TAIWAN: Control of the national rail network has been transferred to a newly established Taiwan Railway Corp, as successor to the former Taiwan Railway Administration.
Transformation of the railway from a government department into a state-owned corporation had been under discussion since 2002, but was given additional impetus following serious accidents in 2018 and 2021.
President Tsai Ing-wen commented that the accidents ‘further underlined the need for the debt-stricken TRA to undergo comprehensive safety and structural reform’. Addressing a ceremony at Taipei Main Station to mark the transition on January 1, she thanked TRA employees for their contributions, and noted that the railway was now carrying more than 100 million passengers per year.
As part of the process, the government has transferred TRA’s debt obligations of around NT$170bn to a separate fund established by the transport ministry. TRC Chairman Tu Wei explained that the new company would only have to manage its short-term financing, and as a result he anticipated that the railway would return to profitability by 2026.
As a standalone business, the corporation will be expected to manage its own funding stream. Minister of Transport & Communications Wang Kwo-tsai said that that the company would be able to develop its land holdings to increase its income. Noting that fares had not been adjusted since 1995, Tu said this would be discussed by the railway board in the coming months, but added that there were currently no plans to increase prices.
Wang anticipated that TRC would also have more freedom to invest in rolling stock replacement and phase out older vehicles to improve both safety and the quality of service, while boosting operational efficiency. Tu explained that the company planned to establish a new safety management system and launch structural reforms, including more on-the-job training. It would also seek advice from international groups on methods to reduce risk and improve safety.
- TRC has announced its intention to introduce the island’s first sleeping cars from 2027, as part of a strategy to develop revenues through high-value rail tourism. Tenders are to be called this year for the supply of rolling stock for a luxury Formosa Sleep Express offering both sleeping cars and sightseeing lounges, aimed at leveraging the country’s picturesque landscapes. The railway intends to work with private service providers to assist with the procurement of the trains and marketing of the services.
