Comparison of investment in high-speed railway construction and its finance in Japan and Germany

Abstract

In Germany, there have been built several high-speed railway lines in the short time since reunification under the federal government’s support, by providing subsidies or non-interest loans. In Japan, the main high-speed railway lines have been built earlier than in Germany and connect already the economic centers in the pacific coastal belt. However, the expansion of the Shinkansen network to the three islands Kyushu, Shikoku and Hokkaido is in danger to be delayed because of the recent economic crisis that makes the finance of new high-speed railway projects difficult. Therefore, a new finance system has been introduced in order to secure the continuation of investments into the high-speed railway construction. However, the budget has been reduced for 1998, and if this process continues, a further delay in construction could be caused. Since the connection to Shinkansen lines is of vital importance also for the economic development in the regions and for the protection of the environment, an active support of the improvement of the high-speed railway network by the government is also necessary in Japan.