We had to stop operations on about 400 kilometers of the lines along the northeastern Pacific coast that were severely damaged in the tsunami. We are making steady progress with rebuilding these lines as we move in stages while confirming safety. We have resumed operations on the entire Hachinohe Line and sections of the Joban, Senseki and other lines. While operations remain suspended along approximately 260 km of railway lines, JR East has adopted a plan to construct new rails in rebuilding the Senseki Line between Takagimachi and Rikuzen-Ono, the Joban Line between Soma and Watari, and the Ishinomaki Line between Watanoha and Urashuku, after reaching general agreements following discussions with local governments about safety measures that include relocating lines and increasing the elevation of lines.

The Kesennuma, Yamada and Ofunato Lines were severely damaged. In these sections, we are considering either restoring railway services or using a BRT (Bus Rapid Transit) system as a provisional restoration. Resuming railway operations will require resolving a number of issues. We must ensure the safety of passengers by building tide barriers and elevating railway lines. Rebuilt lines must be consistent with the plans to rebuild the area as a whole and develop towns. Agreements are needed about where and how railway lines cross roads and rivers. Deciding how to divide the cost of restoration is another major issue. We will continue to discuss these subjects with relevant local governments and other organizations. I expect that resolving these issues will take a long time. Furthermore, the reconstruction of communities along damaged lines will probably take place in stages. As a result, we are thinking about using BRT as a provisional restoration. BRT will allow us to provide safe transportation quickly and with the flexibility to match each stage of the reconstruction process.

For the Yanaizu-Kesennuma section of the Kesennuma Line, we submitted a proposal in December 2011 for BRT, which was accepted by the local governments. We began construction in May 2012 to convert certain segments of the line to a road dedicated to buses. The BRT service is scheduled to commence on August 20, 2012, the beginning of the second semester at schools along the Kesennuma Line. We are working on preparations to start full-scale BRT operations as soon as possible by the end of 2012.

We have proposed BRT services to local governments along the Yamada and Ofunato lines, too. We will continue to negotiate with local governments concerning the restoration of services.