Fukui's Economic Hopes Pinned on Hokuriku Shinkansen Extension

Mar 18, 2024 | News On Japan

FUKUI, Mar 18, 2024 (News On Japan) - The Hokuriku Shinkansen's Kanazawa-Tsuruga section, which opened on March 16, connects all three Hokuriku prefectures by bullet train for the first time in over half a century since the project's conception.

Fukui Prefecture eagerly anticipates the economic spillover effect that was once dubbed "Kanazawa's solo victory" when the Tokyo-Kanazawa section opened. However, there are concerns about the "cost-effectiveness" of the further extension plan from Tsuruga to Osaka.

From Tokyo to Tsuruga in just over 3 hours...

The new section stops at Kaga Onsen in Ishikawa Prefecture, Awara Onsen, and Fukui in Fukui Prefecture. The journey from Tokyo to Tsuruga is now possible without transfers, reducing travel time by approximately 50 minutes. This long-awaited opening is a significant milestone for Fukui Prefecture, which had no bullet train service until now.

Fukui: A Crossroads of History and Culture

Fukui Prefecture is known for its stunning cliffs at Tojinbo, Echizen crab, and the Soto Zen Buddhism head temple, Eiheiji. It was also selected as one of the "12 Off-the-Beaten-Path Spots to Visit in the World This Year" by The Washington Post. The Wakasa Bay area in Fukui flourished as a hub for transporting marine products from the bay to Kyoto during the Sengoku period. The most common marine product was mackerel, hence the name "Mackerel Highway." Fukui, once a cultural crossroads with Kyoto, is now part of the plan to extend the Hokuriku Shinkansen from Tsuruga through Kyoto to Shin-Osaka.

A Potential "Catalyst" for the Regional Economy

Fukui, once hailed as the gateway to the Sea of Japan, has been experiencing a population decline since its peak of 830,000 in 1999. The opening of the Tokyo-Kanazawa section of the Hokuriku Shinkansen in 2015 saw a 20% increase in tourists to Kanazawa. With direct access to the capital region, an economic boost of approximately 30.9 billion yen annually is expected.

The Cost-Effectiveness of the Extension Plan

The construction cost for extending the line from Tsuruga to Shin-Osaka is estimated at 2.1 trillion yen. The national government will cover two-thirds of the cost, excluding loans to JR, while local governments will bear one-third. The cost-effectiveness ratio, which is the total benefits divided by the total costs, is considered profitable if it exceeds 1.0. However, the value for the Tsuruga-Shin-Osaka section was barely profitable at 1.05 eight years ago. Aomori University's Professor Sumio Kushibiki (regional studies) points out, "The cost-effectiveness ratio may worsen from the initial forecast considering the recent surge in material and labor costs."

Will Japan's Main Transportation Axis Change?

While there are opinions that the extension is necessary as a detour route in case of major disasters, the Tokyo-Osaka corridor already includes the existing Tokaido Shinkansen and the upcoming Linear Chuo Shinkansen, slated for completion in 2046. The question arises: what kind of infrastructure development is truly necessary for Japan, which faces population decline?

Source: TBS

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