1. © 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

2. © 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

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

4. © 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

5. © 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. © 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. © 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. © 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

9. © 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)

10. © 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

11. © 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

12. © 300X Test Runs Approx. 200 times above 350km/h Maximum Speed Record 443km/h (in 1996) Research and Next Generation

13. © 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)

14. © Life with HSR Impact on your society Challenges

15. © Contents Impact on your society Challenges

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

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

18. © 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

19. © 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

20. © From Hiroshima region From Osaka region 1. Connection of Communities– Visitors Ref. Kumamoto Prefecture Conference Material 2012 +33% +54% +407% +162% By any modes Purpose to Kumamoto Purpose to Kumamoto (Yellow circle) Shinkansen Only

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

22. © 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

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

24. © 1995 2012 Shinagawa Station today Before opening Shinagawa Station Shinagawa Station was opened at 2003 2. Regional Development –Shinagawa Sta.

25. © 2. Regional Development (Economic Growth) GDP Ridership 19642009 (FY) 1970198019902000

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

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

28. © 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

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

30. © (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 (B777-200) Series N700 “Nozomi” Airplane (B777-200) 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

31. © Contents Impact on your society Challenges

32. © Financing Cost Effectiveness Noise and Vibration

33. © Challenges Financing Cost Effective Noise and Vibration

34. © 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

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

36. © 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

37. © 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

38. © 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

39. © Challenges Financing Cost Effective Noise and Vibration

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

41. © 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

42. © 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

43. © Ongoing Costs of Sydney-Melbourne section

44. © 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, P784-785 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

45. © 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, P784-785 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) 26 57 55 Challenges – Energy Consumption Simulation

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

47. © Challenges Financing Cost Effective Noise and Vibration

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

49. © Concluding Comments

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

51. © 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 2000 E-mail: info@jr-central-au.com Phone: (02) 9221 6922