Why?

“Same fares” for trams and buses November 17, 16:52

The center of Hiroshima City, where tram and bus routes run all the way.

In November this year, in some areas, a rare initiative began nationwide.

The fare for trains and buses that run through the area has been unified to 220 yen.

This fare system was realized through the collaboration of rivals.

In the background of the introduction, there was a harsh reality of public transportation that even the center of a local city was in the red.


(Hiroshima Broadcasting Station reporter Kentaro Ishikawa)

Transportation network covering the city of Hiroshima

Hiroshima City, an ordinance-designated city with a population of 1.18 million.



There are 70 routes in total, including streetcars and fixed-route buses, in the city center such as Naka Ward and Minami Ward.



Of these, the distance between JR Hiroshima Station and Kamiyacho, the center of commerce, is about 2 kilometers.



More than 3,600 fixed-route buses and trams run between these two sections each day.

Before 3pm on a weekday.



Buses arrived every few minutes at the bus stop along the main street lined with department stores and buildings in the center.



Many of the users during this time are elderly people who use the bus for shopping and other purposes.



Some buses had several people on board at a time, while others had almost no people on them.

Substantial price increases for streetcars and fixed-route buses

On November 1, seven operating companies that operate streetcars and buses in the center of Hiroshima city revised fares all at once.



In the section where the current fare is 190 yen, 240 yen, or 260 yen, the fare will be fixed at 220 yen.

If we look at a “line” that is a fixed section that connects two points, there are examples of JR Shikoku and Tokushima Bus introducing the same fare for railways and buses.



However, this is the first time in Japan that railroad and bus fares have been revised in terms of specific areas.



The biggest aim of introducing flat fares is to improve convenience.



However, among the target sections, the 190 yen section with many users will be raised by 30 yen.



It can be said that it is a substantial “price increase”.

With the new corona, a deficit of more than 3 billion yen

The reason for the substantial price increase is that the number of customers has decreased significantly due to the impact of the new corona.



According to Hiroshima Electric Railway, the number of passengers on the seven trams and buses in the area where the fare was revised fell to about 75% last year compared to 2018, four years before the spread of the new corona infection. It is expected to remain at about 70% this year.

While tourism demand is expected to recover, business operators believe that even if the infection situation of the new coronavirus calms down, the trend of decreasing users will continue due to changes in users' lifestyles such as the introduction of telework. .



The drop in customers has had a major impact on business.



The total current account balance (including government subsidies) of the seven companies in the area where fares were revised was in the black before the spread of infection.



However, in 2020, when the infection spread, the deficit turned to over 3 billion yen, and the deficit expanded last year.



Will this fare revision improve profitability?



The current account balance in this area in the next fiscal year (FY2023) is expected to improve by nearly 200 million yen, but the overall deficit is still expected to be around 3.4 billion yen.

According to people involved, fares should be set higher to eliminate the deficit.



However, in order to minimize the impact on users, it was necessary to limit the range of price increases.



It is said that the fare of 220 yen was set there.



For users, a 30-yen price hike can be said to be a significant price increase, but even with such a price increase, the deficits of business operators cannot be eliminated.

Deregulation supported by government sense of crisis

The deregulation of the national government has given a great boost to this fare revision.



As the number of routes in the red increases due to the novel coronavirus, the government has a strong sense of crisis about maintaining public transportation.



Railway fares must be calculated by adding a certain amount of profit to the "full cost", which includes the costs necessary for operation, and must be approved by the government.



This year, after discussions by a committee that considers the ideal railway fare system, the government will maintain the conventional calculation method, but if there is an agreement from local governments along the railway line or local councils, the fare will be reduced. He suggested that it could be changed.



This allows fares to be decided more flexibly than in the past.



In 2020, as a special provision of the Anti-Monopoly Act, multiple local bus companies will allow "joint management" to increase efficiency by reducing the operation of overlapping sections, which will allow flexible management such as operation adjustment and unification of fares. It was also supported by the fact that it was possible.

Aiming to increase usage beyond rival barriers

Bus operators in Hiroshima City have already worked to sort out overlapping routes and establish common commuter passes.



Of these, the "digital free ticket" was introduced in line with this flat fare.

A ticket that can be purchased with a smartphone, and you can get on and off just by showing the screen.



In flat fare areas, trams and buses can be used as much as you want for 400 yen for up to 6 hours.



This ticket can be used on weekdays from 10:00 a.m. to 4:00 p.m.



We hope that tourists visiting the Atomic Bomb Dome, Peace Park, etc. will be able to use public transportation without hesitation.



It also aims to increase the number of passengers during non-peak hours of commuting to work and school in the morning and evening.



Attention is focused on whether the introduction of flat fares will further accelerate cooperative efforts beyond the barriers between rivals.

Hiroshima Electric Railway Takaaki Yamase, Director of Transportation Policy Section


“Until now, I think there was a form in which each business operator competed with each other, but from now on, we would like to cooperate and make it more convenient for public transportation. I would like to create opportunities for people to use public transportation and to increase the number of people who use public transportation.”

Can local public transport survive?

Can public transportation be left behind?



Bus companies in Hiroshima City are also considering a new management system.



That is the so-called "upper and lower separation method" of route buses.



In the case of railways, the public sector is in charge of the track and other facilities, while the private sector is in charge of operating the trains.



Discussions are underway as to whether such a system can be incorporated into the bus business.



In the bus business, the work of "maintenance and management of facilities" such as vehicles and "bus operation management" is separated.



A proposal is under consideration to have Hiroshima City and others undertake the work of "maintenance and management of facilities."

The environment surrounding public transportation, which has been built on the premise of mass transportation, has changed greatly with the times, such as population decline and lifestyle changes.



As the number of routes in the red continues to increase, what is required of public transportation now?



Transportation operators, who have competed to acquire as many passengers as possible from other companies, felt that they were required to shift from "competition to cooperation."



Management efficiency and cost reduction by flexibly incorporating new methods such as improved convenience and DX = digitalization.



The search for ways to maintain the mobility of citizens while cooperating with transportation operators continues.

Hiroshima Broadcasting Station Reporter


Kentaro Ishikawa Joined the station


in 2018 Covering a wide range of topics,


from the atomic bombing to public transportation and


giant salamanders