GoKawiilJapan is the land of the train. 28 percent of passenger kilometers in Japan are travelled by rail, more than anywhere else in the developed world. France achieves 10 percent, Germany 6.4 percent, and the United States just 0.25 percent. Travel in Japan is over a hundred times more likely to be by rail than travel in the United States.
Japan’s vast railway network is divided between dozens of companies, nearly all of them private. The largest of these, JR East, carries more passengers than the entire railway system of every country other than China and India. Each year, JR East carries four times as many passengers as the whole British railway system, even though it has fewer kilometers of track, serves about ten million fewer people, and competes with eight other companies. Japan’s railway system turns a large operating profit and receives far less public subsidy than European and American railways.
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In most developed countries, the railways have struggled since the rise of the automobile in the 1950s. From this point on, North America saw the near-total replacement of passenger trains with cars and planes. In Europe, it meant vast government financial support to keep the lines open.
Japan’s different trajectory is often attributed to culture: the Japanese are conformists who are content to take public transport, unlike freedom-loving Americans who prefer to drive everywhere. Europeans are somewhere in between. Culture is also used to explain the incredible punctuality of Japanese railways.
These cultural explanations are wrong. The Japanese love cars, but they take trains because they have the best railway system in the world. And their system excels because of good public policy: business structure, land use rules, driving rules, superior models for privatization, and sound regulation have given Japan its outstanding railways.
This is good news for friends of rail. Culture is built over centuries, and replicating it is hard. But successful public policies can be emulated by one good government. Much about Japan’s railway system could be replicable around the world.
Japan’s railway companies
Today, the most striking institutional feature of Japanese rail is that it is privately owned by a throng of competing companies.
The railway arrived in Japan in 1872, during the Meiji Restoration, which opened the country up to foreign trade, ideas, and technologies. Like most Western countries, Japan nationalized its railways in the early twentieth century, creating what became known as Japanese National Railways (JNR). But it did not nationalize all of the lines, focusing only on mainline railways of national importance, and new private railways were still permitted.
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