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Chapter 287 Little Karuizawa(1/2)

Author: quiet thoughts

If a railway station has a daily passenger volume of more than 1,000 people, then there is revenue worth developing.

The road mileage from Tai Kwun to Lujiao is 30 kilometers. If a railway is built, the approximate distance will be the same.

There are at least a thousand people going back and forth on this road every day. If you count the round-trip ticket, you have to multiply it by two, doubling the number of people.

According to the current railway freight rate in Japan, the average fare is about 20 to 30 yen per kilometer.

For a thirty-kilometer round trip, each person can contribute about 1,500 yen in passenger fare per day.

If calculated on a daily basis, this part of the fare revenue alone is about 1.5 million yen, which is a very considerable amount.

Of course, this is just a rough calculation, and the calculation of real railway fares in Japan is actually very complicated.

Like a taxi, it has a starting price within a few kilometers, and additional fares will be calculated after exceeding the price.

It is also divided into adult tickets and child tickets, ordinary tickets and limited express tickets, but the general data is similar.

When these fares are accumulated, although the daily commuting fee per person is about 1,500 yen, the monthly expense is more than 30,000 yen.

Based on most people’s monthly salary of more than 100,000 to 200,000 yuan, the proportion of commuting expenses seems to be too large.

But don’t forget, there is an additional transportation subsidy included in the company’s salary to individuals, as is the case with Shirakawa Electric Co., Ltd.

Excluding these expenses, the actual commuting expenses incurred by each person are not that exaggerated.

Therefore, neither Shirakawa Kaede nor Nagata Masaru are worried that fares will bring additional pressure to passengers.

And 1.5 million is only the minimum daily income of this railway, because there are not only two stations from Tai Kwun to Luk Kok.

There are other stations between these 30 kilometers, thus including the passengers who originally traveled between the routes.

In addition, fares are part of the railway's revenue. Don't forget that Keio and Tokyu also have other side businesses.

Such as retail department stores, real estate, and tourism.

Real estate may not be a popular investment industry in the Northeast, but the other two are still promising.

For example, in the case of retail department stores, it would not be too much to set up a small department store at each stop along the way.

With such a large number of people, there will always be various needs. There is a market for food, drinks, reading materials, emergency supplies, etc.

In addition, Tohoku's tourism industry is not without its merits. Both Nagata Masaru and Ogawa Kazuo are rapidly calculating the gains and losses in their minds.

To be honest, even though the current conditions look pretty good, they still have concerns.

Why? Because the cost of railway construction is too high.

If a railway is to be built from Tai Kwun to Luk Kok, it must not be the old tram track.

It's the kind of tram that starts slowly with a "ding-dang" sound.

If you want to solve Shikaku's traffic problem and reduce people's commuting time, it must be a train that can match the speed of the subway or some JR lines.

Shirakawa Kaede's ideal speed is around 80km/h~100km/h. There is no need to go too fast. After all, this is not a long distance.

However, the construction cost of such a railway is also very high. According to the current cost, the estimated construction cost of one kilometer of railway is about 2 to 3 billion yen.

The total cost of building a 30-kilometer railway is about 80 to 90 billion yen. There is no doubt that this is a huge amount for everyone here.

"Nagata-san, Ogawa-san, please rest assured. In terms of railway construction, the Akita local government and even Shirakawa Holdings will provide certain support, both in terms of policies and funds."

"Oh~" Nagata Masa and the others were interested. The signal sent by Shirakawa Kaede's words was a bit interesting.

"That's right." At this time, Kikuji Sasaki, who was sitting at the top, nodded in agreement, "In order to support Akita's transportation industry, I am naturally obliged to do so.

Whether it is construction subsidies from the Ministry of Transport or local finance, there will be appropriate allocation support."

When Shirakawa Kaede planned to build a railway between Odate and Shikaku, the first person to discuss it was Sasaki Kikuji.

He knew very well that this kind of infrastructure project must rely on the power of the government, even if Japan allows private railways to exist.

But with policy support and government endorsement, it is possible to build this railway.

So Shirakawa Kaede made a detailed analysis of the benefits that would be brought to all aspects after building the antlers into a railway, and promised a bunch of other benefits.

Coupled with Abe's new plea, Kikuji Sasaki was finally moved by his grand plan.

Yes, the benefits of building a high-speed rail line in Lujiao are far more than that, and this is only part of Shirakawa Kaede's plan.

However, although he proposed the plan, the most active one was not Shirakawa Kaede, but Shikaku Mayor Arata Abe.

In order to build this railway, he almost resigned from Kikuji Sasaki.

Although there is no superior-subordinate relationship between the mayor and the governor, Abe Arata doesn't mind bowing his head and playing small for this matter.

Fortunately, everything went smoothly in the end.

And now after hearing the promises of Shirakawa Kaede and Sasaki Kikuji, Nagata Masaru and Ogawa Kazuo are also a little moved.

There are indeed risks in huge investments, but if everyone shares them, it can be considered carefully.

"I would like to ask, how much money can Shirakawa-san and Sasaki-san share?"

Now that you are excited, let’s do some calculations together to see if this investment can be made.

Nagata needs to first evaluate how much support Akita can provide.

Sasaki Kikuji and Shirakawa Kaede looked at each other, and the former spoke first.

"The Ministry of Transport and Communications' subsidy is expected to be around 5 billion, and Akita's local finance is around 10 billion."

"Shirakawa Holdings is expected to have an investment quota of 5 billion." This is the answer Shirakawa Kaede gave after careful consideration.

Of course, Keio and Tokyu have to rely on Keio and Tokyu for transportation, and he can only play a part in it.

Besides, this is not a field he is good at, so he won’t overshadow it.

Akita Prefectural Office 150, Shirakawa Holdings 5.09 trillion, minus 20 billion, leaving a gap of 70 billion.

Nagata Masaru and Ogawa Kazuo looked at each other and roughly understood.

Of course they can afford to split 70 billion between the two families, and even if one party spends 90 billion, it will be no problem.

But investment is never that simple, and there must be many considerations.

"We already know the sincerity of Shirakawa-san and Sasaki-san.

However, railway investment and construction requires more on-site inspections to make the most suitable choice."

Nagata Masaru and others are very cautious in the construction of this kind of local railway.

Because railways look at long-term returns, not short-term returns in the immediate few years.

In addition, the future development and population changes of the Northeast are also concerns for them.

Based on their position and perspective, they view problems more accurately than ordinary people.

After all, Tokyo is the center of neon, there is no doubt about it.

As Tokyo becomes more and more developed and the gap between it and remote areas becomes wider and wider, will there still be such a large population here in the future?

With a population, how can we ensure that it will not be attracted by big cities?

These are all important factors affecting infrastructure investment, and Nagata Masaru and others see it very clearly.

"Of course, this is what it should be."

Bai Chuanfeng had no hope of convincing others to invest huge sums of money in Akita just by relying on his words and a few pieces of information.

"Regarding the geographical environment and passenger flow situation of the two places, Keio and Tokyu need to conduct more detailed investigations."

He understands that without investigation, there is no right to speak.

"But do you two want to hear about the next development plan of Antlers?"

"Hey" Nagata Masaru and Ogawa Kazuo both looked surprised.

Aren’t we here today to talk about the operation and construction of new lines, and other projects?

The two looked at each other and said seriously, "I'd like to hear the details."

Does Shirakawa Kaede want to just build a railway from Tai Kwun to Lukaku?

Of course not.

What he wants to do is to take the entire antlers to ascend and incorporate the antlers into one of his plans for the future.

During this period of time, he thought about it and felt that the only way out for Lujiao was not industry, but tourism.

Whether it is resources or geographical location, Antlers is destined to be inferior to other cities around Tokyo. There is no doubt about this.

Shirakawa Kaede is not so arrogant that he can drive the leap forward development of the antler industry by himself.

If you want to give full play to the advantages of Antlers, you can only overtake in corners and adapt to local conditions.

"Nagata-san, Ogawa-san, please look, this is a detailed introduction to the antlers.

The natural resources, geographical environment and climate are very similar to Karuizawa in Nagano, and even exceed the latter in some places.

For example, if there is heavy snowfall in winter, if a ski resort is built in Shikakus, it will definitely be bigger and more exciting than the one in Karuizawa.

Hot springs, many hot springs in Karuizawa are artificially developed.
To be continued...
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