HOKKAIDO, Apr 24 (News On Japan) –
The planned extension of the Hokkaido Shinkansen to Sapporo has come under renewed scrutiny after Japan’s Finance Ministry said the project had reached a level at which it should, in principle, be canceled.
The railway extension has faced repeated setbacks, particularly in tunnel construction, pushing the expected opening date back sharply from the end of fiscal 2030 to fiscal 2038.
At a meeting of the Fiscal System Council held on April 23, the ministry said delays in construction and rising material costs could increase total project expenses by as much as 1.2 trillion yen.
As a result, the ministry concluded that the project’s cost-effectiveness had deteriorated to a level warranting cancellation.
To continue the project, the ministry said it would be necessary to raise leasing fees, including charges paid by JR Hokkaido for use of tracks and other infrastructure.
The council is expected to compile its recommendations in the coming months before submitting them to the finance minister.
Source: 北海道ニュースUHB
AloJapan.com