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Bus routes in remote areas could be canceled

"The government seems to think that bus operators are supposed to labor under these losses."

joint statement by five bus companies in southern Taiwan

Five bus companies in the south said yesterday that they might end their operations by the end of this month because of heavy financial losses.

The five bus firms that issued a joint statement were Chiayi Bus, Singing Bus, Sinen Bus, Kaohsiung Bus and Pingtung Bus.

The routes of these companies cover seven counties in the south and provide the only public transportation in some remote or sparsely populated areas, such as Wutai Township (霧台) and Manjou Township (滿州) in Pingtung County.

In their statement, the companies said they had been appealing to the government for help covering their costs for years, but had not received sufficient aid.

"The government seems to think that bus operators are supposed to labor under these losses," the statement said, adding they would hold a press conference next Friday to announce a final decision on whether to close down.

If the companies end services to rural areas, that would likely pose a difficulty for commuters and seniors who are dependent on the buses to get around.

Fang Sen-de (方森德), representative of the Taiwan Provincial Bus Union, said yesterday the union hoped the government would subsidize the companies' operations with at least NT$850 million (US$25.8 million).

But the government had only offered around NT$550 million, he said.

Fang said that subsidy was not enough to cover operational costs, especially considering the rising price of gas.

Fang said that there are about 1,000 bus routes crossing remote areas nationwide.

Nearly half of those routes have not brought in a profit for years, he said.

This time the southern bus operators are likely to close shop, but next time, other areas could be affected, Fang warned, adding that the loss of some routes could lead to a chain reaction.

James Chen (陳晉源), director-general of the Directorate General of Highways (DGH), said the nation had 27 bus operators providing transportation to remote areas.

The directorate's annual budget for subsidizing their operations is only NT$650 million, he said.

Hsieh Chieh-tien (謝界田), director of the DGH's motor vehicle division, said the agency would negotiate with bus operators in the hope of continuing the service.

Hsieh said the government was aware of their dire financial situation, adding that the average bus occupancy rate is five passengers, he said.

Hsieh said the directorate had encouraged bus firms to reduce bus runs and sort out overlapping service areas as part of a solution.
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