FOCUS: Nagoya Station Maglev Redevelopment Delayed Again

Nagoya, March 13 (Jiji Press)–Dark clouds are gathering over a major redevelopment project around Nagoya Station in central Japan that is being planned in anticipation of the launch of the Chuo Shinkansen magnetic levitation superhigh-speed train line. The project, led by major private railway operator Nagoya Railroad Co., or Meitetsu, calls for the construction of two high-rise buildings and the renovation of Meitetsu Nagoya Station. However, the start of construction, previously scheduled for fiscal 2027, is now “undecided.” A key factor behind the delay is the decision by a joint venture of three major general contractors not to participate in the competitive bidding, amid an acute labor shortage in the construction industry and sharply rising building costs. “I had never imagined we would face a situation like this. I am filled with deep regret,” Hiroki Takasaki, president of Meitetsu, said at an emergency news conference in December, his voice catching as he announced yet another postponement of the start of construction on the project. Construction had originally been scheduled to start in fiscal 2022 but was delayed due to the COVID-19 pandemic. Under a revised timetable announced in March last year, demolition work was to start in fiscal 2026, followed by the start of construction in fiscal 2027. The planned redevelopment site currently accommodates the Meitetsu Department Store Co.’s main building, an affiliated hotel and a bus terminal. Under the project, these existing facilities will be demolished and replaced by two new buildings, each approximately 170 meters tall, which will house offices, a hotel and commercial facilities. The project also aims to improve the functionality of the underground Meitetsu Nagoya Station terminal by introducing a four-track layout. Meitetsu is believed to have planned a total investment of about 888 billion yen, with roughly 540 billion yen allocated to work other than the station and bus terminal. The first phase of construction was scheduled to end in fiscal 2033, with full completion targeted for the early 2040s. Surging Cost Estimate The three-company consortium that had planned to take part in the bidding submitted a notice of nonparticipation last November, just before the deadline, citing difficulties in securing personnel. According to informed sources, the construction cost estimate presented at that time was nearly double the initially expected level. At the news conference, Takasaki expressed respect for the consortium’s decision, attributing it to “changes in social conditions and the business environment.” Within Meitetsu, however, there is a sense of distrust toward the group. Locally, the public and private sectors have been working together on a redevelopment plan that would use the opening of the maglev Shinkansen line as a catalyst to transform the area around Nagoya Station into a gateway befitting an international, wide-area hub for business and exchange. The project involving companies such as Meitetsu is regarded as the centerpiece of these efforts, but a major revision now appears unavoidable. The Chuo Shinkansen maglev project still has no clear prospects for opening. Construction work in the Shizuoka Prefecture section has been delayed, forcing the planned launch of services between Shinagawa Station in Tokyo and Nagoya Station in Aichi Prefecture to be pushed back from the original target of 2027 to, at the earliest, 2036. Central Japan Railway Co., or JR Tokai, which will operate the maglev line, also disclosed in October that surging material and labor costs had driven the estimated construction cost for the Tokyo-Nagoya segment up to 11 trillion yen, roughly double the initial projection. The maglev line is slated for eventual extension to Osaka in western Japan. Reflecting these circumstances, local expectations for the benefits of the maglev line remain muted. Atsushi Yokoyama, president of a real estate company and a major landowner around Nagoya Station, argues that the redevelopment plans proposed by Meitetsu and other parties are excessive given current tenant demand. “Redevelopment on a scale suited to local realities would be desirable,” he said. Meitetsu officials have said the company will present a new policy sometime during fiscal 2026, which ends in March 2027. Aichi Governor Hideaki Omura said: “I want them to thoroughly rework the business plan and make a fresh start. We in the administration will continue providing support.” The main outlet of Meitetsu Department Store closed at the end of February as scheduled, putting an end to its 71-year-old history. The group’s hotel and bus terminal will remain in operation for the time being. END [Copyright The Jiji Press, Ltd.]