Japan transportation: Visit to JR Hokkaido, tour of Kawasaki Kisen ferry Quick Note

Research evidence excerpt

Japan transportation: Visit to JR Hokkaido, tour of Kawasaki Kisen ferry Quick Note

Global Markets Research

17 July 2026Japan transportation

EQUITY: JAPAN TRANSPORTATION

Research Analysts

Visit to JR Hokkaido, tour of Kawasaki Kisen ferry Japan transportation

Masaharu Hirokane - NSC

masaharu.hirokane@nomura.comQuick Note +81 3 6703 1142

Visit to Hokkaido on 15–16 July: Assessing conditions at JR Hokkaido

We recently had the opportunity to talk with representatives of Hokkaido Railway (JR

Hokkaido). The company is working to improve its business by expanding non-rail

operations and transportation revenue while reducing costs, and is currently able to

continue operations by offsetting losses in its railway business with investment returns

from its business stabilization fund. Although the investment environment has improved

recently with rising long-term interest rates, management expressed the view that the

business environment remains challenging, as it is difficult to make changes to the

investment portfolio until the securities mature even as inflation is accelerating. It is

apparently finding it difficult to engage in new businesses because of declines in capital

and creditworthiness, and the company is considering drafting a long-term business plan

with targets through around 2040, close to when the Hokkaido Shinkansen route through

Sapporo is slated to open. It appears that JR Hokkaido continues to exchange personnel

with East Japan Railway Company (JR East) [9020] (Buy).

Tour of Kawasaki Kisen ferry

We also had the opportunity to participate in a tour of the Tomakomai ferry run by

Kawasaki Kinkai Kisen Kaisha, a subsidiary of Kawasaki Kisen [9107] (Neutral). This ferry

connects Tomakomai in Hokkaido with Hachinohe in Aomori Prefecture (on the main