Relation between HSR & Regional Development

“Lessons from Japanese Benchmark Cases”

November 15, 2018

Mitsubishi Research Institute, Inc. Dr. Kazuaki HIRAISHI

1 What’s up for Today

1. Introduction ✓ Does HSR contribute to regional development ?

2. Lessons from Japanese Benchmark Cases - KL-Singapore HSR and Regional Development- ✓ How to promote regional development along the HSR ?

3. Implications for Oversea Countries

✓ What are implications to oversea countries ?

2 1. Introduction Does HSR contribute to regional development ?

✓ HSR is

not a “sufficient condition” Joetsu Shinkansen but a “necessary condition” for regional development along the route. Sado Island Good example Joetsu Shinkansen and Sado Island’s Sightseeing Promotion Project

3 Source：nippon.com Number of tourists to Sado Island

Package tour“Sado Unit :1,000 Winter Plan” 1400 was Ueno-Omiya developed was 1200 opened

Omiya- Omiya- 1000 was opened wan opend

800

600

400 The number of tourists The number of tourists has increased dramatically has not increased in spite Continued efforts is the key due to the start of 200 of the start of Shinkansen Shinkansen related for sustainability operation measures 0 19801 19823 51984 19867 19889 199011 199213 199415 171996 199819 200021 200223 200425 272006 year

Source：Sado-city 4 Key to Success

1) “Three days tour” ⇒ “Two days tour (Overnight tour)”

✓ “Two days tour” occupies 70% of domestic tour in ✓ Main target : • Tokyo metropolitan area has been included into “Two days tour range of Sado Island” due to Joetsu Shinkansen

2) Service product developed under the cooperation of 4 stakeholders (JR East, Sado Kisen, Niigata Kotsu, Sado hotel Association)

✓ New package tour “Sado Winter Plan” ✓ High quality + Reasonable price ✓ The role of coordinator(JR East) is essential.

5 2. Lessons from Japanese Benchmark Cases Japan has experiences on regional development along the Shinkansen “How to utilize Japanese experiences for oversea countries ?”

HSR & KL-Singapore Economic Corridor

✓ Good benchmark cases for overseas, but the 1st step ✓ “How to localize this concept” is essential ✓ Trial approach : - Benchmark study for KL- Singapore HSR Source：Feasibility Study for Implementation of Public Transportation System Project in Iskandar Malaysia+MRI

6 Japanese benchmark case study on regional development along the HSR funded by MLIT

Back casting approach 1. Goal of regional development along the HSR (from “SDF for Inclusive Growth along the HSR Corridor) 2. Lessons from Japanese benchmark cases 3. How to proceed regional development in Malaysia and Singapore

7 Growth Areas in SDF & Japanese Benchmark Cases

Case1: National Income Doubling Plan & the Pacific Case6: Saga HIMAT Belt Corridor Case7: Sakudaira Station and its surrounding area Case2: Shin-Yokohama Station and its surrounding Case8: & establishment of district new business facilities Case3: Minatomirai Line (MM Line) Case9: “HSR”＆“TOD”＆“Access Transit” Case4: Tsukuba Express Case10: HSR related industry Case5: The Golden Route for Inbound Tourism Numbers shows relevant Japanese benchmark cases above 2 4 2 7 8 7 8 7 8 7 8 2 3 4

1 We focus on how to strengthen International competitiveness of Malaysia

We focus on how to utilize large market 6 which will be expanded by the HSR 2 5

We focus on how to modernize local industries / how to conserve their traditional value Source：MyHSR 8 Case 1: National Income Doubling Plan & the Pacific Belt Corridor

National plan encourages main industry & infrastructure • Economic Plan (National Income Doubling Plan) promoted the Pacific Belt Corridor. • Heavy & chemical industry was a driving force of the Era (1960’) in Japan.

9 SAIC among the Pacific Belt Corridor SAIC : Special Area for Industrial Consolidation 4 Major Existing Industrial Areas => SAIC

Dou-Ou 4 Major Existing Industrial Areas were • Akita Bay already saturated. Niigata

• SAIC, New middle-class Matsumoto-Suwa Hachinohe industrial areas among the -Takaoka Bay Pacific Belt Corridor Harima

IHI Corp. Bingo Iwaki-Koriyama Southern- JFE Steel Corp. Okayama Kashima

Shunan Nakaumi NIPPON STEEL & SUMITOMO METAL CORPORATION TOKUYAMA Corp., TOSOH Corp., Idemitsu Kosan Co.,Ltd East-Suruga Bay Oita Tokushima Nippon Paper Industries Corp. New middle-class East-Mikawa industrial areas Touyo Shiranui-Ariake Toyota Motor Corp. SAIC -Ohmuta

Pacific Belt Corridor Hyuga-Nobeoka Source:MRI

10 Key to success

Appropriate Policy enhances economic growth • Knowledge intensive industry would enhance international competitiveness of Malaysia. • HSR becomes an essential infrastructure of the Economic Corridor

Japan Malaysia

National Income Doubling Plan Plan National Physical Plan(NPP)+SDF

KL-Singapore Economic Pacific Belt Corridor Corridor Corridor Driving Knowledge Intensive Heavy & chemical industry Industry Industry Tokaido & Sanyo Infrastructure KL-Singapore HSR Shinkansen

11 Case ２: Shin-Yokohama Station & its Surrounding District To make a masterplan is the first step for TOD • Yokohama-city made Shin-Yokohama district the sub core of the city in their masterplan.

Master Plan of Yokohama-City

Shin-Yokohama Stn. (Sub-core of the City) Access Transit （Subway）

Tokaido Yokohama Stn. Shinkansen (CBD of the City)

JR line + Subway

Source：Yokohama-city 12 Facility allocation Facilities for attracting passengers should be developed Yokohama Arena Nissan Stadium

World Cup Final (2002) Capacity : 17,000 persons

Development is now on going 13 Positive Growth Cycle

Urban development draws more passengers

More More More Trains Passengers Facilities

passenger/da Passengers and “Nozomi” Trains trains/day

y (Shin-Yokohama station) -

Yokohama Yokohama Number of

- Passengers

Passengers

Shinkansen

Yokohama Yokohama

Nozomi”Trains

at Shin at

“ stopping at Shin at stopping

Number of Trains

’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 Note:”Nozomi” is a higher-category train Source：Central Japan Railway Company 14 Case 5: The Golden Route for Inbound Tourism

Tokaido Shinkansen

1 TOKYO（NARITA）INTERNATIONAL AIRPORT

2 KANSAI INTERNATIONAL AIRPORT

The Golden Route =Tourist Sites 3 CENTRAL JAPAN INTERNATIONAL AIRPORT + HSR + International Airport TOKYO 1 2 3

OSAKA KL Malacca Singapore

Tourist Tourist Tourist Tourist site site site site

HSR HSR HSR HSR

KL Tourist Changi International site International Airport Airport The Golden Route 15 Source:MRI 3. Implications to Oversea Countries

To use HSR for regional development is “ultimate goal” ✓ HSR can be an important trigger for dramatic growth. ✓ Japan is able to conduct a transfer of knowledge in the field of infrastructure development and related regional development

HSR is a “necessary condition” for regional development

✓ To make a masterplan is the first step for TOD ✓ Local gov. should take initiative in the process of regional development ✓ Japan is able to conduct a transfer of knowledge and know-how

To make good use of Japanese experiences is needed

✓ To localize the experiences is essential ✓ “Back casting” is an effective approach for localization

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