Maintaining Local Transport Services in Japan

For many years, bus and railway companies in regional areas in Japan have been struggling to stop decreases in passenger numbers. Although motorization and the construction of road networks have caused declining ridership in public transportation, deregulation in the transportation industry has also played a part in this phenomenon. The main purpose of this paper is to overview the current situation and to discuss issues related to regional transportation in Japan. We evaluate regulation and public transportation policy by focusing on railway and bus services in regional areas.