Railways are the most important means of passenger transportation in Japan, maintaining this status since the late nineteenth century. Government policy promoted railways as an efficient transportation system for a country that lacks fossil fuels and is nearly completely dependent on imports.
Rural land near large cities was acquired cheaply by private railway companies from the late nineteenth century, which then built lines that became the backbone of urban transport between the suburbs and cities formed around the railway lines radiating out from metropolitan areas, similar to suburban growth around railways in other nations.
Despite this efficiency, growing affluence and associated car ownership led to road transportation usage increasing to the detriment of rail from the 1960s. The relative share of railways in total passenger kilometers fell from 66.7 percent in 1965 to 42 percent in 1978, and 29.8 percent in 1990, although this still accounted for the largest percentage of the OECD member countries.
The figure is 43.5% (as of 2001) in the largest metropolitan areas in Japan: Tokyo (including Chiba, Saitama, Tokyo, and Kanagawa Prefectures), Osaka (including Kyoto, Osaka, and Hyōgo Prefectures), and Nagoya. Private automobiles in Greater Tokyo account for less than 20% of daily trips as car ownership is restricted to those with a dedicated parking space.