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In public transport system, especially in ground transportation sydteme,
everincreasing operating costs are applying heavy pressure to the business operation
of such system. The amount of expenditure has sharply increased in "Railways"
due to an increase in the labor cost, rises in power and fuel costs, and an
increase of the capital cost arising from huge plant and equipment investment;
and the same sharp increase in expenditure is observed in "Automobiles" due
to an increases in the labor cost, rises in the fuel cost and the vehicle purchasing
cost, and a cost increase arising from lowering of transport efficiency. Amongst
all the costs, the distribution ratio of the labor cost is high as shown in
Fig. 17 and, in some branches of the transport industry, accounts for more
than 70 per Jcent of the total cost.
On the other hand, the revenue, of the rtransport, industry shows the trend
of levelling-off, and the ratios of the operating income to the operating cost
of the branches of the transport industry have fallen below loo per cent as
shown in Fig. 18, thereby causing
the 'operation of such branches to fall into the red. The reasons for this are
the slackening demand for transport and the suppression of revision of fares
and fees of public transport systemMSuCh revision requires the approval of the
government--as a policy for restraining the high prices of commodities.
In addition, the fuel cost skyrocketed since the fuel crisis and the labor
costs jumped in all branches of the transport industry as a result of the "Spring
Labor Offensive" in 1974. It has now become a grave problem how to secure income
which can cope with such increased costs.
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