JR Hokkaido Resolved to Move into Black in FY 2031

Economy

Sapporo, April 10 (Jiji Press)--Hokkaido Railway Co., or JR Hokkaido, has announced a goal of moving into the black in fiscal 2031, a year after the planned extension of the Hokkaido Shinkansen Line to Sapporo, the capital of the northernmost Japan prefecture of Hokkaido.

The railway operator serving Hokkaido said Tuesday that it aims to achieve the target by improving the balance between revenue and spending by 39 billion yen--20 billion yen partly from effects of an increase in the operating speeds on the bullet train line linking Shin-Aomori and Shin-Hakodate-Hokuto stations and 19 billion yen from measures including fare hikes and an expansion in hotel business.

The fare hikes will be carried out in line with the planned increase in the country's consumption tax rate from 8 pct to 10 pct in October this year.

The company also plans to earn 120 billion yen in revenue from non-railway operations in fiscal 2031, including redevelopment of areas in front of Sapporo Station, up 50 pct from the level in fiscal 2018, which ended last month.

In addition, JR Hokkaido is considering consolidating subsidiaries, in hopes of generating 5 billion yen in related profit in fiscal 2031.

[Copyright The Jiji Press, Ltd.]

Jiji Press