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JR Kyushu's International Connections

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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) Copyright © 2000 EJRCF. All rights reserved. Japan Railway & Transport Review 24 • July 2000 27 Railway Reform and International Exchange 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.
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