TAIPEI (TVBS News) — Taiwan Railways Corporation (台鐵) will discuss a fare adjustment plan on Tuesday (Sept. 10) that could see ticket prices calculated based on a 3% return on investment rate. The plan proposes a tiered increase, with short-distance fares rising the most and long-distance fares the least.
Taiwan Railways' operational department suggests this method to minimize public impact, estimating implementation by early next year. The new base rate will be NT$1.98 per kilometer, with an average increase of 35.6%. Taiwan Railways has not adjusted fares for 29 years, and the operational unit recommends using the 3% return on investment rate to avoid excessive increases.
The board-approved fare hike plan requires review by the "Ministry of Transportation and Communications' Rate Review Committee" (交通部費率審議委員會). After committee approval, the plan will be submitted to the Executive Yuan for final approval. Taiwan Railways aims to submit the plan by the end of September, targeting early next year for implementation.
The new fares will take effect three months after Executive Yuan approval, allowing time for the complex fare system modifications. Taiwan Railways will announce the new fares one month before implementation to inform the public.
Newly appointed Minister of Transportation and Communications Chen Shih-kai (陳世凱) emphasized the need for sustainable operations, explaining that since the fare hasn't been adjusted for 29 years, the government has to consider how to make the operation of the Taiwan Railway sustainable.
However, Taiwan Railway has to shoulder the responsibility of public transportation for the commuting public. Accordingly, they will coordinate with the Executive Yuan to come up with a proposal that is acceptable to the public and will enable the company to operate in a sustainable manner, he added.
