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Japan's Bullet Trains Shift to Cargo Amid Passenger Decline

Financial Times Companies •
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Japan's high-speed rail operators are pivoting to cargo services as passenger numbers dwindle and labor shortages reshape the economy. JR East will launch the country's first cargo-only bullet train service on Monday, running weekly from Morioka to Tokyo, 500km away. JR Central has partnered with logistics giant Nippon Express to use passenger services for commercial shipments.

These initiatives by Japan's four bullet train operators aim to capture a fraction of the 10.9 million tonnes of cargo transported daily nationwide. The repurposing of 320kph trains, once symbols of Japan's postwar recovery, reflects operators' need to adapt as the population ages and contracts. Passenger volumes collapsed during the Covid-19 pandemic, giving companies a glimpse of a future where Japan's population may shrink 15 percent to 105 million within 25 years.

Rail operators see opportunity amid a severe truck driver shortage, with twice as many unfilled jobs as applicants. New regulations capping truck drivers' working hours have further limited hauliers' ability to find staff. Bullet train cargo services will initially carry high-value, time-sensitive shipments like fresh food, medical samples, and machinery parts. JR East estimates bullet trains can save 80 percent in working hours and generate only one-tenth the carbon emissions of trucks, aiming for ¥10 billion ($60 million) in annual cargo-related sales.