Taiwan Today

Taiwan’s high-speed rail looks to the future as it celebrates its 10th anniversary.

When services launched Jan. 5, 2007, the high-speed rail revolutionized travel between the north and south of Taiwan. Running at up to 300 kph, the bullet trains shortened the journey time between Taipei and Kaohsiung cities from roughly five hours to less than two.

As it enters its second decade of operations, the 350-km line can claim a host of achievements. The system has been expanded since its launch, now servicing 12 stations in northern Taiwan and along the heavily populated west of the country. Ridership increased from 30.58 million in 2008 to more than 50 million in 2015 and again in 2016. In December last year, it carried its 400 millionth passenger.

The high-speed rail is also noted for its service quality and reliability. Over the past decade, the system has maintained punctuality records in excess of 99 percent, while operator Taiwan High Speed Rail Corp. (THSRC) said that annual passenger surveys indicate satisfaction rates for equipment, ticketing and station facilities of above 90 percent.

To celebrate its 10-year anniversary, the company in January launched the Taiwan High Speed Rail Museum in the northern city of Taoyuan. Featuring 19 themed exhibitions, a driver’s cab simulator and interactive displays, the museum draws the curtain back on the line’s design and construction as well as its contributions to the development of the nation’s economy, tourism industry and transportation network.

Premier Lin Chuan (林全) said at the museum’s opening ceremony that the system is an outstanding example of public-private sector collaboration. “The success of the high-speed rail underscores the flexibility and management expertise of Taiwan companies, as well as the government’s commitment to supporting projects bolstering the nation’s industrial prowess.”

Wide-Ranging Benefits

According to THSRC, it is the only company without railway construction or operational experience to have built a high-speed rail line, completing the world’s largest build-operate-transfer (BOT) project in six years while effectively controlling costs.

As the bullet trains are based on those used in Japan’s Shinkansen high-speed rail network, THSRC employed dozens of foreign technicians and drivers in its early days. The company said it is working toward autonomy and localization of materials in terms of operations and maintenance, explaining that its goal is to fully master the technology and help raise the level of Taiwan’s railway industry.

When passenger services began in 2007, the company’s workforce was around 3,100. This figure has since grown to more than 4,300 due to factors such as increasing passenger volumes and the opening of additional stations.

Yeh Kuang-shih (葉匡時), a professor at the Graduate Institute of Technology, Innovation and Intellectual Property Management at National Chengchi University in Taipei who served as minister of transportation and communications from 2013 to 2015, said that the system has delivered significant benefits since its launch. In particular, he noted that it has helped promote economic and social decentralization, encouraging more people to move to the northern cities of Taoyuan and Hsinchu as well as central Taiwan’s Taichung City. “It has also reduced traffic congestion, and thus pollution, in the western corridor,” Yeh added.

According to data presented at the High-Speed Rail and Sustainability Symposium at the University of California, Berkeley, in November 2012, between the line’s launch and 2011, the percentage of intercity journeys along the western corridor conducted using private cars decreased from 78 percent to 70 percent. In the same period, air travel fell from 3 percent of all journeys to a negligible amount. With regard to energy consumption per passenger-kilometer, the system uses a fraction less than the conventional trains operated by the Taiwan Railways Administration, barely one-third of that of buses, less than a quarter of that of cars, and an eighth of that of airplanes.

Initially spanning eight stations, the system has added four additional stops in the last two years. New stations opened in Miaoli, Changhua and Yunlin counties at the end of 2015, and the final piece of the network fell into place in July 2016 when Nangang station in eastern Taipei began handling passengers.

In keeping with current trends in Taiwan, the three new stations in the central and southern counties incorporate various green building concepts. Last year, photovoltaic systems on the roofs of the Miaoli, Changhua and Yunlin facilities generated a total of 213,767 kilowatt-hours, equivalent to the annual electricity consumption of 60 households. In addition, several high-speed rail stations have rainwater recycling systems, which store rainfall for watering plants and trees during dry spells.

The station in Changhua has also been recognized for its striking architecture. Inspired by the county’s floricultural sector, the facility’s design features petal-shaped columns and an innovative layout that admits lots of natural light. Crafted by acclaimed Taiwan architect Kris Yao (姚仁喜‬), it won a Popular Choice prize in the A-plus Awards organized by architecture database Architizer and is a finalist in the Transport (Completed Buildings) category at the World Architecture Festival to be held in Berlin in November this year.

Financial Situation

Like other transportation companies, THSRC uses discounts to boost ridership. Last year, around 60 percent of passengers paid full fare, which for a one-way journey from Nangang in Taipei to Zuoying station in Kaohsiung costs NT$1,530 (US$48) in standard class and NT$2,000 (US$63) in business class. The remainder enjoyed discounts by purchasing early bird tickets or taking advantage of other promotions.

THSRC partners with Taiwan-based carriers China Airlines and EVA Airways, allowing local and foreign passengers with the two companies to buy cut-price high-speed rail tickets. The firm also works with local travel agencies to offer package holidays comprising accommodations, tickets and guided tours to a variety of destinations within a comfortable distance of its stations.

Many tickets are purchased from vending machines and paid for in cash, so the company does not have data on what proportion of passengers are foreign visitors. However, there can be no doubt that the bullet trains are popular among tourists. According to the company, sales of three- and five-day high-speed rail passes—available only to foreign visitors—reached nearly 200,000 in 2016, more than triple the previous year.

Though ridership figures have been growing annually, THSRC has experienced financial difficulties. Initial construction cost approximately US$16.5 billion, much of which was borrowed at high interest rates. As a result of weaker than expected revenues, the company struggled to meet its financial obligations. The government was ultimately forced to intervene in 2015, taking a controlling stake in the company and amending the original BOT deal. THSRC will now operate the network for 70 years instead of 35.

The restructuring has placed the company on a firmer financial footing. According to its most recent fiscal report, THSRC generated record operating income of NT$51.9 billion (US$1.63 billion) in 2015, up NT$13.3 billion (US$418.24 million) year on year, and declared a net profit of NT$20.82 billion (US$654.72 million).

Yeh believes the railway’s present financial structure is sound. However, to ensure its long-term sustainability, he said that the company must be willing to raise fares when necessary, even if the decision results in public and political criticism.

With THSRC’s fiscal situation improving, much of the recent discussion about the system has concerned the three new stations in Miaoli, Changhua and Yunlin and their potential impact on the economic development of the counties. One institution that expects to benefit is National Formosa University (NFU). Located in Yunlin’s Huwei Township, the university is developing a new campus within walking distance of the station at a 17.2-hectare zone designated for education and research development projects by the central government. Earlier this year, the zone served as a venue for the 2017 Taiwan Lantern Festival.

“The high-speed rail station undoubtedly makes NFU more attractive to students and increases the possibility of industry-academia collaboration,” NFU President Jywe Wen-yuh (覺文郁‬) said. “Around 25 percent of our students are from northern Taiwan, and that may increase thanks to the improved transportation links.”

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Steven Crook is the author of “Taiwan: The Bradt Travel Guide.”

Copyright © 2017 by Steven Crook