Japan Railways Group

The Japan Railways Group, commonly known as the JR Group or simply JR, is a network of railway companies in Japan formed after the division and privatization of the government-owned Japanese National Railways (JNR) on April 1, 1987. The group comprises six regional passenger railway companies, one freight railway company, and two non-service entities. The JNR Settlement Corporation assumed much of the debt of the former JNR.

The companies of the JR Group operates a significant portion of Japan’s rail services, including intercity routes, commuter lines, and the Shinkansen high-speed rail network.

JR Hokkaido, JR Shikoku, and JR Freight (JRF) are governed by the Ryokaku Tetsudō kabushiki gaisha oyobi Nippon Kamotsu Tetsudō kabushiki gaisha ni kan-suru hōritsu (旅客鉄道株式会社及び日本貨物鉄道株式会社に関する法律), also known as the JR Companies Act, and are overseen by the public Japan Railway Construction, Transport, and Technology Agency (JRTT). In contrast, JR East, JR Central, JR West, and JR Kyushu are fully privatized and publicly traded.

Due to JR’s origins as a government-run entity, Japanese rail users often distinguish JR lines (including some now operated by third-sector entities) from other private railways. This distinction is typically reflected in the way JR and other private railways are labeled on maps.[1]

Background

By the 1970s, passenger and freight business had declined, and fare increases had failed to keep up with higher labor costs.[2]

The JR Group companies were formed out of the privatization of the Japanese National Railways in 1987.[3][4]

The seven JR companies recorded a total profit of ¥ 88.9 million in 1988.[5]

Ownership

In 1987, the government of Japan took steps to divide and privatize JNR. While division of operations began in April of that year, privatization was not immediate: initially, the government retained ownership of the companies. Privatization of some of the companies began in the early 1990s. By October 2016, all of the shares of JR East, JR Central, JR West and JR Kyushu had been offered to the market and they are now publicly traded. On the other hand, all of the shares of JR Hokkaido, JR Shikoku and JR Freight are still owned by Japan Railway Construction, Transport and Technology Agency, an independent administrative institution of the state.

All the JR Group companies operating in the Honshū region are constituents of the Nikkei 225 and TOPIX 100 indexes.

Companies

The Japan Railways Group consists of seven operating companies and two non-operating companies. The operating companies include six passenger railways and a nationwide freight operator. Unlike some other corporate groups, the JR Group comprises independent companies and does not have a group headquarters or a holding company to set overall business policy.

The six passenger railways are organized by region, and most of their services operate within their designated areas. Some long-distance services, however, extend beyond regional boundaries. For example, the Shirasagi service between Nagoya and Kanazawa uses JR West rolling stock, but the section of track between Nagoya and Maibara is owned by JR Central, whose crew operate the train on that segment.

Japan Freight Railway Company operates all freight services on the network formerly owned by JNR.

The group also includes two non-operating companies: the Railway Technical Research Institute (RTRI) and Railway Information Systems (JR Systems).

Network

JR maintains a nationwide railway network as well as common ticketing rules that it inherited from JNR. Passengers may travel across several JR companies without changing trains and without purchasing separate tickets. However, trains running across the boundaries of JR companies have been reduced.

JR maintains the same ticketing rules based on the JNR rules and has an integrated reservation system known as MARS (jointly developed with Hitachi). Some types of tickets (passes), such as Japan Rail Pass and Seishun 18 Ticket, are issued as "valid for all JR lines" and accepted by all passenger JR companies.

Unions

Various unions represent workers at the different JR Group companies, such as the National Railway Workers' Union, All Japan Construction, Transport and General Workers' Union, Doro-Chiba, and the Japan Confederation of Railway Workers' Unions.

See also

• Rail transport in Japan
• List of railway companies in Japan
• Japan Railways locomotive numbering and classification
• SoftBank Telecom – former Japan Telecom, an affiliated company of JNR established in 1984

External links

• Hisakyu's Railway Guide (archived 21 July 2009)
• JR's Rule on Passenger Tickets