© Gen Okajima Gen Okajima Central Japan Railway Co. Sydney Building the Backbone of the Nation -The Japanese Experience – 50 years- High Speed Rail Forum - Canberra 26/6/2013

© Tokaido Shinkansen The World’s FIRST High-Speed Rail - In operation since 1964 funded by World Bank (*French TGV since 1981, German ICE since 1991) Even now, the Leading High Speed Rail in the World Series 0 (1964) 1 st Generation Series N700 (2007) 5 th Generation

© Key Features of the Tokaido Shinkansen ZERO passenger injuries or fatalities from train accidents - Safety

© Key Features of the Tokaido Shinkansen - Punctuality minutes / train *1 *2 *1 : Including delays due to uncontrollable causes, such as natural disasters *2 : Standard for train delays; JR Central : “delay” = >1 minute, Europe : “delay” = >15 minutes

© 6:007:008:009:00 ・・ ・ Tokyo Shinagawa Nagoya Shin-Osaka Shin-Yokohama Kyoto Train Schedule Diagrams as of March 2012 *1:Excluding extra service 5 - Mass Transport Key Features of the Tokaido Shinkansen day 323 trains/day *1 386,000 at peak time 3 min. intvl at peak time passengers / day

© 6 Core Concept of Tokaido Shinkansen Safety, Punctuality, Mass Transport and Low energy Consumption are ensured by the Core Concept of Tokaido Shinkansen 1) Crash Avoidance HSR Concept on a Dedicated Track 2) Integrated Management of the HSR System What is “Crash Avoidance HSR Concept”?

© 7 - The use of dedicated tracks exclusively for high- speed passenger rail service - A fail-safe, reliable, proven Automatic Train Control (ATC) Concept of Crash Avoidance on a dedicated track is characterized by two key cornerstones: Crash Avoidance Concept

© 8 Shinkansen - Complete separation from: Freight traffic (pulled by heavy locomotives with lower braking performance) Lower speed passenger traffic (poor running performance) Road traffic Dedicated Tracks for High-Speed Passenger Rail Road Traffic Zero possibility of catastrophic collision with freight, lower speed passenger and road traffic

© Brake Pattern Speed (Running Curve) Preceding Train (ii) Information regarding Location of Preceding Train (iii) On-board ATC System calculates Brake Pattern ATC Ground Facility (iv) When Speed > Brake Pattern Applying Brake Command (i) Detecting the Preceding Train ATC Ground Facility - Eliminates possibility of collision with the preceding train - 100% safety record in Japan for over 48 years Fail-safe, reliable, proven Automatic Train Control (ATC)

© HSR System Integrated Management - Is good hardware a sufficient condition for a safe and reliable HSR system? NO - Accurate operation of HARDWARE requires compatible SOFTWARE. - Integrated Management of Tokaido Shinkansen Operation has produced 48 years of proven success. - Rolling stock - Ground facilities and track - Signal system “ATC” - Electrical facilities - Employee education and skills - Maintenance - Operation management Hardware Software Totally Integrated System 10

© 研究施設概要（現在） Test Track Test Facilities Building C Real Scale Test Structure Komaki Research Center  Opened July 2002 Site area: Approx. 73ha Use area: Approx. 20ha Employees Research & Development Division: Approx. 120 Planning & Project Division: Approx. 30 Ground area The Facilities Building A Track & Structural Dynamics Simulator

© 300X Test Runs Approx. 200 times above 350km/h Maximum Speed Record 443km/h (in 1996) Research and Next Generation

© Next Generation Superconducting Maglev (SCMAGLEV) Operating Speed: 500km/h Chuo Shinkansen Project: Under assessment of environmental impact Commence operating Tokyo-Nagoya section by 2027 Maximum Speed Record 581km/h (in 2003)

© Life with HSR Impact on your society Challenges

© Contents Impact on your society Challenges

© 1.Connection of Communities 2.Regional Development 3.Business Opportunities 4.Sustainable Lifestyle Impact of Shinkansen on Society

© 1.Connection of Communities 2.Regional Development 3.Business Opportunities 4.Sustainable Lifestyle Impact of Shinkansen on Society

© 1. Connection of Communities Tokyo Osaka Hakata After Tokaido & Sanyo Shinkansen opened Tokyo Hakata Ref: A GENERALIZED SOLUTION OF TIME-DISTANCE MAPPING, E. Shimizu et al. Univ. of Tokyo, 2004

© 1. Connection of Communities Kyushu Shinkansen Kyushu Shinkansen Section A in 2004 (A+B: 3h40m -> 2h10m) Full section in 2011 (A+B: 2h10m -> 1h19m) A B

© From Hiroshima region From Osaka region 1. Connection of Communities– Visitors Ref. Kumamoto Prefecture Conference Material % +54% +407% +162% By any modes Purpose to Kumamoto Purpose to Kumamoto (Yellow circle) Shinkansen Only

© 1.Connection of Communities 2.Regional Development 3.Business Opportunities 4.Sustainable Lifestyle Impact of Shinkansen on Society

© 1964 Shin-Yokohama Station Immediately after opening 2012 Shin-Yokohama Station now 2. Regional Development –Shinyokohama Sta. *Introduction of HSR promotes development of the areas around its stations

© Shin-Yokohama Station 2. Regional Development Number of Boarding Passengers (Daily Average)

© Shinagawa Station today Before opening Shinagawa Station Shinagawa Station was opened at Regional Development –Shinagawa Sta.

© 2. Regional Development (Economic Growth) GDP Ridership (FY)

© 1.Connection of Communities 2.Regional Development 3.Business Opportunities 4.Sustainable Lifestyle Impact of Shinkansen on Society

© Early1990’s Opened in 2000 JR Central Towers -Nagoya Station- 3.Business Opportunities

© Operating Revenues of Consolidated Subsidiaries Merchandise Real Estate Hotels Travel agency etc JPY 511 B (App. $5.1B) (Mar 2012 AU$1=JPY100) Creation of Affiliated Business Jobs 3.Business Opportunities

© 1.Connection of Communities 2.Regional Development 3.Business Opportunities 4.Sustainable Lifestyle Impact of Shinkansen on Society

© (90MJ/seat) 8 times Energy Comparison of Energy Consumption per Passenger Seat CO 2 Comparison of CO 2 emissions per Passenger Seat Series N700 “Nozomi” Airplane (B ) Series N700 “Nozomi” Airplane (B ) Basis 12 times (4.2kg-CO 2 /seat) (50kg-CO 2 /seat) (746MJ/seat) Basis Source: Calculation based on running performance (JR Central figures)Series N700 "Nozomi" (Tokyo~Shin-Osaka) :JR Central calculations with reference to ANA CSR Report 2011 Environmentally Friendly – Energy & CO2

© Contents Impact on your society Challenges

© Financing Cost Effectiveness Noise and Vibration

© Challenges Financing Cost Effective Noise and Vibration

© Financing – Practice in Japan (First Leg) Total costs : US$1B Loan from World Bank: US$90M (in 1963 terms. US$1=360yen) -Interest rate 5.75%, 20 years (repaid in 16.5 years) JRC (operator) owns its infrastructure

© Government Central : 82% Local: 18% Infrastructure Lease Operator Fee Financing – Practice in Japan (Since 1997)

© Financing – JBIC Japan Bank for International Cooperation - Policy finance institution - 100% owned by the Japanese Government - Outstanding loan/equity/guarantee : >JPY13,000B - Financing for overseas infrastructure as well HSR system is an eligible sector As of Mar 2013

© Financing – JBIC Case in UK (2012) UK Gov. Rolling stock Provider Lease / Maintenance / Depot Operator Availability Payment JBIC JBIC finance ￡ 1.0B (45% of total debt (2.2B)) 30 years Others Loan Concession Franchise

© Financing – Value Capture JRC examples Restaurants Souvenir shops Restaurants City Hotel Leased offices Department Store Business Hotel Shopping mall Resort Hotel Hotel Restaurant Shopping mall Leased offices Shopping mall Warehouse Parking

© Challenges Financing Cost Effective Noise and Vibration

© Capital Costs of the 1st Section (SYD-CAN) Total $18B (indicative)

© TGV 4.75 Size of lanes Small Large Shinkansen 63 ㎡ 100 ㎡ Tunnel Cross Section 6.25 Source: Japanese Government, Ministry of Land, Infrastructure, Transportation and Tourism Challenges – Cost Effective Construction(1) Smaller Infrastructure Smaller tunnels Less land acquisition 4.3m 4.5m TGV-POS LGV Est <320km/h

© Challenges – Cost Effective Construction(2) Less sturdy structure Less sturdy structure with light body t Axle load * Source : ”World High Speed Rolling Stock,” UIC Website, May 2009

© Ongoing Costs of Sydney-Melbourne section

© Reducing the cost of traction power Light rolling stock Regenerative braking system Streamlined car body with low air resistance Challenges – Cost Effective Operation (1) *JRC simulation based on public data assuming 50km level tracks between stations the simulation used data from. TGV: “TGV POS PREPARES to enter service,” Railway Gazette International, Dec. 2006, P ICE: “ ICE Multiple Unit for the European High-Speed Rail Services of German Rail (DB AG) and Netherlands Railways (NS),” Technical Information, Siemens AG Traction power could be much reduced Based on our simulation* and Phase 2 Report

© JRC simulation based on public data assuming 50km level tracks between stations the simulation used data from. TGV: “TGV POS PREPARES to enter service,” Railway Gazette International, Dec. 2006, P ICE: “ ICE Multiple Unit for the European High-Speed Rail Services of German Rail (DB AG) and Netherlands Railways (NS),” Technical Information, Siemens AG Energy Consumption per Seat (Wh/km/seat) Challenges – Energy Consumption Simulation

© infrastructure Less damage to infrastructure t Axle load * Source : ”World High Speed Rolling Stock,” UIC Website, May 2009 Challenges – Cost Effective Operation (2)

© Challenges Financing Cost Effective Noise and Vibration

© Less noise and vibration with light and streamlined body Challenges – Noise and Vibration

© Concluding Comments

© Australia ready to take advantage of HSR Decent public transportation High travel demand (not population) Financial capacity (high credit rating)

© Thank you for your attention. Please feel free to contact us at: Central Japan Railway Company--Sydney Suite 501, Level 5 20 Hunter Street, Sydney Phone: (02)