In recent years, the need for short-cut railway lines in central Tokyo has increased to accommodate urban concentration in the city center. Short-cut railway lines are highly effective in improving railway service. However, the construction of short-cut lines in the city center requires huge project costs, and financial resources under current railway subsidy schemes are insufficient. This study focuses on the issues regarding the current railway subsidy schemes and proposes coordination with urban development projects as a complement to these schemes in order to promote urban railway development.