Hiroshima Electric Railway

Basic Information

Stock Code: 9033
Industry: Land Transportation Industry
Category Detail: Land Transportation
Prefecture: Hiroshima Prefecture
Establishment Year: April 1942
Listing Year: March 2000
Official Website: https://www.hiroden.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: ZOA, Toami, Tokyu, Odakyu Electric Railway, Keisei Electric Railway, Niigata Kotsu, JR East, JR West, JR Central, Tokyo Metro, Kintetsu Group Holdings, Hankyu Hanshin Holdings, JR Kyushu

Overview

Hiroshima Electric Railway, established in 1942 and centered in Hiroshima Prefecture, operates rail-tramway, bus, and real estate businesses, supporting the region's public transportation as the largest streetcar operator in the Chugoku-Shikoku region.

Current Situation

For the fiscal year ended March 2024, consolidated sales were approximately 30.5 billion yen, with a net profit of 760 million yen, achieving profitability. The rail-tramway business boasts Japan's longest route length and highest passenger numbers, serving as the foundation for regional transportation through integrated rail and tram operations. The bus business, centered in Hiroshima City, covers approximately 1,400 km of operating routes and generates stable revenue as the largest bus operator in the Chugoku-Shikoku region. The real estate business engages in lineside development and office leasing, supporting the group's revenue. It is advancing construction of the new Eki-mae Ohashi Line and loop line, as well as extension of the Ujina Line, with a focus on service improvements. Promoting sustainability through eco-friendly buses, ultra-low-floor vehicles, and the MOBIRY DAYS payment system. Moving forward, it aims for growth through multifaceted business development centered on community-based transportation.

Trivia

Interesting Facts

Japan's largest streetcar operator, with top domestic route length and passenger numbers.
Resumed Miyajima Line operations just three days after the Hiroshima atomic bombing in World War II.
Women have been active as drivers since wartime, with female students supporting postwar reconstruction.
Actively introduces overseas used streetcars, called a 'museum of moving streetcars.'
Deploys diverse bus routes for the region, the largest bus company in Chugoku-Shikoku.
Composite enterprise with multiple businesses including rail-tramways, buses, real estate, and tourism.
Provides technical support for new local light rail developments, contributing to nationwide railway expansion.
Offers advanced services like unique transfer fare systems and MOBIRY DAYS.
Formerly hosted the Honorary Consulate of the Federal Republic of Germany at its head office.
Plays a historically important role as central Hiroshima's transportation infrastructure.
Continuously adopts vehicles with designs and new technologies from Japan and abroad.
Charter streetcar service for peace education specifying atomic-bombed streetcars.
Railway company that also operates supermarkets.
Features 'Railway Musume' characters beloved in the region.
Long history of talent development and regional cooperation, fulfilling various social roles.

Hidden Connections

Hiroden's atomic-bombed streetcar is preserved as a symbol of postwar reconstruction and a regional cultural asset.
Introduction of used vehicles from Germany forms part of cultural exchange in transportation between Hiroshima and Europe.
Support for Utsunomiya LRT contributes to local railway revitalization, serving as a model for regional public transportation.
Challenged flexible management structure through introduction and abolition of in-house company system.
Hiroshima Electric Railway Group has strong capital and personnel ties with Hiroshima Gas and others.
Significantly involved in major regional real estate developments and urban planning linked to transportation.
Strong ties to regional culture, used as a filming location for TV drama 'Western Police.'
Implements Japan's earliest first train departure on city lines, supporting commuting and schooling.

Future Outlook

Growth Drivers

Increased users accompanying new Eki-mae Ohashi Line and loop line
Strengthening of barrier-free vehicles and services
Fare revenue expansion through MOBIRY DAYS普及
Area expansion via route extension to Dejima district of Hiroshima Port
Increased tourism demand through strengthened regional tourism collaboration
Improved social evaluation through environmentally friendly vehicle introductions
Operational efficiency through digitalization and ICT utilization
Revenue stabilization through community-based multifaceted businesses
Expertise expansion through strengthened collaboration with local railways
Improved service quality responding to aging local population
Preparations for smart mobility introduction
Expectations for support backed by regional policies and national public transportation initiatives

Strategic Goals

Establish stable operations of Eki-mae Ohashi Line and loop line
Achieve full barrier-free fleet centered on ultra-low-floor streetcars
Complete introduction of MOBIRY DAYS payment system across all routes
Further integration and expansion of regional transportation network
Achieve over 70% ratio of sustainable environmentally compatible vehicles
Promote transportation culture and peace education through collaboration with regional society
Enhance services for elderly and disabled
Strengthen synergies between rail-tramway business and real estate/tourism businesses
Improve convenience and safety through DX in regional transportation
Corporate activities contributing to regional child-rearing support and job creation

Business Segments

Public Transportation Service Provision

Overview

Provides diverse transportation services to local residents and corporations.

Competitiveness

Rich route network and strong collaboration capabilities rooted in the community

Customers

Local governments
Tourism operators
Logistics companies
Event planning companies
Schools and companies

Products

Rail-tramway transportation services
Route bus services
Charter bus services
Transportation planning and operation support

Real Estate Development and Management

Overview

Engages in diverse real estate businesses leveraging lineside assets.

Competitiveness

Superior location advantages linked to the rail-tramway network

Customers

Corporate tenants
Home buyers
Commercial facility operators
Local governments
Financial institutions

Products

Office leasing
Residential and condominium sales
Land development
Real estate brokerage

Retail and Distribution Support

Overview

Operates retail business centered on Hiroden Store, contributing to the community.

Competitiveness

Product offerings adapted to local needs

Customers

Retail stores
Local consumers
Wholesalers
Local producers

Products

Supermarket operations
Product procurement and sales
Logistics support

Tourism-Related Services

Overview

Capturing regional tourism demand with diverse services.

Competitiveness

One-stop tourism services integrated with transportation

Customers

Tourists
Travel agencies
Local administrations
Accommodation facilities

Products

Ropeway operations
Tourist ferry operations
Travel package sales

Construction-Related Business

Overview

Provides construction works associated with real estate development.

Competitiveness

Local construction technology and experience

Customers

Real estate developers
Local companies
Local governments

Products

Residential construction
Commercial facility construction
Land readjustment

Competitive Advantage

Strengths

Japan's largest streetcar route length and passenger numbers
Community-based multifaceted transportation services
Service enhancements through proprietary ultra-low-floor streetcars
Revenue diversification through broad business expansion
Strong brand power rooted in the region from long history
Real estate development capabilities linked to the network
Introduction and operation of environmentally friendly bus vehicles
Utilization of advanced MOBIRY DAYS system
Strong regional customer base and brand trust
Proactive barrier-free initiatives
Multifaceted subsidiary group management structure
Customer touchpoints expanded through diverse sales channels
Close collaboration with local administrations
High integration of tourism initiatives and transportation infrastructure
Proactive stance on technology and operational improvements

Competitive Advantages

Largest streetcar and bus network in Hiroshima and Chugoku-Shikoku region
Differentiation through ultra-low-floor vehicles achieving barrier-free environment
Improved convenience via ongoing new route construction and extensions
Promotion of advanced payment systems such as MOBIRY DAYS
Integrated business model combining rail-tramways, buses, and real estate
High customer trust and brand strength built through long-term community ties
Promotion of vehicle modernization and diversification with German low-floor streetcars
Convenience provided by extensive compatibility with transportation IC cards
Agile operations through strengthened internal structures by specialty
Tourism transportation services linked to local attractions

Threats

Risk of shrinking regional transportation demand due to population decline
Intensified competition from motorization
Impact from changes in public transportation policies
Operational disruptions from natural disasters or pandemics
Cost pressures from rising fuel prices and labor costs
Competition from new transportation infrastructure
Ongoing burden of strict environmental regulations
Difficulty adapting to changing preferences of rail and bus users
Risks from fluctuations in regional economy and tourism demand
Reputational risks from technical issues or safety accidents

Innovations

2025: Eki-mae Ohashi Line Opening

Overview: New route connecting Hiroshima Station and Inarimachi in Minami Ward, significantly improving regional transportation convenience.
Impact: Contributes to increased users and improved circulation around the station.

2024: MOBIRY DAYS Payment System Introduction

Overview: Introduced new transportation electronic money payment system jointly developed with NEC and Reship.
Impact: Improved convenience of fare payments and operational efficiency.

2023: Ultra-Low-Floor Vehicle 5200 Series Introduction

Overview: Adopted new vehicles utilizing cutting-edge low-floor technology to strengthen comfortable barrier-free services.
Impact: Improved user satisfaction and transportation efficiency.

2022: Complete Revision of Fare System

Overview: Introduced different fare systems for cash and MOBIRY DAYS to promote usage on city lines and Miyajima Line.
Impact: Diversification of fare payments and promotion of usage.

2021: Ultra-Low-Floor Vehicle 1000 Series Expansion

Overview: Added multiple second-generation 1000 Series sets to increase the proportion of barrier-free vehicles.
Impact: Improved usage environment for elderly and disabled by eliminating steps.

2020: Smartphone Operation Support App Demonstration

Overview: Conducted experiments introducing digital tools for drivers to verify efficient operation management.
Impact: Enhanced operation safety and attendance management efficiency.

2025: Loop Line Development Advancement

Overview: New loop line in Hiroshima City to enhance convenience and urban circulation.
Impact: Synergistic effects of regional revitalization and convenience.

2023: Strengthened Support for Utsunomiya LRT

Overview: Technical support and crew training cooperation for Utsunomiya Light Rail to support railway business expansion.
Impact: Strengthened collaboration in local railway business.

Sustainability

Expansion of environmentally friendly bus (hybrid/CNG) vehicle introductions
Promotion of barrier-free transportation through ultra-low-floor streetcars
Promotion of cashless payments via transportation electronic money
Regional revitalization through public transportation hub development around stations
Ongoing sustainable real estate development and community contribution activities