Taichung Mass Rapid Transit System Corp (TMRT) lost NT$103.92 million (US$3.5 million) from January to March, and its merchandise failed to generate revenue due to a lack of appeal, a city councilor said.
The COVID-19 pandemic has taken a heavy toll on the company, with the average ridership estimated to be fewer than 54,500 people per day so far this year, Taichung City Councilor Huang Hsin-hui (黃馨慧) of the Chinese Nationalist Party (KMT) said during a question-and-answer session at the Taichung City Council on Friday.
TMRT chairman Lin Chih-ying (林志盈) said ridership fell short of expectations due to the COVID-19 pandemic.
Photo: Su Chin-feng, Taipei Times
The company’s total losses for the year are expected to reach NT$730 million, he said, adding that if the virus can be brought under control, the losses could still be managed within this year’s budget.
TMRT lost NT$890 million in 2020 and NT$600 million last year, and expects to run up an accumulated deficit of NT$2.2 billion by the end of this year, almost using up all of its capital of NT$2.5 billion, Huang said.
The company has about 820 employees, approximately 10 percent less than its full capacity of 983, but the reduction in expenditure would be limited, as labor costs are bound to increase after Taichung’s blue and orange lines begin operating, she said.
TMRT’s labor costs have increased NT$40 million after it raised staff salaries this year by 7 percent to counter a high turnover rate, she added.
Huang said that the company lacks a stable customer base, creative merchandise that can increase revenue and the ability to broaden its sources of income.
Lin said that TMRT has implemented cost-cutting measures, such as lowering maintenance costs, and reducing electricity and water usage at stations.
The company is also looking for other ways to raise revenue. For example, its photovoltaic power generating system at the Beitun Depot (北屯機廠) is expected to yield an annual income of about NT$7.5 million by selling electricity, he said.
The company is continuing to develop merchandise, seek opportunities to cooperate with other brands and improve marketing by organizing outdoor markets and pop-up events, he added.
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