In Japan, , sometimes translated as semi-public sector railways, are railways operated by corporations jointly financed by public and private interests. These companies are typically owned by a prefectural or municipal government together with private investors, with both public and private shareholders participating in management of the railway. Many third-sector railways were created to operate former JR Group or Japanese National Railways (JNR) lines that were unprofitable.
The Deficit 83 Lines and specified local lines were among the categories of railway lines proposed for closure or transfer to third-sector operators during the 20th century.
Etymology In Japan, railway operators are traditionally classified into three sectors. Government-operated enterprises, such as the former Japanese National Railways (JNR), are the "first sector", while privately operated railways belong to the "second sector". Railway companies jointly owned or supported by public and private interests are generally classified as the "third-sector". The JR Group companies created from JNR's breakup are also classified as first-sector railways, despite most of them having subsequently become publicly traded companies.
Establishment Third-sector railways have traditionally been established through the transfer of existing lines formerly operated by first- or second-sector operators, or through the construction of new transportation systems in areas undergoing development, which in addition to conventional railways have also included automated guideway transit and monorail lines.
Since the 2000s, third-sector railway companies have increasingly been established to operate conventional local lines that parallel newly extended Shinkansen routes. Local governments have sought to preserve these services even when the loss of long-distance passenger traffic makes them less financially viable. Transferring the local service to a third-sector company allows local governments and other public entities to provide financial support while maintaining a separate operating company. In most cases, the former JR operator has also retained a shareholding in the new company.
One of the earliest examples of this arrangement followed the extension of the Tōhoku Shinkansen from Morioka to Hachinohe in December 2002. Portions of JR East's Tōhoku Main Line were transferred to the Aoimori Railway and Iwate Galaxy Railway.
A similar arrangement has been used with extensions of the Hokuriku Shinkansen. When the line was extended from Kanazawa in Ishikawa Prefecture to Tsuruga in Fukui Prefecture in March 2024, JR West transferred operation of the parallel conventional line to the newly established Hapi-Line Fukui. Earlier extensions of the Hokuriku Shinkansen had resulted in similar transfers to the IR Ishikawa Railway, Ainokaze Toyama Railway, and Echigo TOKImeki Railway.
Pros and cons As local governments with close contacts to communities and private companies with experience running rail infrastructure are jointly invested in these lines, there is an elevated level of flexibility in management and adjustment of operations, which can be done according to frequently changing circumstances and needs of local communities. These lines, however, are most often unprofitable, require funding via taxes, and may still run the risk of facing closure due to low ridership.
See also
List of Japanese third-sector railway lines
References