JR Hokkaido withdraws cost-sharing proposal for eight loss-making lines

JR Hokkaido has withdrawn its proposal to ask local municipalities to share the costs of maintaining eight loss-making railway sections in Hokkaido. The company previously suggested a “separation of infrastructure and operations” model, where municipalities would own and manage tracks and facilities while JR Hokkaido continued train operations.

The proposal faced significant opposition from local leaders who expressed concerns over excessive financial burdens. JR Hokkaido President Yasuyuki Watanuki apologized for the criticism following the backlash.

Instead, the company plans to establish a new council led by the central government to discuss measures to keep the lines in service. JR Hokkaido has requested that the Hokkaido prefectural government join this council to act as its secretariat. The council will explore strategies such as utilizing tourist trains and transferring railway assets, like station buildings, to local governments to enhance the value of these sections. These lines are considered vital for both local transportation and logistics, including the transport of agricultural goods.