June 22, 2016
Prime Minister Abe Shinzo on the last day of the 190th ordinary session of the Diet (June 1), made a turnaround in government policy and announced a plan to use a government loan program to speed up the construction of a maglev super-express rail line.
Central Japan Railway Company (JR Tokai) plans to invest a total of nine trillion yen to construct a maglev rail line between Tokyo and Osaka via Nagoya. Under the current plan, the railway company will cover all the construction costs by using its own capital. The commercial operation for the Tokyo-Nagoya section will start in 2027 and the whole line will go into operation in 2045. If a low-rate loan from the government is made available as expected, JR Tokai will be able to launch the service earlier than the current projection.
Since taking power in 2012, PM Abe has been incorporating the maglev train project in his economic strategy. The prime minister has insisted on the need to encourage private investment in order to foster future economic growth and cited the promotion of the maglev Shinkansen as a priority item in his overall agenda. Business circles have also expressed their appreciation for the anticipated nine-trillion-yen construction contracts.
The Japanese Communist Party in the Diet has repeatedly criticized this construction project. A group of residents living near the planned construction sites in May filed a lawsuit with the Tokyo District Court to demand a halt to the construction work on the grounds that the project will cause devastating damage to the natural environment. The JCP in its House of Councilors election platform proposes suspending the construction work, reviewing the project carefully, and canceling the plan if necessary.
Past related article:
> Residents sue gov’t to stop maglev railway construction [May 21, 2016]
Central Japan Railway Company (JR Tokai) plans to invest a total of nine trillion yen to construct a maglev rail line between Tokyo and Osaka via Nagoya. Under the current plan, the railway company will cover all the construction costs by using its own capital. The commercial operation for the Tokyo-Nagoya section will start in 2027 and the whole line will go into operation in 2045. If a low-rate loan from the government is made available as expected, JR Tokai will be able to launch the service earlier than the current projection.
Since taking power in 2012, PM Abe has been incorporating the maglev train project in his economic strategy. The prime minister has insisted on the need to encourage private investment in order to foster future economic growth and cited the promotion of the maglev Shinkansen as a priority item in his overall agenda. Business circles have also expressed their appreciation for the anticipated nine-trillion-yen construction contracts.
The Japanese Communist Party in the Diet has repeatedly criticized this construction project. A group of residents living near the planned construction sites in May filed a lawsuit with the Tokyo District Court to demand a halt to the construction work on the grounds that the project will cause devastating damage to the natural environment. The JCP in its House of Councilors election platform proposes suspending the construction work, reviewing the project carefully, and canceling the plan if necessary.
Past related article:
> Residents sue gov’t to stop maglev railway construction [May 21, 2016]
