Taiwan Railway to run at loss in 2024, 2025: Financial report

Taipei, Oct. 23 (CNA) Taiwan Railway Corp.'s (TRC) losses are expected to reach NT$7.4 billion (US$230.73 million) this year and NT$8.7 billion next year, according to a financial statement provided by the state-owned company.

The former Taiwan Railways Administration (TRA), officially reorganized as a state-owned enterprise on Jan. 1, 2024, is still operating at a loss, Democratic Progressive Party (DPP) legislator Tsai Chi-chang (蔡其昌) said Wednesday during a legislative committee meeting, citing the financial report submitted by the company to the Legislative Yuan.

TRC Chairman Tu Wei (杜微) said while briefing on the firm's operating and financial situation according to company accounts, the continued losses are mainly due to depreciation.

However, land asset development and other ancillary businesses are making a profit, according to Tu.

Tsai suggested that following the establishment of the corporation, each department of the TRC should have its own business goals. The company should also determine how its profit-making units can increase their profitability.

For example, bento boxes generated sales up to NT$700 million last year but only NT$100 million in profit, Tsai said, adding that the company should determine how to boost those profits.

In addition, the company should also seek to increase revenue from its overhauled historic train stations.

In response, Tu said that as of the end of September, Taiwan Railway tourism trains including round-the-island Formosa Express trains made 1,167 trips, carrying more than 130,000 passengers. He noted that demand is increasing and the company is working with travel agencies to introduce more sight-seeing trains to promote tourism.

In addition, since the establishment of TRC, rental income has been approximately NT$2.36 billion, an increase of 8.86 percent over the same period last year, according to Tu.

The company will work to increase revenue through the promotion of new parking lots, electric vehicle charging piles and vending machines, Tu said.

It will also promote the development of 10 stations and surrounding areas this year and next year to boost local business opportunities through land development, enhance brand power and stabilize the income of ancillary businesses, according to the TRC chairman.