Japan Railways Group Explained

The Japan Railways Group, more commonly known as the or simply JR, is a group of railway companies in Japan that underwent division and privatization[1] of the government-owned Japanese National Railways (JNR) on April 1, 1987. It consists of six passenger railway companies, one freight railway company, and two non-service companies. Most of the liability of the JNR was assumed by the JNR Settlement Corporation.

The JR Group operates a large proportion of intercity rail service (including the Shinkansen high-speed rail lines) and commuter rail service.

JR Hokkaido, JR Shikoku, and JR Freight (JRF) are governed by the, also known as the JR Companies Act, and are under the control of the public Japan Railway Construction, Transport and Technology Agency (JRTT), while JR East, JR Central, JR West, and JR Kyushu are completely floated in the stock market; in addition, JR East, JR Central and JR West are constituents of the Nikkei 225 and TOPIX 100 indices. Because the railways used to be owned by the government, Japanese people generally make a distinction between JR railways (including former JR lines that are now third sector) and other private railways, and JR railways are almost always denoted differently from other private railways when shown on maps.[2]

Background

See also: History of rail transport in Japan and Ministry of Railways (Japan). By the 1970s, passenger and freight business had declined, and fare increases had failed to keep up with higher labor costs.[3]

The JR Group companies were formed out of the privatization of the Japanese National Railways in 1987.[4] [5]

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 October 2016, all of the shares of JR East, JR Central, JR West and JR Kyushu 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 and JR Freight are still owned by Japan Railway Construction, Transport and Technology Agency, an independent administrative institution of the state.

All the JR Group companies operating in the Honshū region are constituents of the Nikkei 225 and TOPIX 100 indexes.

Companies

The Japan Railways 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 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 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 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."

BusinessLogo and colorCompanyTypeTraded asRegion(s) of operationNote
PassengerKabushiki gaishaNot listedOwned by JRTTHokkaidōoperates Hokkaidō Shinkansen in Hokkaido
Tōhoku, Kantō, Hokuriku, Kōshin'etsuoperates Tōhoku Shinkansen, Yamagata Shinkansen, Akita Shinkansen, Jōetsu Shinkansen and Hokuriku Shinkansen (with JR West)
Chūbu (including Tōkai, its Japanese eponym)operates Tōkaidō Shinkansen in Kantō and Kansai
Hokuriku, Kansai, Chūgoku, Kyūshūoperates Sanyō Shinkansen in Kansai, Chūgoku and Kyushu and Hokuriku Shinkansen (with JR East) in Hokuriku
Not listedOwned by JRTTShikoku
    Kyūshūoperates Kyūshū Shinkansen in Kyūshū
    FreightNot listedOwned by JRTTNationwide
    IT ServicesNot listedOwned by the 7 railway companies above[6] Nationwidedevelops, operates and manages computer systems, including MARS (ticket reservation system)[7]
    Research & DevelopmentA non-profit organization funded by the 7 railway companies above[8] Nationwideconducts research and development of railway-related technologies, such as SCMaglev

    Network

    JR maintains a nationwide 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 (jointly developed with Hitachi). Some types of tickets (passes), such as Japan Rail Pass and Seishun 18 Ticket, are issued as "valid for all JR lines" and accepted by all passenger JR companies.

    Unions

    Various unions represent workers at the different JR Group companies, such as the National Railway Workers' Union, All Japan Construction, Transport and General Workers' Union, Doro-Chiba, and the Japan Confederation of Railway Workers' Unions.

    See also

    References

    External links

    Notes and References

    1. See .
    2. http://www.jreast.co.jp/renrakuteiki/index.html Using Suica Railway Pass, connect from JR to Private Rail/Metro!
    3. Web site: The Annual Report of Transport Economy(1975) - Chapter 4 Reconstruction of Japanese National Railways . 2003-04-23 . Ministry of Transport.
    4. Book: Kasai, Yoshiyuki . Japanese National Railways – Its Break-up and Privatization: How Japan's Passenger Rail Services Became the Envy of the World . 2021-10-25 . BRILL . 978-90-04-21397-5 . en.
    5. Book: Imashiro . Mitsuhide . The Privatisation of Japanese National Railways: Railway Management, Market and Policy . Ishikawa . Tatsujiro . 2013-12-17 . A&C Black . 978-1-78093-929-2 . en.
    6. Web site: Corporate Overview - JR RAILWAY INFORMATION SYSTEMS CO.,LTD. . 2023-12-05 . www.jrs.co.jp.
    7. Web site: Products and Solutions - JR RAILWAY INFORMATION SYSTEMS CO.,LTD. . 2023-12-05 . www.jrs.co.jp.
    8. Web site: Railway Technical Research Institute . 2023-12-05 . Railway Technical Research Institute . en.