Central Japan Railway Co. (JR Central) announced a significant project cost increase for the Chuo Shinkansen maglev line. The company now expects total construction costs to reach ¥11 trillion, up roughly ¥4 trillion from previous estimates.
The Chuo Shinkansen will link Shinagawa in Tokyo with Nagoya over approximately 286 kilometers. Initially projected at ¥5.52 trillion, the project cost has now nearly doubled. The line aims to dramatically reduce travel time between the two cities.
Previously, JR Central revised the budget to ¥7.04 trillion in 2021, reflecting a ¥1.5 trillion rise over the original estimate. The current increase stems from higher material prices, labor costs, inflation, and challenging construction conditions.
Specifically, ¥1.3 trillion will cover material and labor surges. The company allocated ¥1 trillion as a buffer against future inflation. Additionally, ¥1.2 trillion addresses construction difficulties, including tunneling in weak ground. Another ¥400 billion covers redesigns of tunnel structures. These figures assume a provisional 2035 opening.
At a press conference in Nagoya, JR Central President Shunsuke Niwa said, “We take seriously the fact that total project cost has reached ¥11 trillion. However, completing the Chuo Shinkansen is essential for Japan’s transportation and social infrastructure.”
JR Central plans to finance the project cost increase using Shinkansen operating revenues and borrowing. The company has not confirmed an opening date due to uncertainty around tunnel excavation in Shizuoka.
Analysts note that the project cost reflects global trends in rising material and labor prices. They also warn that costs could rise further if inflation or geological conditions worsen.
The Chuo Shinkansen will enhance transportation efficiency and strengthen economic links between Tokyo and Nagoya. Officials stress that careful management of project cost is essential to preserve long-term financial stability.
Moreover, JR Central continues to track construction progress, monitor inflation, and control material costs. This project cost increase highlights the challenges of large-scale infrastructure while underlining Japan’s commitment to advanced high-speed rail development.
