Key Facts
• On October 29, JR Central announced a cost increase for the Linear Chuo Shinkansen.
• Total construction costs for the Shinagawa-Nagoya section are now estimated at 11 trillion yen.
• This marks a 4 trillion yen increase from the 2023 approved plan of 7.04 trillion yen.
• Key factors include inflation (2.3 trillion yen), complex construction (1.2 trillion yen), and design upgrades (0.4 trillion yen).
• Additional measures were required for fragile ground and infrastructure near stations.
• JR Central plans to fund costs through operating cash flow and additional financing.
• The company may adjust construction pace to maintain financial stability.
• The opening date is tentatively set for 2035 but remains uncertain due to delays in Shizuoka tunnel work.
• Inflation may lead to fare increases, with discussions ongoing to create a flexible pricing system.
Summary
JR Central has revised the total construction cost for the Linear Chuo Shinkansen’s Shinagawa-Nagoya section to 11 trillion yen, a 4 trillion yen increase from the 2023 plan. The rise is attributed to inflation, complex construction challenges, and enhanced design specifications. Measures to address fragile ground and minimize impacts on nearby infrastructure contributed significantly to the cost hike. Funding will primarily come from operating cash flow, with additional financing as needed. The company aims to maintain financial health and may adjust construction timelines if necessary. While the opening date is tentatively set for 2035, delays in Shizuoka’s tunnel work make the timeline uncertain. Inflation could also lead to fare adjustments, with efforts underway to establish a flexible pricing system.
