Japan Railways, Private Train Companies Still Reeling

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--The Japanese government is currently drafting an emergency budget for immediate rehabilitation of quake- and tsunami-affected areas. This budget, aimed at bringing infrastructure up to at least operational standards in order to facilitate disaster relief and transportation, could total $120 billion alone. Long-term reconstruction costs have breached $300 billion and are currently closer to $310 billion, making March 11's earthquake one of the most costly natural disasters.

Target areas of infrastructure include ports, roadways and railroads. Japan's railway system, headed by nationwide companies and private rail companies alike, is extensive and is often the easiest method of travel within the country. The loss of sections of rail lines that stretch the length of the Tohoku and Kanto regions along the Pacific coast has severely hampered relief efforts. In the initial days of fuel shortage in the Tohoku region, rail tankers from various unaffected refineries were forced to travel longer routes to reach terminals in northern Japan. The effect of crippled railways has only been compounded by damage to other types of infrastructure such as roadways and ports, and, more specifically, Sendai Airport.

Sanriku Railway Company (Morioka, Japan) operates two lines in Iwate prefecture; Kita Riasu, which connects the coastal cities of Miyako and Kuji, and Minami Riasu, which stretches between Kamaishi and Ofunato on the Pacific Coast. Both of Sanriku's lines were heavily damaged by the tsunami on March 11, and as of now, Sanriku has been able to restore approximately 34% of its operational capacity without government assistance. About 66% remains offline and Sanriku is unable to continue rehabilitation without government intervention. The railway company is currently estimating that approximately $82 million in damages remains.

East Japan Railway Company (TYO:9020) (JR East) (Tokyo), part of the nationwide Japan Railways Group that serves the Kanto and Tohoku regions as well as the Koshinetsu area of the Chubu region, has also suffered a significant amount of damage. Currently, it plans to have all of its affected Shinkansen lines, or bullet train lines, up and running as normal by the end of April. JR East operates four of these lines, three of which are running on limited schedules and one is operating in sections. The Tohoku Shinkansen sustained the most damage and remains offline. So far, JR East has managed to repair 75% of the damage and three sections have reopened for operation.

Approximately 1,340 kilometers of 14 standard JR East train lines were damaged and 23 stations were completely destroyed by the tsunami. As of now, an additional 13 of stations cannot be reached due to nuclear evacuation radii, and four train lines have lost entire trains. JR East is currently performing debris removal and is working to restore lines that have accrued miniscule damage in association with its affiliates within Japan Railways Group. These include Central Japan Railway Company (TYO:9022) (Nagoya, Japan) and West Japan Railway Company (TYO:9021) (Osaka, Japan) as well as Japan Railways Group construction and maintenance companies.

The cost of full-scale reconstruction efforts has not been determined, and reconstruction cannot begin until local governments have decided on localized reconstruction plans for cities, towns and villages. JR East is not sure if train lines that have been completely destroyed or washed away in these areas will be reconstructed in the same locations. Once full-scale reconstruction begins, Japan Railways Group plans to seek outside assistance.

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