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JNR's deficits have been snowballing since FY1964. The government has tried various measures to help JNR. Nevertheless, JNR closed FY1976 with a deficit of \914,100 million.
a. Passenger service department
In FY1976, the passenger traffic department registered a deficit of \328,000
million. The Shinkansen (New Tokaido Line, etc.) produced a surplus of \218,300
million, while the existing lines produced a sizable deficit of \546,300 million.
Although the operating indicators are suggestive of some improvement in both
trunk and local lines, the local lines are still on a downhill course with increasing
deficits.
JNR has yet to modernize and streamline its operations, to reduce expenses
and to increase income.
It will be necessary to study introduction of a special tariff system. This
matter is taken up in a proposal submitted by the Public Enterprises Basic Problems
Council in June 1978 in relation to business economics of public corporations.
b. Freight service department
In FY1976, the freight service department registered a dificit of \550,800
million, or about 60% of the total JNR dificit. Dificits from trunk lines registered
\492,700 million.
The freight service department is really an encumbrance to JNR's financial
position.
To improve the situation, JNR has been promoting the reduction of train-kilometers,
freight cars and locomotives, integration of freight stations and yards according
to its "Administrative Improvement Plan", etc., in an attempt to reorganize
the transportation system with emphasis on mass transportation in which railroads
have a big advantage over other transport modes.
c. Steamlining
With the approval of the Transport Minister in April 1977, JNR worked out
an Administrative Improvement Plan and is currently making efforts to cut back
15,000 workers by fiscal 1980.
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