Trains Trains and more Trains

I made a Facebook post a few months back about what at the time was a big issue back in the States; High Speed Rail. At the time, my status update was inundated by replies, some for or against the fast trains. One of the most common queries from those pushing for new trains to be built in the states was something like “How do you get around in Taiwan?” At the time I could only say that yes, on this Minnesota size island of 24 million people, half of which is uninhabitable mountains, I predominantly use mass transit. It turns out that on this island, one of the densest places on earth, state operated mass transit still cannot operate in the black.

Example #1, Taiwan’s new and shiny High Speed Rail. Traversing the length of Taiwan in less than two hours, The HSR was supposed to revolutionize Taiwan’s transportation infrastructure. But for a litany of reasons, The HSR, constructed for an astronomical US$15 billion, has been in operation for barely two years. Under a BOT (Build Operate Transfer) the initial investors (a majority of which were government sponsored entities) would put up the funds for construction. They would then operate the HSR for thirty years, at which point ownership would be transferred to the central government.

Spirits were high when the HSR was opened, with various estimates putting the daily ridership anywhere between 180,000 and 360,000 riders per day. But, predictably, the estimates fell far short. After two years, the average daily ridership is around 80,000. The Taiwan High Speed Rail Corp has been hemorrhaging money since its inception and events finally came to a head this week when the central government agreed to take over the struggling company, a whopping 28 years before the scheduled transfer of ownership. The Taiwanese state will be taking on billions of dollars in debt, and that’s just the current debt, not even counting the cost of running the train for the next thirty years. The Taiwanese taxpayer is now on the hook for this boondoggle and there is no exit in sight.

Example #2 Kaohsiung’s shiny new MRT. While Taipei, the largest city as well as the political, economic, and cultural heart of the country, can be found in the far north of Taiwan, at the southern tip you can find the city of Kaohsiung. Kaohsiung, one of the largest ports in the world, is Taiwan’s second largest city. For decades the northern areas received the lion’s share of federal funds. With the end of martial law and the liberalizing of Taiwan’s politics other regions have been receiving their share of the pork as well. Kaohsiung’s MRT is a perfect example. Just like the HSR, the MRT was supposed to be operating in the black with plenty of passengers. Instead, predictably, the system is going broke and now needs to be taken over by the city government.

While the current political debate in The US is centered on health care, the push for high speed rail will come back. We should all keep in mind the situation in Taiwan. One of the densest places on the planet, with few and clogged highways, still cannot operate a high speed train profitably.


Here are two links for information on the trains

http://www.chinapost.com.tw/business/2009/09/23/225923/MOTC-defends.htm

http://www.chinapost.com.tw/taiwan/local/kaohsiung/2009/09/24/225941/Kaohsiung-is.htm

You're a Liar!

In the midst of the whole fiasco surrounding Congressman Joe Wilson's outburst, I think it's important to point out that Mr Wilson wasn't the only one to explicitly call someone a liar that night. In reference to the so called 'death panels' President Obama said;

"The best example is the claim, made not just by radio and cable talk show hosts, but prominent politicians, that we plan to set up panels of bureaucrats with the power to kill off senior citizens. Such a charge would be laughable if it weren't so cynical and irresponsible. It is a lie, plain and simple."

We all know who he is referring to when he says prominent politicians. Now, I am no fan of Sarah Palin but if Barack Obama can use a speech to a joint session of congress to call her a liar, the outrage over Joe Wilson's remarks seem a bit superfluous.