East Japan Railway (R East) is making a bold push into Asia as Japan'sdomestic market faces shrinking populations and limited growth. According toNikkei, the company is training Indian drivers for its high-speed rail projectand bidding to manage commuter lines in the Philippines, signaling a majorexpansion beyond its Tokyo stronghold. The move reflects IR East's ambitionto reach cumulative overseas sales of over 100 billion yen ($663 million) by2032. Thailand has already been a testbed for jR East's international strategy. In2016, the company supplied 63 carriages to Bangkok's Purple Line andcontinues to maintain rolling stock and ground facilities through a local jointventure with Marubeni and Toshiba. The company is now exploring similaropportunities across Asia, selling carriages and providing maintenancecontracts as it builds its overseas railway business.India is the centerpiece of jR East's high-speed rail ambitions. The Indiangovernment plans to purchase the company's next-generation E10 shinkansentrains, and jR East is currently instructing 16 Indian trainees on Japanesedriving techniques. Prime Minister Narendra Modi rode the TohokuShinkansen during a visit to Japan in August, highlighting the diplomaticdimension of this collaboration. Meanwhile, in the Philippines, JR East,alongside a subsidiary of Paris public transport operator RATP, plans to bid foroperations and maintenance of the new North-South Commuter Railwayrunning through Metro Manila.Indonesia has also become a critical market. JR East has provided technicalsupport for rolling stock and pantographs, staff training, and stationoperations, transferring around 800 used Tokyo-area train cars to Jakarta. Thecompany has also hired local talent from Indonesia and the Philippines,aiming to develop a workforce familiar with Japanese railway standards whileeventually placing them back in their home markets to support regionaloperations. To accelerate expansion, JR East acquired Singapore-based railroadconstruction company Gates PCM in 2023 and plans to continue usingmergers and acquisitions as a foothold in Asia. In July, the company setambitious sales targets for its overseas business, reflecting a strategic pivot asdomestic markets stagnate amid Japan's aging population. Nikkei notes thatwhile Japan's urban rail network remains world-class-Shinjuku and Shibuyastations among the busiest globally-competition in Asia is intensifying.European operators and Chinese state-owned CRRC are aggressively vying forcontracts, turning partners like RATP into potential rivals.JR East's strategy goes beyond trains. By establishing a specialized overseasdivision next year, the company intends to integrate non-rail businesses suchas station facilities and urban development projects with railway operations.The goal is clear: leverage Japanese safety, punctuality, and technicalexpertise to dominate the rapidly growing commuter and high-speed railmarkets across Asia before competitors seize the opportunity.
