JR Kyushu's International Connections

Feature Railway Reform and International Exchange

JR Kyushu’s International Connections

Yoshiteru Choami

foreign countries through Kyushu ports. imported goods and materials. Even a Introduction This trend is generally rising each year1. company that produces and sells only Kyushu’s 1997 exports to Asia were within its domestic market must consider JR Kyushu was one of the six regional valued at about ¥2 trillion, representing the ‘international price’ before deciding passenger companies formed when about half the island’s total exports. how much it can charge for its products. Japanese National Railways (JNR) was Imports from Asian countries were valued Corporations worldwide have entered privatized in 1987. Right from the start, at about ¥1.4 trillion, representing 43% uncharted waters where success is no JR Kyushu has been guided by two of the island’s total imports. This Asian longer assured just because one company policies—’Put the customer first’, and emphasis had been growing annually2 but is more competitive than other companies ‘Maintain close local ties’. These two the currency crisis that hit some Asian in the same country. policies also guide our relations with other countries in 1997 caused a severe drop The transport industry is no exception. railways worldwide. in Kyushu’s exports to Asia, and in the Carriers, especially airlines flying on Kyushu is one of the four main islands number of people landing in Kyushu from international routes, face severe forming the Japanese archipelago and is Asia. The crisis damaged Kyushu’s competition and are restructuring in order very close to South Korea and China. The economy too and there are still some to survive. With gradual deregulation of largest city in Kyushu is Fukuoka City (1.3 repercussions. However, the rapid Japanese domestic routes, a number of million population). It is about 200 km recovery of the Asian economy since last new airlines have entered the market and from Hiroshima, a similar distance from year has seen the number of people from price wars are occurring even between Pusan, the South Korean port with a Asia landing in Kyushu return to previous well-established companies. Newcomer population of 4 million. It is also about levels and exports to Asia have enjoyed a Skymark Airlines charges only ¥13,700 for 1000 km from Tokyo, a similar distance similar upturn. a one-way ticket on the Tokyo–Fukuoka from Seoul in South Korea, Pyongyang in Clearly, Kyushu’s economy is closely route, half the normal fare of other airlines. North Korea, and Dalian, Qingdao and linked to Asia and beyond. The Kyushu Lower air fares have reduced passenger Shanghai in China. Development Promotion Plan forms one numbers on the Tokaido and San’yo As a result of its proximity to mainland component of Japan’s Comprehensive shinkansen from Hakata (Fukuoka) to Asia, Kyushu has always had close National Development Plan adopted last Tokyo, and on conventional lines linked historical links with Asia, especially Korea year by the Japanese government. The to shinkansen lines as well. Express bus and China. The Chinese Gishi Wajin-den former plan is based on the assumption services from Fukuoka to Tokyo have (the section introducing Japan in the that Kyushu is a distinct region ready to suffered, because the one-way fare of chronicle of the Wei dynasty) text from develop in tandem with Asia. ¥15,000 is no longer attractive. around A.D. 280 describes cultural, The end of the Cold War and the rise of Today, airlines, railways and express buses political and trade links over 2000 years economic globalization have spurred two set fares in a way that flies in the face of ago between Kyushu and China. The new trends: international deregulation earlier common sense. Even railway Chinese Gokanjo (the chronicle of the (that promotes adoption of global companies, whose business field is Later Han dynasty) dating from around standards), and development of new naturally domestic, have been forced to A.D. 400 records the gift of a gold seal in information technologies (IT). deal with the indirect threat of A.D. 57 from the Chinese emperor to the Deregulation and IT are transforming international competition on long- king of Na in Japan. A gold seal excavated economic structures and world trade, and distance hauls. Railways now find it in Shikanoshima in the suburbs of are promoting a global market. Japanese necessary to cultivate ties with important Fukuoka is believed to be this same seal. corporations must now take world market companies abroad, hoping to develop Kyushu’s geographical and human links forces into consideration when making other transportation-related fields. The JR with Asia have become more evident cost–price decisions, and must compete Group, to which JR Kyushu belongs, recently as a result of strengthening of on a level field with companies cannot ignore international economic international economic ties. During 1997, worldwide. forces. about 344,000 people from Asia, 85% of There is a growing movement to form JR Kyushu established its first overseas all foreigners, entered ports in Kyushu. international corporate alliances, and relationship in 1987, when Hakata Station The statistics also show that approximately these alliances often involve capital tie- formed friendship ties with Pusan Station 609,000 people departed for Asia, ups and joint operations. Free trade has in South Korea and the Korea–Japan Joint representing 55% of all departures to forced companies to compete with Ticket was first issued in 1988. Another

26 Japan Railway & Transport Review 24 • July 2000 Copyright © 2000 EJRCF. All rights reserved. JR Kyushu international venture began in International Cooperation Agency (JICA). relying only on domestic travellers. 1991with a high-speed ferry between Technical cooperation and trainee As described earlier, Kyushu and the Hakata and Pusan. Then, in 1996, JR programmes are two aspects of these Korean Peninsula have had contacts for Kyushu signed agreements with the exchanges because personnel exchanges more than 1500 years. However, the long Dalian Railway Co., Ltd. (formerly Dalian are an essential part of globalization and centuries of contact were sometimes Railway Sub-administration, branch of expanding exchanges will increase marked by discord, and this gave rise to Shenyang Railway Administration), and mutual understanding, thereby the saying that Japan and the Korean with the Shanghai Railway strengthening economic ties. JR Kyushu Peninsula are close geographically, but far Administration. intends to continue promoting apart in spirit. But relations with South Asia is a major theme in JR Kyushu’s international communications in the hope Korea have improved rapidly in the last promotion of tourism and product that this will further open up Kyushu to few years and now is an opportune time development—the company advertises Asia and the rest of the world. for JR Kyushu to cultivate ties with KNR— itself under the slogan, ‘We’re strong on ties that will hopefully spur other efforts Asia’. However, the company also JR Kyushu’s Close to deepen relations between the two cultivates ties with Europe. As described Relationship with Korean countries. in the other article by Mr Donald Hatch on National Railroad pp. 18–25, Kyushu and the Netherlands Jetfoil services between Hakata have comparable areas, populations and JR Kyushu and Korean National Railroad and Pusan GDP. It was thus entirely appropriate that (KNR) began a relationship in October JR Kyushu and KNR agreed that a JR Kyushu and NS Reizigers (Dutch 1987, when Hakata Station formed convenient ferry connection linking their passenger railways) signed a cooperative friendship ties with Pusan Station. rail networks would boost the number of agreement in 1997. Although the two companies are in tourists visiting both countries. This The Netherlands has some of the world’s different countries separated by the 230- common understanding led to the 1989 largest and most competitive seaports, km Korea Strait (Tsushima Kaikyo), their signing of an agreement on high-speed airports, banks and corporations. The field of operations are close, and JR ferry operations and consultations were Dutch are aware of their strengths as a Kyushu is convinced that it can boost held to examine marine transport issues. maritime nation. They are also aware of ridership and help revitalize the local Fast passenger jetfoil services linking global trends and are always ready to economy by fostering contacts with Hakata and Pusan in 2 hours and 55 develop new strengths and meet new people from a wider area, rather than minutes were started in March 1991. It challenges. Unlike the Netherlands, Kyushu is not an independent country, and it is situated in an entirely different geographic region on the opposite side of the Eurasian continent. Still, JR Kyushu believes that its links with NS Reizigers will further enhance mutual railway business performance. We also believe that a greater awareness of lifestyles in the Netherlands will provide opportunities to help stimulate Kyushu’s economy. Currently, JR Kyushu has exchanges with more than 10 railway companies worldwide (Korea, China, the Netherlands, India, Georgia, Zambia, Malaysia, the Philippines, Indonesia, Lithuania, Poland, and Bulgaria) through either independent projects or participation in international projects of foreign aid organizations such as the Japan Beetle II jetfoil running between Hakata and Pusan (JR Kyushu)

1998, a second vessel was added between sector. Since 1990, some employees have Hakata and Pusan. been posted temporarily to Seoul for The 2002 World Cup soccer liaison and information exchange with championship (to be held jointly in Japan KNR. Executives from both companies and South Korea) offers JR Kyushu and visit each other’s offices to exchange KNR the chance for closer collaboration, opinions. with a view to increasing capacity and JR Kyushu also provides technical improving ferry services. This should expertise needed to improve operations. encourage more tourists to visit Kyushu For example, we have sent engineers to and South Korea. South Korea to demonstrate rail welding techniques, a technology at which the Joint promotion efforts by JR company excels. Kyushu and KNR Even before the joint JR Kyushu–KNR Other efforts to raise tourism jetfoil service began, the two companies JR Kyushu is also improving its products had already started a number of other joint for tourists to South Korea and arranges projects aimed at increasing ridership on tours of more people to South Korea than each other’s railways. The fruit of one any other agency in Kyushu. Some tours project was the Korea–Japan Joint Ticket, take history as their theme with the launched in 1988 by the JR Group, intention of fostering greater mutual including JR Kyushu. understanding. In cooperation with the In 1993, JR Kyushu began selling its Korea National Tourism Organization, last Kyushu Rail Pass in South Korea, allowing year, we began selling very popular tours use of the jetfoil services and rail travel to the sites of the Bunroku (1592) and within Kyushu. The JR–Kyushu Rail Pass Keicho (1597) military campaigns. was launched in 1998 to satisfy demand Another package, called ‘Journey to from travellers coming by air from South Paekche’, offers travel in coordination

Cover of pamphlet introducing the JR-Kyushu Rail Pass Korea. with KNR to the area that was once the (JR Kyushu) To serve Japanese living in South Korea, JR Kyushu has also introduced a seat was not all smooth sailing—ferry reservation system in Seoul. For its part, navigation can be difficult across this strait KNR began selling excursion tickets for and various measures were needed to its rail services with hotel benefits to non- attract people to the service, explaining Koreans. JR Kyushu is the agent for these why the first few years of operations were ticket sales in Japan. We hope to continue not easy. collaborating with KNR with a view to However, to boost attendance at the 1993 developing other convenient products. Daejeon Expo in South Korea, the South Korean government lifted its requirement Sharing management-related that Japanese tourists obtain an entry visa information and technical in advance and began encouraging expertise Japanese people to visit South Korea. The South Korean government is seriously Korea’s various activities to attract considering privatizing KNR in 2000 and Japanese tourists and improve services there is much that could be learned from helped maintain high ridership (Figure 1). Japan’s privatization of JNR in 1987. JR The jetfoil services between Fukuoka/ Kyushu is always willing to provide Shimonoseki and Pusan have enjoyed top information on various issues, from share in terms of total passengers and organizational structure to the pursuit of Cover of pamphlet introducing tours to sites of passenger-to-capacity ratios. In May business opportunities outside the rail Bunroku and Keicho military campaigns (JR Kyushu)

( x 1000 passengers) 200 110% ancient Korean state of Paekche. Such tours are boosting the number of Japanese 180 100% 96% rail passengers in South Korea, at a time 160 93% 96% 96% 96% 96% 95% 90% 88% 80% when Japanese tourist volumes to that 80% 140 country are still low. 70% 70% 60% KNR’s desire to attract Japanese tourists is 120 60% 61% 60% amply demonstrated by the fact that 100 KNR has started Japanese-language 50% 80 39% announcements on its Saemaul express. 33% 40% 60 29% Since 1996, the Japan Korea Strait Tourism 30% Promotion Council has held meetings to 40 20% promote South Korea and Kyushu as a 46 44 60 87 101 115 132 174 20 single tourism zone; representatives from 10% both JR Kyushu and KNR are major 0 0% 1991 1992 1993 1994 1995 1996 1997 1998 participants at the meetings, and both railways are continuing to promote Second jetfoil service introduced tourism by rail. Passengers Non-cancellation ratio Passenger-to-capacity ratio

Source: Data from Kyushu Railway Company Today, 1999 edition, Future prospects published by JR Kyushu We have seen how JR Kyushu and KNR are collaborating in promoting rail and ferry operations, and tourism. Our Table 1 JR Kyushu Exchanges with Railways in China relationship has become more than just Contents the typical form of cooperation that one November 1988 Began accepting trainees February 1989 Began accepting trainees from Dalian Railway, a branch of would expect between railway –January 1990 Shenyang Railway Administration companies. As KNR moves towards * Long- and short-term trainees were accepted in subsequent years as well. (See Table 3 for trainee numbers.) privatization, we look forward to even February 1992 Began marketing Joy Road's China tour products more collaboration in various fields. At April 1996 Railway station fellowship agreement between Kokura and Dalian stations this time, when projects of a cooperative � Agreement with Dalian Railway Co., Ltd. nature are being discussed by our two June 1996 Shanghai Railway Administration chief visited JR Kyushu with 5 staff members countries, we feel confident that even November 1996 Friendship agreement between Hakata and Pusan stations more concrete action on our part will help Agreement with Shanghai Railway Administration revitalize the economies of both South September 1997 Exotic Silkroad Tour November 1997 Trainees from Dalian Railway Co., Ltd. Korea and Kyushu, and even lead to better –February 1998 relations between our two countries. April and September 1998 Executives from Dalian Railway Co., Ltd. visited JR Kyushu December 1999 Pendulum tilting train engineers dispatched to assist Dalian –Shenyang high-speed project Cooperation with Chinese (JR Kyushu) Railways Table 2 Trainees from China Kyushu–China interchange Focus of training Number of trainees JR Kyushu and Chinese Railways (CR) November 1988 Automatic inspection of rolling stock 4 February 1989–January 1990 Railway communications 1 established amicable ties in 1987—the December 1990 Railway technology 5 same year that JR Kyushu became a June 1991–June 1992 Railway communications 1 February 1992 Japan-China railway technical cooperation 5 private company, and the same year that October 1992 Electric power 5 it established friendly ties with KNR. June 1997 Business planning 1 October 1997–February 1998 Business planning and tourist industry 1 With a cultural history of 3000 years and October 1997 Tourist industry 14 a population exceeding 1.2 billion, it goes May 1999 Business planning 1 without saying that the People’s Republic (JR Kyushu) of China is one of the world’s most

Against this backdrop, we began • Procurement of railway materials discussions in 1995 to establish ties with The first concrete result of our 1996 CR. An agreement was signed in April agreement with Dalian Railway Co., Ltd. 1996 with Dalian Railway Co., Ltd. was a 4-month training programme in (formerly the Dalian Railway Sub- business planning and tourism promotion administration of the former Shenyang for an executive from Dalian. Before this Railway Administration). A similar programme, Dalian Railway’s tourist agreement was signed with the Shanghai bureau handled only domestic travel and Railway Administration in November of could not easily respond to the needs of the same year. Railway station friendship foreign tourists. The programme provided agreements were signed between Kokura training in development of tour products Station in Kyushu and Dalian Station in that will appeal to international tourists. April 1996, while Hakata Station teamed After completing her training, she returned up with Shanghai Station in November of to China and now acts as a liaison for JR the same year. This was the beginning of Kyushu, primarily in the Dalian region. April 1996 signing of friendship agreement linking Kokura and Dalian stations (Mr Ishii, then President of exchanges between each pair of stations, One interesting product we developed in JR Kyushu, shaking hands with Mr Wu Jing Xiang, and these exchanges have spurred further conjunction with CR is the Exotic Silkroad Director of Dalian Railway Co., Ltd.) (JR Kyushu) exchange between the larger Tour on a special Chinese train that important countries. Its vast size and organizations. departs from Beijing on an 8-day, 3744- population are a huge market with km journey to its final destination at tremendous tourism potential. Fukuoka, Exchanges with Dalian Railway Urumqi. The exotic charm of the tour Kyushu’s main city, is only a 2-hour flight Co. Ltd., and Shanghai Railway explains its great popularity. Following to Shanghai and Dalian—much the same Administration the success of this tour, we organized and time as the flight from Fukuoka to Tokyo. Our affiliation with Dalian Railway Co., marketed a series of Chinese tours on A flight from Fukuoka to Sapporo in Ltd. and the Shanghai Railway special trains. In collaboration with Hokkaido takes about 4 hours, the same Administration has resulted in: Dalian Railway Co., Ltd., we developed time as it takes to fly from Fukuoka to • Dispatch and acceptance of trainees Nostalgic Cities tours to Dalian, Beijing. This geographical closeness • Cooperation in development and Changchun, Shenyang and other locales. explains Kyushu’s close contact with operation of tours In addition, in collaboration with the China since ancient times. Since our rail operations are so close to China, it was only natural for JR Kyushu to promote closer relations with CR with a view to fostering technical exchange and tourism.

Agreements In the early stages, there was no signed agreement setting out the cooperation parameters. Since 1988, at the request of JICA, we have accepted long- and short- term trainees from China on an almost annual basis, offering them experience in various fields (Tables 1 and 2). Joy Road, our travel agency handling tour operations, has been selling tours to China since 1992. However, CR was not involved directly in either of these Cover of pamphlet introducing the Exotic Silkroad Tour Cover of pamphlet introducing Journeys South of ventures. (JR Kyushu) Yangtze River Tour (JR Kyushu)

30 Japan Railway & Transport Review 24 • July 2000 Copyright © 2000 EJRCF. All rights reserved. Shanghai Railway Administration, we developed Journeys South of the Yangtze Table 3 Comparison of Kyushu and the Netherlands River tours to Shanghai, Suzhou, Nanjing, Kyushu The Netherlands and other cities. These unique tours have Area (km2) 42,157 41,574 been very popular and have gone Population 13,459,000 (1998) 15,520,000 (1996) smoothly because of our amicable GDP (US$ billion) 450.6 (1995) 392.4 (1996) relationships with railways in China. Car ownership 6,678,000 (1996) 5,740,000 (1996) In addition to tour products we developed Sources: with CR, we are also organizing and 1. Statistics for Kyushu, Nishinippon Shimbun’s Data Book for Kyushu 1999, published by marketing tours to destinations little the Advertising Department of The Nishinippon Shimbun. 2. Statistics for the Netherlands, 1998 World Almanac, published by Kyodo News Service known by most Japanese. As one example, our Eight-day Tour of Shangri- La, brings tourists in contact with world- Co., Ltd. and the Shanghai Railway each other’s business situation and famous natural wonders. It received the Administration, and to pursue projects that corporate policies. Without such an Special Prize for Destination Promotion, will benefit everyone. understanding, it would not be clear what one of the 1997 Tour of the Year awards. goals could be achieved and what could Our conscientious efforts in China have JR Kyushu’s Cooperative be learned from each other. The two brought us praise we are pleased to Agreement with NS Reizigers companies therefore began by conducting acknowledge. discussions and benchmarking that would Procurement projects have involved cable This year marks the 400th anniversary of help them deepen mutual understanding conduit troughs, rolling stock parts and Japanese–Dutch relations after De Liefde, and determine possible areas of other items. We have also dispatched a Dutch trading vessel, was disabled and cooperation. rolling stock engineers to Dalian and drifted ashore in northeast Kyushu. As a result, it was realized that JR Kyushu’s Shenyang to assist with a project to During Japan’s long period of isolation strong suit was punctual operations while increase train speeds after electrification through the bakufu shogunate period, the NSR was strong in marketing. In 1997, of the Dalian–Harbin line. We are Netherlands was the only western country JR Kyushu’s trains were an average of 36 providing technical information on our that had trade relations with Japan through seconds late—far lower than the 90 Series 883 natural pendulum tilting trains, Dejima Island in Nagasaki Bay. seconds recorded by NSR—and especially and are participating in studies that will On 18 October 1997, JR Kyushu and NS noteworthy because 1997 was a bad year determine whether a pendulum system is Reizigers (NSR) signed a cooperative for typhoons. Normally, JR Kyushu has feasible for trains on this line. agreement promoting consultations on an even better punctuality record. railway operations and management. The separation of operations and Future potential Both railways have similar business infrastructure in Europe resulting from EU As I have pointed out, JR Kyushu’s environments, scales of operations, and Directive 91/440 is leading to greater association with railways in China has led challenges. For example, they both competition. NSR is a major player in the to training programmes, personnel operate under principles promoting European rail market, and there is no exchanges, development of tour products, complete privatization, and they must doubt that if it improves its performance promotion of tourism in each other’s compete against other transport modes. and on-time operations, it will be at an countries, procurement of railway It was against this background that JR advantage when bidding for operations. materials, and the transfer of railway- Kyushu and NSR realized that friendly In the Netherlands, automobiles and related technologies. relations would lead to mutual motorcycles are used for 80% of all China’s vastness and huge population has development and so they signed an journeys, and the private car is by far the good tourism potential and there are a agreement. most preferred method of commuting. number of positive signs, such as a trend Therefore, NSR has decided to focus on towards easing travel restrictions. This Setting the highest standards off-peak times. Its Off-Peak Card provides indicates a great potential for mutual, It was clear that before a cooperative users with a 40% fare discount during off- wide-ranging business opportunities. JR relationship could promote better railway peak hours (from 0900 until the last train Kyushu hopes to expand its association operations and management, both on weekdays, and all day on weekends with CR, especially with Dalian Railway companies would first have to understand and holidays). Users pay an annual fee

and then appoints experts to study that theme park, where JR Kyushu will host a area. The experts will meet their welcoming ceremony as a fitting finale to counterparts when necessary and will also this extraordinary journey. exchange information by e-mail. Each Planning the rail cruise meant resolving a joint study project will last a maximum of number of complex issues such as the 1 year and a report will be presented to route and trains to use. JR Kyushu and both parties at the end. NSR pooled their resources, each taking In September 1999, the head of NSR’s advantage of its strong points. For Marketing Department and an expert from example, NSR operates rail services in the that company visited JR Kyushu at our Netherlands, a country that has long invitation. Their presentation on scientific served as an important gateway to Europe. marketing methods had a big impact on Consequently, NSR was well positioned all participants from our company, top to obtain essential information on rail management and experts alike, and we transport in the countries of the former immediately realized that joint study in Soviet Union. JR Kyushu’s successful this field would be extremely beneficial. experience arranging trains for the Exotic For its part, NSR asked us to accept some Silkroad Tours in China was also very of their personnel to learn punctual useful in developing and marketing this operations and we are now preparing for rail cruise. Signing of agreement between JR Kyushu and NS this. The westward voyage from Holland Reizigers (Mr Ishii, Chairman of the Board of JR Kyushu, exchanging mementos with Mr Den Besten, Both parties are eager to proceed with through the Magellan Straits to Japan 400 NS Chairman) (JR Kyushu) these projects because we both recognize years ago by De Liefde is being the potential benefits. Study sessions will complemented this year by the eastward to purchase the card but it provides access begin as soon as both sides have signed a rail cruise traversing the Eurasian to other services as well. When the 40% memorandum of understanding. continent from Holland to Japan, discount is combined with other completing a global circumnavigation and discounts, the card permits travel at less Holland–Japan Rail Cruise cementing Dutch–Japanese friendship. than half the normal fare. It is very One exciting project receiving much Although JR Kyushu’s affiliation with NSR attractive to the public and is creating new attention in Japan and abroad is the demand. Off-Peak Card purchasers are planned Holland–Japan Rail Cruise, the incorporated into a database used for first such project to be pursued jointly by direct mail marketing. JR Kyushu and NSR. JR Kyushu believes it can learn much from To mark the 400th anniversary of relations NSR’s marketing techniques, especially at between Japan and the Netherlands, an a time when train ridership in Japan is exciting 14,000-km rail cruise has been declining due to the falling birth rate and organized. The number of participants is aging population. limited to 50 from Japan and 40 from the Netherlands. NSR will hold a departure Joint study sessions ceremony in The Hague, the location of Now that the discussion stage has ended, the royal palace of Huis ten Bosch, and we have decided to hold a number of joint then passengers will depart on the Orient study sessions with a view to sharing Express next day. Four different luxury know-how and experience with the trains will take the passengers through 10 ultimate aim of improving our respective countries with stopovers in 15 cities or positions and operations. We have towns, including Prague, Moscow, and reached an unofficial agreement on how Samarkand. After arriving in Beijing, these study sessions should be organized. passengers will take a chartered flight to Each company will select an area that Nagasaki and then travel to nearby Cover of pamphlet introducing Holland–Japan Rail appears to offer great potential for them Sasebo, the location of the Huis ten Bosch Cruise (JR Kyushu)

32 Japan Railway & Transport Review 24 • July 2000 Copyright © 2000 EJRCF. All rights reserved. is still in its infancy compared to the rapidly; the population will peak around worldwide marketplace and we can affiliations with KNR and CR, we will do 2007 (when one person in four will be assume that future technical innovations our best to ensure that our collaboration 65-years old or older3) and will then start will add impetus to this trend. JR Kyushu will lead to a relationship that is beneficial declining rapidly. intends to meet the challenges of these to both sides for many years to come. Local regions often try to increase their advances. population by attracting new industries, We cannot shut our eyes to the fact that but this method is ineffective nowadays global business means intensifying Future Challenges and local economies can only be competition. We must remain fully aware developed through the interaction and of international trends, and take bold JR Kyushu cannot ignore the many new movement of people. From this concept, decisions based on knowledge developed challenges, such as internationalization, it follows that JR Kyushu should take steps through affiliations with other railways the IT revolution, deterioration of the to increase Japanese domestic travel both in Japan and elsewhere in the world. global environment, falling birth rates, and demand and should encourage more JR Kyushu is on the right track to becoming an aging population, that are emerging as tourists to visit Japan. an international and competitive the global economy and Japan’s social In the last few years, personal income in company in the 21st century. I environment undergo tremendous Asia has risen as national economies have changes. Like other companies, we expanded and the resultant rise in cannot ignore international developments disposable incomes has made it possible Notes: while planning future operations. As we for more Asians to travel abroad. Kyushu’s 1, 2 and 3: Nishinippon Shimbun’s Data Book for tackle each challenge, we are focusing on proximity to mainland Asia poses the Kyushu 1999, published by Nishinippon Shimbun three key areas: the environment, Japan’s question of how to attract more Asian aging population, and the IT revolution. tourists. We are already on the right track with the above-mentioned international • The environment jetfoil services between Hakata and The environment is reaching a critical Pusan, but if JR Kyushu and local point but environmental problems cannot governments do not do much more to be solved without global cooperation. As attract foreign tourists, they will probably one step in this direction, participants at go elsewhere. the 1997 Convention on Climate Change (COP3) held in Kyoto agreed on targets • IT Revolution to reduce their CO2 emissions. For its part, There is a tremendous IT revolution Japan agreed to cut emissions to 5% underway—e-mail, mobile phones, the below 1990 levels. Consequently, it is Internet, etc., are transforming work, not surprising that attention has turned to business and organizations into a one of the most environment-friendly borderless world. These new trends are transport modes—trains. To play a full attracting new energies and leading to role in solving these difficult problems, new developments that no-one can railway companies must share their predict. However, we do know that environment-related technical expertise electronic commerce is creating a and knowledge worldwide. They should also wage PR campaigns promoting use of trains. But a company that only Yoshiteru Choami advertises itself as the sensible environmental choice will not attract Mr Choami is JR Kyushu Senior Managing Director and Director General of Corporate Planning Department. He joined JNR in 1966 after graduating from the Faculty of Law at the University of many more customers. This can only be Tokyo. He was appointed Finance Director of JR Kyushu in 1987 at JNR privatization. achieved by upgrading services.

• Japan’s aging population Japan’s population structure is changing