The Japan Fair Trade Commission conducted on-site inspections at nine companies on Tuesday. The JFTC also searched the Japan Railway Construction, Transport and Technology Agency, which commissioned the Hokkaido Shinkansen line extension project. Authorities suspect unreasonable restraint of trade related to track construction. Similar cases emerged for the Hokuriku line in 2013 and the Linear Chuo line in 2017.
The nine companies include Hokkaido Kido Shisetsu Kogyo from the JR Hokkaido Group. Union Construction from the JR East Group also faces inspection. Daitetsu Kogyo and Kosei Corp represent the JR West Group. Sanki Kensetsu and Kyutetsu Corp belong to the JR Kyushu Group. Two listed firms, Totetsu Kogyo and Meiko Construction, also received visits. Senken Kogyo from Sendai rounds out the list.
Authorities suspect the companies coordinated in advance to determine winning bidders. The work involved track construction for a 212-kilometer extension from Shin-Hakodate-Hokuto to Sapporo. The project divides into ten sections, with five sections already bid in 2024 and 2025. Five firms won those contracts totaling about 20 billion yen. The JFTC believes the companies divided work sections to secure stable profits. Investigators will examine whether agreements already exist for the remaining five sections. The commission suspects JRTT may have also participated in this bid rigging.
All nine companies and JRTT have stated they will fully cooperate with the investigation. The JFTC conducted searches at their offices on Tuesday. Industry observers note that Shinkansen projects involve massive public funding. Therefore fair bidding remains critical for transparency. The investigation continues as authorities review evidence from the searches. Future tenders for the remaining sections may face delays. The JFTC will likely issue formal charges if it confirms illegal coordination. Consequently, the involved firms may face fines or suspension orders. The case also raises questions about oversight of government-commissioned projects. JRTT, as an independent administrative agency, bears special responsibility. The investigation marks the first time the Hokkaido Shinkansen line has faced such allegations. Authorities will monitor whether similar conduct occurred on other rail projects.
