Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

The Collaboration with Infrastructure Business and Local Culture
Takuya Tsubota
CEO, Tsubota Planning LLC,
1760 S Beretania St, #11D Honolulu, HI 96826 USA, tsubota418@gmail.com
I ABSTRACT
Japanese economy has developed along with the
progression of railway system started the service
between Shinbashi and Yokohama 150 years ago.
Whilst Europeans and Americans have used horse
carriages and automobiles as the major transportation,
Japanese has used fast and mass railways transportation
system taking advantage of its geographical
characteristic of cities connected in rows from north to
south for holidays, family visits and business trips, and
has enjoyed Ekiben or boxed meal composed of local
flavors, and the scenery. Ekiben is considered as the
product of co-creation of railways system and local
specialties in other word, culture.
Railway companies like East Japan Railway Co., (EJR)
and regional governments face problems for decreasing
railway passengers, mid-long term population decline
and economy stagnation and hope to activate regional
economy by increasing the number of train passengers
and bringing in visitors.
In this paper, EJR strategies and activities focusing on
examples of JR “Entertainment Train” are introduced.
II CHALLENGES
The challenges the railways companies and regional
governments face may be summarized as follows;
IV “ENTERTAINMENT TRAIN” AS A TRIGGER
One of the successful EJR strategies is “Entertainment
Train.”
Collaboration with local culture adds new value to
railway traveling. In other words, “Entertainment
Train” becomes the destination instrument for leisure
rather than mere means of transportation.
Introduced below are two examples of “Entertainment
Train”, “Koshino Shu Kura (Koshi sake brewery)” of
Shinetsu & Iiyama line and “Toreiyu Tsubasa
(Train+Soleil+yu or hot spring)” of Yamagata
Shinkansen.
(1) “Koshino Shu Kura” (Apr 2014 -)
With the launch of Hokuriku Shinkansen services from
Tokyo to Kanazawa in March 2015, “Koshino Shu
Kura” as a part of “Entertainment Train” series was
deployed to cover wider area excursion route by
connecting Jyoetsu Shinkansen and Hokuriku
Shinkanse lines.
To enjoy drinking various labels of Nihonsyu or sake
brewed in Niigata Area, the Kingdom of Nihonsyu.
Drinking and Riding train travelling.
Photo1. Exterior of “Koshino Shu Kura”
(1) Presumption of a drop in the number of railway
passengers in medium to long term owing to
Japan’s population decline
(2) Desertion risk of regional areas due decreasing
population and aging residents
(3) Stagnation and decline of Japanese economy, GDP
and per capita GDP along with weakening
economy in regional area
III STRATEGIES
East Japan Railway Co. (EJR) focuses on the following
elements to tackle the challenges.
(1) Producing railway tourism flow from Tokyo and
overseas to reginal areas by leveraging railways
especially including super express Shinkansen or
recently introduced Hokuriku Shinkansen, and
introducing and promoting attractive tourism
assets including local scenery, cuisine, sake,
specialties and onsen or hot springs
(2) Generating the virtuous circle of increasing
consumption of lodging, food and beverages and
products and services, increasing attractiveness of
tourism assets by revitalization of local companies
and local economies, and growing railways
exchange population.
Relaxing booth, comfortable two-seater, observation
two-seaters, bar counter and lounge area
Sea of Japan, Mt. Myoko, Shinano River, Mt. Hakkai
and rice terrace.
Sake tasting by brewers, sake tasting counter, stop at
the station closest to the ocean (Sea of Japan) and live
local band performance.
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