Delays to the opening of the West Kyushu Route, failure to meet revenue targets, and uncertainty surrounding the development scheme
First written in FY2017. 4 of 14 entries say "Worsened", first in FY2018-Q2. Latest entry: FY2023-Q3.
No other company in this theme has enough history to compare yet.
- FY2023-Q3Specifics of the West Kyushu Shinkansen access chargeAnnual report
「For the Takeo-Onsen–Nagasaki section, the West Kyushu Shinkansen, which opened on 23 September 2022, the annual access charge payable by our company, the operator of the line, to the Japan Railway Construction, Transport and Technology Agency, the construction entity, for the use of the Shinkansen railway facilities will consist of a fixed annual amount of ¥510 million plus taxes and an amount equivalent to management expenses. However, the access charge for the fiscal year ending March 2023 will be calculated on a daily pro rata basis because the line opened during the fiscal year.」
The company specifically disclosed that the access charge for the provisionally opened Takeo-Onsen–Nagasaki section would consist of a fixed annual amount of ¥510 million plus taxes and an amount equivalent to management expenses. - FY2023-Q2The West Kyushu Shinkansen opened provisionally, while uncertainty over the undeveloped section continuesAnnual report
「Regarding the Kyushu Shinkansen West Kyushu Route, construction of the Takeo-Onsen–Nagasaki section, the West Kyushu Shinkansen, as a full-standard line was under way by the Japan Railway Construction, Transport and Technology Agency, the construction entity, and the section opened provisionally on 23 September 2022 through a face-to-face transfer at Takeo-Onsen Station between the Shinkansen and the conventional limited express operating between Hakata and Takeo-Onsen, the so-called relay service.」
The Takeo-Onsen–Nagasaki section opened provisionally using the relay service on 23 September 2022. Meanwhile, the development method for the Shin-Tosu–Takeo-Onsen section remains undecided, and uncertainty remains regarding the financial outlook, access charges and the opening of the entire line. - FY2022Specified the provisional opening date of the West Kyushu Shinkansen and conditions for maintaining conventional rail operationsAnnual report
「Construction of the Takeo-Onsen–Nagasaki section, the West Kyushu Shinkansen, as a full-standard line is under way by the Japan Railway Construction, Transport and Technology Agency, the construction entity. The section was scheduled to open provisionally on 23 September 2022 through a face-to-face transfer at Takeo-Onsen Station between the Shinkansen and the conventional limited express operating between Hakata and Takeo-Onsen, the so-called relay service.」
For the West Kyushu Route, a provisional opening using the relay service was scheduled for 23 September 2022. Meanwhile, the development method for the Shin-Tosu–Takeo-Onsen section remains undecided. - FY2022-Q3Updated the number of consultations and added conditions for maintaining conventional rail operationsAnnual report
「By 22 November 2021, the Ministry of Land, Infrastructure, Transport and Tourism and Saga Prefecture had held 5 consultations. Consultations were also held between the Ministry of Land, Infrastructure, Transport and Tourism and our company on 26 November 2020 and 3 June 2021, and between the Ministry of Land, Infrastructure, Transport and Tourism and Nagasaki Prefecture on 25 December 2020, but no agreement had been reached. Accordingly, as of that date, the development method for the Shin-Tosu–Takeo-Onsen section had not been determined.」
The number of consultations with the Ministry of Land, Infrastructure, Transport and Tourism, Saga Prefecture and others, along with the dates held, was updated, but no agreement was reached and the development method for the Shin-Tosu–Takeo-Onsen section remains undecided. It was also confirmed that service levels would be maintained for 3 years from opening, followed by continued operations for 23 years. - FY2022-Q2Added the company's position on maintaining parallel conventional rail servicesAnnual report
「On 14 June 2021, the review committee presented the status of its deliberations concerning the Kyushu Shinkansen West Kyushu Route, including the view that it was essential for JR Kyushu to continue operating the conventional rail line between Shin-Tosu and Takeo-Onsen. Regarding the handling of the parallel conventional rail line, which is an extremely important management issue, our company expressed the following views in consultations with the Ministry of Land, Infrastructure, Transport and Tourism: ・The convenience of conventional rail services is an important issue for local residents. ・We would like to engage in sincere and deeper discussions, without necessarily presupposing a separation of management, while listening to the specific issues identified by Saga Prefecture and others. ・Once discussions between Saga Prefecture and the national government reach a stage at which the full-standard option appears to have gained a certain degree of direction, we would like to deepen the discussion.」
With the development method for the Shin-Tosu–Takeo-Onsen section still undecided, the company presented its position on maintaining operations of the parallel conventional rail line and on separating its management. - FY2022-Q1WorsenedAnnual report
「The Takeo-Onsen–Nagasaki section was scheduled to open provisionally around autumn 2022 by using a face-to-face transfer at Takeo-Onsen Station between the conventional limited express operating between Hakata and Takeo-Onsen and the Shinkansen, the so-called relay service. By 31 May 2021, the Ministry of Land, Infrastructure, Transport and Tourism and Saga Prefecture had held 4 consultations. Consultations were also held between the Ministry of Land, Infrastructure, Transport and Tourism and our company on 26 November 2020 and 3 June 2021, and between the Ministry of Land, Infrastructure, Transport and Tourism and Nagasaki Prefecture on 25 December 2020, but no agreement had been reached. Accordingly, as of that date, the development method for the Shin-Tosu–Takeo-Onsen section had not been determined.」
While a provisional opening of the Takeo-Onsen–Nagasaki section using the relay service was scheduled for around autumn 2022, no agreement was reached on the Shin-Tosu–Takeo-Onsen section after multiple consultations, and its development method remains undecided. - FY2020-Q3Development policy taking shape and consultations continuingAnnual report
「At the review committee meeting on 5 August 2019, basic policy on the development of the Kyushu Shinkansen West Kyushu Route and related matters was presented. It stated that a permanent face-to-face transfer at Takeo-Onsen Station must not occur, that the Shin-Tosu–Takeo-Onsen section should be developed as a full-standard, double-track line, and that the Ministry of Land, Infrastructure, Transport and Tourism, Saga Prefecture, Nagasaki Prefecture and JR Kyushu should continue consultations and deepen their study. The committee decided to request that the Ministry of Land, Infrastructure, Transport and Tourism conduct the consultations and report the results to the review committee.」
For the West Kyushu Route, a basic policy was presented rejecting the permanent continuation of face-to-face transfers and deeming development of the Shin-Tosu–Takeo-Onsen section as a full-standard line appropriate, while consultations among the parties concerned continue. - FY2019WorsenedAnnual report
「In addition, at the review committee meeting on 27 March 2019, the company stated that the prolonged or permanent operation of the relay service was completely unacceptable because it would severely limit the benefits for regional development, among other reasons, and requested that the entire line be opened as soon as possible. Furthermore, on 6 February 2019, the Japan Railway Construction, Transport and Technology Agency submitted to the Ministry of Land, Infrastructure, Transport and Tourism an application for approval of amendments to the construction implementation plan for the Takeo-Onsen–Nagasaki section, mainly concerning an increase in the construction budget.」
Strong concern was expressed about the prolonged or permanent use of the relay service, and an application for approval of amendments including an increase in the construction budget was submitted, making the uncertainty surrounding development and the financial outlook for the West Kyushu Route more specific. - FY2019-Q3RestatedAnnual report
「In addition, at the review committee meeting on 18 April 2018, the company stated that the prolonged or permanent operation of the relay service would pose a major management problem, and requested that the entire line be opened as soon as possible.」
The company continues to express concern about the prolonged or permanent use of the relay service and to call for the entire line to open as soon as possible. - FY2019-Q2WorsenedAnnual report
「At the review committee meeting on 19 July 2018, an interim report on the development of the Kyushu Shinkansen West Kyushu Route was issued. It stated that the introduction of gauge-changing trains on the West Kyushu Route had to be abandoned, and that one of the 2 development options, a full-standard Shinkansen or a mini-Shinkansen, would need to be selected after comprehensively considering their respective advantages and disadvantages.」
The abandonment of the introduction of gauge-changing trains was explicitly stated, and the process had reached the stage of selecting between 2 development options: a full-standard Shinkansen and a mini-Shinkansen. Uncertainty over the development method and post-opening operations has become more specific. - FY2018Comparison of development options under wayAnnual report
「At the review committee meeting on 30 March 2018, the Ministry of Land, Infrastructure, Transport and Tourism reported the results of the comparison study. The chair of the review committee stated that, after hearings with JR Kyushu, Saga Prefecture and Nagasaki Prefecture, the committee intended to reach a certain conclusion by around summer.」
The results of a comparison of 3 options for the West Kyushu Route, namely a gauge-changing train, a full-standard Shinkansen and a mini-Shinkansen, were reported, and a policy of reaching a certain conclusion by around summer was presented. - FY2018-Q3RestatedAnnual report
「With regard to the Kyushu Shinkansen West Kyushu Route, the Ministry of Land, Infrastructure, Transport and Tourism's Gauge-Changing Train Technology Evaluation Committee assessed at its meeting on 14 July 2017 that issues concerning the safety and economic viability of gauge-changing trains remained. In response, at the review committee meeting on 25 July 2017, the company expressed the view that operating with gauge-changing trains would be difficult because the substantial increase in rolling-stock costs would make the service financially unviable.」
The company continues to disclose issues concerning the safety and economic viability of gauge-changing trains, the financial viability problem caused by higher rolling-stock costs, and its view that operation would be difficult. - FY2018-Q2WorsenedAnnual report
「With regard to the Kyushu Shinkansen West Kyushu Route, the Ministry of Land, Infrastructure, Transport and Tourism's Gauge-Changing Train Technology Evaluation Committee assessed at its meeting on 14 July 2017 that issues concerning the safety and economic viability of gauge-changing trains remained. In response, at the review committee meeting on 25 July 2017, the company expressed the view that operating with gauge-changing trains would be difficult because the substantial increase in rolling-stock costs would make the service financially unviable.」
Issues remained regarding the safety and economic viability of gauge-changing trains, and the company expressed the view that higher rolling-stock costs would make the service financially unviable and difficult to operate. The prolonged use of the relay service was also regarded as a management concern. - FY2017First statedAnnual report
「In addition, if the opening is delayed due to delays in construction or other factors, or if revenue after the opening falls below forecasts, this may affect the performance of other businesses of our Group.」
The company states that the West Kyushu Route was scheduled to open in fiscal 2022, would initially operate using a relay service, and that the development status of gauge-changing trains, access charges and revenue forecasts could affect performance.