Richa Jayal, Author and Researcher on India–Japan Relations and Director at Aureus Consultants, India

Of the People, for the People: Economic Corridors, High-Speed Railways, and Quality of Life in Post-COVID-19 Asia

briefpolicy

Key Points • Theongoingglobalshift

insupply-chainprioritiesiscertaintoboostthepaceofTransportation2.0andaccelerateregionalconnectivity.

• SuccessoftheDelhiMetroprovidedimpetusfortheideaofawiderfootprintofurbanrailtransitprojectsacrossIndia.

• High-speedrailwaydevelopmenthasbeenthenaturalextensionoftheJapan–Indiapartnershipintransportinfrastructuredevelopment.

• Japanhassettheprecedentofhowdevelopmentofhigh-speedcorridorscanusherindevelopmentandprosperity(qualityoflife),andhowthatgivesrisetofurtherhigh-speedrailwaydevelopment.

• AsIndiaexpandsitshigh-speedrailwayfootprint,theemphasisiscertaintowidenfrom“MakeinIndia”to“MakeforIndia”techsolutionstosuititsuniqueconditionsandtopography.

• Asiacontinuestotaketheleadinhigh-speedcorridordevelopment;thePeople’sRepublicofChinaalonehasbuiltnearly30,000kilometersofhigh-speedrailwaynetworkoverthelasttwodecades.

No. 2021-2 (February)

© 2021 Asian Development Bank InstituteISSN 2411-6734

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Introduction

As the coronavirus disease (COVID-19) pandemic continues to disrupt globaleconomicactivity,developingAsia’sgrossdomesticproduct(GDP)isnowexpectedtohavecontractedby0.7%in2020.GDPisprojectedtogrowby6.8%in2021(AsianDevelopment Bank 2020). However, beyond these numbers, what is underwaybeneaththetipofthisicebergoffersstrongcluesonfutureprospectsoftradeandtransportationdevelopmentintheregion.

What is underway since January 2020 suggests awidespread, accelerated, almosttectonicglobalshiftinstrategicpreferencesthatwillprobablytriggeropportunitiesfor logistics and transportation expansion in Asia. The ongoing pandemic hasalreadyresultedinunprecedentedchangeinglobalsupply-chainpriorities.MuchofrecentglobaldialoguehascenteredontheshiftofsupplychainsfromthePeople’sRepublic of China (PRC), the world’s largest manufacturing hub and the countrywheretheCOVID-19viruswasfirstdiscoveredinWuhanProvince.1Theslowdownofmanufacturing in thePRCdue to theCOVID-19outbreak isdisruptingworld tradein itscurrentformandcouldresult ina$50billiondeclineinexportsacrossglobalvaluechains,2 triggeringamajor rethinkalong the linesofvertical integrationandgeographicdiversification.

Adding to concerns of COVID-19 spread has been the pressure to decouple theAmerican economy from that of the PRC. We believe this shift in supply-chainpriorities ishighly likely toboost thepaceofTransportation2.0 (aiming fora safe,sustainableandresilientnetworkoftransportationinfrastructuredevelopment)andtriggerfurtheraccelerationinregionalconnectivity,includingmorerobustlandandmaritime economic corridors, and greater regional cooperation and integration inthe direction of stronger transportation-based cohesiveness in the Association ofSoutheastAsianNations(ASEAN)andSouthAsia.

1 SeeWorldHealthOrganization(2020).2 SeeUnitedNationsConferenceonTradeandDevelopment(2020).

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Beforeproceedingfurther,itisimportanttodefinewhatwemeanbyan“economiccorridor.” In thispolicybrief,we will be using the definition offered by the AsianDevelopmentBank(ADB),whichstates:

Economic corridors connect economic agentsalongadefinedgeography.Theyprovideimportantconnectionsbetweeneconomicnodesorhubsthatare usually centered in urban landscapes.They donot standalone, as their role in regionaleconomicdevelopment canbe comprehendedonly in termsof thenetworkeffects that they induce…Corridorcharacteristics interact dynamically to createpatternsofregionaleconomicdevelopment.3

Therefore,thephraseincludeslogisticsthatsupportbothmanufacturing(products)aswellashuman(passenger)movement,both interactingandcooperating to createa sustainable ecosystem to support development andprosperitywherepeopleandculturescanflourish.

Against this backdrop, the significance of high-speed railway (HSR) systems and the need for policyintervention and innovation for building nationalnetworks of high-speed rail in Asia was deliberatedon at the ADBI–Chubu University Conference onTransportation Infrastructure Development, SpilloverEffects and Quality of Life (12–16  October 2020). Thevirtualconferencewasattendedbyanumberofeminentinternationalresearchersfromacademicinstitutionsandgovernment organizations, as well as senior officialsfrom HSR-operating companies. It featured researchon spillover impact from transportation infrastructuredevelopment on the economy, environment, society,and quality of life of countries, with an emphasis onhigh-speedrailgrowth.

This policy brief draws on discussions conducted atthe session titled Policy and Innovation for Transport2.0 – Building a National Network of the High-SpeedRail in Asian Countries, held on 15 October 2020. Thepolicybriefanalyzeshowemerging trends in transportinfrastructure development and Transportation 2.0can be expected to create positive spillover impacton the economy, environment, and society acrossIndia and the rest of Asia, with particular focus onexpected contribution from high-speed railwaynetworks.

WenotethatasaleaderinHSRdevelopment,Japanhasset aprecedentofhowconstructionanddevelopmentof HSR networks can usher in an era of developmentandprosperity(qualityoflife,orQOL),andinturn,thatregional development often gives rise to further HSRcorridor development (Hiraishi 2019;Hikasa 2020).Theshinkansen (bullet train) is rightfully regarded as aninvaluableandindispensablepartofJapan’strajectoryinmobilityandeconomicgrowth.

What is also noteworthy is how countries in Asia areexpandingthescopeofcountry-to-countrypartnershipstoincludeintercitytransportationandmobilityasatoolfor growth. Amonth before he ended his first term asJapan’s prime minister in 2007, Prime Minister ShinzoAbemadealandmarkaddresstotheIndianParliamentinNewDelhi.Quoting theMughal scholar-princeDaraShikoh,PrimeMinisterAbespokeof the“confluenceofthetwoseas”—theIndianandPacificOceans—thatwereundergoinga“dynamiccouplingasseasoffreedomandofprosperity.” Indiaand Japan, said theprimeminister,shared an interest in and responsibility for providingstabilityandintegrationtotheregion.4

Current efforts underway, including the flagshipJapan–India partnership in developing the Mumbai–AhmedabadHigh Speed Rail (MAHSR) Project in India,areexpectedtobringinsuchintendedsynergiestoIndiaandtherestofAsia.Thispolicybriefnotesthatthistrendof plurilateral partnerships in the sphere of mobilityand high-speed transportation as a tool for growth iscertain to enhance the already growing economic andgeopolitical significanceofAsia in theglobaleconomy,especiallyinthewakeoftheCOVID-19crisis.

The Asia Story: Toward the Association of East Asian Nations as a Regionally Integrated Bloc

ASEAN celebrated its 50th anniversary in 2017. Theorganizationhassinceopeneddoorstowhatisnowanassociation that comprises 10 of the 11 countries thatmake up Southeast Asia. Already considered a looseeconomic monolith, ASEAN, and particularly nationssuchasVietNam,hasalsoprovidedglobalexamplesineffectivehandlingandcontroloftheCOVID-19outbreak.

3 SeeAsianDevelopmentBank(2013).4 SeeMinistryofForeignAffairs(2007).

Of the People, for the People: Economic Corridors, High-Speed Railways, and Quality of Life in Post-COVID-19 Asia 2 3

Intermsofpotential,evenexcludingthePRCandIndia,emerging Asia’s contribution to world growth todayalreadyexceedsthatoftheUSandisthreetimesgreaterthan that of the euro area. In a world of stagnatinggrowth, the contrast between western nations andemergingAsiastandsout.Accordingtoarecentreport,Asian economies are expected to grow by at least 7%in the coming years—roughly the pace at which aneconomycandouble insizeeverydecade.The region’slikely “7% club” members in the 2020s include India,Bangladesh,VietNam,andthePhilippines(Jha2019).

With a focus on connectivity (physical, institutional,and people-to-people), Japan has been a steadypartnerof the region for thedevelopmentof landandmaritime economic corridors. An economic corridor ismuch more complex than a mere railway or highwayconnectinghubs.Itinvolvesthecraftingofbenchmarksandregulationsthatcomprehensivelymake iteasier todobusiness,accessmarkets,andconductactivitiesthatsupporttradeanddevelopment.

While great strides have already been made, in orderfor ASEAN countries to further develop and deepenintegration, it is necessary to concurrently strengthenconnectivitywithinASEANmemberstatesandbetweenASEAN and the rest of Asia. The Japan InternationalCooperation Agency (JICA) has been the foremostproponentforthisinitiativeandhasbeenaligningitselfwithASEAN’svariouspoliciesfordeepeningconnectivity.It has also been consistently providing support forinfrastructure development, investment climate andbusinessenvironment improvement, and legal systemsdevelopment(Yamamoto2020).

The impact of key JICA-supported transportationinfrastructure projects in ASEAN so far has beenimpressive. For example, the opening of the SecondMekongInternationalBridgeoftheEastWestEconomicCorridor has shortened the travel time betweenHanoiand Bangkok from two weeks (by sea) to just threedaysby land.5This is a groundbreaking advance and awelcomestepforwardfortheoverallregion.

Today, in spite of andmaybe even in part spurred bytheconsequencesoftheCOVID-19inducedcrisis,Asiaismarchingonasteadypath towardregional integrationandenhancedconnectivity.Emergingmarketeconomies,including India,makeupmore thanaquarterofworld

GDP at market exchange rates. Sustained economicgrowthof theAsianeconomies (other thanthePRC) inthepost-COVID-19worldiscertaintoopenfurtherdoorsfor the development of infrastructure in the region,whichhasunfortunately laggedbehind its commercialpotential.

India and High-Speed Corridors: An Idea That Meets Its Moment?

Background: Why the Shinkansen? Why Now? Why India?The Japan–India relationship is recognized as Asia’sfastest-growing bilateral partnership. Even before thecollaboration in the area of high-speed railways, wehave the example of stellar partnership in the DelhiMetro,oneofthemostsuccessfulexamplesofJapanesecooperation through the utilization of its officialdevelopmentassistance(ODA)modelofassistance.

The Delhi Mass Rapid Transport System Project (DelhiMetro)trulymettheneedofthehour.NewDelhiisoneof the world’s largest cities in terms of spread. Trafficcongestion is immense, and until 2002 when the firstmetro trains began operating, the only railways in thepopulous capital city were long-distance broad-gaugelineslinkingittotherestofIndia.ItisamodernmiraclethataprojectthesizeandscaleoftheDelhiMetrowascompleted within the planned timelines and budget.(Phase1startedin1996;theprojectiscurrentlyinPhase4.)Themetro inDelhihasalso tremendously improvedlifestyleandtransportationoptionsforresidents.

The success of the Delhi Metro additionally providedvaluable impetus for an enthusiastic embracing of theidea of a wider footprint for urban rail transit projectsacross India. Now an indispensable lifeline of Delhi,the Delhi Metro is rightly considered one of themostsuccessfulurbantransportprojectsintheworldandisanexampleofaJICA-supportedIndia–Japanpartnership.6

Thenatural extensionof this collaboration in transportinfrastructure development has been in the area ofintercity transport and high-speed railways. ThepotentialisenormousintermsofbothwhatIndianeedsand the need to balance growth with environmental

5 SeeJapanInternationalCooperationAgency(2012).6 SeeJapanInternationalCooperationAgency(2016).

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concerns. HSR systems offer inherent and prominentadvantages over similar systems, as is evident frompast global trajectories. For the recipient country, HSRsystemsadditionallybringwiththemabouquetofnewlearnings and technology transfer in areas as wide astracklaying,signaling,andstationmanagement,aswellastheopportunitytoformanewoutlookonpunctualityandsafety.

The foremost factor that makes high-speed railwayssignificant is the pace of growth in India’s megacities.A robust, young nation with a population of roughly1.3 billion, India can expect an estimated 275 millionpeople or more to move into its teeming cities overthenext twodecades,apopulationroughlyequivalentto that of the United States. Such“gateway cities” willcontinuetoprovideemploymentandlifestylechoicestoapopulation searching forgrowthandopportunity formanyyears.

However, realizing the limits on burdening a few coremegacities and the need to allow breathing space inthe form of more hubs of employment and industrialactivity,theIndiangovernmentisoncoursetodevelopseveral industrialcorridorprojects inan integratedandcoordinated manner as part of the National IndustrialCorridorDevelopmentProgramme.Thiseffortisaimedatdevelopingmultiple contiguous stringsof future-readyindustrialcitiesalongcorridorsthatoffer“plugandplay”infrastructure connectivity.7 The underlying principlesupporting this initiative is that faster transportationoptions and multiple urban centers along industrialcorridorsarenot justadecongestiontoolandameansof gaining competitive advantage, but also a driver ofeconomicgrowthinitsownright.

Against this backdrop, it is essential to note that as asector responsible for producing 23% of all worldwidecarbondioxide(CO2)emissions, transport is thesecondlargest source of human-made CO2, second only tocommercial energy production. This alarming statisticis largely the result of the skew toward road traffic,which alone accounts for 73% of all global transportemissions.9 Compared to this, railways are widelyaccepted as themost carbon efficient among allmasstransportation systems. Comparative data shows acrucial advantage that railway systems enjoy in terms

of carbon emissions, with emissions standing ataround 19  grams (g) of CO2/passenger/kilometer (km),compared to 51 g of CO2/passenger/km for buses and109gofCO2/passenger/kmforairlines(Takeshita2020;Takeshita 2012). Although average emissions maydependonavarietyof factors,suchdatapointsoverallreaffirm the inherent benefits of railway systems ingeneralandHSRinparticularduetospeedandcoverageadvantages.

InemergingeconomiessuchasIndia,intercitytransportis most often performed by road or air. As a result,the carbon footprint ismuch higher than the share ofoverallpassengertransportperformance.Thiscreatesachallengeforgovernmentstodevelopaneconomicallyandenvironmentally sustainableecosystemof intercitytransport.

In terms of direction, India under PrimeMinisterModihas been committed to addressing environmentalconcernsandachievingParisAgreementcommitments.In the last few years, the government has undertakena series of environmentally conscious policymeasures,and the carbon data is already showing reassuringresults (emission intensity down 21% vs. 2005 levels;solar capacity up from 2.63 gigawatts in 2014 to 36gigawattsin2020;renewableenergycapacitygrowntofourthlargestglobally).

In the railways segment, Indian Railways is on trackin its mission to achieve its 20-gigawatt renewableenergy generation target and to become a net-zerocarbonemitterby2030 throughacombinationofnewtechnology initiatives, increasing themix of renewableenergytothegrid,andactivedeploymentofsolarenergyprojects (Yadav2020).Given this trendand the targetsoutlined in the National Rail Plan, it is only befittingthat India is incorporatinganenvironmentallysensitivetransportationsystemsuchashigh-speedrailwaysevenasitstrivestosurpassgreencommitments.10

Another reason high-speed corridors are a credibleoption for India is apparent from the data on policyinterventions and carbon footprint in intercitytransportation. Results from recent research suggestthat for achieving and maintaining viability of HSRcorridors,governmentsneedtodevelopandintroduce

7 SeedataonindustrialcorridordevelopmentbytheDepartmentforPromotionofIndustryandInternalTrade,GovernmentofIndia:https://dipp.gov.in/programmes-and-schemes/infrastructure/industrial-corridors.

8 SeeAmericanPublicTransportationAssociation(2011).9 SeePMIndia(2020).

Of the People, for the People: Economic Corridors, High-Speed Railways, and Quality of Life in Post-COVID-19 Asia 4 5

low-carbon transport policies from a longer-termperspective.This,however,needs tobeundertakenatthe optimum economic growth stage of a country inordertoachievepolicyobjectives.

The viability of a mass transit system depends onboth population density and per capita GDP. With apopulationofaround1.3billionandapopulationdensityof367/km2(higherthanJapan’s337/km2),aburgeoningeconomy such as India finds in systems such as high-speedrailways the ideal solutiontoenvironmentalandtransportationissues.ThesizeoftheIndianmiddleclasshoveredatsome50millionpeoplein2007,butby2025will have expanded dramatically to 583million—some41%ofthepopulation.Thesehouseholdswillpotentiallyseetheir incomesincreaseto51.5trillionIndianrupees($1.1billion)—11timesthelevelof2007and58%oftotalIndianincome.10

Additionally,India’sGDPpercapitainpurchasingpowerparity(PPP)termsalreadycrossedthe$6,000markasof2007.Thisisrelevantandcanbeconsideredaninflectionpoint:theworkofcreatingahigh-speedcorridorspansa decade or more, but countries that are consideredheavyweights inHSRdevelopmenttodaytookthe leadin initiating corridor development at similar or evenlowerGDPlevels(Japanat$4,700,PRCat$6,200)(SeethaRamandBharule2019).

Thus,intermsofGDPindicatorsanddata-basedcriteria,thereislittledoubtthatIndiameetstherequirementsfortheintroductionofHSRsystems.ThekeyissueforIndianplannersandpolicymakersgoingforwardmightbethewhere rather than the why—i.e., correct and suitablecorridorselectioninacountrywithdiversedemographicsandneeds.Selectingoptimumconnectinghubswouldthen set the stage in the larger region to offer sizablebenefits to stakeholders such as local residents andindustry,passengers,andrailwayoperators.

For corridor-level criteria, indicators such as railwaypassenger volume and corridor distance must betaken intoconsiderationwhen identifyingsuitableHSRcorridors. A daily passenger volume of approximately5,000betweenterminalstationsisconsideredsufficientto support the economics of the effort and to propelgrowth along the corridor. Data also suggests that intermsofintermodalpreferences,onaveragepassengers

are likely to prefer a high-speed train over air travelfor journeys where the distance is under 1,000 km,since travelling by high-speed train is time- and price-competitive.

While laying the groundwork for a fully-fledged high-speedrailnetworkcantakedecades,onceimplemented,such efforts bear rich fruit overmany decades. Steadygrowth in passenger volume can be expected inareas along shinkansen lines as they become morepopulated in response to the benefits offered by thenew transportationecosystem.Forexample,passengervolume along the Tokaido shinkansen route, whichstood at 85,000/day in 1965 before the bullet trainbecameoperational,hassincegrowthatasteadypaceto reach the now formidable number of 378,000/day(Takeshita2019).

AsIndiaextendstheinitiativetocreate,nurture,andlinkurbanhubsalongcorridorrouteswithfaster,sustainable,and more environmentally sensitive transportationnetworks11 (Yadav 2020), it is only natural that it hasturned toapartner suchas Japan tocontinue itsworkon high-speed railways. Appreciating that integrationof technology is essential, the Indian government haschosen one country and one technology system asa partner for this ambitious project—Japan and itsshinkansen.

As two strong Asian nations held together by sharedcultural and democratic values, in 2013 Japan andIndia embarked on the next step of joint partnershipin the sphere of transportation with the signing ofa memorandum of understanding for an Indian HSRproject. With the commitment to the 508-km bullettrain corridor between Mumbai and Ahmedabadconsecrated, and financial and technological contoursagreedupon,theambitiousMAHSRProjectisoncoursetobringJapan’sshinkansen technologyto Indiaandtoagain change not only the way India commutes andconnects, but also how India thinks about safety andmobility.

It is a promising and decisive step forward. There islittle doubt that theMAHSRCorridor has the potentialto be an inflection point, to revitalize India’s view ofrailwaytransportation,andtotriggernewdynamicsforeconomicgrowth.

10SeeFarrellandBeinhocker(2007).11SeeIndianRailways(2020a).

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Contours of the Mumbai–Ahmedabad High-Speed Rail CorridorThe MAHSR Corridor will be the first-ever high-speedcorridor in India and will link the two largest cities inthe neighboring states of Maharashtra and Gujarat inwestern India. Technical and financial assistance fromtheGovernmentof Japan through JICAwill enable thecreationoftwelveshinkansenstationsalongastretchof508.17km.Theprojectwillbeexecutedandmaintainedby the National High-Speed Rail Corporation Limited(NHSRCL),a specialpurposevehicle (SPV) incorporatedin2016withequityparticipationbythegovernmentofIndiaandthetwostakeholderstategovernments.

Theshinkansenisknowntobegentletotheenvironmentand to have a low carbon footprint compared to airtransportation. In keeping with that philosophy andIndia’s own environmental guidelines, the Mumbai–Ahmedabad project has taken exceptional efforts toavoid disturbance to wildlife sanctuaries and naturalecosystemsthatexistalongitsroute.Theseeffortshaveresulted in some creative and ambitious technologicalworkarounds, some of which are sure to becometextbookreferencecasesofthefuture.

OnedefinitiveexampleofinnovationisthehandlinganareanearthenodalstationofMumbai,theThaneCreektrack, which passes a protected flamingo sanctuary.Respectingthemangrovehomeofthepinkflamingoesthatmigrate to the area (also known as“the forests ofMumbai’s breathing roots”) between December andMayeachyear,railtracksforthehigh-speedtrainsystemtherewill be taken undersea through a special single-tubetunnelthatwill run40metersbelowgroundlevelunder the marshland. Once constructed, this tunnelwill become the longest rail transport tunnel and alsothe first-ever undersea rail tunnel in India. NHSRCLcompleted the survey of the mangroves around thecreekusinglightdistanceandranging(LIDAR)—anaerialsurveyoftheforestusinga100-megapixelcamera.Thisis the first timefor theLIDARtechnologytobeused inIndia,asopposedtoatraditionalmanualsurveyonfoot.Aerial survey allowed the process to be completed inunderthreemonths.12

One more key element of the MAHSR Project is thetransfer of technology and personnel training in HSRexpertise. Japan’s bullet train is a symbol of Japan’s

dedication to constant innovation, precision, and astellar safety record. Going forward, key technologicalandbusinesscultureaspectsoftheJapanesephilosophyon bullet trains are expected to be adopted in Indiaas it gains confidence and expertise in building andmaintaininghigh-speedrailsystems.

Additionally, the “Make in India” concept is expectedto provide strong motivation for Indian industry todevelop and imbibe high-end railway technology andpractices,andtoprovidetherequiredmomentumforaleap forward incapabilitybuilding (Khare2020).This isexpectedtooccurthroughjointventuresandknowledgetransferpartnershipsbetweenthetwocountries,aswellascollaborationbetweenresearchinstitutionstocreateindigenoussolutions.

Tofacilitatethetrainingofpersonnelwhowillbuildandmaintainthehigh-speedtraincorridor,ahigh-speedrailtraining institutewill be set up alongside theNationalAcademyofIndianRailways(NAIR)inthewesternIndiancityofVadodara.This training institutewill be the seatof learning and the core training ground for NHSRCLstaff,someofwhomwillbetrainedinJapanbyJapaneseexperts in shinkansen technology and practices. TheHigh-Speed Rail Training Institute is expected to serveas a backbone for future development efforts as Indiaexpandsitsfootprintofhigh-speedcorridorsbeyondtheflagshipproject.

In its draftVision 2024 of theNational Rail Plan issuedin December 2020, the Indian Railways has called forinfrastructure capacity enhancement and preparatorywork for the expansion of high-speed railwaysto additional corridors across India.13 This vision forexpansion suggests strong potential for businessopportunities not only for Indian contractors, but alsofor private sector participants and high-speed railcontendersfromacrosstheglobe,includingJapan.

During his 2017 official visit to India for thegroundbreaking ceremony for the bullet train project,Prime Minister Shinzo Abe expressed a strong desireto travel with Prime Minister Narendra Modi on theinaugural trip of theMumbai–Ahmedabadbullet train.India and Japan remain steadfast allies in a numberof spheres, and the inauguration of the first Indianshinkansen is certain to be amilestone that is warmlywelcomedbybothcountries.

12SeeNHSRCLdataontheMAHSRproject:https://nhsrcl.in/en/home.13IndianRailways(2020b)

Of the People, for the People: Economic Corridors, High-Speed Railways, and Quality of Life in Post-COVID-19 Asia 6 7

The Japan Precedent: Safety, Spillovers, and Lessons for India and Beyond

History

Global experience suggests that as the actual numberof cities and the population of emerging economiesincrease, theareasalong train linesandcorridorsmeldandwebegintoseecitiesgrowingandmerging,furtherincreasingtheircloutasaresultofeaseoftransportandcommuting.High-speedrailisamajorcontributortothisfusion of urban centers (Pagliara, Hayashi, and SeethaRam2019).

As an example, Japan’s high-speed system hastransformed the greater Tokyo area into a super city-region of close to 100 million people. The shinkansenhas emerged as an invaluable part of Japan’smobilityandeconomystoryandhasgrowntoa22,000-kmhigh-speednetworkofninepassengerdedicatedlines(PDLs)operatedby the JapanRailways (JR)Group throughsixregional companies. Of these, JR East alone overseesfivedifferentradialcorridorswithTokyoastheterminalstation,servicinganastounding106millionpassengersayear(Kawai2020).

HSR in Japan is respected for its speed (optimal timeutilization for passengers), safety (zero fatal accidentssince inception), punctuality (less than 30-secondaveragedelaypertrain),andconvenience(onetraineveryfourminutes). In time, these benefits and benchmarksare expected to percolate to Indian operators andpassengersastheshinkansen takesoff in itsnewhomeoutsideJapan.

Shinkansen and Safety

A zero fatality rate over more than half a century ofoperationisaformidableachievementbyallstandards.Japanwasabletosustainthis impressiverecordthankstoamixoffactorsthatprovidekeyinsightsforemergingeconomies that hope to incorporate HSR systems intofuture regional development plans. Undoubtedly, themix of stringent and continuous efforts in technologyimprovement,humanresourcemanagement,operationand maintenance, and safety measures has been theresultofaseriesofiterationsandimprovements.

Atthetechnologylevel, theRailwayTechnicalResearchInstitute (RTRI) has been the nodal organization for

research and technological development since 1986.For theshinkansen,RTRI’s researcheffortshavefocusedon three key areas: (i) safety improvement (such asearly disaster warning systems), (ii) green measures(enhanced energy efficiency/noise reduction), and(iii) enhanced customer experience (reducing vehiclevibration, smartcard-based ticketing systems, etc.). Asanexample,consistenteffortsaimedataddressingonekeyproblemarea—noisereduction—haveresultedinaseriesofsolution-orientedadvancessuchaslowernoise-emitting pantographs, lighter car bodies, advances instreamliningthenoseof theshinkansen car,andbetterrail andwheelgrindingpractices toproduce smoothersurfacesandlowerfrictionandnoise(Uzuka2020).

Suchadvanceshavebeenincorporatedintobullettrainhardwareover iterativeeffortswithactiveparticipationfromstakeholderssuchasoperatorsandmanufacturers.As India expands its HSR footprint in the years ahead,itwillbecomean interestingcasestudyas thecountrywidensitsthrustfrom“MakeinIndia”to“MakeforIndia”technological innovations to suit its unique conditionsandtopography(Khare2020).

At the operator level, since the start of operationsin 1964, JR companies have been on the front linedefending the shinkansen’s pristine safety record ofzero fatalities. This is the result of a combination ofinfrastructural and systemic measures and personneltraining forhuman interventions.At thesystemic level,the shinkansen has some unique built-in efficiencies,suchasdedicatedtracks,theabsenceoflevelcrossings,andautomatictraincontrol (ATC)systemsthatrespondtotrackconditionstoassessthedistancefromthenexttrain.Butevenbeyondthesesystemicmeasures,itistheeffortandresourcescommittedtotrainingstaffandthethoroughnessofthemaintenanceandoperationregimethathavecontributedsignificantlytothesafetyrecordofzerofatalities(Kawai2020).

Iterations and improvements continue, and even asrecently as 2019, JR East spun off a new dedicateddivision—theshinkansenmanagementdepartment—tofocusonshinkansenoperationandmaintenanceactivitiesas a separate entity from conventional-line operations.According toMasatoshiKawai, SeniorExecutiveOfficer(JR East), the operator works on the philosophy thatwhile what is foreseeable can be prevented throughnon-human interventions such as ATC systems, “oureffortsneedtobeandareequallyfocusedonsensitizingpersonnel to the importance of making correct andtimely human interventions for emergencies that areboundtooccurinthecourseofoperation.”Theessence

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of these efforts is effective training of the key humantriangle of drivers, conductors, and dispatchers torespondtoarangeofpotentialemergencies,fromsnowandfogtothecouplinganduncouplingoftraincars.

Apart from the operator’s own training modules, anational level accreditation system is overseen by theMinistryofLand,InfrastructureandTransport.Here,theshinkansen driver’s license requires trainees to pass anaptitudetest,atesttobecomealearnerdriver,awrittentest, and then, finally, a technical-ability test. As morecountriesinAsiacreatefastermobilityoptionsandhigh-speed corridors, the improvement curve of operatorssuch as JR East provides a valuable reference pointregardingthecriticalneedtonurturehumantalentanda supportive ecosystem in addition deploying cutting-edgetechnology.

AnencouragingfactfornewembracersofHSRtechnologyisthattheselearningshaveinthepastbeentransferredeffectively in success stories such as Taipei,China’sshinkansen project. Considered the first true export oftheJapaneseHSRsystem,theTHSRopenedoperationsin2007.TheJapanRailwayTechnicalService(JARTS),anassociation of major railway operators, suppliers, andbuildersinJapan,front-endedtechnicalassistanceeffortsthrough the dispatch of Japanese experts in electricalandmechanical(rollingstock,electrical,signaling,track)systems.TheTHSRisbasedonanas-ismodelofJapaneseelectricalandmechanicalsystems.

A key learning from the THSR project seems to bethat the key to knowledge transfer and sustainabilityoften lies in steadily building local capabilities, whichmakesthattaskthe“mostcriticalfactorfordeterminingsustained success” (Kono 2020). Given the long post-constructionperiodwhenanoperatorisresponsibleformaintaining the sophisticatedmobility system, JARTS’sefforts in Taipei,China focused on providing effectiveadvisory support through international experts at theinitial stages of a project, coupled with a transfer ofknowledgeandtechnologytoassist localcounterparts.BasedontheTaipei,Chinaexperienceanddata,itisclearthat effective transfer of knowledge needs to work inconjunctionwitheffectivepercolationofknowledgeandcapabilitybuildinginordertoachievetruesuccess.

In theMAHSR Project, such assistive interventions willagain be essential especially in the early stages andare certain to spur growth in in-house talent at theoperator,NHSRCL.AstheconstructionworkfortheIndiashinkansen project takes off and Indian counterpartsmature to a stage where training and certification of

experts is handled solely by Indian shinkansen expertsat its training facility inVadodara, theprojectpromisesto become a seat for learning for future generation ofengineersandexpertsof India-orientedhigh-speedrailoperations.

Shinkansen Networks, Quality of Life, and Spillover Effects for CommunitiesExperience from Japan demonstrates that the impactofHSR onquality of life stretches beyond the evident.While an HSR may not in itself be a sufficient toolfor socioeconomic growth, benefits accrued from arobust and expansive HSR network are irrefutablynumerous, as greater regional reach and integrationtriggers QOL benefits in terms of greater well-being,ease of transportation, decongestion of cities, andmore comfortable and affordable housing options inheretofore underexplored and underpopulated areasalongnetworklines.

Such diversion to outer cities also contributes toalleviating the problemof congestion andpollution inhigh-density urban areas.The COVID-19 pandemic haspushedcountriesandcommunitiestourgentlyaddressthetwinissuesofcongestionandcommuting.TheHSRserves well on both counts—it is amode of transportthat requires comparatively lower close contact withfellowpassengers in tight spaceswhile simultaneouslyoffering easy access to work and housing options inuncongestedareasoutsidemaincities(Hayashi2020).

ThebusinessmodelofatypicalHSRstationalsoprovidesaspringboardforcommercialactivity.AnHSRstationinJapan is typically filled with shops and public servicesthatattractfootfallandisintegratedwithurbanrailwaysand taxi services to facilitate last-mile connectivityandconvenienceoftransfer.ThismakestheareaaroundanHSR station an ideal hub for commercial spaces andeconomicactivity, formingagrowthdriver that in turnboosts real estate value, income levels, and revenuesources. These are only some of the salient spillovereffectsofHSR.

Timely policy interventions to optimize economicactivity along HSR corridors have in the past reapedconsiderable benefits for impacted regions. Data fromJapan demonstrates a clear correlation between GDPgrowth and shinkansen ridership along all routes,making shinkansen a tool of transformation as well astransportation.AnHSRnetworkshouldbeconsideredatoolthatcanhelpachieveavarietyofpolicyobjectives,

Of the People, for the People: Economic Corridors, High-Speed Railways, and Quality of Life in Post-COVID-19 Asia 8 9

including(i)addressingexistingcongestionortransportcapability issues, (ii) improving mobility options as ameans for achieving overall economic growth, and (iii)revitalizing regional economies through better access(Shukuri2020).

Although questions linger about the commercialviability of capital-intensive systems such as HSR (bysomereportstheTokaidoshinkansenrecoveredcostsin7–8years),14 theQOLbenefitsare indisputable.Even intermsofconstructioncost,newerentrants thatborrowfrom Japan’s case studies should be able to improvebreakevenperiodsbyadoptingcreativeapproachesthathavesucceededinthepast.

Forexample,theoperatorinJapanisnolongerburdenedwith the construction cost of new shinkansen lines.This cost is typically shared between the local andcentralgovernment,andtheconstructionitselfiscarriedout by the Japan Railway Construction, Transport andTechnology Agency (JRTT) (Shukuri 2020). This givesthe operator the leeway to focus on operation andownership of rolling stock while exploring additionalrevenue streams such as the ever-promising “lifestylebusiness”ofretailandcommercialservicesinandaroundHSRstations.

The Road Ahead

CapitalconstraintsandlandacquisitionissuesaretoutedaskeyreasonswhyHSRadoptionhasbeenslowerthanexpectedinsomepartsofAsia.Whatmaybeaspertinentis that Asian countries that have already adopted andinvested in HSR systems are reaping tangible benefits

intermsofmobility,QOL,andasharppaceof regionalintegration, leading them to invest further in HSRsystems.

Even amid a once-in-a-century global pandemic,considerable strides are being made in the space.In Japan, JR East has announced plans to conductautonomous test runs of its E7-series shinkansenbullet trains next fall, with the aim of operating suchautomated trains in the future.15This is evenas JapanproceedswiththeconstructionoftheChuoshinkansenusingmaglevtechnology16toconnectthethreemajormetropolitanareas(Tokyo,Nagoya,andOsaka).Amonglaterentrants,thePRCalonehasbuiltanHSRnetworkof over 30,000 km in nearly two decades to connect80%of the country’s large cities;17 inNovember2020,Bombardier’s Chinese joint venture announced it hassecuredanewcontracttobuild112additionalCR300AFhigh-speed train cars18 for the PRC’s high-speed railnetwork.

Muchof theworld isonlybeginning toemerge slowlyfrom the cycle of COVID-19 outbreaks and lockdownsthat paralyzed economic activity for the larger part of2020.Asapositive,thepandemichastriggeredarethinkregardingglobal supply-chaindependencies, thevalueof living in uncongested communities, and the idea ofcommutingthroughsafeandsustainablemeans.

This isapivotal turningpoint forAsiaas itwaits for itsmoment. As a safe and environment-friendly tool formobility and regional integration, high-speed railwaysystemshavemuchtoofferandcouldwellbecomethevehicletotransportAsiancountriestotheirtrueageofgrowthandprosperity.

14VermaandParakala(2015).15RailwayGazette(2020).16Bharule,Kidokoro,andSeta(2019).17Xinhuanet(2017).18Bombardier(2020).

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ADBI Policy Brief No. 2021-2 (February) 12

ADBI–Chubu University Conference on Transportation Infrastructure Development, Spillover Effects and Quality of Life 12–16 October 2020 (Online)

Organizers: Asian Development Bank Institute, Chubu University, World Conference of Transport Research Society Special Interest Group A4

Supporting organizations: Ministry of Land, Infrastructure, Transport and Tourism (MLIT); Japan International Cooperation Agency (JICA); Japan Railway Technical Service (JARTS); East Japan Railway Company (JR East); National High-Speed Rail Corporation Limited (NHSRCL)

This policy brief draws on discussions held at the session titled “Policy and Innovation for Transport 2.0 – Building a National Network of the High Speed Rail in Asian Countries” (15 October 2020).

• We thank the speakers and participants at the session for their valuable contribution:• Vinod Kumar Yadav (Former Chairman and Chief Executive Officer of Railway Board, Ministry of Railways, India)• Yasaburo Hikasa (Assistant Vice-Minister for International Affairs, MLIT, Government of Japan)• Kenichi Yamamoto (Director General, JICA)• Haruhiko Kono (President, JARTS)• Masatoshi Kawai (Senior Executive Officer, JR East)• Tetsuo Uzuka (General Director, Railway Technical Research Institute, Japan)• Achal Khare (Managing Director, NHSRCL, India)• K. N. Satyanarayana (Director Indian Institute of Technology Tirupati, India)• Masafumi Shukuri (Chairman, International High-Speed Rail Association, Japan)• Yoshitsugu Hayashi (Chubu University, Japan)

Special thanks: KE Seetha Ram (Senior Consulting Specialist for Capacity Building and Training Projects, ADBI; Visiting Professor, University of Tokyo; Special Advisor to JR East for India High Speed Rail)

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