.

Ownership

In 1987, the government of Japan took steps to divide and privatize JNR. While division of operations began in April of that year, privatization was not immediate: initially, the government retained ownership of the companies. Privatization of some of the companies began in the early 1990s. By 2006, all of the shares of JR East, JR Central and JR West had been offered to the market and they are now publicly traded. On the other hand, all of the shares of JR Hokkaido, JR Shikoku, JR Kyushu and JR Freight are still owned by Japan Railway Construction, Transport and Technology Agency
Japan Railway Construction, Transport and Technology Agency
The , or JRTT, is an Independent Administrative Institution created by an act of the Diet of Japan effective October 1, 2003. JRTT was founded by integrating the Japan Railway Construction Public Corporation and the Corporation for Advanced Transport and Technology .JRTT was a major shareholder...

, an independent administrative institution
Independent Administrative Institution
An Incorporated Administrative Agency or in lay terms an Independent Administrative Corporation or Independent Administrative Institution is a newly designed type of legal body for Japanese governmental organizations regulated by the Basic Law on Reforming Government Ministries of 1998...

 of the state.

Background

The demise of the government-owned system came after charges of serious management inefficiencies, profit losses, and fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...

. By the early 1980s, passenger and freight business had declined, and fare increases had failed to keep up with higher labor costs.

What remained of the debt-ridden Japanese National Railways after its 1987 breakup was named the Japanese National Railways Settlement Corporation
JNR Settlement Corporation
was a corporation formed to handle long-term debts and redundancies following the privatization and breakup of Japanese National Railways on April 1, 1987....

. Its purpose was to dispose of assets and debts not absorbed by the successor companies and to execute other activities relating to the breakup, such as outplacement of former personnel.

The new companies introduced competition, cut their staffing, and made reform efforts. Initial public reaction to these moves was good: the combined passenger travel on the Japan Railways Group passenger companies in 1987 was 204.7 billion passenger-kilometers, up 3.2% from 1986, while the passenger sector previously had been stagnant since 1975. The growth in passenger transport of private railways in 1987 was 2.6%, which meant that the Japan Railways Group's rate of increase was above that of the private-sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...

 railroads for the first time since 1974. Demand for rail transport improved, although it still accounted for only 28% of passenger transportation and only 5% of cargo transportation in 1990. Rail passenger transportation was superior to automobiles in terms of energy efficiency
Energy conversion efficiency
Energy conversion efficiency is the ratio between the useful output of an energy conversion machine and the input, in energy terms. The useful output may be electric power, mechanical work, or heat.-Overview:...

 and of speed in long distance transportation.

The six companies had 18800 km (11,681.8 mi) of routes (mostly gauge) in use in the late 1980s. About 25% of the routes were in double-track and multitrack sections, and the rest were single-track. In 1988 about 51% of the six companies' 1,000 locomotives were diesel
Diesel engine
A diesel engine is an internal combustion engine that uses the heat of compression to initiate ignition to burn the fuel, which is injected into the combustion chamber...

, and the rest were electric.

Japan Freight Railway Company
Japan Freight Railway Company
, or , is one of the constituent companies of Japan Railways Group . It provides transportation of cargo nationwide. Its headquarters are in Shibuya, Tokyo near Shinjuku Station....

 owns its locomotives (295 diesel and 569 electric locomotives in 1988), rolling stock
Rolling stock
Rolling stock comprises all the vehicles that move on a railway. It usually includes both powered and unpowered vehicles, for example locomotives, railroad cars, coaches and wagons...

 and stations, but hires track from the six passenger companies. It runs fewer trains on less track than Japanese National Railways freight service did before its demise, but at increased revenues and higher productivity
Productivity
Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...

.

The leased Shinkansen
Shinkansen
The , also known as THE BULLET TRAIN, is a network of high-speed railway lines in Japan operated by four Japan Railways Group companies. Starting with the Tōkaidō Shinkansen in 1964, the network has expanded to currently consist of of lines with maximum speeds of , of Mini-shinkansen with a...

 railway facilities, including 2100 km (1,304.9 mi) of gauge high-speed track, to the passenger companies on Honshū. In 1991, the SPC was reorganized into the and the three operators bought their lines on 60-year loans. Some of the Shinkansen electric-powered trains operate at speeds up to 300 km/h.

Another nearly 3400 km (2,112.7 mi) of routes are operated by major private railways and by what are known in Japan as third sector railroads—new companies, financed with private and local government funds—which absorbed some of Japanese National Railways' rural lines. There were twenty-seven private and third-sector companies in 1989.

See also

  • Rail transport in Japan
    Rail transport in Japan
    Rail transport in Japan is a major means of passenger transport, especially for mass and high-speed travel between major cities and for commuter transport in metropolitan areas.-Overview:...

  • List of railway companies in Japan
  • Japan Railways locomotive numbering and classification
    Japan Railways locomotive numbering and classification
    This page explains the numbering and classification schemes for locomotives employed by the Japanese Government Railways, the Japanese National Railways and the Japan Railways Group.- Pre-nationalization :...

  • SoftBank Telecom – former Japan Telecom, an affiliated company of JNR
    Japanese National Railways
    , abbreviated or "JNR", was the national railway network of Japan from 1949 to 1987.-History:The term Kokuyū Tetsudō "state-owned railway" originally referred to a network of railway lines operated by nationalized companies under the control of the Railway Institute following the nationalization...

    established in 1984

External links

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