Suica Simplified

You might think that JR East has installed Suica gates in every station but this is not the case: as of 2018 Suica is installed in roughly half of JR East’s 1667 stations. The reason is cost. Unmanned stations have simple Suica gate readers but apparently the cost of these is an obstacle. Fast local processing is one of the advantages of Suica but I suspect the dedicated network backbone costs for linking and syncing with JR East servers doesn’t come cheap.

JR East is fixing the cost problem by developing a new cloud based Suica gate reader that can easily be installed anywhere. The trade off is slightly slower speeds, perhaps, with the benefit of lower installation and maintenance costs. JR East said they expect to reach 100% Suica deployment with the new model and hope to sell it internationally.

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Lost and Found

I was not familiar with Tile but after reading Twitter user Ken’s lost and found on a Japanese train story, I’m intrigued, though I do agree that the community aspect sounds a little hairy. A good read and it’s great that he found his passport and luggage.

JR East Reserve Seat Ticket Machines Going Cashless


2019 looks to be a year of change and going cashless. JR East is swapping out old reserve seat ticket machines with new ones that only take credit cards and transit cards (Suica, PASMO, etc.). This sign in Ikebukuro station says the last day for cash purchases is February 27, cashless operation starts March 1. From this date customers who want to buy reserve seat ticket purchases with cash have to line up at JR Ticket Offices (Midori-no-madoguchi) and at Travel Service Centers (View Plaza).

It will be interesting to see if the new machines will use the ‘smart bin’ design approach that accepts both plastic cards and smartphones for Apple Pay Suica, etc.

The Japanese Transit Platform Business Model

It’s about time. Somebody from outside Japan finally took in the big picture of the Japanese Transit Platform model and wrote a business outline of it in English. Egon Terplan of the San Francisco Bay Area Planning and Urban Research Association (SPUR) came to Tokyo and liked what he saw: Falling in Love With the Trains of Japan.

By 2017, Japanese trains carried nearly 30 percent of all rail passengers in the world, more than all of Europe. But unlike many European countries, Japanese rail companies are privatized, with for-profit publicly traded companies running separate rail lines all around the country.

JR East, the largest of the JR companies, carries 17 million passengers per day on 12,300 trains. (By comparison, Amtrak carried just 31.3 million passengers during all of 2016, a record year in ridership; the New York City subway averages 5.5 million daily rides and BART, 430,000.) And JR East’s $26 billion in annual revenue includes no government subsidies.

Terplan then lists what he thinks are the major components:

  1. Allow rail operators to become real estate developers to capture the value they bring to the stations.
  2. Turn stations into major destinations.
  3. Build over tracks to create new land opportunities.
  4. Dramatic reductions in travel time between cities can lead to major increases in rail’s market share.
  5. Interoperable rail cards (Suica, etc.) are key to making rail easy to use nationwide.

Essential points all, but Terplan doesn’t explain the importance of how all the different infrastructure pieces not only integrate (Shinkansen, regular lines, subway, buses, station retail, services, Suica, etc.) but also create a whole that is much larger than the sum of parts, and why. Perhaps he is only outlining the model and will return with a deeper analysis later. I certainly hope so because it’s a great transit model for other countries to adapt and adopt. Hong Kong already has a similar system on a smaller scale as does South Korea and Taiwan.

The last component, nationwide interoperable Japan Transit IC prepaid cards for transit and store purchases aka Apple Pay Suica, is the secret sauce binding everything together into a tight slick business model. That is the missing why and it’s just starting: interoperable features like Shinkansen e-ticketing, commuter passes, local loyalty point systems and hosting everything on digital wallets are still weak points. JR East and Sony are busy creating the next generation ‘Super Suica’ format that aims to integrate everything while reducing costs and taking it to the next level.