operating reSuLtS By BuSiness Segment Our Transportation Network contributes to the development of the Community we Serve. Transportation Operations oOPERATINGperating rRESULTSeSuLTs JR-West’s Transportation Operations segment consists of railway operations Billions of yen Billions of yen and small-scale bus and ferry services. Its railway operations encompass 18 1,000 200 prefectures in the western half of Japan’s main island of Honshu and the northern tip of Kyushu, covering a total service area of approximately 104,000 800 150 square kilometers. The service area has a population of approximately 43 million people, equivalent to 34% of the population of Japan. The railway 600 100 network comprises a total of 1,222 railway stations, with an operating route length of 5,012.7 kilometers, almost 20% of passenger railway kilometerage in Japan. This network includes the Sanyo Shinkansen, a high-speed intercity 400 50 railway line; the Urban Network, serving the Kyoto–Osaka–Kobe metropolitan ～ area; and other conventional railway lines (excluding the three JR-West branch 0 07 08 09 10 11 0 offices in Kyoto, Osaka, and Kobe). In fiscal 2011, operating revenues in this Operating Revenues Operating Income (right) segment were up 1.1% year on year, to ¥806.4 billion. While demand for domestic tourism declined following the Great East Japan Earthquake, which occurred on March 11, 2011, this decline was more than offset by the revenues generated due to the strong economic recovery trend seen up until the earth- quake, which contributed to an overall rise in revenues. Operating income also increased, rising 35.3%, to ¥61.1 billion. This was largely attributable to the significant decrease in personnel expenses as a result of the completion of the amortization of net retirement benefit obligation at transition of approximately ¥30.0 billion. 18 WEST JAPAN RAILWAY COMPANY Tokyo Shin-Kobe Nagoya Kyoto Okayama Shin-Osaka Hiroshima tranSportation revenueS Osaka TRANSPORTATION REVENUES Sanyo Shinkansen Billions of yen / Millions of passengersBillions of yen / Millions of passengers Hakata 400 80 (Fukuoka) 350 70 Kumamoto 300 60 250 50 Kagoshima-Chuo ～ ～ 0 07 08 09 10 11 0 Transportation Revenues Sanyo Shinkansen Number of Passengers (right) The services on the Sanyo Shinkan- Fiscal 2011 Results sen include the Group’s Nozomi, Hikari, In fi scal 2011, the Company was forced and Kodama services, which it has to face the effects of the Great East offered for some time. Of particular Japan Earthquake, which occurred in interest are the direct Nozomi services March 2011. However, its impact was operated by Central Japan Railway offset by the benefi ts of a number of Company (JR-Central), which link Tokyo initiatives implemented earlier in the Station and Shin-Osaka Station. These fi scal year. These included the launch of The Sanyo Shinkansen is a high-speed Nozomi services allow passengers to direct services between the Sanyo intercity passenger service between travel on the Tokaido Shinkansen from Shinkansen and Kyushu Shinkansen Shin-Osaka Station in Osaka and Hakata Tokyo or Nagoya to the major railway lines, which accompanied the com- Station in Fukuoka in northern Kyushu. stations along the Sanyo Shinkansen— mencement of operations on all lines of The line runs through several major cities Okayama, Hiroshima, and Hakata—with- the Kyushu Shinkansen, as well as in western Japan, including Kobe, out having to change trains. In addition, promotional campaigns highlighting the Okayama, Hiroshima, and Kitakyushu. following the March 12 commencement comfort of traveling on the new N700 It has a total operating kilometerage of of operations on all lines of the Kyushu Series along with the convenience and 644.0 kilometers and has 19 railway Shinkansen, JR-West launched the price advantages of the Express Reser- stations, including Shin-Osaka Station. Mizuho and Sakura Shinkansen services, vation and EX-IC systems. Additionally, JR-West owns the entirety of the railway which travel directly between the Sanyo there was growth in revenues due to the facilities related to the existing Sanyo Shinkansen and Kyushu Shinkansen absence of the new infl uenza epidemic, Shinkansen, and with the exception lines. These new services enable cus- which caused a decline in revenues of Shin-Osaka Station (owned by tomers to travel between Shin-Osaka during the fi rst half of the previous fi scal JR-Central), operates all of the other and Kagoshima-Chuo in as little as 3 year. As a result, total passenger-kilome- 18 railway stations. hours and 45 minutes. ters for the Sanyo Shinkansen increased 4.9% year on year, to 15,546 million kilometers. Likewise, transportation revenues were up ¥11.4 billion, or 3.7%, to ¥323.9 billion. Annual Report 2011 19 operating reSuLtS By BuSiness Segment ¥ urban n¥etwork$ Service£ society. We recognize that redoubling our station displays and in-car displays to efforts to prioritize safety and regaining provide information for passengers. We that trust is one of our highest manage- also conducted campaigns to raise ment priorities. awareness of efforts to prevent groping. Further, the renovation of Osaka Additionally, as part of the renovation Station—the largest JR-West-operated of Osaka Station, we opened a portion of terminal station—that we undertook in a structure built over the tracks for 2003 reached completion, and we were passengers to use when changing trains tranTRANSPORTATIONSportation REVENUESrevenueS subsequently able to hold the grand in November 2010. This structure was UrbanSanyo NetworkShinkansen Service opening of Osaka Station City on May 4, fully completed in April 2011. Billions ofof yen yen / /Millions Millions of of passengers passengers 2011. Osaka Station serves as the gate- In February 2011, we concluded a 350 1,500 way to the Kansai region as well as the comprehensive partnership agreement gateway into Osaka itself. For this reason, with Shiga Prefecture. Under this agree- 300 1,400 we hope that Osaka Station City will serve ment, we will promote initiatives geared as a new landmark in Osaka, a landmark toward deepening the extent of our 250 1,300 that embodies a sense of flair and so- “coexistence with local communities,” phistication befitting its role as a gateway. through such efforts as fostering the 200 1,200 This strong desire was a key factor in our development of urban areas around train naming of Osaka Station City. Further, it is stations. ～ ～ our wish that it will come to be loved by all In fiscal 2011, we saw revenue in- 0 07 08 09 10 11 0 Transportation Revenues who visit it as a “city” that is both highly crease as a result of absence of the new Number of Passengers (right) relaxing and convenient. influenza epidemic, which caused a decline in revenues during the first half of Fiscal 2011 Results the previous fiscal year. In addition, The Urban Network provides passenger In transportation operations, we revised JR-West worked in cooperation with local services for the densely populated our timetables in consideration of the governments, travel agents, and other JR metropolises and surrounding areas of opening of Osaka Station City in March companies to stimulate demand for Kyoto, Osaka, and Kobe. It has an 2011, increasing the number of rapid domestic tourism through various pro- operating route length of 622.0 kilometers services connecting directly to Osaka motional campaigns such as the Nara (943.0 kilometers including the three Station and beginning operation of Destination Campaign. However, the JR-West branch offices in Kyoto, Osaka, special rapid services using trains with 12 persistence of the overall slump in railway and Kobe), forming a comprehensive cars on weekends and public holidays. usage was compounded by the impact network stretching across the entire In marketing initiatives, we worked to of the Great East Japan Earthquake, Kyoto–Osaka–Kobe region. further enhance railway convenience by which occurred in March 2011. As a The Urban Network area includes launching the ICOCA direct commuter result, total passenger-kilometers for the the section of the Fukuchiyama Line pass service in cooperation with Keihan Urban Network (including the three between Tsukaguchi Station and Amaga- Electric Railway Co., Ltd. JR-West branch offices in Kyoto, Osaka, saki Station, the location where JR-West In customer service initiatives, we and Kobe) decreased 0.2% year on year, caused a terrible accident on April 25, bolstered efforts to help passengers use to 28,047 million kilometers, while trans- 2005, resulting in a substantial loss of the the railway more safely and more com- portation revenues were down ¥1.7 trust we have built with customers and fortably, including the use of video on billion, or 0.6%, to ¥284.4 billion. 20 WEST JAPAN RAILWAY COMPANY Boundary Stations between JR-West and Other JR Companies Omishiotsu Shinkansen Line (Bullet Train) Intercity Lines Regional Lines Maibara Osaka Loop Line JR Kobe Line (Osaka–Himeji) Tanigawa JR Kyoto Line (Osaka–Kyoto) Yamashina Kusatsu Biwako Line (Kyoto–Nagahama) Kyoto JR Tozai Line (Kyobashi–Amagasaki) Kameyama Shin-Osaka JR Yumesaki Line (Nishi-Kujo–Sakurajima) Aioi Himeji Kakogawa Tsuge JR Takarazuka Line (Osaka–Sasayamaguchi) Shin-Kobe Kyobashi Sagano Line (Kyoto–Sonobe) Amagasaki Nara Kobe Gakkentoshi Line (Kyobashi–Kizu) Nishi-Akashi Osaka Tennoji Oji Nara Line (Kyoto–Kizu) Takada Yamatoji Line (JR-Namba–Kamo) Kansai Airport Hanwa Line (Tennoji–Wakayama) Kyoto–Osaka–Kobe Area Kansai Airport Line (Hineno–Kansai Airport) “Urban Network” Osaka Higashi LIne (Hanaten–Kyuhoji) Wakayama ¥ ¥ $ £ other Conventional Lines the areas it serves. However, considering duction of new-model trains with excep- that this network plays a role as a feeder tional safety and comfort on limited for Shinkansen services as well as express services that connect Osaka and functions as a vital part of the overall Kyoto to the northern Kinki region.