Japan Mulling Higher Leasing Fees for Shinkansen Line Facilities

Tokyo, Jan. 24 (Jiji Press)–Japan’s transport ministry is considering raising the leasing fees paid by Japan Railways group companies for some Shinkansen bullet train line facilities. The ministry is looking to use the higher revenue for new construction projects based on Shinkansen development plans as well as for large-scale renovations of aging infrastructure. It aims to reach a conclusion on the matter by this summer, but JR group firms are opposed to the fee hike. JR firms that operate Shinkansen lines are paying leasing fees for railroads, tunnels and other facilities for five sections–the Hokkaido Shinkansen Line, the Tohoku Shinkansen Line section between Morioka and Shin-Aomori stations, the Hokuriku Shinkansen Line section between Takasaki and Tsuruga stations, the Kyushu Shinkansen Line and the Nishi Kyushu Shinkansen Line. The facilities were built and are owned by the Japan Railway Construction, Transport and Technology Agency. When the agency leases facilities to JR firms, it sets fixed annual leasing fees for 30 years based on the companies’ expected gains within the leasing period. Fees for the 31st year and beyond remain undecided. The transport ministry has been considering revising the fees, as the end of September 2027 will mark 30 years since the agency began leasing the Takasaki-Nagano leg of the Hokuriku Shinkansen Line, the first section to be leased under the system. The ministry established an expert panel in November 2025 to discuss the fee collection period and fee-setting method. It is seeking to secure stable financial resources as many sections of planned Shinkansen lines have yet to be completed, including the Hokkaido Shinkansen Line section between Shin-Hakodate-Hokuto and Sapporo stations, the Hokuriku Shinkansen Line section between Tsuruga and Shin-Osaka stations, and the Nishi Kyushu Shinkansen Line section between Shin-Tosu and Takeo-Onsen stations. The initial 30-year lease period is set based on the service life of the facilities, and large-scale renovations are necessary to ensure their future safety. Japan’s Fiscal System Council, an advisory panel to the finance minister, has proposed that leasing fees be hiked, given that JR group firms are seeing growing revenue linked to the Shinkansen lines, including real estate income. A senior transport ministry official said that, if fees are to be hiked, they would only increase by a level that would not impact management at JR companies. Meanwhile, the companies are intensifying their opposition to the possible fee increase. East Japan Railway Co., or JR East, said it has confirmed with the central government that the leasing fee for Hokuriku Shinkansen Line’s Takasaki-Nagano section for the 31st year and beyond would not exceed the current fee. “The (higher) real estate income and increasing number of passengers are the result of corporate efforts,” a source from West Japan Railway Co., or JR West, argued. END [Copyright The Jiji Press, Ltd.]