[JP] Hope and Uncertainty: Yamanashi's Small Businesses Struggle Amid Maglev Train Developments

[Miss Maglev]

"Hope and Uncertainty: Yamanashi's Small Businesses Struggle Amid Maglev Train Developments"

On September 17, 2024, Shizuoka Prefecture granted approval for JR Tokai to conduct drilling surveys necessary for the construction of the Chuo Shinkansen linear maglev train line. This decision marked a significant change in direction, following former governor Heita Kawakatsu’s previous refusal due to concerns about the potential impact on water resources. The new governor, Yasutomo Suzuki, who took office in May, has since shifted policy, sparking renewed hope among residents in Yamanashi Prefecture.

In particular, the area around Kofu City, where the planned Yamanashi Prefecture Station (tentative name) will be located, has seen an influx of optimism. Local communities once viewed the station as a catalyst for development and increased tourism. Plans are in place to enhance infrastructure, such as smart interchanges, aiming to broaden access within a 30-minute radius of the new station. This initiative is expected to stimulate economic growth in surrounding areas, including Minami Alps City.

Despite the promising developments, progress on the maglev train project remains slow. Although construction is advancing on the Shizuoka side, Yamanashi's plans are significantly delayed. JR Tokai has now postponed the projected opening from 2027 to 2031, leading to rising anxiety among residents and businesses. Many local entrepreneurs, like those in the bakery sector, are worried that the anticipated benefits may never materialize.

The situation for small and medium-sized enterprises (SMEs) in Yamanashi is particularly concerning. A survey conducted between August and September revealed that about half of the 165 businesses reported declining sales compared to pre-pandemic levels, with many citing increased costs as a primary challenge. Manabu Umemoto, president of the century-old bakery Marujyu Yamanashi Seihan, expressed his fears of losing customers if prices continued to rise, highlighting a difficult balancing act amid rising raw material costs.

Bankruptcy rates are also on the rise, with 24 companies in Yamanashi filing for bankruptcy from April to September 2024—double the number from the same period the previous year. Local economic experts note that SMEs are especially susceptible to price fluctuations and labor shortages, emphasizing the need for practical financial support and business planning assistance rather than broad funding measures.

As the maglev train project progresses, the local economy remains fragile, caught between the promise of development and the stark realities of rising costs and business instability.

Summary of Japanese Media reports. Source: https://www.yomiuri.co.jp/local/yamanas ... YTAT50051/ Accessed: 2024-10-24