A policy proposal document published by the Japan Transport Policy Research Institute titled "Urgent Proposal: Innovative Regional Transportation System Reform," proposing 27 specific system reforms to ensure the sustainability of regional transportation facing a critical situation.
Key Points
1. Proposal Overview
- Issuing Organization: Japan Transport Policy Research Institute
- Publication Date: July 1, 2025 (announced June 30)
- Drafting Body: Committee on Regional Transportation System Innovation
- Number of Proposals: 27 specific system reforms
- Urgency: Requesting immediate action as an "Urgent Proposal"
2. Critical State of Regional Transportation
- Operator Management Crisis:
- Continuous decline in users due to population decrease
- Serious driver shortage (2024 problem)
- Deteriorating revenues due to rising fuel costs
- Slow recovery from COVID-19 pandemic
- Service Level Decline:
- Accelerating route reductions and discontinuations
- Reduction in service frequency
- Shrinking service areas
- Expansion of transportation blank areas
- Social Impact:
- Mobility difficulties for elderly
- Obstacles to commuting to school and hospitals
- Regional economic decline
- Increased social isolation
3. 27 System Reform Proposals (Major Items)
A. Strengthening Business Foundation
- Fare System Flexibility:
- Introduction of dynamic pricing
- Fare setting according to regional characteristics
- Deregulation for revenue improvement
- Fundamental Reform of Subsidy System:
- Shift from deficit compensation to sustainability support
- Introduction of performance-based subsidies
- Stable support across multiple fiscal years
- Expansion of Tax Benefits:
- Tax reduction measures for regional transport operators
- Support for environmentally friendly vehicle introduction
- Property tax exemptions
B. Promoting Business Innovation
- MaaS (Mobility as a Service) Promotion:
- Support for digital infrastructure development
- Standardization of data connectivity
- Spread of cashless payments
- Social Implementation of Autonomous Driving:
- Deregulation and demonstration experiment support
- Clarification of safety standards
- Phased expansion of implementation areas
- Utilization of New Mobility:
- Green slow mobility
- Utilization of electric kick scooters
- Coordination with personal mobility
C. Strengthening Regional Cooperation
- Mandatory Regional Transportation Planning:
- Making municipal-level planning mandatory
- Promoting wide-area cooperation
- Establishing PDCA cycles
- New Public-Private Partnership Schemes:
- Utilizing PPP/PFI methods
- Clarifying risk sharing
- Stable operation through long-term contracts
- Resident Participation Mechanisms:
- Activating regional transportation councils
- Resident-led operational participation
- Institutionalizing volunteer transportation
4. Implementation Strategy and Schedule
- Immediate Response Items (No legal amendments required):
- 10 items that can be addressed through operational improvements
- Target implementation within FY2025
- Expediting through guideline development
- Short-term Response Items (1-2 years):
- Addressing through ministerial ordinance and notification level amendments
- Verification through pilot projects
- Phased nationwide deployment
- Medium-term Response Items (3-5 years):
- Fundamental reforms requiring legal amendments
- Considering amendments to Basic Act on Transport Policy
- New funding measures
5. Expected Effects
- Quantitative Effects:
- Improved route maintenance rate (target: 90% or more of current)
- Stabilization of user numbers
- Improved operator revenues
- 30% reduction in transportation blank areas
- Qualitative Effects:
- Improved quality of life for residents
- Maintenance and improvement of regional vitality
- Reduced environmental burden
- Realization of social inclusion
6. Funding Measures
- New Funding Sources:
- Partial utilization of carbon tax
- Allocation of tourism tax to regional transportation
- Utilization of crowdfunding
- Reallocation of Existing Funds:
- Partial diversion of road funding
- Review of local allocation tax calculations
- Expanded utilization of special allocation tax
7. Horizontal Deployment of Best Practices
- Domestic Success Cases:
- Toyama City's LRT introduction
- Kyotango City's private paid transportation
- Aizu Wakamatsu City's MaaS demonstration
- International Reference Cases:
- France's transportation tax
- Germany's transport associations
- Finland's MaaS
8. Role Distribution Among Stakeholders
- National Government Role:
- System design and legal development
- Building financial support framework
- Technology development support
- Local Government Role:
- Formulating and implementing regional transportation plans
- Coordination with operators
- Understanding resident needs
- Transportation Operator Role:
- Service improvement efforts
- Management efficiency
- Introduction of new technologies
9. Evaluation and Monitoring
- KPI Setting:
- Service level indicators
- User satisfaction
- Financial health indicators
- Environmental indicators
- PDCA Cycle:
- Annual evaluation implementation
- Consideration and implementation of improvements
- Sharing best practices
10. Future Promotion System
- Establishment of Promotion Headquarters:
- Cross-ministerial organization
- Participation of experts and practitioners
- Regular progress management
- Regional Promotion Organizations:
- Block-level councils
- Horizontal deployment of success cases
- Problem-solving support
This urgent proposal presents fundamental system reforms that go beyond conventional frameworks to address the existential crisis facing regional transportation, showing concrete and effective measures for realizing sustainable regional communities. It is expected that prompt implementation will secure freedom of movement for regional residents and contribute to maintaining regional vitality.