Taiwan Railways Administration's (TRA) initiatives to capitalize on its assets and unique heritage have helped shore up its financial health and increase operating revenue, said Premier Jiang Yi-huah today after hearing a report on the program by the Ministry of Transportation and Communications (MOTC).
The sustainability of Taiwan's railway systems depends on the TRA's ability to pay off its debts, Jiang added, directing the MOTC to support the TRA in these efforts.
One example of a TRA initiative is the elevation of railroad tracks (or moving them underground) to make room for parking lots and commercial spaces. Half of the profits generated from this project is used to repay debts, while the other half is being injected into development projects.
The TRA also owns three high-value properties in Taipei City including the Nangang railroad yard, the Taipei railway maintenance depot, and two designated zones within Taipei Main Station. When developed, these sites can generate revenues of approximately NT$103.2 billion (US$3.5 billion). Jiang asked the Taipei City government to assist in the urban renewal planning process so as to maximize benefits for the railway operator.
As for cultural assets, the TRA works with local governments to maintain and lease railway heritage sites and historic buildings to young entrepreneurs and cultural creativity companies. Jiang directed the Ministry of Culture to help the TRA make more space available for the cultural and creative industry.
The TRA is also preparing amendments to the Railway Act to open more channels for developing assets and generating revenue. The premier asked the MOTC to see to it that the TRA expedites a draft.
Jiang suggested the TRA consider other business ideas including how to attract the huge number of railway aficionados in Taiwan, or how to explore related tourism markets. Jiang asked the MOTC to apply creativity in planning.
The TRA has been operating in the red since 1978, accumulating cash debts totaling NT$122 billion (US$4.13 billion) as of the end of 2012. To dig itself out, the agency has divided its debt into attributable and unattributable categories. The unattributable portion will be paid off first with revenues from development of high-value properties, such as the three locations in Taipei City. Its efforts in recent years have already gained recognition. In 2010 and 2012, it placed first and second respectively for development of public assets in the Executive Yuan's national property management and utilization program.
Other creative ways the TRA uses to capitalize on its assets include:
- Undertaking urban renewal projects at the Nangang railroad yard, West Wharfs 2 and 3 of the Port of Keelung, and the Yilan Railway Station.
- Encouraging private contractors to participate in construction of the Nangang, Songshan, Taipei, Wanhua and Banqiao railway stations.
- Creating superficies by renting land to developers, as in the case of international hotels built in the Banqiao Railway Station and Hualien City's Phase VI redevelopment zone, as well as the state-owned non-public land in the Baoqing area of Taipei's Songshan District.
- Renting out three buildings on Andong Street and Zhongxiao East Road of Taipei City to business startups or cultural creativity companies.
Presently the asset development projects planned and conducted by the TRA number more than 70. Revenues from such projects totaled NT$2.17 billion (US$73.43 million) in 2012 and is expected to reach NT$2.3 billion (US$77.83 million) in 2013. The TRA's goal is to increase these sideline earnings by more than 5 percent annually and cut its debt from NT$267.9 billion (US$9.07 billion) to NT$93.2 billion (US$3.15 billion) by 2028.