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Japan plans Maglev project

An attentive reader nudged me on this story, which I somehow missed. It is important too. Among the better reports is this one from the Wall Street Journal.

Central Japan Railway Plans
$44.7 Billion Maglev Project

By ATSUKO FUKASE
December 27, 2007; Page B2

TOKYO — Japanese rail travelers may soon be riding one of the fastest trains in the world: a maglev that would zoom between Tokyo and the Nagoya area at double the speed of the current rail link.

But investors weren’t exactly ecstatic over Central Japan Railway Co.’s announcement that it will spend about 5.1 trillion yen ($44.7 billion) on a magnetically levitating train project over the next two decades. The railway’s share price tumbled 8.8% yesterday amid concern that the company will be saddled with heavy debt for a rail line that won’t generate much profit.

The bullet-train operator, known as JR Tokai, said late Tuesday it plans to begin operating the line in 2025.

The company expects pretax profit to fall to about 70 billion yen in fiscal 2026 because of operating costs and depreciation charges, compared with 237 billion yen in the fiscal year that ended in March. Profit would then gradually rise to an average of about 140 billion yen over the next 10 years, starting in 2027.

Filed under: International High Speed Rail

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