Investing in Japan: JR Central proceeds with the Superconductive Maglev System

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COVID-19 outbreak slows Tokaido Shinkansen

Tokai Central Japan Railway, JR Central, is a railway company headquartered in Nagoya, Aichi Prefecture. 
JR Central proceeds with the Superconductive Maglev System

It operates Tokaido Shinkansen, which is the main artery of Japanese traffic connecting Tokyo, Nagoya and Osaka. 

 Transportation revenue of Tokaido Shinkansen accounts for the largest share by far in the company’s sales and has kept bringing stable profit to the company. It also operates 12 local lines around Nagoya. 

 With regard to recent business results, the company has been posting fairly solid financial results before the new coronavirus outbreak caused its sales to decline sharply. 
JR Central proceeds with the Superconductive Maglev System

As for the consolidated financial results for April to December 2019, before COVID -19 spread around the country, net profit was 38.8 billion yen, up 3% year on year. It was the eighth consecutive record high for the same period. 

 However, with business trips restrained and tourism businesses slowed, passengers for its railways decreased by 59% in March 2020 from the same month of the previous year. For this reason, JR Central has decided to reduce Tokaido Shinkansen services by 20%. 

 Full-year results for the fiscal year ending March 2020 will definitely be dragged down by decreasing passengers, cancellations of reservations at affiliated hotels and sales decline of affiliated department stores.

The Superconductive Maglev System and redevelopment projects around Nagoya Station

Facing those challenges, JR Central is strengthening its business base by constructing the new line, Chuo Shinkansen, using the superconductive maglev system so aging facilities can stand with large-scale disasters because more than 50 years have passed since Tokaido Shinkansen inauguration. 
JR Central proceeds with the Superconductive Maglev System
Photo from JR Central HP

 Shinagawa-Nagoya route is set to open in 2027, and will be extended to Osaka later on. In preparation for the opening of Chuo Shinkansen, Nagoya City, the largest city in the Chubu region, is planning large scale investment to promote redevelopment projects around Nagoya Station.


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