Government Explains Linear Shinagawa–Nagoya Cost Outlook

At the press conference, questions concerned the need to recalculate construction costs and Central Japan Railway Company's outlook for partial opening of the Shinagawa–Nagoya section, following the increased likelihood that construction could begin in the Shizuoka section.

In October of Reiwa 7, Central Japan Railway Company announced that the total construction cost was expected to be about 11 trillion yen, adding about 4 trillion yen to the previous planned amount of about 7 trillion yen for the Shinagawa–Nagoya section.

The minister stated that Central Japan Railway Company, as the project operator, should appropriately calculate and review costs, including the effects of rising prices, at the necessary time.

Central Japan Railway Company has stated that it can finance the construction of the Shinagawa–Nagoya section, expected to cost about 11 trillion yen, using its own resources without undermining sound management. The minister explained that the company had secured the understanding of shareholders and market participants through such channels as general meetings of shareholders.

Concerns about partial opening included the time-saving effect of transfers in Nagoya, demand, and revenue and expenditure. Meanwhile, based on Central Japan Railway Company's explanation that faster service between the Tokyo and Nagoya metropolitan areas and new use of intermediate stations would stimulate demand, the government understands that sound management would not be affected.

The Ministry of Land, Infrastructure, Transport and Tourism continues to monitor construction progress and management conditions and will continue policy efforts to accelerate the opening of the entire Tokyo–Osaka route through cooperation with relevant local governments.

The minister cited 2.3 trillion yen resulting from rising prices and other factors as the main reason for the increase. The initial explanation indicated an additional 1 trillion yen to prepare for the risk of further future increases, but a later correction clarified that this 1 trillion yen was included within the 2.3 trillion yen and was not to be added separately.

The minister explained that Central Japan Railway Company estimated construction costs while considering difficult construction and various risks, and stated that the ministry would observe the matter as a management decision by the project operator rather than judge whether each individual amount was sufficient.

Regarding concerns about partial opening expressed by former Shizuoka Governor Kawakatsu, the minister said that the Ministry of Land, Infrastructure, Transport and Tourism had conducted a study in Reiwa 5 on the benefits of partial opening requested by Shizuoka Prefecture in a letter to the prime minister, explained the results to the prefecture, and obtained its understanding.

The minister stated that he did not believe Central Japan Railway Company would pursue the project without regard for management and noted that it had also added budget provisions, including for crisis management, concluding that the former governor's concerns were unfounded.