JR Hokkaido Withdraws Proposal on 8 Loss-Making Sections

Sapporo, Sept. 17 (Jiji Press)--Hokkaido Railway Co., or JR Hokkaido, has said it will withdraw a proposal to ask local municipalities to share the cost of maintaining eight loss-making sections in the northernmost Japan prefecture.

JR Hokkaido made the announcement Wednesday after it faced opposition from municipalities to the proposal concerning the eight sections it considers difficult to maintain on its own.

The company will instead seek to establish a new council led by the central government to discuss measures to keep the sections in service, and has asked the Hokkaido prefectural government to join the council.

The central government has asked the company to draw up fundamental measures to improve the financial situation of the eight sections by the end of fiscal 2026, which ends in March next year.

In April, JR Hokkaido announced four reform proposals, including one under which the company would continue train operations while municipalities would own and manage the tracks and other facilities.

[Copyright The Jiji Press, Ltd.]