JR West, NTT, Mizuho, SMBC, MUFG, and DBJ launch “JCLaaS” for infrastructure management

JR West, NTT Communications, Mizuho Bank, Sumitomo Mitsui Banking Corporation, MUFG Bank, and Development Bank of Japan have signed a business alliance agreement today to launch a comprehensive infrastructure management business called “JCLaaS”.

The first “J” of “JCLaaS” stands for “Japan”, meaning nationwide initiatives, as well as “Join”, meaning the participation of public, private and citizens sectors. The “C” and “L” are from the initials of “Community Life”, representing the six companies’ commitment to contributing to sustainable “local lives”, while “C” also implies “Continuous”, meaning supporting lives across generations, and “Circular” emphasizing circulation, which is valued in realizing a sustainable society. The last “aaS” stands for “as a Service”, meaning not only physically sustaining social infrastructure, but also the shift in approach to providing it as a service continuously.

Currently, in social infrastructure such as roads and waterworks, there are gradually manifesting concerns such as labor and financial shortages, mainly in rural areas, against the backdrop of the progress of population decline, while measures against aging facilities and equipment constructed since the 1960s and responses to intensifying disasters are required. This could lead to an increase in the burden on citizens as a heavy social issue, and is expected to become a factor hindering future growth and development.

Since this issue is extremely large-scale, related to the lives and economic activities of all citizens across Japan, the six companies have decided to work on solving issues and realizing a sustainable future society, which led us to launch the comprehensive infrastructure management business “JCLaaS”.

Vision

The six companies aim to “reconstruct social infrastructure to support the affluent lives and economic growth of future generations” and “build a society where the public, private and citizens create the future together.” By realizing their vision through business, they will strengthen the business foundations of the six companies and continue to “protect social infrastructure” that supports all economic activities and lives, so that Japan will remain a prosperous and vibrant country in the future as well.

Overview of the Business

As a platformer of social infrastructure services, “JCLaaS” will be responsible for comprehensive functions necessary to optimize social infrastructure, including “formulation of optimization plans,” “system construction, maintenance and performance of construction and maintenance,” and “arrangement of funds,” according to the situation and requests of municipalities, etc.

In providing these services, the six companies will also collaborate with partners rooted in local communities as well as various partners including consultants, construction companies, etc.

The market targeted by “JCLaaS” is huge, with annual maintenance costs and renewal investments estimated to be around 9 trillion yen (Ministry of Land, Infrastructure, Transport and Tourism) and 12.9 trillion yen (Financial Research Center of the Ministry of Finance Japan), respectively. JCLaaS aims to expand its business to over 100 municipalities by 2030.

Capabilities of the six companies

The six companies will promote JCLaaS by accumulating the knowledge cultivated in each company’s business.

• JR West: Making use of its track record and capability in sustaining railway infrastructure over the long term, JR West will take overall responsibility for this initiative and take the lead in optimizing long-term asset management of facilities and equipment.
• NTT Com: Making use of its track record and capability in solving problems by harnessing advanced technologies such as ICT, NTT Com will take the lead in promoting digitization and DX.
• Mizuho Bank, Sumitomo Mitsui Banking Corporation, MUFG Bank, DBJ: Making use of their track records and capabilities in supporting diverse activities of all businesses through financial services and contributing to economic stability and development, these four banks will take the lead in arranging financing schemes and providing funds.

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