Saturday marked the Taiwan Railway Administration's (TRA) 120th anniversary. Government policy in recent years has emphasized the construction of highways rather than the expansion of the railway system, the number of personal vehicles has increased and air transportation has seen rapid development. This has led to structural changes in the domestic transportation market that have caused operational problems for the TRA.
To deal with the impact of the social, economic, political and technological developments of the 21st century, the TRA must transform its mode of operation by implementing a sweeping restructuring project. Everything from organizational structure to organizational culture needs to be addressed, and the TRA needs to abandon its inflexible structures and instead promote joint management abilities and build a new operational model. Only in this way can the TRA become more competitive and respond to new challenges.
A new operational model must be formulated based on the following principles. First, the TRA must minimize its organizational scale and service scope. Second, it must become operationally flexible. Third, operational responsibility must be clear. Fourth, customer service must be improved.
The purpose of restructuring the TRA would be transformation based on market principles, not merely change for the sake of it. The administration's management system needs to become adaptable in meeting its requirements. The restructuring plan should not be restricted to saving on wasteful expenditure or reducing inaccurate cost reporting and the misuse of funds, but should also develop an ability to tap into new sources of profit. Nor should it be a streamlining plan implementing mechanical cuts across the board, but rather a remodeling in pursuit of a reasonable structure.
The restructuring would not simply amount to privatization. Rather, it should be a plan to rebuild the administrative culture, revitalize the management system, improve operational efficiency and effectiveness, and safeguard the public interest.
Tu Chin-cheng is a graduate student in the political science department at National Taiwan University.
Translated by Lin Ya-ti
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