Thus, enterprises that strictly fall into neither of these first two categories, i.e. public–private partnerships, are said to be in the "third sector".
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.
Other reasons for establishment include takeovers of unprofitable private railway lines that require additional investment from local governments, and new transportation [ja] systems such as automated guideway transit, monorails, or maglev systems built in areas of rapid development and increasing urban density.
[6] As local governments with close contacts to communities and private companies with experience running rail infrastructure are jointly invested in these lines, there is an elevated level of flexibility in management and adjustment of operations, which can be done according to frequently changing circumstances and needs of local communities.
These lines, however, are most often unprofitable, require funding via taxes, and may still run the risk of facing abolishment due to low ridership.