In August 1959, the Yamato Kanko Co., Ltd. was established to build the rail line; it renamed to Japan Elevated Railway Co., Ltd. a year later. The company applied for a route license to build a straddle-beam, Alweg-type monorail in January 1960, which the Japanese government granted the following December. The company selected Alweg due to two factors. First, the company's president, Tetsuzo Inumaru, was an old friend of Dr. Axel Wenner-Gren, the founder of Alweg. Second, Hitachi, which would build the line, was keen on further developing the technology.