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Operating Results by Business Segment — — Introduction Business Strategy and Operating Results ESG Section Financial Section The President’s Message Medium-Term Management Plan Operating Results by Business Segment — — Operating Results by Business Segment Transportation Operations JR-West’s transportation operations segment consists of railway Railway Revenues operations and small-scale bus and ferry services. Its railway operations encompass 18 prefectures in the western half of Japan’s Sanyo Shinkansen main island of Honshu and the northern tip of Kyushu, covering a total service area of approximately 104,000 square kilometers. Other Conventional Lines The service area has a population of approximately 43 million people, equivalent to 34% of the population of Japan. The railway network comprises a total of 1,222 railway stations, with an operating route length of 5,015.7 kilometers, almost 20% of passenger railway kilometerage in Japan. This network includes the Sanyo Kansai Urban Area Shinkansen, a high-speed intercity railway line; the Kansai Urban (including the Urban Network) Area, serving the Kyoto–Osaka–Kobe metropolitan area; and other conventional railway lines (excluding the three JR-West branch offices in Kyoto, Osaka, and Kobe). The Sanyo Shinkansen is a high-speed intercity to the major stations of the Sanyo Shinkansen passenger service between Shin-Osaka Station in Line, such as Okayama, Hiroshima, and Hakata, Osaka and Hakata Station in Fukuoka in northern without changing trains. These services are Kyushu. The line runs through several major cities enabled by direct services with the services of Sanyo in western Japan, including Kobe, Okayama, the Tokaido Shinkansen Line, which Central Shinkansen Hiroshima, and Kitakyushu. It has a total Japan Railway Company (JR-Central) operates operating kilometerage of 644.0 kilometers and between Tokyo and Shin-Osaka. In addition, has 19 railway stations, including Shin-Osaka following the March 12, 2011 commencement of Station. JR-West owns the entirety of the railway operations on all lines of the Kyushu Shinkansen, facilities related to the existing Sanyo Shinkansen, JR-West launched the Mizuho and Sakura and with the exception of Shin-Osaka Station services, which travel directly between the Sanyo (owned by JR-Central), operates all of the other Shinkansen and Kyushu Shinkansen lines. These 18 railway stations. new services enable customers to travel between The Nozomi, Hikari, and Kodama services Shin-Osaka and Kagoshima-Chuo in as little as 3 have been operating on the Sanyo Shinkansen hours and 42 minutes. Line for some years. Many of the Nozomi services allow passengers to travel from Tokyo or Nagoya Transportation Revenues Number of Passengers 357.0 Billions of yen 65 Millions of passengers (Billions of yen) (Millions of passengers) 2009 339.1 2009 62 2010 312.4 2010 58 2011 323.9 2011 60 2012 351.5 2012 64 2013 357.0 2013 65 0014 Annual Report 2013 Future Initiatives Enhance 3 Expand business area by creating new Kyoto-Osaka-Kobe Area to Fukuoka For the Shinkansen, work to further increase demand Years ended March 31 Capture seniors’ demand JRAirlines (Number of passengers) safety and reliability, and provide competitive JR’s Market Share (%) transportation services, while also creating Capture inbound demand 2009 81.3 new demand by expanding services for 4 Entrench and expand benefits of 2010 82.4 seniors and foreign tourists. Press ahead with direct service with the Kyushu 85.3 preparations for the start of Hokuriku Shinkansen 2011 Shinkansen service to Kanazawa, and Continue campaigns and product 2012 88.0 promote exchanges among people, to development in cooperation with 2013 117 83.8 enhance the potential of the Shinkansen. local communities Note: Each graph bar represents the number of passengers using JR and the number of passengers using airlines; the bars indicate the total number of passengers using JR or using airlines Kyoto-Osaka-Kobe Metropolitan Area - Fukuoka compared to the base year index of 100 (the fiscal year ended Key Measures (As of March 31, 2013) Travel Time Fare (¥) Frequency March 1997). The base year index of 100 (the fiscal year 1 Sustain sound facilities and services 14,890 57.0 ended March 2008) Shinkansen 2h 22m Source: Ministry of Land, Infrastructure and Transport into the future, and enhance ability Airlines 2h 20m 21,900 17 to respond to natural disasters (Itami Airport) Maintain and manage tunnels, Airlines 3h 00m 21,900 7(6) (Kansai Intl. Airport) elevated railway tracks, and other Travel Time and Fare: JAL or ANA structures appropriately Frequency: All airlines. Numbers in parentheses are frequency Advance earthquake and tsunami excluded those of JAL or ANA. countermeasures and derailment Notes 1: Fare for the Shinkansen is the regular Nozomi fare, and for airlines the regular fare. prevention measures 2: Travel time for the Shinkansen is the shortest on Advance the introduction of Nozomi and Mizuho trains. Travel time for the airlines is new ATC systems estimates. For airlines, in addition to the travel time required from the airport to the city center, the Shin-Kobe Nagoya 2 Increase market share by heightening calculation includes 10 minutes travel time from the Kyoto Airport Limousine Bus or nearest station the airport to competitiveness the boarding gate, 20 minutes waiting time at the Okayama Shin-Osaka Enhance and publicize frequency, on-board boarding gate, and 10 minutes from the gate to the Airport Limousine Bus or station nearest the airport. communications environment, Internet Osaka reservations, punctuality, and comfort Hiroshima Introduce N700A Hakata (Fukuoka) Kumamoto N700A ICOCA & HARUKA Kagoshima-Chuo Annual Report 2013 0015 Introduction Business Strategy and Operating Results ESG Section Financial Section The President’s Message Medium-Term Management Plan Operating Results by Business Segment — — The Kansai Urban Area comprises the densely hub station—as Osaka Station City on May 4, populated metropolises and surrounding areas 2011. Osaka Station serves as the gateway to of Kyoto, Osaka, and Kobe. (Population of the the Kansai region as well as the gateway into Kyoto–Osaka–Kobe metropolitan area is more Osaka itself. For this reason, we hope that Osaka Kansai than 20 million.) It has an operating route length Station City will serve as a new landmark in Urban Area of 946.0 kilometers, forming a comprehensive Osaka, a landmark that embodies a sense of flair network stretching across the entire and sophistication befitting its role as a gateway. Kyoto–Osaka–Kobe Area. This strong desire was a key factor in our The Kansai Urban Area includes the section naming of Osaka Station City. Furthermore, it is of the Fukuchiyama Line between Tsukaguchi our wish that it will come to be loved by all who Station and Amagasaki Station, the location visit it as a “city” that is both highly appealing where JR-West caused a terrible accident on and convenient. April 25, 2005, resulting in a substantial loss of the trust we have built with customers and society. We recognize that redoubling our efforts to prioritize safety and regaining that trust is one of our highest management priorities. Furthermore, we held the grand opening of Osaka Station—the largest JR-West-operated Transportation Revenues Number of Passengers 291.4 Billions of yen 1,451 Millions of passengers (Billions of yen) (Millions of passengers) 2009 301.5 2009 1,462 2010 286.1 2010 1,423 2011 284.4 2011 1,424 2012 287.3 2012 1,439 2013 291.4 2013 1,451 Boundary Stations between JR-West and Other JR Companies Main Lines Omishiotsu in the Kansai Urban Area Shinkansen Line (Bullet Train) Intercity Lines Regional Lines Maibara Osaka Loop Line Tanigawa JR Kobe Line (Osaka–Himeji) Yamashina Kusatsu JR Kyoto Line (Osaka–Kyoto) Kyoto Biwako Line (Kyoto–Nagahama) Shin-Osaka Kameyama Aioi Himeji JR Tozai Line (Kyobashi–Amagasaki) Amagasaki Kakogawa Tsuge JR Yumesaki Line (Nishi-Kujo–Sakurajima) Shin-Kobe Kyobashi Nara JR Takarazuka Line (Osaka–Sasayamaguchi) Kobe Nishi-Akashi Osaka Tennoji Sagano Line (Kyoto–Sonobe) Oji Gakkentoshi Line (Kyobashi–Kizu) Takada Kansai Airport Nara Line (Kyoto–Kizu) Yamatoji Line (JR-Namba–Kamo) Hanwa Line (Tennoji–Wakayama) Wakayama Kansai Airport Line (Hineno–Kansai Airport) Osaka Higashi Line (Hanaten–Kyuhoji) 0016 Annual Report 2013 Future Initiatives Improve Increase and improve guidance for Start of nationwide reciprocal use of For the Kansai Urban Area, pursue higher levels customers during transport disruptions transportation IC cards of safety and implement thoroughgoing Promote new underground station measures for reliable transport to build a 2) Create an appealing Kansai facilities in step with development of railway that offers high-quality transport Urban Area the Osaka Higashi Line (northern part) and is used repeatedly by customers. and Umekita Also, enhance the Osaka Loop Line to 1 Advance urban tourism increase the value of railway belts and improve the appeal of urban areas. 2 Create railway belts that are easy to use and where people will want to reside ICOCA Convert to over-track stations and Key Measures build new stations that integrate with community development 1) Increase quality of transport Enhance lifestyle-related services Pursue safe, reliable transport service businesses Replace rolling stock, introduce new safety system, increase safety of level 3 Build a more convenient railway crossings, increase facilities for turn network back operation, take natural disaster Advance creation of a seamless Transportation IC card countermeasures railway
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