Japanese Government Causes Modal Shift

While rural highway toll discounts introduced in late March have sent road traffic and congestion soaring across Japan, operators of railway and ferry services are reeling from a corresponding drop in business. Amid moves to expand the discounts for the summer holiday season next month, trains and ferries are already reporting a drastic decline in passenger numbers. Several ferry services have already been forced to scale back their operations, or even close their businesses. In a desperate bid to survive, some transportation companies are banding up to offer joint discounts and other perks aimed at drawing back users.

"It is like we have been hit directly by a strong epicentral earthquake," lamented an official of Tokyowan Ferry, which operates a service linking Yokosuka, Kanagawa Prefecture, and Futtsu, Chiba Prefecture. "Corporate effort alone will do little to improve the situation." Since highway tolls were lowered, the ferry has seen a 30-percent drop in users on weekends and holidays and a 10-percent drop on weekdays.
The Tokyowan Ferry has been searching for every possible means to keep its business afloat. It has sought assistance from the central government in the form of reduced fees for port facilities use. However, prospects for recovering sales are glum. Other ferry operators across the nation are also struggling to stay in business.

According to the Japan Passenger Boats Association, since April, three routes in the Seto Inland Sea have been discontinued either temporarily or permanently. Another two routes operated by a company based in Mihara, Hiroshima Prefecture, are slated to be phased out.

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