Type Corporation Revenue 2.255 billion JPY (2008) Number of employees 236 Total assets 6.9 billion JPY (2008) | Headquarters Echizen Founded 1 August 1945 Net income 109 million JPY (2008) | |
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Industry Bus, taxi, rail transport, real estate Predecessor Fukubu Electric Railway, Seiho Electric Railway Area served Northern Fukui Prefecture Key people Haruo Murata, President Operating income | ||
770 fukui railway fukubu line 770 series emu
Fukui Railway (福井鉄道株式会社, Fukui Tetsudō Kabushikigaisha) is a bus and railway company located in Echizen, Fukui Prefecture, Japan. It owns and operates the Fukubu Line between Tawaramachi Station in Fukui and Echizen-Takefu Station in Echizen.
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Overview
Although Fukui Railway's name refers to its founding as a railway, 75.1% of the company's revenue comes from local and long-distance bus transport— only 16.7% is from its railway operation. Since 1963 the company's railway business has lost money, and although this loss was offset by its bus and real estate operations, by 2006 the company recorded a cumulative loss of 2.2 billion yen and debts of 3.07 billion yen.
As a result of these unsustainable losses, in August 2007 the company formally requested financial support from the cities of Echizen, Sabae, and Fukui. Negotiations with Fukui Prefecture, Nagoya Railroad (the company's parent), Fukui Bank and other financial institutions proved difficult. However, on December 29, 2008, Nagoya Railroad agreed to acquire one share in Fukui Railway for one billion yen then divest all shares in the company to Fukui Town Management Organization (a third sector company established by municipalities) and local support organizations for one yen per share, ending its 45-year ownership of the company.
During an extraordinary shareholders meeting on November 25, 2008, Haruo Murata, formerly of Fukui Bank, was selected as the company's new president. On February 24, 2009, the Ministry of Land, Infrastructure, Transport and Tourism officially approved the "Railway Business Restructuring Plan", which provides one billion yen over ten years for replacing equipment and facilities as well as reducing the company's fixed assets tax burden.
Through service with Echizen Railway
On May 27, 2010, Fukui Prefecture announced plans for through services between Fukui Railway and Echizen Railway. Under the plan, beginning in 2013 the Fukui Railway's Fukubu Line would connect to the Echizen Railway at Tawaramachi Station, and as many as two trains per hour in each direction would run through to Nittazuka Station. The next stage would involve extending Fukui Railway service to Nishi-Nagata Station and running Echizen Railway trains onto the Fukubu Line. As a part of this plan, five stations would be renovated.
One issue regarding through service is that Echizen Railway train cars are 2.8 meters wide, wider than cars used by Fukui Railway. As a result, Echizen Railway trains on Fukubu Line double-tracked sections do not have the necessary 40 centimeter clearance, requiring Echizen Railway to acquire a new, 3-car set for through service use.
The cost of the project is estimated at several billion yen, and funding sources have not been specified. As it is unclear whether usage will increase from through running, participants in the prefecture's study group worry that costs will outpace any increase in revenue.