Tue, Jan 02, 2024 page2

• Rail agency becomes state-run

  public ownership: The Taiwan Railways Administration is now the state-run Taiwan Railway Corp (TRC), with TRC chairman Du Wei promising safety and service will improve

  • By Shelley Shan / Staff Reporter
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  The Taiwan Railways Administration (TRA) yesterday officially became the state-run Taiwan Railway Corp (TRC), with the management of the newly established firm vowing to provide a safe and efficient service.

  President Tsai Ing-wen (蔡英文), Premier Chen Chien-jen (陳建仁), former premier Su Tseng-chang (蘇貞昌), Minister of Transportation and Communications Wang Kwo-tsai (王國材) and other officials attended the inauguration ceremony, unveiling the new sign for the nation’s oldest and largest railway system, which has been in operation since 1887.

  Tsai said that TRA carried a heavy financial burden because it was charged to operate many unprofitable routes, adding that the significant amount of pension fund contributions that had to be distributed to TRA employees as well as the agency’s asset management added further economic expenses.

  

  President Tsai Ing-wen, fifth left, joins other officials at the plaque-unveiling ceremony for the Taiwan Railways Co in Taipei yesterday.

  Photo: Chen Chih-chu, Taipei Times

  The plan to corporatize the railway agency was proposed in 2002 and was scheduled to be completed in 2004, but it did not materialize until after two major fatal derailments in 2018 and 2021, which convinced the public that a comprehensive reform at the agency was necessary.

  “It took more than 20 years for the TRA to become a state-run railway corporation. The government had been trying to find the best solutions to minimize the impact of the systematic change on workers while reforming the agency to ensure a safe and stable operation,” Tsai said.

  “We thank the families of victims for helping the railway agency transform into a state-run company and push for safety reform,” she said.

  The government would continue to subsidize the railway firm to relieve its financial burden and help it develop its properties to ensure efficient, sustainable and safe operations, Tsai said.

  TRC chairman Du Wei (杜微) said the company has to raise ticket prices, adding that the prices have not been adjusted for more than 20 years.

  “We will make sure that safety and service issues are addressed first, but we begin studying

  ticketing-related issues this year. We will also gauge the public’s attitude and suggestions before making any change,” Du said.

  The TRA had accumulated a short-term debt of about NT$170 billion (US$5.5 billion), which would now be repaid by a fund established solely for the purpose of servicing the debt, Du added.

  “The company now starts from square one. We will pay special attention to our financial

  soundness… The company’s cash flow is projected to turn positive by 2026. As for the accounting, the financial statement is expected to turn from a loss to a profit in 2028 due to huge depreciation write-offs,” he said.

  Du also said that the company has a staffing shortage of about 1,000 to 1,100 people, adding that the staff would soon be replenished with new employees recruited during the second half of next year.

  New employees would undergo intensive educational training before they can officially be placed on duty, he said.

  As the Taiwan Railway Union is scheduled to vote on whether to go on strike during the Lunar New Year holiday, Du said that the company would negotiate with the union as quickly as possible.
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