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KAOHSIUNG CITY GOV'T TO TAKE OVER THE MRT?

2011-05-26 06:00:00 / 綜合報導 /
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  The low ridership of Kaohsiung City's MRT system has led to serious financial deficit to the Kaohsiung Rapid Transit Corporation for the past three years. However, there have been rumors indicating that shareholders of the corporation are planning to transit the ownership of the corporation to the Kaohsiung City government. In response, Kaohsiung Rapid Transit Corporation refuses to comment on the news, stressing that the corporation is still negotiating with the bank regarding its debts, while offering more services and trains to increase ridership. Kaohsiung City government also says that it has no intention to take over the business. To help boost the ridership, the city government has proposed several measures, including increasing the shuttle bus services connecting MRT stations, and offering discounts on ticket fares. The Kaohsiung Rapid Transit Corporation has a capital of NT$10 billion, and a debt of over NT$20 billion. It was estimated that the capital could support the company for 7 years, but due to the low ridership, the company is facing a NT$6.6 billion deficit, while the capital has dropped to NT$3.4 billion. In the mean time, the average daily ridership is around 135,000 passengers, but there is still a 65,000-people gap between break-even and present ridership. Even so, the Kaohsiung Rapid Transit Corporation remains optimistic about the future operation, indicating that the ridership has been growing by 6% annually since 2008. The company says that it will work with banks to help restructure its debt, and try its best to attract a substantial number of passengers.
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