JR Hokkaido begins talks to sustain unprofitable rail lines

JR Hokkaido has initiated discussions with local governments to address the sustainability of eight rail sections, totaling approximately 900 kilometers, known as “yellow line sections.” These lines are considered difficult for the company to maintain independently, with combined deficits reaching approximately 15.6 billion yen.

Following pushback from local municipalities regarding a proposed “vertical separation model”—where the company would operate trains while local governments managed infrastructure—JR Hokkaido President Yasuyuki Watanuki announced the withdrawal of that specific plan. Working groups have begun meeting to explore alternative methods for survival, starting with the Muroran Line and the Hidaka Line.

The Muroran Line, specifically the section between Numano-hana and Iwamizawa, faces annual deficits exceeding 1.1 billion yen. Meanwhile, the Hidaka Line, which saw 80% of its route decommissioned in 2021 following storm damage, faces deficits of over 300 million yen. Local officials and residents have emphasized the importance of these lines for students and those without access to cars. The Japanese government has requested that JR Hokkaido present a fundamental improvement plan by the end of March 2027.