TRA to be corporatized
The cabinet has approved a draft bill that seeks to convert the Taiwan Railways Administration (TRA) into a state-run corporation.
The move is part of the government's wider efforts to reform the debt-ridden and antiquated agency.
The draft bill stipulates that the administration will be run solely by the government and a fund will be established by the Ministry of Transportation and Communications (MOTC) to take over its short-term debt of NT$148 billion.
The bill also states that the move will not result in any of the railway administration's employees being laid off.
MOTC Minister Wang Kwo-tsai says the conversion plan will create a chance for the regeneration of the railway operator and all debts incurred as a result of infrastructure and policy change will be assumed by the government.
The bill will now be sent to the legislature for review.