Third-sector lines often begin operations on parallel conventional (local) lines when
Shinkansen service is extended to a new area. For example, in March 2024, the
Hokuriku Shinkansen was extended south, its terminus changing from
Kanazawa in
Ishikawa Prefecture to that of
Tsuruga in
Fukui Prefecture. Like other sections of the
Hokuriku Main Line,
JR West gave up ownership of operation of the local line on this same route and transferred it to a newly formed company known as
Hapi-Line Fukui. The same had occurred years prior with sections of the local line now owned by
IR Ishikawa Railway,
Ainokaze Toyama Railway, and
Echigo TOKImeki Railway. This same arrangement can be seen in the
Tōhoku region, with portions of
JR East's
Tōhoku Main Line being transferred to
Aoimori Railway and
Iwate Galaxy Railway following the extension of the
Tōhoku Shinkansen throughout the early 2000s. However, other third-sector lines, such as the
Akita Nairiku Line, open directly as third-sector lines after the privatization of JNR in the 1980s, i.e. without being under ownership of any JR Group company. Other reasons for establishment include takeovers of unprofitable
private railway lines that require additional investment from local governments, and systems such as
automated guideway transit,
monorails, or
maglev systems built in areas of rapid development and increasing
urban density. == Pros and cons ==