Showing posts sorted by relevance for query high speed rail. Sort by date Show all posts
Showing posts sorted by relevance for query high speed rail. Sort by date Show all posts

Tuesday, March 20, 2007

Tourism Bureau, HSR exchange of digitus impudicus

The Taipei Times reported that the Tourism Bureau and the Taiwan High Speed Rail Corp engaged in some mutual removal of noses to spite faces over the cost of signs in HSR stations....

The Tourism Bureau's plan to make the high speed rail a selling point was met with nonchalance by the Taiwan High Speed Rail Co (THSRC), as the company has asked the bureau to pay NT$1 million (US$31,250) a year for promotional signboards featuring the nation's railway tours to be placed within the high speed rail stations.

Tourism Bureau Director-General Janice Lai (賴瑟珍) said yesterday that since the bureau did not have a sufficient budget to pay for the signboards, the bureau would work with the Taiwan Railway Administration (TRA) instead.

"It [the THSRC] is not tourist-friendly enough," Lai said, adding that the bureau's marketing strategy for the moment for the high speed rail was to focus on pre-arranged group tours rather than tours for individuals.


The government's goal is to get more Japanese tourists here -- and the 300 tourist reps from Japan for the Bureau's project to achieve this are coming free on the nation's airlines. Meanwhile yet another problem with the HSR is appearing:

The inadequate shuttle bus system around the high speed rail stations also became the target of criticism in the question and answer session in the legislature yesterday.

Legislators from central and southern counties have also complained that the high speed rail had caused domestic airline companies to reduce the number of daily flights.

Since the shuttle buses do not run as frequently as they should, travellers often have to ask family members to pick them up at the high speed rail stations, the legislators said.


I'd like to add that the schedule sucks. As far as I can see, there is no way I can board an HSR train heading south out of Taichung, and land in Tainan in time to make my 9:00 am class. Maybe I'm reading the schedule wrong....

Fortunately, despite the bad news, local writer Dan Bloom informs me that the HSR has done something good. Here's an email he sent me about the lack of logos or "Taiwan" on the HSR tickets (ordinarily I don't post attributed private emails, but I think this will be OK).

+++++++++++++

Michael
did you know that the orange HSR tickets do not....well, long story short.....
after i noticed the HSR tickets do not have logo or name of issuer on them,, i contacted the CEO of the HSR, Dr Ou, and he said YES HE WILL MAKE CHANGES ASAP.... letter from HSR office today.

three cheers for participatory democracy,...the current HSR tickets do not even say Taiwan high Speed Rail on them,, not even the word TAIWAN anywhere, and no logo. So i complained, gently. got action quickly. DONE DEAL

danny
================

Dear Dan Bloom,
After getting your Email I had also reported to Dr.OU , who is the CEO of our company.

Dr. Ou totally agree your suggestion what about the company LOGO on the HSR ticket,
and he immediately instructed marketing department to take action.
ASAP.

Thanks for your concern and please keep in touch.

Best Regards,
TAIWAN HSR


++++++++++++++++

Several people have written on this problem, I hear. Kudos to Danny for his initiative and success.

Sunday, July 30, 2006

Taiwan and BOT

On the Beautiful Isle the name of the infrastructure game is Build-Operate-Transfer, or BOT. BOT is in theory a system for getting private financing to pay for infrastructure projects. An Asia Times piece on the High Speed Rail describes the issue:

The problem touches at the heart of the BOT development model, which theoretically is a mechanism for private capital to fund public infrastructure projects. Each BOT case is of course subject to many variables, but generally the idea is to get private interests to fork out the money to build public facilities; for example, a bridge. In return for this largesse, the builder then gets to play toll-booth keeper for a set amount of time, long enough (the developer hopes) to generate a fat return on investment. Regardless, the developer must transfer the facility to the government at the end of the pre-set period. The system is commonly used to build highways and toll bridges in the United States and Britain.

Depending on your viewpoint, BOT in Western countries is an efficient and cheap way for a government to develop national infrastructure, or else it’s an efficient and fast way for corporate interests to bilk the public while maintaining a veneer of public-mindedness. Both outlooks are probably justified, but in any case, the theory is likewise gaining adherents in halls of power throughout much of Asia ex-Japan, where increasingly democracy-minded masses are beginning to demand social-welfare spending just as export-led economies have been hit by a slow US economy.


A US Dept. of Commerce report discusses the high speed rail project, the world's largest BOT project when announced, which has showered a rain of pork barrel money around the island:

The Taiwan High Speed Railway (THSR) project, initiated in early 1990, eventually resulted in a signed BOT contract between the THSR Corporation and the Taiwan authorities in 1998. Engineering companies and construction companies from all over the world have participated in this US$ 15 billion project. With a total length of 345 kilometers, connected by long-span viaduct bridges and 48 tunnels (the longest of which is 7.5 kilometers long), the THSR project has contributed to a substantial upgrade of the technical skills of Taiwan’s engineering and construction industry firms. Among those involved, Continental Engineering Corporation (CEC) and Fu Tsu Construction Company became Taiwan's two largest privately owned contractors after successfully completing their portions of the THSR project.

BOT become popular in Taiwan in the 1990s as the KMT's grip on the economy receded, the economy began to slow down, public debt began to mount, and new ways had to be found to continue the flow of funds out to the construction-industrial complex that underpins the Taiwan economy. Recently public debt constraints have also forced the State to reconsider the whole BOT concept:

During the period 2004-2008, the BOT approach will be re-examined for its feasibility for large-scale infrastructure projects in Taiwan. The authorities, already financially constrained by a public debt ratio set by law (48% of the average GNP for the preceding three years), has allocated a NT$ 500 billion (US$ 15.6 billion) budget to support Taiwan’s infrastructure projects through 2008. Viable projects proposed by state-owned companies like TPC and CPC will be supported by Taiwan’s banking system. The central authorities are also considering tax increases in order to provide continuous support for Taiwan’s infrastructure development.

The support of Taiwan's banking system in BOT projects was demonstrated today as the government announced another US$1.8 billion in financing for the High Speed Rail:

Taiwan High Speed Rail Corp (THSRC) confirmed yesterday that it has secured a loan of NT$60 billion (US$1.875 billion) from three banks to further fund the construction and the operation of Taiwan's first bullet train system, a build-operate-transfer (BOT) project that has cost the nation NT$480 billion.

The loan will help cover the costs accrued due to the company's decision last year to postpone the launch of the bullet train as well as the expenditure on the construction.

It will be jointly provided by the Bank of Taiwan, the Chiao Tung Bank and the International Commercial Bank of China. The company has yet to sign the loan contract with any of the institutions.


This is actually simply another instance of a government bailout, for the problem with the High Speed Rail project is that it has quietly become just another government project that a few privileged private investors are going to make a killing on. The Asia Times piece above notes:

Perhaps not, but these government concessions were demanded by the THSRC when it drew up its contract proposal—and, says Ing, were necessary for the deal to make business sense to her and her partners. When speaking with planning agencies, potential investors likewise say that they will only be interested in BOT in Taiwan if the central government backs them firmly, including tax breaks and other deal sweeteners. That’s public money—although few in either government or industry characterize it as such. But given its second-class (and decaying) infrastructure, Taiwan might not have any choice.

The rail project bears this assertion out. After promising to raise all of its equity from among the THSRC consortium members, banks or capital markets, the contractor ran into financial trouble, which forced the government to fund the project directly. Today, the original investors together hold about 40 percent of outstanding shares of the THSRC—but the single largest investor is the Taiwan government. State-owned Taiwan Sugar Corp owns a 10 percent stake, and the Executive Yuan’s Development Fund, which has been used in the past to fund companies such as Taiwan Semiconductor Manufacturing Corp, last year purchased a further 6 percent of THSRC shares.

That 16 percent stake has the potential to get much higher. The THSRC was unable to secure sufficient backing on its own, so the government agreed to guarantee another (roughly) US$9 billion in loans from a syndicate of 25 domestic banks. In other words, the government now must take over the entire project, assuming full financial responsibility, if the THSRC fails either during construction or at any time during the following two decades of operations before the scheduled transfer. The opposition-dominated legislature made a show of putting the brakes on public responsibility in June 2001, but it was already a done deal.


In addition to the government firms noted above, government-owned China Airlines took at stake in the project as well. Another well-known BOT project was Taipei 101. The BOT was coordinated by China Development Financial Holding Corporation, and was originally tendered for a 66 story building.

Massive infrastructure projects aside, Taiwan also uses BOT for the everyday stuff. At the moment the city of Kaohsiung is trying to make progress on Taiwan's awful rate of sewer linkage:

The Kaohsiung city government is planning to construct a sewage system on build-operate-transfer (BOT) basis in Nantzu District of Kaohsiung City. The project stems from the central government's six-year national development plan -- Challenge 2008 - focusing on economic growth and environmental protection. One of the objectives of Challenge 2008 is to boost the coverage rate of the island-wide sewage systems from current 8% to 24% by 2008. The Ministry of the Interior has identified two sewage system projects in Taipei County and Kaohsiung City as the priority for the promotion of private participation in infrastructure projects.

The city, other local governments, the military, and investors are all participating:

Kaohsiung City Government and the military will collaborate with the investor of the BOT project for the construction of the sewer network. Total expenditure for the investor is estimated at US$161.24 million. Commercial operation is expected to commence within three years after the contract is sealed.

It's not as glamorous as a high speed rail, but good sewer systems will do a lot more for the island than bullet trains. Another less glamorous use of BOTs is for resorts. Wild at Heart blogged a while back on a BOT project that threatened beaches in the Penghu:

At the public hearing held on 9 March 2006, the NPB admitted to having made an administrative error by failing to challenge Mr. Chen’s use of the land, but claimed to have responded to the 1998 ruling by pursuing rent in arrears for the illegally occupied area, and denied responsibility for managing the demolition of unlicensed buildings. This met with a series of challenges from the convener of the Forum, Li Gen-jheng, who questioned the NPB's decision to continue the lease, while pursuing an amount of money (a mere NT$1000 per hectare per year) vastly disproportionate to the profits made by the resort, allowing the proprietors to go completely unpunished. Indeed, as argued by the Forum’s chairman, Legislator Tian Ciou-jin, rather than the proprietors being penalized for breaking the law, they were instead being rewarded with a 50-year BOT project on the disputed land and NT$38 million in subsidies, all courtesy of the PNSAA.

According to the PNSAA's bidding manual, the BOT project aims to turn Jibei Island into a major harbour and holiday center, promoting tourism and stimulating local employment and prosperity. Yet there is no mention of local participation in the design and implementation of the development. Bidding companies are merely required to be a corporate person legally established in Taiwan with experience in running facilities of a similar budget size or floor space, and there is no limit on the proportion of foreign shareholders.


Taipei's CyberCity project is also a BOT:

The second stage of implementation, the "Taipei City Wireless Broadband Network Implementation Plan", was put out to tender as a BOT (Build, Operate and Transfer) project in 2004. Public resources all over the city were made available for hot spot installation, including 130,000 street lights, over 8,000 bus shelters, MRTS (Mass Rapid Transit System) stations, elevated expressways, the roofs of public buildings, existing underground conduits and more. The tender was awarded to Q-Ware in August 2004; the company received an exclusive license to provide WLAN service for nine years. Q-Ware is planning to invest over NT$3 billion to build up a wireless broadband environment in Taipei City and will be providing WLAN Internet access and value-added services. Subscribers will be able to choose between either a flat-rate fee or usage-based pricing. Q-Ware will pay between 1% and 3% of its operating revenue to Taipei City. The potential business opportunities are estimated around NT$5 billion.

BOTs have also been used to build schools, dorms at NCKU in Tainan, sewage systems in Taipei, an incinerator in Miaoli, and for administration of the Sun Moon Lake Scenic Area. Given the parlous state of the island's public finances, the relatively low ratio of tax revenues collected by the government, the incestuous links between the government big business, and the necessity of a constant flow of public construction to oil the political and economic machinery of the island, look forward to the continued dominance of the BOT model in public infrastructure in Taiwan.

Wednesday, January 03, 2007

High Speed Chaos

Ticket demand for the High Speed Railway test runs was in high demand yesterday....

To encourage more people to try the new rail system, the company announced last week that it would offer a 50 percent discount on the fares for the test runs and would also sell 50,000 commemorative tickets.

Apparently attracted by the reduced prices or the novelty of the new rail system, people started to line up in front of the ticket booths at every THSRC station on Monday evening in the hopes of being among the first passengers of the nation's first north-south high-speed railway.

........

"We expect to sell 30,000 tickets a day ? obviously we underestimated demand," Ou said.

.......

As of 8pm, THSRC said it had sold 81,168 tickets.

If real demand reflects this, then I will have to eat a heaping helping of corvus, since I have long thought this train was a waste of money. But hopefully this demand will be sustained. Nostalgiaphile rounded up some media links:

Today, the Liberty Times ran several articles about the Taiwan High Speed Rail (THSRC, 台灣高鐵) which opened yesterday. One is titled "HSR fails its first class" (because of the chaos and counter help) one is about "High-speed Rail One" (about Ah-bian's ride on HSR), another is titled "Listen to me, HSRC!" (someone complaining about the ticket machines), and still another announces "HSRC sells 80,000 tickets on its opening day."

Hai Tien at the great blog The Bala Daily describes his own experiences attempting to get a ticket:

It's a testament to the power of the media here how much hysteria they've been able to whip up regarding the soon to be opened Taiwan High Speed Rail system. Every detail of the construction of THSR has been carefully scrutinized by the media and promptly reinterpreted in the worst possible light.

Consequently my folks are convinced that the first train out of Banciao Station will derail, burst into flame, and be struck by a meteor. And I will lie there blooded and dying while a TVBS reporter shoves a microphone into my face screaming "先生!你現在感覺如何?"

..........

And so, that is how I ended up with round trip standard class tickets from Banciao to Taichung for opening day (this Friday) for a total cost of NT$670 (US$20.57), though I did miss out on the commemorative tickets being sold yesterday. If all goes well, the trip to Taichung should take about 55 minutes there and back again, with 2 hours for me to poke around THSR Taichung Station (which I am told is located out in the boonies somewhere). I'll be gone from Taipei after breakfast and be back in time for lunch. Cool.



Wednesday, July 28, 2010

Landed Gentlemen

Southern Taiwan is getting gobsmacked by rain recently. Some places are as hard-hit as they were during Morakot last year, but since the disaster is unfolding more slowly....

Another pan-Blue politician goes down on a (pathetic) charge of vote bribery -- US$431 expenditure. The 2007 election was annulled.

Speaking of pan-Blue corruption, the County Chief of Miaoli came under fire again over land issues. Taiwan News reports:
Liu came under fire recently for sending in excavators destroying rice fields in order to seize land from farmers for the expansion of the Chunan Science Park. The dispute, which dragged on for weeks, led to the central government stepping in under public pressure and promising farmers they would receive another 5 hectares of land to work on.

Democratic Progressive Party lawmakers said Tuesday that Liu had succeeded in paying off NT$50 million (US$1.5 million) in debt within two years after being elected chief of Miaoli County. They said that plots of land he owned for a total value of NT$20 million (US$625,000) later turned out to be worth NT$90 million (US$2.8 million). The transaction amounted to “exchanging a bicycle for a Ferrari,” said DPP caucus whip Kuan Bi-ling.

DPP lawmaker Su Chen-ching called on prosecutors to investigate the deals and check the flow of funds as soon as possible because there were strong suspicions of money laundering, tax evasion and land speculation.

The March 2007 transaction was also allegedly timed to coincide with the announcement that the area was destined for the building of the Miaoli High Speed Rail station. In addition, the deal also involved the sale of the land by Liu to his son before a third party paid a much higher price, Su said. As a result, there was a question of whether Liu had paid the necessary inheritance and gift taxes, the lawmaker said.

Liu said he repaid his debts by selling off family assets. The land deals were completely legal, he said, adding he was considering taking his accusers to court.

DPP politicians also questioned why, within the area destined for the high speed rail project, Liu’s home had been left standing, while a nearby historic ceramics factory had been razed.
The kilns were a local tourist attraction. The Taipei Times reported last year:
Control Yuan members Chou Yang-san (周陽山), Chen Yung-hsiang (陳永祥) and Ma Yi-kung (馬以工) launched the probe into how the county government handled the issue in March after local historians and activists protested against the county government's decision to tear down the kilns — the last witness to the county's once-prosperous pottery industry.

Aside from forming the Alliance to Rescue the Historic Kilns of Miaoli, more than 50 civic groups nationwide and about 600 individuals signed a petition calling on authorities to preserve the kilns.

In 2003, the county government unveiled a plan to build a station for the high speed rail nearby and drew up an urban development project to turn the surrounding area into a transportation hub and high-tech industrial zone.

After the plans were drawn up, the county's Cultural Heritage Assessment Commission said the three remaining old-style kilns were not of “enough historic value for preservation” and could be torn down.
If the government had possessed the imagination to keep the kilns right next to the HSR station, they might have blossomed into a serious tourist revenue generator. But local construction-industrial state cronies make more money from land speculation.

The hidden ethnic factor here is that the area in Miaoli where this is happening is full of Hakkas, traditional supporters of the KMT, thanks to its exploitation of ethnic politics. It will be interesting to see if this, and the flooding that occurred during Morakot last year in predominantly ethnic Hakka areas around Linbian in southern Taiwan, have any effect on the Hakka vote.

In addition to farmers from Miaoli, farmers from Erlin in Changhua are protesting against seizing their land for expansion of the central Taiwan science park. Taiwan News says:
The farmers, from Hsiangszuliao in the township of Erlin, said they would refuse to give up their land to a road project for the Central Taiwan Science Park.

......

.......

A total of 21 farmers in Erlin would refuse to sell their land and organize protests, activists said at a news conference in Taipei Tuesday. They said that monetary compensation was not enough, since losing their land also meant they were losing their livelihoods and would have no work when the money ran out.

The activists also said that the Central Taiwan Science Park was still vacant for 50 percent, making the seizure of land outside its present area totally superfluous.

The Changhua County farmers said they would hold a protest outside the Presidential Office Building in Taipei similar to the one held last July 17 by their colleagues from Miaoli. The overnight sit-in rallied more than 1,000 supporters and was believed to be essential in persuading the central government to tackle the problem. Ruling Kuomintang lawmakers feared that as a result of the protests, the party might lose significant numbers of votes in the crucial November regional elections.
The Council of Agriculture (CoA) called for....coordination.
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Saturday, February 03, 2007

Understanding the High Speed Rail Stations

One of the most puzzling aspects of the high speed rail system is the placement of the stations far from the cities. At last month's Swenson's meet up, which I haven't had a chance to blog on yet, we finally received an answer, courtesy of a Taiwan land use expert's presentation.

What happened was this. Planning for the HSR began back in 1987. At that time economic growth was running high and people were flooding into the cities, which were hugely congested (this was also before the metro in Taipei as well). Planners envisioned the HSR as a system that would drive the development of smaller suburban satellite cities on the English New Town model. The stations were thus located far from the city centers in the hope that they would pull people out of the booming cities to become the focii of new development. The HSR company was then given the rights to lease the land around the stations, and collect revenues from station operations -- renting out retail space within the station, as the Japanese bullet trains do. Fast forward twenty years and Taiwan is completely different -- thus the HSR stations that appear to be wrongly located far from urban downtowns, solving a problem that no longer exists.

Wednesday, June 15, 2011

HSR subsiding?

Areas of land subsidence in Taiwan; all except Taipei are fish farming centers (source). 

The new head of the public construction commission is all over the subsidence problem in central Taiwan, saying that it will cause the HSR to slow to a crawl within a decade if something is not done (AFP report). The Taipei Times gives more detail:
The earth is sinking under the nation’s high-speed rail line, New Public Construction Commission (PCC) Minister Lee Hong-yuan (李鴻源) said yesterday, warning that it could become inoperable in 10 years if nothing is done.

The soil has subsided because of excessive draining of ground water on a stretch of the line in Yunlin County and the limit of what is considered safe is fast approaching, Lee said.
“The high-speed rail can safely operate for a maximum of 10 years if the problem is kept under control,” Lee said.

“However, the area affected has expanded this year because of the water shortage problem. With more ground water being lost, 10 years has become a conservative estimate,” added Lee, who on Monday traveled to Yunlin with other government officials to inspect the high-speed rail line.
The Minister pointed out that the problem is serious not only in Yunlin but also in Changhua and Chiayi, threatening a total of 1,400 km2 in the three counties (this paper says "The total cumulative subsided land area in Taiwan has reached 1,941 km2 (Chang 2004), or about 20.5% of the total plains area of 9489.90 km2 (EPA 2007)"). I wrote an extensive piece on subsidence in Yunlin a while back, which gives some (scary!) numbers but also notes that the issue is compounded by the fact that laws are promulgated by the central gov't but enforcement is up to the local government, which often turns a blind eye to the problem. The paper cited above also notes:
Even if the area of continuous coastal subsidence is reduced, the cumulative subsided depth will still increase. In areas where fish farms are concentrated, such as Jiadung District of Pingtung County, in the beginning of the LSPTIP in 1995, the subsidence depth was 2.82 m but had increased to 3.24 m by 2006; the maximum cumulative subsidence depth on the coast of Changhua County in 2001 was 2.02 m, and that in Yunlin County was 2.10 m. However, by 2008, cumulative subsidence in these two areas had increased to 2.52 and 2.4 m, respectively (Water Resources Management and Policy Research Center 2009).
The original layout of the HSR line didn't help either; with unerring accuracy it was planned for lowlands with some of the worst subsidence on the island. Yet even as early as the late 1980s/early 1990s the subsidence problem in these areas was already known (for example) and could have been avoided by re-routing the line. Argh.
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Wednesday, July 18, 2007

China and Taiwan in the Media

More fun out of China. First, Reuters reports that Chinese dancers stole the ROC flag, claiming that Taiwan is not a nation.

"This incident made us really mad. They have never tried to steal our flags before," said Antonio Chen, director general of the ministry's West Asia department. "Usually (China) goes through diplomatic channels to protest against us."

First, on July 4, the 10-person Chinese troupe removed Taiwan's flag from the Israeli stage, Chen said. Later in the day, Taiwan's 10-strong troupe carried the flags back on stage, he said.

The next day, the Chinese Embassy in Israel protested, saying Taiwan was not a nation. The organisers decided to ban all flags except the host's, Chen said -- but the China dancers displayed theirs again at a parade, prompting Taiwan to do the same.

Taiwan asked that its group be separated from the Chinese dancers at future annual events, Chen said.

A local newspaper then reports that the High Speed Rail, always hungry for money, is worried that Chinese investment may leak into its funding portfolio:

Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) could have difficulty getting its hands on a NT$15.8 billion (US$481.3 million) loan from US investment bank Lehman Brothers given government concerns that it may involve funds from China.

"We have followed the rules in applying for the loan ... We can only wait for the government's final decision," THSRC spokesman Arthur Chiang (江金山) said in a telephone interview yesterday.

THSRC, the operator of the nation's high speed rail, secured a NT$65.5 billion syndicated loan from Lehman Brothers and seven local banks, including Taipei Fubon Bank (台北富邦銀行), Taishin International Bank (台新銀行) and Fuhwa Commercial Bank (復華銀行), in May.

Of the total, Lehman Brothers will provide NT$15.8 billion, with THSRC using the right to develop five major stations -- Taoyuan, Hsinchu, Taichung, Chiayi and Tainan -- for 50 years as collateral for the loan.

As Lehman Brothers and IBM Corp had established a China Investment Fund with an initial capitalization of US$180 million last October, some Taiwanese officials have voiced concerns that the loan might involve Chinese funds, allowing China to control the right to develop THSRC stations, the Chinese-language China Times reported yesterday.

Chinese investments are banned in Taiwan.


Some Chinese investment here might be just the trick to give the economy a push, guys.

Next, the IHT reports that US intelligence is concerned about China's growing belief it can localize a war over Taiwan:

A U.S. intelligence officer on Tuesday said China appeared to have too much confidence that it could manipulate the scale of a war with rival Taiwan.

Lonnie Henley, an East Asia specialist in the office of the Director of National Intelligence, said Chinese officials are increasingly studying the concept of "war control" to evaluate scenarios should fighting break out with Taiwan.

"Their confidence in their ability to modulate the intensity, scope, pace, etc., of the conflict is probably misplaced, and that is dangerous for all concerned," Henley told an audience at the Carnegie Endowment for International Peace.

Finally, AP reports that Olympic officials from Taiwan are meeting their counterparts in Beijing to discuss everything except the torch:

A Taiwanese Olympic official will meet with Beijing counterparts next month to discuss procedures for the 2008 Beijing Summer Olympics, but the contentious route of the torch relay will not come up, a Taiwanese official said Monday.

Earlier, Taiwanese cable TV news station CTI reported that the torch's route could be on the agenda during the meeting, which in addition to delegates from Taiwan and China, will also involve representatives from other members of the International Olympic Committee.

In April, Taiwan scuttled plans to be part of the elaborate torch relay that will cross five continents in the immediate run-up to the games. The move embarrassed Beijing officials, who announced the route only two hours before the Taiwanese backed out.

Speaking to The Associated Press, the Taiwanese Olympic official said the island would send a midlevel representative to the August meeting, which would concentrate on logistical arrangements for the summer games.

This article has a really interesting formulation of the "they split amid civil war" catechism:

The torch relay controversy highlighted the prickly relations between China and Taiwan, which split amid civil war more than five decades ago. China wants Taiwan to unify, but the democratic island has repeatedly refused.

Note that it works in something about Taiwan's democracy, and doesn't say "RE-unify." That's progress, baby, an excellent formulation that actually starts to approach reality. I had the chance to speak with an international news reporter on this topic last week, and he pointed out that it is hard to find a pithy way to describe the truth -- that China and Taiwan didn't split, since Taiwan was then part of Japan, and it was the KMT and the Chinese Communists who split. He also added that split, which can be transitive or intransitive, was an excellent verb. I admit the grammar angle hadn't occurred to me.

Tuesday, May 01, 2007

HSR Fans: HSR on Playstation

Yes, if you love Playstation and the High Speed Rail, it will arrive......

*A new Ongakukan Train Simulator for Playstation 3, featuring Taiwan High Speed Rail's Shinkansen service is currently being developed under the title, Railfan: Taiwan High Speed Rail.

*A Taiwanese software developer Actainment Co, will co-develop the game with Ongakukan.

*For the first time in Ongakukan history, the game will only be released in Asia. Minoru Mukaiya announced that the game will not be released in Japan for the time being.

Tuesday, September 22, 2009

Gov't to take over HSR

Big news this week has been the government's move to take over the Taiwan High Speed Rail corporation. Reuters reported today....
Current Chief Executive Ou Chin-der would take over immediately from Nita Ing as chairman, the company said, giving the government control over the popular 345-km (214-mile) north-south railway system, which opened in early 2007 as one of two bullet train routes in Asia after Japan's.

"The most important thing is to make sure the high-speed rail remains in operation," Taiwan Premier Wu Den-yih told reporters ahead of Ou's appointment.

The government would ultimately take over management of the company but had no plan to inject money or buy company, local media quoted Transport Minister Mao Chi-kuo as saying.
According to Reuters, the HSR Corp wants to turn a profit so it can list on the stock exchange. It has a combined debt of NT$380 billion in bank loans and European convertible bonds, and lost NT$25 billion last year, or $770 million in inflated US dollars.

Those are Reuters' facts. Now lets look at AFP's facts, which are sourced entirely from (where else?) The China Times. AFP says:
The company was 70.2 billion Taiwan dollars (2.14 billion US) in debt as of the end of June, compared with a capitalisation of 105.3 billion, the Times said.
AFP also notes the political aspect:
If confirmed, it would signal the failure of Taiwan's biggest build-operate-transfer project, under which the firm agreed to build the rail line and run it for 35 years before transferring ownership to the government.
The Taipei Times says:
The company has a paid-up capital of NT$105.3 billion (US$3.2 billion), but was reportedly NT$11 billion in the red last year, while its accumulated debts amount to NT$70.2 billion.
Taiwan News has the debt at a more precise NT$461 billion.

The China Post also has its facts in a pretty good piece detailing the ownership of the HSR:
As of the end of June this year, the THSRC had recorded total operating loss of NT$70.2 billion, equivalent to two-thirds of its paid-in capital of around NT$100 billion. The firm's outstanding debts have run up to over NT$450 billion, informed sources said.

The company is likely to be forced to go bankrupt within two years if the annual loss of around NT$25 billion lingers and if no additional fund is injected into the firm. But almost all the major shareholders declined to comment on the likely changeover of the firm's chairmanship and on whether to put fresh funding into the company.
According to the China Post, the project is owned by Continental Engineering (400 million shares), Fubon Financial Holding Co. (5.53%), Evergreen (4.05%), China Steel (5%+), and Taiwan Sugar (4%). All are apparently reluctant to dump more money into the project. Over 50,000 people are smaller shareholders, according to other articles.

The Post says that the HSR is supported by two syndicated loans, NT$279 billion from one banking consortium headed by the Mega Commercial Bank, and NT$65.5 billion from another consortium led by Taipei Fubon Commercial Bank, the banking arm of the Fubon Financial Holdings.

The trouble became more acute when the major shareholders refused to dump more money into the project, in turn triggering the banks to refuse to extend it any more credit. The CNA said, citing Premier Wu:
Wu said THSRC's monthly revenues exceed its operating costs, so it runs a small operating profit.

"But the surplus has been more than offset by its heavy burden of interest payments, depreciation and amortization, " Wu said, adding that high interest payments and amorization have been the main cause of the company's heavy indebtedness.
It is easy to see where this is heading: the government's "supervisory role" will enable it to force banks to keep the credit taps open, as Wu said, taxpayer funds thus guaranteeing private wealth. The government says it merely plans to have a majority on the board, not to actively take over the company. Reuters said in another report, citing the China Times, that
the HSR could get a loan of about NT$390 billion ($12 billion) as early as November after the government moves to keep it afloat. If the government can force interest rates down, the project can probably run on life support, servicing its debt and keeping up maintenance, without ever repaying its capital costs.

No administration can afford to have the HSR fail on its watch (nor would an HSR failure here be good for HSRs elsewhere in the world), and it is interesting that the company was handed over to current CEP Ou Chin-der, a Ma Ying-jeou intimate. The CNA report also said that the banks which had refused to extend more credit to the HSR when the shareholders failed to pump in more cash, would be more forthcoming if Ou became head of the company.

The HSR was in its day the largest BOT project in the world, built to run 35 years by private interests, and then turned over to the government. The turnover has just occurred 33 years early, is all. It was a massive pork barrel in its day, a $15 billion project that had a total length of 345 kilometers, connected by long-span viaduct bridges and 48 tunnels (the longest of which is 7.5 kilometers long). Continental Engineering Corporation (CEC) and Fu Tsu Construction Company became Taiwan's two largest privately owned contractors after completing their portions of the HSR project. Having splattered money all over the west coast of Taiwan, it has done its real work. Forbes noted a couple of years ago:
An official quoted estimates from the Council of Economic Planning and Development that construction of the high-speed rail network has created 480,000 jobs and may contribute 1 percentage point to economic growth.
Why doesn't it make money? The original plan, first proposed way back in 1987, when Taiwan's economy was quite different, called for the stations to be located far from the cities (BBC talks about this). At that time the population flow was all to urban areas, so the HSR was looked at as a way to develop more desolate places outside cities, and erect something akin to the English New Town. The land around the stations was going to be rented and developed, enabling the project to generate revenues from restaurants, hotels, and so on. A quarter million passengers a day were projected (Taipei Times says 300K a day in 2000). Then, after it opened, 150,000 a day were hoped for (total capacity is about 300,000 a day). It now carries about 90,000 passengers a day, according to Taiwan Today in 2008 (and Reuters).

The project went ahead under these plans, but then the economy changed. It switched technology in mid-project, from European to Japanese systems, adding to the costs. Now, as every passenger knows, the stations are forlorn in remote areas, massive buildings sitting on empty lots. The system also has other costs, dealing a heavy blow to the island's ailing airlines, and putting dents in its intercity bus and train services as well -- services whose financial health is important to small towns all around the island.

REFERENCE: HSR project in a post on BOT in Taiwan from 2006, project timeline and introductory article
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Wednesday, April 07, 2010

China and Future HSR

China Reform Monitor says China will be at hub of an HSR network connecting Europe and Asia:
China is constructing three primary high-speed rail lines: a southern line through Southeast Asia to Singapore; a western line from Xinjiang through Central Asia; and a northern line through Russia’s gas fields to Europe. A proposed South Asia branch will start in Kunming and run through Burma to New Delhi, Lahore and on to Tehran to join the Central Asia line. Beijing has concluded agreements with Tajikistan and Kyrgyzstan and negotiations with over a dozen countries are underway. Construction has begun on the southern line, running from Kunming to Singapore. In the best-case scenario the rail link will be completed by 2025, when a train from Beijing to London will take only two days. But differences in countries’ track gages and poor track quality in some areas hinder the project. In Cambodia, over 650 km of track needs renovation and Burma’s track is below the required standards, The Hindu reports.

[Editor’s Note: In December, China opened the world's fastest rail link between Wuhan and Guangzhou, where a 350 kmph-speed train covers the 1,068 km journey in three hours. By 2012, China will have the world's largest high-speed domestic railway network including 42 high-speed lines running 13,000 km.]
Meanwhile our vision-free, Middle East-obsessed elites blow the national budget shoring up their pals on Wall Street while making Afghanistan safe for Chinese expansion and funding our disaster in Iraq. Our elites think too small. Think big! And the people will follow.
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Thursday, November 05, 2009

Shocked-I-Tell-You Events

Happiness is an office decorated with my daughter's paintings.

I was shocked, I tell you shocked, to learn that Premier Wu Den-yih, back before he received his promotion to his current exalted state, traveled to Bali Island in Indonesia with a prominent Nantou gangster back in December, as the pro-Blue CTI reported (quickie translation from Google, slightly cleaned up):
根據周刊報導,吳敦義任職國民黨秘書長期間,曾偕妻子蔡令怡與中部黑道大哥江欽良,共赴印尼渡假盛地峇里島五日,同行者還包括南投縣長李朝卿、議員李增全、竹山鎮紫南宮主委莊秋安、草屯鎮代表會主席林焜熠夫婦。由於江欽良仍在假釋期,且自十餘歲出道累積逾30項的犯案前科,令人高度質疑吳揆力挺查緝黑道的決心。

According to a Next Weekly reports, when Wu Den-yih was KMT Secretary General, he and his wife and central Taiwan triad leader Jiang Qin Liang, went to the Indonesian resort island of Bali for five days while traveling, together with Nantou County Magistrate Li Zhaoqing, Mr Li Zeng-Quan, Chushan Town Purple Palace Chairman Zhuang Qiu-An, and Mr Lam Kun-Yi of the Tsaotun Township Council and their wives. As Jiang Qin Liang was still on parole from a ten year sentence, with a record of 30 previous convictions for various offenses....
A spokesman said on behalf of Premier Wu that he had gone there to gain ideas for tourism. Clearly, to attract so august a crowd, Bali Island must have many lessons for land-locked Nantou.


Out walking the pet chicken in front of an apartment complex in Linkou as the stray dogs look on hungrily.

When last we heard from the High Speed Rail on this blog, the government was taking it over as the system was unable to service its debts. The government takeover was necessary to get the political leverage so that the state banks would re-do the loans at a lower rate. Sure enough, the news came out today that the government banks had agreed to refinance the loans...
The Taiwan High Speed Rail Co. (THSRC) yesterday secured a total of NT$ 382 billion in loans from a bank consortium at an average interest rate of 1.8%, helping to relieve the firm from its heavy financial burden. The THSRC also pledged to assist the state-owned shareholders to obtain more than half of the seats on the THSRC board, which is scheduled to be reshuffled next week.

An official pointed out that the bank consortium consisted mainly of eight state-owned banks, including the Bank of Taiwan and the Land Bank of Taiwan, but the bank consortium intended to solicit the participation of several private banks. According to local media, some private banks, including Taipei Fubon Bank and the Chinatrust Commercial Bank, have shown interest.
The comment about the HSR company helping government-connected people get a seat on the board reminds me of this article on China's burgeoning private equity muscle. Private equity firms typically invest in companies in which they see a gap between current management's ability to make money and their own assessment of the potential of the firm. They then chuck out the previous underperforming management, bring in experienced pros to run the companies, and sell off the firm after a few years at large profits, which are repaid to the original private equity investors.

This business has largely been the domain of westerners but China now has the money to begin focusing on Taiwan's listed corporations. Once they have purchased shares it will be easy to install pro-China lackeys, or Chinese themselves, on the boards (Taiwan shareholders typically don't vote). I'm sure you'll be shocked to find that economic relations are not apolitical, despite the claims of thoroughly clueless futurists. Economist Peter Chow wrote a great piece in the Taipei Times the other day on some of the really deep issues involved in moving closer to China.

Screen capture from Taipei Times the other day. Impersonators of Sun Yat-sen and Chiang Kai-shek with a local political candidate.

Quote of the week: I had my students do pro/con essays on the topic of living together, and one male dolefully informed me that one of the disadvantages of cohabiting is that "you must be honest" with your partner.

Those of you into trivia can answer this one which appeared on H-Asia:
I wonder if anybody knows about Hollywood films on Taiwan or Taiwanese issues produced in the 1950s-60s. Is there any equivalent of ‘Sayonara’ or ‘The World of Suzie Wong’ set in Taiwan? There have been many studies on the culture during the Cold War and the American representation of Asia, but I haven’t come across anything specifically addressing Taiwan, therefore I would be grateful if anybody can kindly let me know.
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Daily Links
Sad to learn Taiwan lost 400 historic puppets in warehouse fire. Taiwan What's Up says foreigners will soon enjoy lower tax rates. Slightly lower. Over at China Beat there is a reallllly great post on the reconstruction of Hsiaolin Village by Paul Katz. Finally, don't miss this excellent interview with one of the architects of the Taiwan health care system in the NY Times.
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Saturday, April 13, 2013

Explosive Device Found on HSR?

Local puppies on the prowl. Locals sometimes warn us, owners of two black dogs, that black dogs have the sweetest flesh and thus, we should be careful lest they are kidnapped for a local dog meat restaurant.

CNN reported last night:
The Taiwan High Speed Rail Corp. train stopped at Hsinchu City after someone found the explosives in two pieces of luggage shortly after 9 a.m., according to police.

Police said the luggage was emitting white smoke, and people nearby could smell gas. The setup included 5 liters of gasoline and an activated timer device to trigger them, police said.

Investigators believe the explosives would have detonated had authorities not intervened, according to police. They said they believe the blast would have taken out one carriage.
But the TT reported today:
Police found that the luggage contained an unidentified liquid in cans and alarm clocks, as well as white particulate matter. The items were later dismantled by the bomb squad and taken to the Criminal Investigation Bureau for further examination.

Ku Jung-tseng (古榮增), deputy director of the High Speed Rail Police Division, said no detonator was found.
This is probably someone out to kill someone for insurance or similar, or a revenge attack on the HSR for some real or imagined slight. Probably not terrorism of any kind.
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Sunday, December 03, 2006

Bullet train to turn profit within 24 months.

Bigfoot exists, UFOs are alien transport vehicles, and the Taiwan Bullet Train will make a profit in its 2nd year.

Taiwan High Speed Rail Corp (THSRC), which has built Taiwan's first bullet train system and is still awaiting the final go-ahead to begin service, said that it expects operations to be profitable by its second year.

'We are targeting operational profits in the second year of commercial services,' company chief executive officer Ou Chin-der told XFN-Asia on the sidelines of a media gathering.

It expects to break even 12 months after its first commercial run.

Here's the plan:

He said each train has 989 seats, of which 66 are business class. The fare for each Taipei-Kaohsiung journey is 1,490 twd for economy class and 2,400 twd for business class.

'The plan is for 60 pct capacity during weekdays and 80 pct on weekends,' Chiang said.

Samuel Lin, company deputy chief operation officer, said the bullet train reaches speeds of 300 km per hour.

Among the THSRC's operational targets is passenger volume of 150,000 passengers per day, representing a 70 pct load factor. It will provide services to Taiwan's western transport corridor, where 94 pct of the island's 23 mln people live.

The government is going to try to assure profitability by shutting down several express trains on the ordinary lines, forcing customers to the bullet trains. I suspect this is because, as many will find out, a passenger on the bullet trains is going to take about the same amount of time to get from point A to point B as he would have on the ordinary train. Most of Taiwan's train stations are centrally located and accessible from anywhere in the city. The bullet train stations, by contrast, are in areas far from the city center. The real justification for the bullet train lies here:

An official quoted estimates from the Council of Economic Planning and Development that construction of the high-speed rail network has created 480,000 jobs and may contribute 1 percentage point to economic growth.

Well, it's true that if you spend tons of money on public construction, an economic stimulus will result. But once the construction is over, those jobs will melt away. Essentially Taiwan is on the same construction-industrial state treadmill that Japan was, with large infrastructure projects driving local politics and reorienting local businesses on construction, in turn requiring further provision of infrastructure to keep the System going.

Michael Klein sent me some pictures of the inside of the train. It's quite attractive, and the business class seats all have built-in electric plugs so that you can plug in your laptop, camera, etc. Cool.

Sunday, October 09, 2005

Random pics from a weekend of driving

On Friday I ran down to Taliao outside of Kaohsiung, which is my least favorite place on The Beautiful Island. The streets are a madhouse, the air is hideously polluted, and there is nothing to do. The former township magistrate, Hsu Chih-ming (徐志明), recently got sent up for 12 long ones for bribery and kickbacks stemming from a swimming pool contract in 1994. The city of Kaohsiung located its garbage dump on the borders of the town. When I lived there in the late 1990s, they'd burn in it off sometimes, a giant, open-air incinerator that stank like a battlefield in the evening when they disturbed it as the trash trucks arrived....

I thought I'd post some stray pictures I took driving down to Taliao and up to Hsinchu this weekend. Enjoy.


The new highway, often empty.
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This store, located on Hwy 25 between Kaohsiung and Pingtung, in a totally Taiwanese working class place with no foreigners, sells pasta. Go figure.
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Stuck in traffic, I took a picture of this busy tea stand.
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Taliao is the usual mix of factories and farms. Here's the farm side.
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On Saturday morning we left for Hsinchu. I grabbed some pics of the betel nut girls hard at work along the route to the highway.
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Traffic was murder, and the cameras looked on in benign indifference as everyone was driving every which way.
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Many people cannot be bothered to wait in line, and thus start a second line to the exit ramp, slowing everyone up, and threatening the safety and convenience of others. Naturally the police show no interest in this behavior.
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A few minutes after we got on the main highway, we shifted to the second southern highway, highway 3, by taking highway 4, a short-east west connecting expressway. It runs along the river, showing great views of Taiwan's interesting geology.
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Here what's under the ground is shown in glorious detail. This part of Taiwan is gravel washed down from the mountains yesterday in geological time.
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The lines were unpleasant. Fortunately a cold front made the day a comfortable one for driving. There was actually a strong wind, something rarely seen in Taiwan during the day.
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I have always wanted to get a picture of this factory, which lies next to the highway.
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Traffic on the new highway was fine.
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A bucolic scene, with the high speed rail slashing across the background.
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Hsinchu was all about family stuff. The highlight of the weekend was probably ordering take out at the Vietnamese place around the corner from my sister-in-law's house. Unalleviated domestic dullness it was, and very enjoyable.
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My wife and her two sisters return from a foray into the wilds for a shaved ice treat.
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The rooftops of Hsinchu. A gorgeous day in which the mountains were clearly visible in their darkly purple enclouded glory.
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Just a neighborhood.
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Stray dogs patrol a street. In the background is the high speed rail system, with part of the new station just visible as a half-shell on the left.
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Friday, November 11, 2005

Friday, November 11, Taiwan Blog Round Up


Friday is in sight again, so let's take aim at Taiwan's multitude of quality bloggers:

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The TVBS controversy once again heads the list of Taiwan blogging. From the KMRT scandal that spawned it to the TVBS mess, this affair has been one long DPP roast, with the DPP looking weak, divided, and ineffective. Maddog leads a crop of posts with a fantastic review of the real issues:

Another not-so-funny thing that happened on the way to the "Chinese Bank" was that threats were made against the lives of both Government Information Office (GIO) Minister, Pasuya Yao, and Premier Frank Hsieh (both DPP) -- as well as their families -- multiple times in recent days, in fact, after KMT lawmakers Hung Hsiu-chu and Kuo Su-chun publicized Yao's and Hsieh's home and office telephone numbers as retribution for the charges made against TVBS. In both cases, suspects were apprehended.

It's easy to see who the authoritarians are. They are the ones who live by threatening the lives of others. Whatever you may say about the TVBS scandal, the pan-Greens have not threatened the lives of any of the pro-China politicians over it. The Blues simply cannot live in a world with freedom and without violence. One could pity them, for surely their lives must be an inner hell, were it not for the pain they impose on others. Tim points out that the DPP's failure to crack down on this behavior is having negative consequences for Taiwan's democracy:

To me, this sure looks like the DPP is doing nothing to even discourage such nonsense. I wouldn't mind seeing the UDN claiming a DPP "dictatorship" and "White Terror" if the DPP were actually clamping down on pan-blue politicians, media, and followers, but it's absolutely untrue.

I'm not suggesting that the pan-greens make "blacklists" like the ones the KMT used during Taiwan's real "White Terror" period -- you know, the kind of list you could get placed on if your kid spoke Taiwanese in school and which could result in the police taking you away in the middle of the night, never to be seen again. I'm simply talking about applying the law equally [UPDATE LINK 2*] and actually prosecuting real crimes. Libel isn't good for society, especially when its goal is to destroy Taiwan and its people.

Please go back and read my "A LAUNDRY LIST OF PAN-BLUE VIOLENCE" if you have any doubts about how serious I am.

Lots of people don't get it: the Blues want to destroy democracy on the island, because they know in the long run that it will lead to an independent Taiwan in which a coterie of mainlanders and their cronies, hangers-on, lapdogs, and camp followers will have no influence. The pan-Blues are also nursing grandiose dreams of influencing China's future as well. It's not hard to guess what all this violence is about.

the leaky pen wrote on the poet Tu who threatened Hsieh, agreeing with Tim:

This afternoon Premier Hsieh appeared on the news to say he would not sue Du because, he said, this was a matter of "personal gratefulness or resent" (個人的恩怨). I disagree, actually, and think that Hsieh should sue the man in order to dissuade others from repeating the process in order to glean fame or notoriety for a cause via "terroristic" methods. Indeed, as Confucius teaches us, examples are the strongest means of education.

Another aspect of this affair is the tremendous amount of sheer unmitigated hate it reveals on the pan-Blue side. There are those who deny that hate between the two sides is a problem. They are wrong. There is a vast reservoir of vicious hatred, especially among the over-35s, that crops out in public only in events like these.

ESWN has been blogging on this, relying on polls from the anti-Taiwan Apple Daily for his poll data. He does have a couple of informative posts on the problems for us bloggers:

It has been said that the strength of a blog such as this one is the dogged determination to follow through a specific event through collating multiple sources written in Chinese. On the matter of TVBS in Taiwan, I admit defeat as far too much is happening. On just today, the Taiwan media dumped dozens more new leads, most of which were probably spin or outright lies. As illustration, I will list some translated headlines from Yahoo! News and Apple Daily for the day of November 5:
  • CNA: GIO MInister Pasuya Yao forgives senior citizen for threatening phone call
  • CNA: Former President's Secretary Chen Che-nan's nephew-in-law denies that he is "Deep Throat" nor has he separated from his wife
  • TVBS: Who is "Deep Throat"? A gangster named Huang named four people
  • TVBS: President complains that there are too many "Deep throats"
  • ETToday: Independent legislator communicates with "Deep throat" via code and/or fax about KRTC scandal
  • UDN: Huang says "Deep throat" is a military school graduate and not a gangster
  • TVBS: Individual named Liu denies having provided casino photo
  • China Times: DPP legislator said "Liu showed me the photo"
  • ETToday: Government audit department says NT$10 billion missing in KRTC
  • ETToday: Vice-President Annette Lu asks the corrupt people to turn themselves in so as not to damage the Democratic Progressive Party and Taiwan
  • FTV: President: Unificationists and media combined to debase Taiwan
  • FTV: Chen Che-nan promises to mail his medals back to the President's Office
  • UDN: GIO Minister Pasuya Yao is certain that TVBS broke the law
  • Taiwan Daily: GIO Minister Pasuya Yao denies making call to ET Today about coverage
  • ETToday: Shut up TVBS! Don't bring up freedom of speech every time!
  • Apple Daily: Chen Che-nan's assets grew by NT$10 million per year
  • UDN: What did Chen Che-nan do under the watch of Chen Shui-bian?
  • UDN: Chen Che-nan used the President's accountant to play the stock market
  • Apple Daily: Insider trading from the President's Office; accountant was in tears when interrogated by the prosecutor

There's just way too much info, and not much of it is reliable. I had wanted to blog on it all last week, but when the Taipei Times ran three feature stories on Monday alone, well, my heart sank. I admire people like Tim and ESWN who take the time to sort through all the BS to find the diamonds beneath.

The scandal was completed as KMT hacks trotted out attack lines claiming anti-KMT bias in the English press that the pro-KMT blog Taiwan's Other Side had tested a couple of weeks ago and I refuted easily then with a simple web search. Perhaps TOS should have warned his friends that they'd get burnt if they pulled that crap.

Citing one example, Su said the Taipei Times failed to cover the news of the arrest of Tu Shi-san (杜十三). The news ran on page 3 of yesterday's paper.

This allegation was incomprehensible. Why would the Taipei Times refuse to cover something that reflected negatively on the pan-Blues if their object was to smear the Blues? Su put a letter to the editor in the Taipei Times today, which, as the paper laughingly pointed out, neglected to address the real issue. Ironically, Su's claim that the English-language papers were supressing the KMRT scandal was made two days after the Taipei Times ran not one, but three features articles on the same day on the scandal. Wandering to Tamshui abused Su mercilessly:

And in a completely unrelated piece of legislative idiocy, KMT lawmaker Su Qi once more made a complete ass out of himself by announcing to the world that he had discovered that the Taipei Times is actually a pan-green newspaper! (Sweet Joseph and Doggy-style Mary!!!! Where will it all end????), and that after seconds of intensive investigation of the newspaper found that it has not once carried stories about the High Speed Rail Scandal, the TVBS controversy, or the hot, sexy and violent lives of lesbian NFL cheerleaders!

One thing I'd like to highlight is Su's reversal of reality:

"Speaking from my own long-term reading experience, the reason that the international community knows so little about Taiwan is because they obtain their information from the three local English-language newspapers," KMT Legislator Su Chi (蘇起) said. "As far as I know, the Chen administration controls at least two of them."

Speaking from my own long-term reading experience in the reality-based community, foreign analysts largely have their thinking shaped by the barrage of pro-KMT propaganda they encounter from the island's elites, which are largely mainlander. One thinks of the large number of articles that have appeared recently in the international media that are essentially pro-KMT in their outlook, most recently represented by erroneous writing from Justin Logan, and Simon Tisdale in the Guardian, who actually told me in a private email about the article that he was doing Taiwan a favor. Save us the favors, Simon! I had a letter in the Taipei Times a while back explaining why well-meaning foreigners like Tisdale are wrong and playing right into KMT hands.

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Taiwan's idiotic Bullet Train has been a recent topic of discussion. Taiwan's Other Side gives this stupid project a well-deserved hack:

A quick comparison of the different transportation methods to Kaohsiung shows storm clouds ahead for the already shaky service, first approved by KMT saboteur and Japanophile 李登輝, Lee Tung-Hui during better economic times.

Airplane: NT$2000 for a 60 minute ride
Expected THSR fare: NT$1200 for a 81 minute ride
Current local train fare: NT$800 for a 4 hour ride

Such a small country doesn't need an expensive, imported rail system that sucks further dollars out of Taiwan. The rail system is incompatible with current rail lines, and is completely separate from the current infrastructure. The entire project has been designed and built in Japan, then transferred to Taiwan where Japanese and European engineers and suppliers squabble over implementation. All this contributes nothing to local economies or Taiwan.

TOS links to Wandering to Tamshui's old post on corruption in the project. He also links to the discussion at Japundit (don't miss the comments). TOS's last paragraph was particularly good:

Last month's bailout, which used a loophole to circumvent a standing legislative resolution against investing further funds, was inexplicably financed by the Aviation Development Fund, the owner of China Airlines, Taiwan's national carrier. The DPP was so desperate to keep the pet project going, it essentially got the national airline to finance its own competitor. No conflict of interest there at all, really. And let's not forget that the capital city of Taipei STILL doesn't have anything other than a bus link to the national airport.

That's right. You can take a mag-lev from Pudong airport to Shanghai, but from Chiang Kai-Shek airport to Taipei the only thing available are taxis and buses. This comparison has been explicitly made by lawmakers in the bungled high speed rail project to link Sung Shan Airport and Chiang Kai-shek airport:

The Ministry of Transportation and Communications said it's studying alternatives to building a direct train line to the international airport, but lawmakers yesterday said that the stalled project is the latest example of how Taiwan is falling behind rival China.

After six years of negotiations, last week the ministry dropped a plan to have Evertransit International Development Corp (長生國際開發) build the 36.9km transit line between Chiang Kai-shek International Airport and Taipei.

The deal fell through after Evertransit failed to secure a syndicated loan of NT$55 billion from banks by the Dec. 31 deadline, as required by the ministry contract.


The minister claimed the problem was democracy. You see, authoritarianism makes the trains run on time:

In response, Minister of Transportation and Communications Lin Ling-san (林陵三) argued that China's authoritarian system allows officials to complete projects faster -- unlike democratic Taiwan, where officials must listen to differing opinions.

"If I were the transportation minister of China, the Shanghai maglev train would have been completed in one year," Lin said. "This is the price of democracy," he added.

Although Taiwanese are proud of their democracy, many also lament the nation's fierce political squabbling, lingering corruption and the long amount of time needed to build a consensus on major projects.


I don't think the issue is really democracy. I suspect that the failure of the high speed rail link between Taipei and Chiang Kai-Shek Airport is really my fault. I did some of the translation work for the specs back in the 1990s........

....Seriously, people forget how the previous authoritarian government dragged its feet on large infrastructure projects as well. In fact, the switch from previous infrastructure systems to the BOT (Build-Operate-Transfer) system was driven by the KMT's percieved incompetence in bringing home other projects:

Over the past year and a half, the BOT model has been promoted by the government as the best route to take for big-ticket infrastructure projects in Taiwan. The concept gives the private sector the opportunity to help build and operate these public works. In the early stages, this represents profit potential for the private firms and reduced outlays for the government. Under this design, the systems are transferred wholly to the government after a designated period of operation. However, disputes have flared repeatedly since the BOT concept was unveiled in October 1996 as a formula for the north-south high-speed railway.

That article, dated 1998, shows the problems inherent in the system. The BOT concept was chosen for the Bullet Train back in 1996. It is almost a decade later and there are still no trains running. The issue is the habitual corruption and incompetence in public contracting nurtured under the KMT. Institutionalized habits are difficult to break, and I do not ever expect that Taiwan will reach the smoothly operating public corruption of the Republican-run US Congress, where a single legislator can wrangle a Bridge to Nowhere worth hundreds of millions, and a single large transportation bill can be larded with more than 6,000 pork projects.

In addition to the problems with financing, there are the problems with the stops as well.

According to a survey conducted by the ministry, the biggest concerns regarding the high-speed rail are accessibility and safety. The stations in Taipei are to be accessible from the MRT system, as they will be in Taichung and Tsoying (左營) -- the terminal stop in Kaohsiung. Other stations, however, will be outside the city centers.

The station in Taichung, which I drive past every day, is in a place where a bird wouldn't shit or die, as the locals say, far from anything. Nothing would suprise me less than to see this project fail completely. Although whatever government inherits it will blame it all on the one before.

Getting back to the Chiang Kai-shek Airport-Taipei rail link, none of the major media have suggested that the link is not being built because it would hurt the cab drivers and bus companies if it were. Yet that is exactly the explanation I have been given for why there is almost no city bus service in Taichung. The route to the airport is lucrative, and at least one bus company I can name is owned by gangsters....

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David at jujuflop analyzes Taiwan's overseas aid program:

1. The money that is given to Taiwan's allies is shrouded in secrecy. At the best of times, overseas aid often has problems reaching the people who actually need it (usually diverted into the bank accounts of various politicians and administrators along the way). Taiwan's 'under the table' deals mean that you can almost guarantee that the majority of it ends up in various officials pockets.

2. Taiwan's allies provide very little in return. Apart from giving China an opportunity to throw its weight around each year when one of Taiwan's allies nervously mentions that letting Taiwan join the UN would be nice, there seems to be no payback for Taiwan. From this perspective, all the aid is a huge waste of money.

David goes on to outline a very interesting policy for Taiwan's aid programs. Unfortunately I doubt, in the long run, that Taiwan's "allies" will remain on our side. They have too much to gain from switching sides.

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The Gentle Rant poked fun at problems with condoms:

First of all you want to be careful buying condoms in a gas station vending machine, and if you need to read the instructions you probably shouldn't be buying them at all. Besides, I thought the instructions were usually in diagram form. Regardless, always be careful of condom instructions in a foreign language.
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Erick Heroux blogs on the problems of guest workers:

I would like to remind those same authorities that I too am a guest worker, and that when they come for me, that I have more access to media channels and lawyers and other forms of struggle that one shouldn't mention in a public forum.

Erick is more right than he thinks; the new visa regs that came out a while back made all the foreigners working here, both skilled labor and unskilled, subject to the same regs, much to the indignation of the former.

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Wandering to Tamshui gives full props to DeeAnn Kuo for ripping Ma Ying-jeou over his distortions of history.

Badass mofo taidu agitator DeeAnn Kuo sticks it to feckless KMT Chairman Ma in today's Taipei Times for distorting her grandfather, tangwai activist Kuo Yu-hsin's position on Taiwan independence. Ma made the questionable assertion that Kuo was never a supporter of TI and many other outright lies in this Oct. 25 op-ed piece commemorating Taiwan's unbreakable bond with China on the anniversary of the KMT's arrival in Taiwan in the Taiwan-based China Times.
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Pinyin News blogs on the new street signs in Taichung, noting how the issue of Pinyin is heavily politicized. To the point of a ridiculous ten-year program to develop YET ANOTHER romanization for Chinese that is now in use around the island.

Today's Taipei Times has a photo displaying a sample of a new address plate for buildings. The new-style plates are larger and feature romanization. The choice of Hanyu Pinyin, however, might change if the KMT fails to hold the mayorship of Taizhong (usually spelled Taichung, following bastardized Wade-Giles), as the choice of romanization systems has become partisanized, to the dismay even of many within the DPP who would prefer a more practical approach to the issue.

Hear, hear. I can't wait until there's one system, in use everywhere in the Chinese-speaking world.

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Freedom Slopes pens an thoughtful essay on globalization and Taiwan:

Taiwan is consistently held up by laissez-faire promoters of globalisation as a fine example of a country which has benefited from global capitalism. Through the 80's and then into the 90's as an "Asian Tiger" Taiwan flourished. Taiwan's economy grew and as the country developed economically the government reformed from a one party state into a democratic society. As a model of export-based growth (remarkable for a country with few, if practically no natural resources) and a country that made a smooth transition to democratic rule Taiwan was the envy of many countries of the world. Taiwan had distinguished itself on the world stage.

It must be pointed out however that Taiwan flourished under a global capitalist system which for the most part had yet to fully integrate the huge market that China offers as well as having developed under a regime that received preferential treatment from its former main export market, the US, and strong protectionist measures and subsidies for key industries.

I think perhaps the same point could be made about the global capitalist system in general. Had China been integrated into the System in the 1960s, US incomes would have been a lot lower, Japan a lot poorer, and the Taiwan miracle would never had occurred. The recovery from the effects of two world wars was made possible because China was excluded from the system, and that vast pool of labor did not compete with Americans, Japanese, and Europeans.

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The Taipei Kid and others blogged on that ridiculous publicity stunt by Durex condoms. The Kid notes:

According to the results of this survey, the Taiwanese have the highest rate of vibrator use in the world (that explains all the Passion Stores). Their rate of actually getting laid, however, is pretty low (eighth from last).

Absurd. Peking Duck roasted this one properly:

The most partners last year...the least satisfied this year...the most faithful lovers two years ago... Maybe the Durex sex survey is nothing but an inflated publicity stunt? Like that funny guy they dress up as a huge Durex condom who walks all through Lan Kwai Fong. (Do they still do that?)
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Fred Shannon describes theories of language acquisition, an important topic for English-crazy Taiwan.

Over the last thirty years, researchers have generated a number of theories in order to better understand and explain human behavior. Scholars working in disciplines such as sociology, psychology, linguistics and education have made great contributions in the field of second language acquisition (SLA) research. SLA theoretical perspectives, like those in other social sciences, are dynamic in that hypotheses are constantly evolving as new information about language is produced.

The article describes Krashen's theories and their fallout. I personally think that Krashen is totally wrong and that his work is simply an example of poor, ethnocentric science, and I think the experience of Chinese language learners is a good source of examples why. Perhaps I'll blog on that someday.

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Cold Goat Eyes talks about how great his job is:

I write this post not because I am a self-satisfied smug prick, but (a) because it is Thursday and I am in a good mood (b) I wanted to be a little more positive after my last post and (c) I wanted to address the balance of cyberscript concerning working in Taiwan. In the weeks prior to leaving the UK, I spent a lot of time surfing the net, looking for the opinions and experiences of Westerners here, especially on message boards such as Forumosa, and found them to be full of pious arseholes who are unhappy with their miserable lives here and use such methods as a way to vent their spleens.

If you are thinking about coming to Taiwan, and you have stumbled upon this weblog, looking for information as I was 12 months ago, then come. It's great.

An American in Taiwan blogged similarly:

Having said that, it is pretty easy to make decent money here. I work approximately 30 hours a week at my school. That is where my bread is buttered, so to speak. The school sponsors me for my work visa, and my health insurance comes through them. A few weeks ago, I began working at a kindergarten four days a week, for two hours in the morning. This pays well, and I get a free lunch out of the deal. The kids are adorable, and it is really easy to teach. I pretty much figured out that if I can make them laugh a little, then I've got their attention for maybe ten minutes. After that, it's just a cycle. Make them laugh, teach for ten minutes. They really don't even mind if I use the same material each time. Kids are a bad comic's perfect audience.

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One of Taiwan's most urgent problems is the vexing lack of taste among its females, particularly outside of Taipei. The Lost Spaceman describes the problem:

I've always found fashion choices by Taiwanese women to be utterly baffling. Mind boggling, even. Not a week goes by when I don't stand at the window of a local boutique, brow furrowed at the green and yellow sweater/short combination with "matching" knee socks and gold shoes. Invariably, i turn to Iris and wonder aloud: "who in there right mind would think THAT is a good idea? It looks like woven barf."

C'mon, Spaceman. You're too kind. My wife and I often fantasize about a new fashion magazine called DON'T, taking off from Glamour's famous page, which is nothing but pics of these women.

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Taiwananonymous remarks on a common and amusing phenomenon in Taiwan, one that I often indulge in myself:

In business settings, and especially at hi-tech businesses, you rarely hear "pure" Chinese. There are many English words that do not have a commonly used Chinese translation, and there are many words that are said in English for no apparent reason. Some of the English words that are common in Chinese conversation are very local to the business environment, while some are universal. In my opinion, the funniest example of mixing English into Chinese sentences is when English verbs are used with Chinese verb complements.

Hi-tech creole emerge-chu-lai in Taiwan....

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MeiZhongTai points to the US commission on China and security and its new report on Taiwan.

The US-China Economic and Security Review Commission yesterday submitted its annual report to Congress. Recent blogroll addition East Asia Watch has the synopsis.

The commission was created by Congress in order to:
monitor and investigate and report to Congress on the national security implications of the bilateral trade and economic relationship between the United States and the People's Republic of China.

Previous reports by the commission can be found here.

The report called for the US to give Taiwan AEGIS warships and generally upgrade the island's weapons. I hope that it will stimulate the US to reconsider the current arms package, which I do not think provides useful weaponry for the island. The Taipei Times also has an article:

In answer to a question about the special arms budget bill stalled in the Legislative Yuan, Robinson said that the imbalance of force in the Strait in favor of China "has increased so markedly since that arms package was initially configured, we probably have to be thinking about the next echelon of equipment and technology transfers from the United States."

Asked whether that meant the AEGIS, Robinson said at first that he did not want to "speculate too much" about it, but added, "I would only take note of the fact that with 700 ballistic missiles trained against Taiwan, and increasing at the rate of about 150 a year now, it would seem to me that that kind of AEGIS air defense capability is relevant and becoming more relevant over time."

Robinson's estimate of 150 missiles added annually is much higher than earlier estimates and higher than the figure used in the commission's report. A Pentagon report on China's military this summer said China is adding 100 missiles a year, while the commission report put it at 75-120 a year.


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Like MZT the impressive blog East Asia Watch made it onto my blogroll this week. There's several good articles on Taiwan-related issues there already, among them this view of the health system:

Hsiao argues that the lack of public participation is what has caused the leaks in the boat. Of course, it could never have had anything to do with the fact that these sorts of systems are simply unsustainable in the long-run without serious, debilitating financial crises. And apparently, politicians are wary of invoking voters' wrath by supporting premium hikes. Who would have thought?

I do not share EAW's pessimism about government health care. No one in their right mind could say that the US system of private health care is a success, especially given new research that came out a couple of weeks ago showing how Americans get the worst service and pay the most. The US just wasted $300 billion to murder 100,000 Iraqis and wreck its military, image, and moral ascendancy; it can certainly afford to spend like amounts on health care. It is high time we switched over to the better system used throughout the civilized world.

My experiences with the system here in Taiwan have all been positive. We go to the local teaching hospital, the China Medical College, where we get excellent service from US-speaking docs, most of the time.

As EAW correctly notes, the system is under severe financial stress because the initial co-pay is set fantastically low. Last month my son had a filling done for NT$150, or about US$6. I had a mouthpiece made so I wouldn't grind my teeth for the same price. My wife has had serious dental surgery for equally inane prices. The same problem has happened in many other aspects of Taiwanese life, such as low water and electricity prices, the lack of food and safety regulation, and so on. The populace needs to be educated in the simple mathematics of $150 copayments. An additional problem not covered in EAW's piece is the rampant corruption due to -- who would have imagined it? -- the lack of oversight in the system.

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Among a series of good posts this week, Rank drools at the thought of the incoming hordes of Chinese tourists:

In the wake of a just-completed trip to Taiwan by a Chinese tourism official (who was, officially at least, visiting in his private capacity), it now seems increasingly likely that Taiwan will be hosting increased numbers of Chinese visitors in coming years. And if this comes to pass -- doesn't your heart thrill with anticipation when you contemplate the myriad ways in which pro-independence forces will deliver messages of defiance and, it may be hoped, raw obscenity, to their, ahem, mainland compatriots?
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Sun Bin also has a bunch of good stuff this week, including some discussion of why China has the advantage over Japan in the gas field race. Sun! Of course Japan will get that gas out of there. We're talking about a nation that built a whole airport on stilts. Cost is no object! Sun Bin also has useful information on the various contested islands in the South China Sea, another potential flashpoint for a war.

China's claim on South China Sea is based on its claim on the coral islands Sisha (Paracel, controlled by China, disputed by Vietnam), Dongsha (Pratas, undisputed, controlled by ROC), Zhongsha (Macclesfield, claimed by China and Philippines, unoccupied but controlled by Philippines), and Nansha (Spratly).

Spratly, the most contested islands group, was inhabited by Chinese fishermen and has been controlled by ROC navy before the 1949 revolution.

Solid posts that point to a serious problem the independence crowd keeps whistling past: Taiwan's claims on areas that don't belong to it. Not only will independence bring us into conflict with the Chinese, but even if acheived, Taiwan's mad claims on areas it has no historical or cultural link to will only be cause for trouble. In the event of independence these islands will have to be given up by Taiwan.

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Taipei Nights discusses the military budgets of China and the US:

I was talking politics with an American friend the other day. We got onto the topic of a potential invasion by Mainland China, and began trading scenarios. He was of the firm belief that America would step up to the plate to defend Taiwan, and that once America's mighty army becomes involved in a conflict the outcome is determined. His argument was that American military spending eclipses China's (their closest rival) by a factor of over 5. This chart may help you visualize the differences. While this is true, at least approximately enough as PLA expenditures and profits (they have numerous business interests) are hazy at best, I exhorted him to recall that a billion dollars goes much further in China than it does in the U.S.A. This is often forgotten by individuals throwing around military expenditure figures. I've no idea what an average American soldier's salary is, but if we attribute it a value of the U.S. GDP/Capita ($44 000) and multiply this by the number of active troops (1 427 000) we get the princely sum of around $63 billion. In China's case the GDP/Capita is about $5600 (I doubt soldiers make anything close to this amount) and the number of active troops is 2 250 000, which puts their sloppily estimated payroll at about $12.6 billion.
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SHORTS: Scott Sommers collects his posts on the history of English in Taiwan. Poagao describes Blues Bash 2. Mutant Frog uploads pics from a trip to the Penghu. Jerome Keating expresses the frustration that many of us who love Taiwan feel with a parable about Taiwan. Broken Bulbs blogs on design in Taiwan again. For those of you thinking of a mail-order bride, asiapundit discovers that ordering a Vietnamese girl has never been easier -- just add to cart. ApplePea talks at length about traveling in Tamshui. Lots of comments on the many positive outcomes in the US elections this week, although Texas regrettably remains the realm of bigotry in which people are proud to hate. BrianMathes warns on local ATMs. Kaohsiung Diary posts some great fotos of eco-touring in Tainan. Don't miss the podcasting at Getting a Leg Up, The Bluesman's Killing Floor, Misadventures in Taiwan, and Ugly Expat. As always, great photos at 35togo, Unplugged, the forgetful's photo gallery, the forgetful's photo gallery, amateur commune, andres, Clarke vs Matt, Cat Piano, T_C at Fotolog, battphotos, Fotologging Taiwan, Photoactionboy, leftmind, MaMaHuHu, Everything Visible is Empty, Roger in Taiwan, Love Songs (Are for Losers), Photoblogging Taiwan, a better tomorrow, Eight Diagrams, Tagging Taichung, and This Life.

Pat Golemon offered his hilarious image:



And in celebration of the great victory in Dover, PA, in which the Forces of Darkness got eight of their butts kicked:



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New Blogs on the roll this week:

  • East Asia Watch
  • Love Can Stop Fear Blog of one of my former students.
  • Everyone is a Foreigner
  • Little Fish's Space
  • Oh Sh_t, It's Mario!
  • Touch of Feminism
  • Kaohsiung Diary
  • oriental princess
  • etahdee's private room
  • The Garbage Bin
  • The Maverick's Hideout
  • Tagging Taichung Taichung Graffiti Photo Blog
  • My Diagnosis
  • In Hell There are No Nitelights
  • BattPhotos