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TAIPEI -- Taiwan High Speed Rail recently opened three new stations, promising easier travel across the island.

The new stations are widely expected to give a much-needed boost to local economies and tourism in northern and central Taiwan. But the struggling railway operator remains under intense pressure to put its finances back on track.

On Dec. 1, THSR's Miaoli Station opened its doors to the public in Miaoli County. A 68-year-old man who lives in Taipei but is originally from the county, stepped off a train and onto the platform. The trip used to take about an hour and a half by car, but today it took roughly 45 minutes, he said. "Transportation is easier now, so I'd consider moving back here," he added.


Taiwan's high-speed railway, which opened in 2007, was Japan's first sale of shinkansen bullet train technology overseas. The line connects Taipei in the north to Zuoying, in the southern city of Kaohsiung, in as little as 90 minutes. Changhua and Yunlin stations, in the eponymous counties in central Taiwan, opened the same day, bringing the number of THSR stations to 11.

The bullet train previously had no stops in these three counties, which slowed their development. "Miaoli County retains the culture of the Hakka ethnic group and has hot spring resorts. I expect more tourists to come," said the head of Touwu township in the county.

Having transport links is good for businesses. Yunlin Station is located near Taiwan's Formosa Plastics' petrochemical complex. It takes about 80 minutes to drive from the plant to Taichung Station in the city of the same name. "It now takes only about 40 minutes from Yunlin Station, making business trips and negotiations more convenient," said an official with Formosa Plastics' PR department.

Changhua County is also courting companies. At the official opening of Changhua Station, Wei Ming-ku, head of the Changhua County government said: "Facebook has sounded us out about a possible purchase of land for a data center," highlighting the benefits the new station may bring.

In December, THSR launched several sales campaigns, including a two-for-one deal on advance-purchase tickets to the new stations. The promotions helped push the number of daily passengers to 159,000 in December, an increase of 16% compared with the daily average between January and November.

Uphill climb

Not everything is rolling smoothly for the company, however. THSR got its start as a consortium of general contractors and other Taiwanese companies. The company was founded to build and operate the railway for 35 years. After that, the plan was to turn over operations to Taiwanese authorities under a build-operate-transfer scheme.

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