(E08587) Stock Price

Japan Freight Railway is a comprehensive logistics company with railway cargo transportation as its core business. The company's primary service is container transportation, which offers a "door-to-door" system that handles shipments consistently from pickup to delivery. Through an extensive network spanning 237 stations nationwide from Hokkaido to Kyushu, covering 7,805.5 kilometers of operating routes, the company provides fast, safe, and reliable transportation services.

The company serves a diverse range of industries including manufacturing, retail, and distribution. Demand is growing from companies that prioritize large-scale transportation and environmental sustainability. Revenue is primarily driven by the railway logistics business, generating stable income from container transportation fees and storage and cargo handling services at warehouses and logistics centers. The company coordinates with affiliated trucking companies for pickup and delivery segments at both ends, building an efficient transportation network.

The company's business consists of two pillars: railway logistics and real estate. The railway logistics business encompasses freight rail transportation, freight forwarding services, and operation of logistics centers at stations. The real estate business leverages owned land and buildings for office and commercial facility leasing and sales, warehouse operations, and parking lot services. The company also provides facility maintenance and security services to diversify revenue streams.

Japan Freight Railway is pursuing profitability in its railway operations and sustainable growth under its "Comprehensive Logistics Group Medium-Term Management Plan 2026." The company has set a challenge target of 20.9 billion ton-kilometers for container transport in fiscal 2025 (with a mandatory target of 19.6 billion ton-kilometers). It aims to expand transport volume by addressing social challenges including the truck driver shortage known as the "2024 Logistics Problem" and achieving carbon neutrality by 2050. Looking ahead, the company has formulated a "Long-Term Vision 2030" to establish itself as a comprehensive logistics group with railways at its core by 2030.

In priority investment areas, the company is focusing on strengthening profitability by maximizing its existing transport network. It is sequentially opening large-scale logistics facilities including "Tokyo Rail Gate WEST," "DPL Sapporo Rail Gate," and "Tokyo Rail Gate EAST," while also developing transfer stations at each terminal. By combining these logistics hubs with group companies' logistics assets, the company is providing comprehensive solutions that meet customers' logistics efficiency needs, transitioning from a simple transport operator to a higher-value-added logistics service provider.

In new market development, the company is actively pursuing real estate business expansion and new business ventures. In real estate, it is expanding rental operations through external property acquisitions in addition to developing its own land, and entering the rotating real estate business to diversify revenue sources. As a social issue-focused initiative, the company has entered the plant factory business, with a new facility beginning operations in April 2023. For international expansion, it is prioritizing Thailand, using a Bangkok liaison office to investigate the feasibility of freight railway transport operations.

In technology innovation, the company is advancing cutting-edge technologies in both environmental sustainability and digitalization. Under its "Carbon Neutral 2050" commitment, it has set a target of 50% CO2 emission reduction by fiscal 2030 (compared to fiscal 2013 levels), expanding the use of next-generation biodiesel fuel and upgrading to more fuel-efficient vehicles. For safety, it is preventing accident recurrence through the introduction of wheel load measurement devices and truck scales, while improving transport efficiency and customer service quality through digital transformation initiatives. To strengthen disaster response capabilities, the company is securing redundancy through the development of alternative transport systems and strengthened coordination with group companies.