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Why Taipei’s MRT trumps Singapore’s
TAIPEI’S CITY Hall is so proud of its mass rapid transit (MRT)
system that it runs a competition every year, asking people to send in
poems about the MRT. I can see why. The MRT is clean and comfortable
(in addition to chewing gum, the nasty habit of betel chewing nut has
been banned). People queue up in a civilised fashion before boarding
trains. And, when the doors open, they don’t barge in before passengers
can exit.
Signs and announcements are in Chinese and English and all
carriages have electronic displays showing which station is coming up
next. Every carriage has special seats for old folks, pregnant women or
people with disabilities. I’ve never seen fit, young people pretending
to be asleep in these seats.
However, the best part about Taipei’s MRT is its frequency.
According to Taipei Rapid Transit Corp (TRTC), the company that runs
the system, trains arrive at two to four-minute intervals at peak
hours. Off-peak, it is four to seven minutes.
In reality, it is much more frequent. I know because I’ve timed
it. At peak hours, trains come as often as every minute. As for
off-peak hours? Well, I’ve never had to wait more than three or four
minutes. As a result, even during the morning rush hour, the trains are
never as packed as they are in Singapore.
TRTC has won praise not just locally but internationally. It has
been ranked No 1 for reliability for four straight years (2004 to
2007), according to the Nova/CoMET International Railway Benchmarking
Group (of which Singapore’s SMRT Corp is also part).
All this got me wondering just how TRTC is able to deliver such a
world-class MRT service. Perhaps, it doesn’t have to transport as many
people as in the crowded Lion City? Perhaps, it’s government-owned and
isn’t under pressure to make as much money as possible and can run more
trains?
So, I pulled up some numbers (see table). And the broad conclusion
is that Taipei proves it is possible to offer a high-quality,
high-frequency and affordable MRT service without losing money. It also
suggests that certain services, such as public transport, tend to
function optimally as natural monopolies and ought not to be owned by
companies that seek to maximise profits.
Let’s look first at the one common element between the two: the
cost of taking a train. Average ticket prices in Singapore and Taipei
are about $1. This is pretty low by international standards, as anyone
who has had the misfortune to take the London Underground knows.
Singapore and Taipei are also pretty dense cities, but the latter
packs more folks (5.5 million of them) into a smaller area (272 sq km).
In comparison, Singapore is home to 4.6 million residents spread over
some 692 sq km.
As such, in terms of coverage, Singapore’s network of five MRT lines is more extensive, totalling 109.4km, versus TRTC’s 74.4km network. However, TRTC has more stations on its smaller network, which means less distance between stations and greater convenience for commuters.
MORE TRAIN RUNS IN TAIPEI
Just how many people take the MRT each day? In 2007, Singapore’s
MRT moved an average of 1.56 million people a day. That’s just over a
third more than what TRTC transported last year. So yes, TRTC’s network
is smaller and it moves fewer people, which is one reason it feels less
crowded.
However, what is illuminating is the difference in frequency. Last
year, TRTC made an average of 2,171 train runs a day. SMRT clocked in
at just over 1,000 a day for its fiscal year ended March 2008. This is
not strictly an apples with apples comparison. SMRT’s system is older,
has heavier loads and travels further than TRTC’s — factors which play
a role in how often trains can be run. The comparison also doesn’t
include data from SBS Transit, which runs the North- East Line. But, as
SMRT accounts for more than four fifths of total MRT ridership, it is
fairly representative of the whole picture.
Since February this year, SMRT has added about 900 extra train
trips each week. According to the company, on average, its train
frequency during peak hours is between two and five minutes. During
off-peak hours, it is now between 3.5 and seven minutes. Given the
existing signalling system and infrastructure, its average peak-hour
frequency puts it among the top 20% of the world’s major metro
operators, SMRT adds.
Source: Land Transport Authority statistics in brief, SMRT, TRTC Annual Report 2007.
SMRT MORE PROFITABLE
Still, it’s safe to assume that its bumped-up frequency continues
to lag TRTC’s. And this, to an extent, is reflected in SMRT’s
bottomline, which is much heftier than TRTC’s. In FY2008, SMRT’s rail
operations saw revenue of $436.9 million. Earnings before interest and
tax was $129.3 million. In comparison, TRTC saw approximately $415
million in fare revenue in 2007 and just $41.3 million in pre-tax
profit.
TRTC is 73.75% owned by the Taipei City Government. The Ministry
of Transportation and Communications owns a further 17.14% while the
Taipei County Government owns 8.75%. Clearly, public-listed SMRT’s
returns on its rail operations are far better for its shareholders than
TRTC’s. However, TRTC — which has been profitable every year except its
first two — is better for its commuters, who have been inspired to pen
a poem or two in praise of their well-regarded metro.
Sunita Sue Leng, previously an associate editor at The Edge Singapore, is now based in Taipei and writes on Greater China issues