Sorry, it was my typo. JR Hokkaido is estimating annual loss of 4,800,000,000 yen (US$ 42.5 million) for Shin-Aomori and Shin-Hakodate-Hokuto portion of Shinkansen. Japan National Railway broke up and become private entity JRs in 1987, but Japanese government still owns 100% stock of JR Hokkaido. Likely good amount of tax payer money will be used to manage the loss.

Jyouetsu (roma-ji spelling) Shinkansen which runs to Niigata is nicknamed “Political Shinkansen.” Back in early ‘70s when JR was a government entity and construction and budget of Jyouetsu Shinkansen was approved by the government. Prime minister at that time (Kakuei Tanaka) was native of Niigata.

Some say Hokkaido Shinkansen was political also. Once Hokkaido Shinkansen extends to Sapporo in 2030, there is intra-Hokkaido business and leisure demand between Sapporo and Hakodate where Hokkaido Shinkansen can make some money, enough to be in black? When it comes to Hokkaido’s biggest demand then it is between Sapporo and Tokyo, obvious from number of 777s fly between Haneda and Chitose every day. (Used to be 747 haven. ) But because of the distance between Tokyo and Sapporo even JR knows that Shinkansen will not win over Tokyo-Sapporo.

Although Jyouetsu Shinkansen was political, because of the distance between Tokyo and Niigata Shinkansen could easily win over airplane. Before Shinkansen, there were express trains running between Ueno (Tokyo) and Niigata every hour so there was demand.