TAIPEI (TVBS News) — The central government and Keelung City Government advocate for the Keelung MRT. However, city councilors are concerned about the financial losses from operations and maintenance, as similar systems across Taiwan are not generating any profits.
The plan for the Keelung MRT covers a distance of 15.59 kilometers, encompassing 13 stations spanning Keelung, Taipei, and New Taipei, with a total cost of NT＄59.7 billion.
Keelung City is expected to contribute NT＄5.3 billion, and to mitigate financial burdens, a dedicated NT＄3 billion MRT construction fund will be established. The Taipei MRT is the most widely used, accommodating up to 2 million passengers daily. Nevertheless, it incurred losses exceeding NT＄1.5 billion in 2022.
Taichung MRT has served over 17 million passengers since commencing operations in 2021. However, it is projected to incur total losses of NT＄3 billion by the end of 2023. The Kaohsiung MRT transports approximately 179,000 passengers daily, but it is expected to face nearly NT＄800 million losses by year-end.
As for the Taoyuan MRT, with a daily ridership of about 76,000 passengers, reported a loss of NT＄928 million last year.
Experts emphasize that MRT systems rarely turn a profit due to their nature as public transportation. Nonetheless, this situation could lead to a series of challenges.
The secretary-general for the Society of Railway and National Planning, Taiwan, Huang Po-sen, said that public transportation not maintained in a state of financial equilibrium will "lead to a lack of cash flow for the operators, which will, in turn, lead to a reduction in the quality of their services" and the end, affect the public.
Despite MRT systems exploring alternative revenue sources, such as station advertisements or leasing underground spaces, to offset revenue shortfalls, their impact on alleviating financial pressure still needs to be improved.
Since MRT systems can stimulate the local economy and bring various benefits, tackling potential financial difficulties will pose another significant challenge.