Taiwan High Speed Rail Corp (THSRC), the operator of the nation's first bullet train, has delayed the opening of the service to October next year, citing severe delays in the construction schedule.
"The [corporation's] board of directors decided to reschedule the [opening] of the high-speed railway to Oct. 31 next year following a meeting this morning," THSRC chairwoman Nita Ing (
THSRC's major shareholders include Continental Engineering Corp, Teco Electric and Machinery Co, Fubon Financial Holding Co and the Evergreen Group.
The announcement comes after months of speculation that the THSRC would miss its deadline to launch the NT$460.7 billion (US$13.8 billion) train service after reports that the project was falling behind schedule in constructing its core mechanical and electrical systems.
The company had planned to launch the train this Oct. 31.
Ing yesterday attributed the delay to slow progress in construction, testing of various systems and evaluation of overall operations.
"It's a pity to have to make this decision," Ing said. "We are confident we can abide by the new schedule," she said.
The delay will result in increased costs of NT$19.3 billion, lifting the total cost to NT$480 billion, THSRC president George Liu (劉國治) said.
The added cost mostly consisted of extra interest payments, he said.
But the figure did not include the estimated loss of NT$50 billion in revenue based on the THSRC's projections of NT$130 million per day in the first stage of operation.
Liu said the construction of the core mechanical and electrical systems had lagged behind schedule. According to company statistics, at the end of July THSRC had completed 87.89 percent of the 345km track, 92 percent of station construction, but only 60.44 percent of the mechanical and electrical systems.
When asked whether THSRC would seek compensation for the delay from the Japanese consortium Taiwan Shinkansen Corp (TSC), contractor for the core systems' construction, Ing shunned the question.
She would only say that TSC is a partner of THSRC and that the priority now was to complete the construction of railway on time.
According to a contract signed by the two parties in December 2000, in the event of falling behind schedule, TSC would have to pay THSRC NT$200 million per day in compensation and to cover interest losses until construction was completed.
It has been reported that the core mechanical and electrical systems may be completed only by September next year.
The consortium of seven Japanese companies include Mitsui Corp, Mitsubishi Heavy Industries, Mitsubishi Corp, Marubeni Corp, Sumitomo Corp, Kawasaki Heavy Industries and Toshiba Electric.
The 345km bullet-train service will link Taipei with Kaohsiung and is expected to carry up to 1 million passengers a year.
THSRC shares, which trade on a gray market ahead of a stock-exchange listing, fell 0.67 percent to NT$7.45 yesterday.
DEFENDING DEMOCRACY: Taiwan shares the same values as those that fought in WWII, and nations must unite to halt the expansion of a new authoritarian bloc, Lai said The government yesterday held a commemoration ceremony for Victory in Europe (V-E) Day, joining the rest of the world for the first time to mark the anniversary of the end of World War II in Europe. Taiwan honoring V-E Day signifies “our growing connections with the international community,” President William Lai (賴清德) said at a reception in Taipei on the 80th anniversary of V-E Day. One of the major lessons of World War II is that “authoritarianism and aggression lead only to slaughter, tragedy and greater inequality,” Lai said. Even more importantly, the war also taught people that “those who cherish peace cannot
Taiwanese Olympic badminton men’s doubles gold medalist Wang Chi-lin (王齊麟) and his new partner, Chiu Hsiang-chieh (邱相榤), clinched the men’s doubles title at the Yonex Taipei Open yesterday, becoming the second Taiwanese team to win a title in the tournament. Ranked 19th in the world, the Taiwanese duo defeated Kang Min-hyuk and Ki Dong-ju of South Korea 21-18, 21-15 in a pulsating 43-minute final to clinch their first doubles title after teaming up last year. Wang, the men’s doubles gold medalist at the 2020 and 2024 Olympics, partnered with Chiu in August last year after the retirement of his teammate Lee Yang
The Philippines yesterday criticized a “high-risk” maneuver by a Chinese vessel near the disputed Scarborough Shoal (Huangyan Island, 黃岩島) in a rare incident involving warships from the two navies. The Scarborough Shoal — a triangular chain of reefs and rocks in the contested South China Sea — has been a flash point between the countries since China seized it from the Philippines in 2012. Taiwan also claims the shoal. Monday’s encounter took place approximately 11.8 nautical miles (22km) southeast” of the Scarborough Shoal, the Philippine military said, during ongoing US-Philippine military exercises that Beijing has criticized as destabilizing. “The Chinese frigate BN 554 was
The number of births in Taiwan fell to an all-time monthly low last month, while the population declined for the 16th consecutive month, Ministry of the Interior data released on Friday showed. The number of newborns totaled 8,684, which is 704 births fewer than in March and the lowest monthly figure on record, the ministry said. That is equivalent to roughly one baby born every five minutes and an annual crude birthrate of 4.52 per 1,000 people, the ministry added. Meanwhile, 17,205 deaths were recorded, resulting in a natural population decrease of 8,521, the data showed. More people are also leaving Taiwan, with net
RSS