Central Japan Railway Company Report Update

Central Japan Railway, or JRC, is the country's second-largest railway network operator, deriving 94% of its operating profit from the rail business. Merchandise and real estate accounts for the balance. The rail segment’s high profitability is primarily driven by the Tokaido Shinkansen, which connects Tokyo to Osaka via Nagoya and has historically garnered superior margins to Shinkansen lines operated by peers. Commuters traveling to Nagoya or Osaka from Tokyo prefer Shinkansen to airlines due to significantly higher frequency of daily departures, comparable travel time, and the safety and reliability offered by the former. As a result, JRC boasts a 100% and 86% market share (versus airlines) for the Tokyo-Nagoya and Tokyo-Osaka routes, respectively.