News On Japan

Fukui's Economic Hopes Pinned on Hokuriku Shinkansen Extension

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

News On Japan
POPULAR NEWS

Japan began applying a new numerical alcohol threshold for dangerous driving offenses on July 21, introducing a clearer standard for cases involving impaired driving that could lead to fatal accidents.

Prime Minister Sanae Takaichi's government approved its first annual basic economic and fiscal policy on Tuesday, pledging "responsible and proactive fiscal policy" and envisioning about 370 trillion yen in public- and private-sector investment in strategic industries through fiscal 2040.

Breathtaking 4K footage filmed from a helicopter offers a sweeping aerial view of Mount Fuji and its majestic surrounding landscape.

A covert network of shuttle tankers is carrying crude through the increasingly dangerous Strait of Hormuz as renewed fighting between the United States and Iran disrupts shipping and raises concerns over how Japan will secure the oil it needs.

Russian Deputy Foreign Minister Andrey Rudenko has criticized moves by Japanese and Ukrainian companies to cooperate on drone technology, warning that such ties would be regarded by Moscow as a "clear hostile act."

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks rebounded sharply on July 21 as investors bought back semiconductor and artificial intelligence-related shares after last week’s steep selloff, while attention shifted to upcoming U.S. technology earnings and the government’s new economic policy roadmap.

Japanese cash equities were closed for Marine Day on July 20, leaving investors to assess whether Tokyo can stabilize after last week’s technology-led rout as oil prices rose above $90 a barrel, the yen remained near four-decade lows and global markets braced for another test of the artificial intelligence trade.

Apple has raised prices for iPhones sold in Japan, with the top-end iPhone 17 Pro Max now costing more than 210,000 yen, as the prolonged weakness of the yen increases the local cost of products priced and managed in US dollars.

A tanker carrying about 1 million barrels of Mexican crude oil arrived off Yokkaichi, Mie Prefecture, on the morning of July 17, marking Japan's first such delivery since the Strait of Hormuz was effectively closed.

Tokyo stocks plunged on July 17 as a global selloff in semiconductor and artificial intelligence-related shares pushed the Nikkei 225 into correction territory, while Middle East tensions, higher oil prices and persistent yen weakness added to pressure on investors.

Nissan Motor unveiled a fully redesigned Elgrand minivan on July 17, marking the model's first complete overhaul in 16 years, while introducing a new brand message as the automaker seeks to rebuild its business and revive sales.

Seven & i Holdings is considering investing several hundred billion yen in Zabka Group, Poland's largest convenience store operator, as the Japanese retailer seeks to expand its presence in Europe.

Japanese manufacturers including Fanuc, Yaskawa Electric, Fujitsu, Hitachi, Kawasaki Heavy Industries and Komatsu announced new artificial intelligence initiatives on July 16 as Nvidia expanded its partnerships with Japan's robotics and industrial sectors.