{
  "id": 7972396,
  "title": "JR Hokkaido withdraws proposal to share costs for loss-making sections",
  "url": "https://urgent.news/2026/09/17/jr-hokkaido-withdraws-proposal-to-share-costs-for-loss-making-sections",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-17T06:33:00.000Z",
  "source": {
    "name": "Japan Times",
    "slug": "japan-times",
    "url": "https://www.japantimes.co.jp/news/2026/09/17/japan/society/jr-hokkaido-loss-cost-sharing-plan-scrap/"
  },
  "original_language": "en",
  "account": "SAPPORO – Hokkaido Railway (JR Hokkaido) has announced it will abandon a proposal to have local municipalities contribute to the upkeep of unprofitable railway sections. The company made the decision after receiving pushback from the municipalities, who cited concerns over additional financial strain. Instead, JR Hokkaido plans to create a new council under the central government's leadership to discuss ways to keep the eight problematic sections operational. The central government has tasked the company with proposing fundamental measures to improve the financial health of these sections by the end of the fiscal year, which concludes in March. In April, JR Hokkaido presented four reform ideas, one of which involved the company continuing train service while municipalities owned and maintained the tracks and other infrastructure. This proposal faced significant opposition from the municipalities, who feared the added financial responsibility. JR Hokkaido's president, Yasuyuki Watanuki, expressed regret for the backlash his proposal received. The new council will strive to develop improvement strategies by assessing potential solutions, including the use of tourist trains and transferring railway assets, such as station buildings, to local governments. On Wednesday, Watanuki and Tomoyuki Ishizuka, the head of the Hokkaido District Transport Bureau, met with Hokkaido Governor Naomichi Suzuki and requested the prefectural government's involvement in the council as its secretariat. Suzuki acknowledged that compiling improvement measures within the remaining six months would be challenging and called for a cautious approach to avoid hasty conclusions. Some municipalities reacted positively to the withdrawal of the previous proposal. A Kitami city official welcomed the decision, expressing hope that both central and prefectural governments would thoughtfully consider improvement measures regarding the significance of the railway sections.",
  "summary": "The company faced opposition after suggesting it would continue to run train operations while municipalities would own and manage the tracks.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}