/ 25 April 2005

JR West shares hit by worst train accident in decades

Shares in West Japan Railway (JR West) slumped 3,85% on Monday on the news that at least 50 people were killed when a commuter train it operates derailed and smashed into an apartment building.

Four carriages were derailed in the collision, leaving more than 300 people injured, police said.

It was the deadliest tragedy since 1963 when a freight train collided with a truck in Yokahama near Tokyo and then was hit by two passengers train from opposite directions. At least 160 people died in that accident.

Monday’s accident took place during the morning rush hour in Amagasaki, Hyogo Prefecture, about 400km west of Tokyo.

JR West shares closed down 16 000 yen at 399 000 yen on the Tokyo Stock Exchange while the benchmark Nikkei-225 index rose 0,25%.

JR West, spun off from former Japanese National Railways, covers 18 western provinces, including Kyoto and Osaka, and operates 5 030km of tracks.

Central Japan Railway (JR Tokai) shares also fell 10 000 yen or 1,15% but East Japan Railway (JR East) rose 0,36%.

Japanese National Railway began its privatisation process in April 1987, when it was divided into nine JR firms, providing passenger, freight and other services. – Sapa-AFP