Taiwan: ‘We keep fares low to attract passengers to our new network’
As reported by Railway Gazette International, Kuo-Chi Wu, the President of New Taipei Metro Corp, shares insights on managing two light rail lines and one metro line, with plans for additional expansions. He emphasizes that a streamlined organization and affordable fares are crucial for success.
The New Taipei City government was established in 2010 as an autonomous administrative region surrounding central Taipei. In a bid too enhance its transportation infrastructure and compete with the more advanced metro system of Taipei City, they launched New Taipei Metro Corp in 2018 to oversee new transit lines.
“Our services primarily act as feeder routes connecting to the existing network operated by Taipei Rapid Transit corp,” Wu explained during an interview on May 28. Despite being Taiwan’s moast populous municipality with around four million residents, New Taipei has a considerably lower population density compared to its urban counterpart.
An Expanding Network
Currently, NTMC manages two light rail lines: the Danhai LRT spans 9.5 km and includes the Green Mountain Line (opened December 2018) and Blue Sea Line (launched November 2020), both radiating from Hongshulin station on the Red metro line.
The Ankeng LRT opened in February this year, covering a distance of 7.5 km from Shisizhang station on the Circular Line down to Shuangcheng in southern New Taipei.
The only operational metro line under NTMC is the Circular Line; its first segment began service in January 2020 linking Dapinglin on the Green Line with New Taipei Industrial Park station along Taoyuan Airport MRT. Extensions are currently underway at both ends of this line.
The Innovative Approach
Kuo-Chi Wu leads NTMC through unique challenges due to thier medium-capacity network comprising light rail and metro systems.”Making our operations financially viable is quite tough,” he noted. As of May, daily ridership across their three operational lines averages around just over one hundred thousand passengers—far less than Taiwan’s capital city where ridership peaks at about two million daily.
“To ensure fairness among passengers,” Wu stated, “the city government decided we would charge fares similar to TRTC’s rates—between NT$20 and NT$65 per journey.”
“We calculated our operational costs per trip,” he added, explaining how they reached an agreement for subsidies from local authorities to cover fare discrepancies.
NTMC also diversifies income through advertising revenue and leasing retail spaces within stations. ‘To maintain sustainable operations despite low passenger numbers,’ Wu elaborated,’we developed what we call ‘the New taipei Model.’ This approach minimizes departmental divisions compared to TRTC which results in leaner management structures that facilitate quicker decision-making processes.’.
Emphasizing Automation & Local sourcing
‘We’re dedicated to integrating smart technology alongside automation,’ said Wu.’This helps us streamline workflows while introducing no-staff stops along our light rail routes further reduces staffing needs.’.
‘Additionally,’ he continued,’we’re collaborating with local suppliers for spare parts which cuts costs significantly—for instance,a sliding door set originally priced at NT$550000 can now be sourced locally for just NT$40000—a staggering fourteenfold savings!.
Attracting Riders Through Competitive Fares
‘Unfortunately,increased private vehicle usage remains prevalent throughout many areas within New Taipei City since residents lack access points near mass transit options leading them towards personal vehicles instead.’Wu remarked.’Convincing them otherwise poses quite a challenge but we beleive keeping prices low will encourage shifts towards utilizing public transport services—and so far it seems effective as ridership continues growing steadily at approximately four percent each quarter!’.
- Catch more details about this interview featured in August’s issue ofRailway Gazette International!
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