Taipei, Jan. 1 (CNA) Control of the country's railways was handed to the newly founded Taiwan Railway Corp. Ltd. on Monday, following the corporatization of the former Taiwan Railways Administration (TRA).
Speaking at a ceremony at Taipei Main Station, President Tsai Ing-wen (蔡英文) said that the transformation of the TRA into a state-owned corporation would improve passenger safety and offer better protections to workers.
Tsai thanked all the TRA's employees for their contributions over the past century, noting that the agency had carried over 100 million passengers per year.
Tsai said discussions around corporatization first began in 2002 and that backing from the family members of passengers killed in train crashes in 2018 and 2021 had further underlined the need for the debt-stricken TRA to undergo comprehensive safety and structural reform.
Following corporatization, those responsible for managing Taiwan's railways will have better funding and more power to upgrade safety management systems and operating efficiency, Tsai said.
Meanwhile, Minister of Transportation and Communications Wang Kwo-tsai (王國材) told Monday's ceremony that safety would be Taiwan Railway's top priority going forward.
Through corporatization, the company will have greater capacity to phase out aging train cars and improve its service quality and travel safety while being allowed to better develop the use of its land holdings to increase revenue, Wang said.
According to Taiwan Railway Chairman Tu Wei (杜微), the company will establish a new safety system and launch a structural adjustment and on-the-job training while gaining experience from experts and supervisory groups from home and abroad to effectively reduce risk factors and boost safety.
Regarding train fares, which have not been adjusted since 1995, Tu said that while no price adjustment plans were currently in place, the company's board is expected to discuss the matter this year.
He also refuted claims the departure of around 1,000-1,100 personnel under a preferential voluntary retirement plan would impact train services during the upcoming Lunar New Year holiday period, saying around 1,100 workers had been recruited last year to replace those leaving.
According to Tu, a fund set up by the transportation ministry will take over the TRA's debt obligations of around NT$170 billion (US$5.5 billion).
Since Taiwan Railway will only handle its short-term debt from now on, the company is expected to be out of the red and begin turning a profit in 2026, Tu said.
