Choshi Electric Railway: Fighting to Get Back on Track - Japan Railway Journal

Key Concepts

• Choshi Electric Railway: A private railway company in Choshi City, Chiba Prefecture, facing financial difficulties.
• Nude Sbei: A popular soy sauce flavored rice cracker originating from Choshi, a significant revenue source for Choshi Electric Railway.
• Station Naming Rights: A strategy employed by Choshi Electric Railway to generate revenue by selling the naming rights of its stations.
• Republic of Nauru: A small island nation that purchased the naming rights for Kasagami Kurohai station.
• Gakipuchi Summit: A meeting organized by Choshi Electric Railway to connect struggling local businesses for mutual support and collaboration.
• Rice Patty Art: A form of art created by planting different colored rice plants in paddy fields, visible from trains, aimed at regional revitalization.
• Aka Naiku Tetsto Railway (Aka Naidu Line): A third sector railway in Akita Prefecture known for its scenic rural landscape and rice paddy art.
• Aka Jongo: A chartered tourist train operated by Aka Naiku Tetsto Railway.

Choshi Electric Railway's Financial Turnaround Strategies

Choshi Electric Railway, a 6.44 km private railway line in Choshi City, Chiba Prefecture, has been grappling with declining ridership and financial hardship. Despite its location in a city with a productive fishing port and tourist attractions, the railway posted a loss in 2024 after three years of profitability.

Diversification of Revenue Streams

Historically, Choshi Electric Railway relied on its railway operations. However, a significant shift occurred with the success of its side business selling Nude Sbei, a local soy sauce flavored rice cracker. Currently, approximately 80% of the company's revenue is derived from food sales, primarily Nude Sbei. Despite this, rising ingredient and labor costs have impacted profit margins.

President Takimoto, formerly the company's tax advisor, adopted a philosophy of expanding beyond food sales. This led to the sale of various railway-related merchandise, including:

• Cans of ballast: Collected from the railway line.
• Paperweights: Made from cut sections of rail.
• Railroad spikes: Used to fasten rails to sleepers.

Innovative Revenue Generation: Station Naming Rights

A particularly attention-grabbing strategy has been the sale of station naming rights. These rights are sold for 500,000 yen per year. To date, eight out of ten stations have had their naming rights sold to various entities, including a housing construction company and a pharmaceutical company.

A notable example is the acquisition of naming rights for Kasagami Kurohai station by the Republic of Nauru, a small island nation in the southwestern Pacific with a population of around 12,000. The deputy director of the Republic of Nauru Tourism Office visited the station to discuss establishing a Nauru exhibit and selling related goods, aiming to showcase Nauru's culture and foster a connection between Choshi and the world.

Collaborative Efforts: The Gakipuchi Summit

Choshi Electric Railway is actively seeking partnerships to boost its performance. In July 2025, they organized the Gakipuchi Summit, a meeting designed to bring together struggling local businesses. "Gakipuchi" translates to "cliff edge" in English, symbolizing the shared precarious situation of the participating companies. Five businesses, including a craft beer brewery and a cardboard processing company, participated. They openly discussed their challenges, explored cooperation, and identified potential collaborations.

A direct outcome of the summit was a potential joint venture with a restaurant operating on a university campus. The restaurant owner, Mr. Nikkatska, who also produces ready-to-eat meals and bread, faces closure due to university management changes. By combining his expertise with Choshi Electric Railway's experience in food sales, they aim to expand the market reach of his products. The railway staff sampled his offerings to assess their potential as a new product line.

Enhancing Passenger Experience and Ridership

Beyond financial diversification, Choshi Electric Railway is also focused on improving its railway operations and attracting passengers.

Addressing Operational Challenges

The railway maintains its schedule with three train sets, each comprising two cars. President Takimoto, holding a driver's license, even steps in to drive trains during morning and evening rush hours when there's a driver shortage.

A significant challenge is the age of the trains. All current trains are over 60 years old and require costly repairs. To address this, the company purchased slightly newer trains (around 50 years old) from Nankai Electric Railway in Wakayama Prefecture. The purchase and renovation cost approximately 13 million yen. A crowdfunding campaign successfully raised over 12 million yen, enabling the acquisition of these newer vehicles. However, the funds were insufficient to cover painting costs, so the exteriors retain their original Nankai Electric Railway appearance.

Creative Interior Modifications and Event Trains

The interiors of the newly acquired trains have been uniquely modified with handmade touches reflecting Choshi Electric Railway's character. These include seats adorned with fish and sunflower designs, and playful silhouettes of cats and fish throughout the carriage, creating a whimsical charm.

These trains are utilized not only for regular local services but also as event and tourist trains. An example is a "moving classroom" event held in collaboration with an educational startup. These events often begin with entertainment like a magic show, followed by hands-on railway activities such as experiencing train washing and operating doors. Participants also engage in workshops, like using AI to control model train signals.

Strengthening International Ties: Taiwan Collaboration

Choshi Electric Railway has been actively fostering connections with Taiwan. Since signing a friendship exchange agreement with Taiwan Railway in 2017, they have participated in Taiwan Railway's Ekibben Festival since 2023 to promote their railway in Taiwan. This year's summer festival was themed around Taiwan, featuring Taiwanese cuisine from food trucks and a lantern festival inspired by a Taiwanese tradition of writing wishes on lanterns. To address environmental concerns, these lanterns are tethered.

Further strengthening this bond, Linlin, a Taiwanese influencer with over 170,000 subscribers, was appointed as a Choshi Electric Railway ambassador in March. Linlin regularly visits Choshi City to film and share content about the railway and its surroundings with her audience in Taiwan.

Perspectives on Choshi Electric Railway's Approach

Frank, a commentator, expresses excitement about Choshi Electric Railway's innovative approach, highlighting President Takimoto's willingness to take risks and think outside the box. He commends the sale of naming rights, particularly to an international entity like Nauru, for building global connections. Frank views President Takimoto as having a "startup mentality" and emphasizes the railway's crucial role in driving the regional economy by supporting local residents and businesses. He believes the company's success in diversification provides valuable knowledge for other local industries.

Regarding attracting international tourists, Frank advises against chasing virality. Instead, he suggests focusing on creating experiences that excite the community and employees, as this organic enthusiasm will naturally attract external interest. He believes the "DIY" and "handmade" aspects of Choshi Electric Railway, such as the unique seat covers and the inability to repaint the trains, contribute to its authenticity and appeal to tourists seeking "real Japan."

Railway Vistas: Aka Naiku Tetsto Railway and Rice Patty Art

The segment shifts to the Aka Naiku Tetsto Railway, a third sector railway operating approximately 95 km in Akita Prefecture. This line serves as a vital transportation route for locals and a popular tourist destination, traversing a vast rural landscape known for rice production.

Aka Jongo: A Tourist Train Experience

On weekends and holidays, the railway operates a chartered tourist train called Aka Jongo. A group of railway enthusiasts boarded the train to witness a unique visual spectacle.

Rice Patty Art: A Living Exhibition

As the train approaches specific locations, passengers are captivated by Rice Patty Art, a form of art created by planting different colored rice plants. This art is visible at five locations along the Aka Naidu line. The train slows down to allow passengers to appreciate these living artworks.

The first Rice Patty Art exhibition was held in 2008, and it has since become a beloved summer tradition. Local governments spearhead these initiatives to revitalize the area. The designs are selected from drawings submitted by local children, based on an annual theme. Local residents then plant the rice seedlings, with careful consideration for perspective to ensure visibility from the train and platforms. The art is at its peak from late June to early September.

Conclusion

Choshi Electric Railway exemplifies a resilient approach to overcoming financial challenges by embracing diversification, innovative revenue streams like station naming rights, and collaborative community initiatives. Simultaneously, it prioritizes enhancing the passenger experience through creative train modifications and international partnerships. The Aka Naiku Tetsto Railway showcases how regional revitalization can be achieved through unique attractions like Rice Patty Art, integrated with tourism infrastructure. Both examples highlight the potential for local railways to not only serve their communities but also to become drivers of regional economic and cultural development.