TAIPEI (TVBS News) — The Taiwan Railways Administration marked the commencement of a significant transformation on Jan. 1, evolving into the Taiwan Railway Corporation. This transition signifies a monumental shift towards enhancing the state-owned enterprise's service quality, travel safety, and revenue management.
However, with ticket prices unchanged since 1995, a looming adjustment scheduled for the latter half of 2024 is stirring public debate and concern.
Chiou Yu-chiun, chairman of the Chinese Institute of Transportation, shared his insights.
"According to the transportation rate formula, the law requires an adjustment of 3% to 5%, so at least 3%. If you calculate the percentage according to the increase in cost, it will need an 80% adjustment. I don't think that's possible, and the public won't accept it," he stated.
The necessity for a gradual increase in ticket prices is underscored by 28 years of price stagnation.
A modest 1% return could bolster the corporation's finances by an additional NT$4 billion, paving the way for extensive system improvements. Expected fare adjustments include a 27% increase for local trains, an 11% rise for Tze-Chiang Limited Express, and Taipei to Kaohsiung fares nearing NT$1,000.
Despite these projections, the 2024 budget report indicates a looming deficit of NT$7.47 billion, a steep climb from the NT$4.67 billion deficit in 2023.
Amid these financial challenges, concerns are rising about the potential impact on employee benefits and the prospect of a labor shortage crisis due to the restructuring.
Chiou Yu-chiun added, "I would personally suggest that in the process of corporatization if the operation is effective, we should adjust the salary and performance bonuses of employees accordingly. It would be reasonable and will also help in recruiting more suitable and talented people to join the organization."
As the debate continues, the necessity of fare increases is juxtaposed against the backdrop of recent train accidents, prompting calls for reform and a reassessment of the management systems.
Should fare hikes not materialize, the government would need to subsidize the gap, emphasizing the critical nature of the fare increase proposal to ensure safe operations and maintain a skilled and professional workforce.
