SECTION 3. TOWARDS OVERALL COMPLETION OF THE RESTRUCTURING
OF JNR
(1) The volume of passenger traffic for each JR passenger company increased in
fiscal 1991. The six companies as a whole saw a 3.9% increase over fiscal 1990
to 247 billion passenger-kilometers, although the rate of increase declined because
of the recession. The Freight Railway Company, reflecting the effects of the recession
and Musashino line track accident, saw its volume of freight traffic unchanged
over 1990 levels at 26.7 billion tonnage-kilograms. To summarize their settlement
of accounts, the total operating earnings of the six passenger companies increased
4% over the previous year to 4.3155 trillion yen, whereas the freight company
saw a 5% increase over the previous year to 215.2 billion yen, which was lower
than estimated. As for profits, the three mainland operaters had an increase in
interest payments for Shinkansen purchases, resulting in the seven companies as
a group to suffer a 21% compared to the previous year to 306.3 billion yen. The
three mainland companies carried out mid-term dividend payments for the first
time, which in addition to year-end dividend payment amounts to 10%.For fiscal
1992, all companies worked with the basic policy of increased effort in the development
of the business foundation.
(2) Concerning the handling of long-term debt of JNR long-term bonds that belongs
to the JNR Settlement Corporation, under the harsh real estate and financial conditions
of fiscal 1991, meant that the disposal of land did not proceed smoothly. The
selling of JR stock which had been planned at the time was postponed and debts
totaled 26.4 trillion yen at the end of the year, an increase of 0.2 billion over
the year before.
As for the sales of land, great effort is being made, under such difficult
circumstances, by the implementation of the bidding procedure with an upper price
limit and its expanded application (November 1991), the relaxation of land sale
preconditions by voluntary contracts in response to the prior acquisition of public
land by local government, etc. (October 91 and April 92), the setting up of a
company(October 92) for the development of the Shiodome cargo station etc.
As for JR stocks, while the sale of JR East Stocks was postponed in 1992,
in order to complete the privatization of JR and the early repayment of the long-term
debt, preparations are being made for a fiscal 1993 sale.
To lessen the final burden on the people, the Ministry of Transport and JNR
settlement corporation are putting in an all-out effort.
(3) The restructuring of JNR is proceeding smoothly from the point of JR's income
and expenditures, but there is a need to keep on working on the disposal of the
long-term debt, completion of privatization and for the future health of railway
operations.
