How a Japanese Regional Railway Survives by Combining Industrial Logistics with Factory Night Tours
A Half-Century of History Alongside the Industrial Zone
Kashima Rinkai Railway, operating along the Pacific coast of Ibaraki Prefecture, represents a unique model in Japan's regional railway landscape. Established in 1969 as a third-sector railway company, it was originally created to transport raw materials and products for the Kashima Coastal Industrial Zone—one of Japan's major petrochemical complexes.
The railway's primary shareholder remains JR Freight, reflecting its origins as a freight-focused operation. The founding partnership brought together the former Japanese National Railways (JNR), Ibaraki Prefecture, and various industrial companies establishing factories in the area.
In 1985, facing the potential abandonment of a planned national railway extension due to JNR's financial troubles, Kashima Rinkai Railway took over the 53-kilometer passenger line between Kita-Kashima (now Kashima Soccer Stadium Station) and Mito. This decision transformed the company into a rare regional railway operating both freight and passenger services.
Two Lines, Two Business Models
Today, Kashima Rinkai Railway operates two distinct railway lines with fundamentally different purposes.
Kashima Rinko Line (Freight)
- Route: Kashima Soccer Stadium Station to Okunoyahama Station (19.2 km)
- Operations: 3 round trips daily to Kamisu Station, 1 round trip to Okunoyahama (excluding Sundays and holidays)
- Primary cargo: Chemical products, industrial chemicals, food industry materials
- Connection: Links to Tokyo Freight Terminal and Koshigaya Freight Terminal via JR Freight network
Oarai Kashima Line (Passenger)
- Route: Mito Station to Kashima Soccer Stadium Station (53.0 km)
- Through-service to JR Kashima Jingu Station (additional 3.2 km)
- Serves commuters, students, and local residents
The freight-only Kashima Rinko Line doesn't appear on standard railway maps and remains largely unknown to the general public. However, this "hidden line" is now attracting attention as a unique tourism asset.
Factory Night Tours: A New Frontier in Industrial Tourism
The "Kashima Coastal Industrial Zone Factory Night Tour," launched during the 2023 Ibaraki Destination Campaign, has become a surprise hit among railway and photography enthusiasts.
This tour operates special passenger trains on the usually freight-only Kashima Rinko Line, offering participants a chance to experience the mesmerizing nighttime scenery of the industrial zone. Most significantly, passenger trains running to the terminus at Okunoyahama Station marks a historic first since the line's opening in 1970.
The upcoming February 22, 2026 tour departs from Oarai Station, stops at Kitaura Kohan to view the sunset over the lake, then proceeds deep into the industrial zone. Participants can admire petrochemical plants, refineries, and factories illuminated against the evening sky—all from the comfort of a railway car. The tour costs 16,000 yen per person and includes a commemorative ticket.
"Factory night views" (kojo yakei) have become a popular tourism genre across Japan in recent years. Cities like Kawasaki, Yokkaichi, and Shunan offer night cruises and bus tours of their industrial zones. Kashima Rinkai Railway differentiates itself by providing access to a normally restricted freight line—a uniquely railway experience that cannot be replicated by other transport modes.
The 2024 Logistics Problem and Railway Freight Renaissance
Kashima Rinkai Railway's freight business is experiencing renewed relevance amid Japan's "2024 Logistics Problem."
Starting April 2024, strict overtime regulations limiting truck drivers to 960 hours annually came into effect, creating widespread concerns about transportation capacity shortages. Government projections suggest that without countermeasures, logistics capacity could fall short by 14% in 2024 and 34% by 2030.
The proposed solution is "modal shift"—transitioning freight from trucks to railways and maritime shipping. The government aims to double railway freight volume from 18 million tons to 36 million tons over the next decade.
Kashima Rinkai Railway transports chemical products and industrial chemicals, including hazardous materials with flammable or toxic properties. Railway transport is considered safer than trucking for such cargo, and specialized tank containers are used for these shipments.
Environmental considerations also favor rail freight. Transporting one ton of cargo over one kilometer generates approximately one-tenth the CO2 emissions compared to trucking. As Japan accelerates its transition to carbon neutrality, this environmental advantage is gaining renewed appreciation.
Challenges Facing Regional Railways
Meanwhile, the passenger segment on the Oarai Kashima Line faces ongoing difficulties. Annual ridership peaked at approximately 3.59 million in 1992 but has declined steadily since, affected by increasing car ownership, declining birth rates, and regional depopulation.
The company fell into deficit in 1994, briefly returned to profitability in 2001, but entered deficit again in 2009. Aging rolling stock and infrastructure have increased maintenance costs, further straining finances. In October 2024, the railway implemented its first fare increase in approximately 30 years.
Local governments and stakeholders continue implementing various ridership promotion initiatives. Trains wrapped with characters from the anime "Girls und Panzer" increased non-regular passengers by 3% in 2016. Special tickets for seniors over 70, soccer match commuter passes, and cycle-train services represent the diverse approaches being employed to sustain the line.
Conclusion: Rolling Forward on Two Tracks
Kashima Rinkai Railway's business strategy offers one answer to the challenges facing Japan's regional railways. By maintaining freight transport as a stable revenue base while leveraging the resulting industrial scenery as a tourism resource, the railway has found a path to sustainability that few peers can replicate.
The 2024 logistics problem creating new demand for rail freight, combined with Japan's growing "factory night view" tourism trend, is shining new light on what was once an obscure freight line. This convergence of industrial necessity and leisure appeal demonstrates how traditional infrastructure can find relevance in unexpected ways.
What about in your country? How do freight railways and passenger services coexist? Are there similar initiatives to transform industrial areas into tourism destinations? We'd love to hear your perspectives!
References
- https://www.rintetsu.co.jp/company
- https://www.rintetsu.co.jp/freight
- https://en.wikipedia.org/wiki/Kashima_Rinkai_Railway
- https://travel.watch.impress.co.jp/docs/news/2078996.html
- https://www.nikkei.com/article/DGXZQOCC159N20V10C24A5000000/
- https://www.tsunagujapan.com/16-factory-zone-night-views-the-aesthetic-pleasure-of-industrial-complexes/
Reactions in Japan
I've been curious about Kashima Rinkai Railway's factory night tour for a while. Being able to ride on a freight line is so rare. I'll definitely apply for the next one.
I never expected Kashima Rinkai Railway from my hometown to get this kind of attention. Honestly, it's been invisible to me, but I didn't know they also did freight.
Rail freight is being reconsidered due to the 2024 problem. Companies like Kashima Rinkai that transport chemicals locally are valuable. Modal shift could increase their volume.
Cruises in Kawasaki and Yokkaichi are nice, but factory night views from a train are special. You can enjoy it with all your senses—the vibration, the sounds.
When I hear Oarai Kashima Line, I think of Girls und Panzer. I wonder if the wrapped trains are still running. Would love a collab with the factory night tour.
When I lived in Kamisu, I often saw freight trains on the Kashima Rinko Line, but no passenger service made it inconvenient. I wish they had developed the station area.
Kashima Soccer Stadium Station only gets busy during matches, but it's actually important as a freight connection point. It's not just a name-only station after all.
It's rare for a third-sector railway to handle both freight and passengers. Having JR Freight as the top shareholder is an interesting capital structure. Worth studying as a survival model.
Rail freight emits only 1/10 the CO2 of trucks. It should be used more, but the infrastructure hasn't kept up.
I joined last year's factory night tour! Going all the way to Okunoyahama was truly rare. The turnaround at the ENEOS spur junction was perfectly geeky and amazing.
Kashima Rinkai Railway can support itself with freight even when passengers are in the red. This two-legged management is a strength other regional railways can't easily replicate.
I commute on the Oarai Kashima Line, but there aren't many trains and fares went up. Honestly tough, but I'd be in trouble if it disappeared, so I put up with it.
Even with the 2024 problem pushing modal shift, last-mile delivery needs trucks. It's not that simple. Direct connections to plants like Kashima are exceptions.
I remember when they ran passenger service for Narita Airport fuel transport. Apparently only about 20 people rode daily back then. Today's night tours are much more popular.
A great example of capitalizing on the factory night view boom. Getting flooded with applications at 16,000 yen proves they've created real experiential value.
Freight railways are still quite active in Germany, but I've never heard of opening freight lines for tourist trains. That's such a Japanese idea. Would love to join on my next Japan trip.
Taiwan has similar third-sector railways, but handling both freight and passengers is rare. The factory night tour idea could work in Kaohsiung, Taiwan too.
In America, passenger rail is basically dead and freight dominates. It's amazing Japan maintains both. But if they keep losing money, people might call it a waste of taxes.
We have industrial night tours in the UK too, but mostly by bus or boat. I'm jealous you can do it by train. Japanese regional railways are fighting to survive, but this creativity is worth learning from.
SNCF in France has been shrinking its freight division, but recent logistics issues are prompting reconsideration. Models like Kashima Rinkai Railway might be worth studying.
The petrochemical complex in Yeosu-Gwangyang, Korea also has beautiful night views, but no train tours. They should develop it as a tourist resource. Japan is really good at this niche tourism.
The Netherlands is a rail freight hub, but industrial tours around Rotterdam port are mainly by boat. It would be interesting if you could go by train.
India is currently modernizing its rail freight. There's a lot to learn from Japan's experience, especially safety management for chemical transport.
I love photography and factory night views are the best subjects. I was planning to visit Kawasaki or Yokkaichi in Japan, but now I've added this Kashima tour to my list!
Like Swiss mountain railways, Japanese regional railways might survive by increasing their tourism value. Opening freight lines is a novel idea.
China's coastal industrial zones are larger, but environmental issues make tourism difficult. I think Japan can do this because of their solid safety management.
Australia's rail freight is mainly ore transport with little passenger coexistence. This model might only work in a compact country like Japan.
Regional railway survival is a serious issue in Poland too. Tourist trains are possible, but our long winters would limit night tours to certain seasons. I envy Japan.
Italy has industrial zones in port cities too, but turning them into viable tours seems difficult. Maybe Japan's 'moe' culture creates this kind of tourism.
Ireland has a history of shrinking its railway network. I think Japan is desperately trying to protect regional railways because they recognize their cultural value. There's something beyond just economic rationality.