Contribution of Railways for the Sustainable Urban Development in Japan

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For EST PLENARY SESSION 7 Contribution of Railways for the Sustainable Urban Development in Japan Senior Researcher Fumio KUROSAKI, Ph.D. Intergovernmental 11th Regional EST Forum in Asia 4 Oct. 2018

Characteristics of Railways 1) External economy of railways Railway construction is effective to develop residential areas and business districts. 2) Necessity of Integrated Development Stations should be planned in coordination with regional planning such as bus stations and roads. In history The passenger railway sector in Japan has rich experiences in integrated land development and railway construction.

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 Railway Construction and Urban Development Different Contributions to Urban Development Stage 1: During rapid population increase Stage 2: During gradual population increase (ten thousand) 14,000 Stage 2 Present 12,000 Stage1 10,000 8,000 6,000 4,000 2,000 0 Working Ages (15-64 years old) Other Ages 3 3

Stage 1 Railway development during rapid population increase 1)JR Lines 2)Metros (ten thousand) Stage1 3)Private Railways Unique to Japan Transition of population in Japan 4

Private Railways Background Integrated Development until 1970s Road network was quite poor Expansion of urban rail network was required Land prices soared because of rapid urbanization (ten thousand) Urbanization progressed along with population increase. Private railway companies constructed suburban rail network along with land development. 5

Characteristics of Stage 1 Integrated development by private sectors - Kobayashi Ichizo model - Private railway company Responsible for both projects Railway Construction Land Development Mr. Ichizo KOBAYASHI (Source: Hankyu Culture Foundation) Integrated Development The company could earn from both businesses. Affiliated businesses cover a large share of the revenue to private urban railways. 6

Stage 2 Railway development during gradual population increase Private railway company (ten thousand) Stage 2 Present Excess financial burden Railway Construction Land Development Kobayashi Ichizo model is not effective because of the heavy costs and excess risk for private sectors. Transition of population in Japan However, the concept of integrated development remains essential. 7

Problems without coordination Inconsistency with regional development Regional development usually occurred after the railway line started its operation. Inconsistency with regional development such as road planning. Traditional Problems Railway facility district Railway Construction Inconsistent Regional Development

Aim of the Law To solve inconsistency between railway planning and regional planning. Integrated Development Law The law promotes to supply large area of residential/ business district in an integrated manner. Park Park Station square Railway facility district Station square Concept of the Law Railway Construction Consistent Regional Development

Approach Railway Construction + Land Readjustment Land readjustment Effective for comprehensive regional development. Infrastructure is financed by the sale of a part of the reserved area. Park Station square Railway facility district Railway facility district Station square Park Different physical shape Poor public facilities Reshaped land Sufficient public facilities

The concept was applied to Tsukuba Express (TX) project Concept of the Law Integration of railway construction and land development Railway facility district Without Coordination Park Station square Railway facility district Station square MIR MIR Park Integrated Development <Web of TSUKUBA EXPRESS> http://www.mir.co.jp/ 11

Outcomes of TX Project Rider-ship of Tsukuba Express (TX) Thousands of People / day 300 250 200 150 100 50 0 94 96 98 94 89 77 73 146 164 176 187 192 118 77 2005 2006 2007 2008 2009 2010 2011 Source: MIR Train Passes Other Passenger has been increasing steadily. MIR

Characteristics of Stage 2 Integrated development by regional governments Since the 1970s, it has become too risky for the private sector to promote both railway construction and land development. For promoting integrated development, regional governments leaded both projects to construct TX line. Regional governments Responsible for both projects as shareholders MI R as executers of land readjustment projects Two projects are closely related, and regional governments receive benefits through dividends as shareholders of TX and increase of real estate tax. Project 1 Project 2 Railway Construction Land Development

Summary of Presentation During rapid population increase During gradual population increase Private Sector Public Sector Railway Construction Land Development Railway Construction Land Development Point 1 Railway construction and urban development should be integrated. Point 2 Public sector should also play an important role for the projects these years. 14

Contribution of Railways for the Sustainable Urban Development in Japan Thank you <Reference> Kurosaki, F. and Ogura, M. (2013) Construction of Tsukuba Express and Urban Development Based on the Integrated Development Law, Selected Proceedings for 13 th WCTR Senior Researcher Fumio KUROSAKI, Ph.D. Contact: FumioKurosaki@itej.or.jp