The city introduced Japan’s first light rail transit (LRT), called PORTRAM, by utilizing the former JR Toyama-port line’s right of way accompanied by the extension of bullet train services to Toyama Station. The PORTRAM system with barrier-free stations and low-floor vehicles over the operation length of 7.6 km can smoothly carry elderly and disabled passengers to a variety of city destinations and bring wider environmental benefits, such as reduction in noise, air pollution, and CO2 emissions, to the whole city. Importantly, innovative project finance schemes were applied to split the roles of railway construction and system operation between public and private partners for the Toyama LRT. The public sector covers all the construction cost of the LRT system, including vehicles, railways, and depots, and the maintenance cost of these facilities, whereas the transit operator founded by several local governments and private companies recovers operation costs from fare revenues. The city filled the capital funding gap by arranging the national government’s road improvement programs and contributions from transit companies and by saving land acquisition costs with the former JR railway’s right of way.
Caveat of applying this approach is that specifically for the Toyama case, the city had sufficient funds to cover construction cost of the LRT system, including vehicles, railways, and depots, and the maintenance cost of these facilities. Utilizing right of ways of previous public transport systems can also be useful.