Taiwan Railway Administration - Overview

Overview

Railway services between Keelung and Hsinchu began in 1891 under China’s Ching Dynasty. Completely rebuilt and substantially expanded under Formosa’s Japanese colonial government (1895-1945), the network’s Japanese influence and heritage persists. Similarities between TRA and the Japan Railways (JR) companies can be noted in signal aspects, signage, track layout, fare controls, station architecture, and operating procedures. As Japan’s southern base during WWII, Taiwan’s railways suffered significant damage by Allied air raids. Taiwan Railways Administration (TRA, 臺灣鐵路管理局) was founded in 1945 to reconstruct and operate railway infrastructure.

With ~13,500 employees (4,700 in transportation and 7,700 in maintenance titles), TRA is a government organization under Taiwan’s Ministry of Transportation and Communication (MOTC) that directly operates 682 route miles of 3’6” (1,067mm) gauge railways. Three mainlines form a complete circle around the island. TRA’s West Coast Mainline (WCML) and East Coast Mainline (ECML) Badu-Hualien section features mostly double-track, electrification, modern colour light and cab signalling, overrun protection, and centralized traffic control (CTC). Southern Link Mainline, ECML Hualien-Taitung (converted from 762mm gauge), and three “tourist” branches are non-electrified single-track with passing sidings.

Since the early 1980s, conventional railway capital improvements are nationally funded and managed by MOTC’s Railway Reconstruction Bureau, then turned over to TRA for operations. Taiwan’s challenging terrain meant all lines feature extensive tunneling and long bridges. Double-tracking frequently requires construction of parallel single-track railroads or bypass tunnels on new alignments. The US$14.5 billion standard gauge high-speed rail (HSR) line was built and operated by a separate public-private partnership under a 35-year concession, but TRA provides feeder services to HSR terminals. Although TRA operates all commuter rail, other quasi-private organizations operate subways in Taipei and Kaohsiung.

Local and intercity passenger services (5am – 1am, very few overnight trains) operate at 95.3% on-time performance. 2008 annual passenger ridership was 179 million (incurring 5.45 billion passenger-miles), generating US$434 million in revenue. Commuter trains carry 76% of riders (43% of passenger miles). WCML carries >90% of ridership. TRA’s loose-car and unit-train bulk freight services haul mainly aggregates (58% of tonnage), cement (26%), and coal (9%). In 2008, 9.5 million tons of freight (481 million ton-miles) generated US$28.6 million in revenue. Limited container services operate between Port of Hualien and suburban Taipei, but loading gauge restrictions preclude piggyback operations. During typhoon season, small trucks are carried on flatcars when highways are closed by flooding or mudslides.

In years past, an extensive shipper-owned light railway network (762mm gauge, never operated by TRA) handled freight services throughout Taiwan and once boasted 1,800 route miles. Largely abandoned today, it served important industries including sugar, logging, coal, salt, and minerals. Unlike JR East and Hong Kong’s Mass Transit Railway, revenues from ancillary businesses accounts for only 17.8% of TRA’s revenues. TRA’s estimated farebox recovery ratio (including freight operations) is ~40%.

Staffing costs, pension benefits, capital debt, changing demographics, highway competition, and low fare policies resulted in accumulated deficits nearing US$3.3 billion. Locally considered large and problematic, TRA’s deficits pale in comparison to those incurred by European and U.S. transit agencies, and Japan National Railways (JNR) prior to its 1987 privatization. Like JNR and U.S. transit authorities, interest payments on long-term debt represents a significant burden for TRA. Planning for TRA’s restructuring had been underway since 2000.

Recent growth in the highway system and increased competition from bus companies and airlines has led to a decline in long distance rail travel (except during major holidays such as Chinese New Year), though short and intermediate distance travel is still heavily utilized by commuters and students. The high-speed rail line is not run by TRA, and is also a major source of competition. To offset this TRA has begun placing an emphasis on tourism and short-distance commuter service. This has led to several special tourist trains running to scenic areas and hot springs, the addition of dining cars (originally deemed unnecessary due to Taiwan's relatively small size), and converting several smaller branch lines to attract tourists. Additionally, several new stations have been added in major metropolitan areas, and local commuter service increased. Its boxed lunches remain the company's most popular product with sales totaling NT$320 million (US$10.8 million) in 2010 (around 5% of its annual revenue).

On December 31, 2010, the TRA signed a NT$10.6 billion contract with Sumitomo Group and Nippon Sharyo to supply 17 tilting train sets capable of traveling 150 km/h (93 mph). These eight-car electric multiple units (EMUs) will be delivered from 2012 to 2014 for service on Taroko Express services running between Taipei and Hualien on the Eastern Line. The system achieved a single day record on February 5, 2011 during Chinese New Year celebrations, transporting 724,000 passengers a day.