Taiwan Defends NT$352 Billion Yilan High-Speed Rail Plan as Cost and Railway Risks Draw Opposition

A 28 Minute Journey at the Center of a Costly Debate

Taiwan's Ministry of Transportation and Communications is defending a proposed NT$352.18 billion high-speed rail extension from Taipei's Nangang Station to Yilan County, despite calls from former senior officials and railway workers to stop it. As of January 14, 2026, the proposal is heading to the Executive Yuan for final review, with the government arguing that eastern Taiwan needs more railway capacity and opponents questioning whether the benefits justify the expense.

The Railway Bureau says the extension would reduce travel time between Taipei and Yilan from 90 minutes to about 28 minutes and increase total rail capacity to more than three times its current level. Those figures put two different promises at the center of the debate: a much shorter journey and room to carry many more passengers.

Former Minister without Portfolio Chang Ching-sen and former Transportation Minister Ho Chen Tan argue that a conventional direct railway would be a better use of public money. The Taiwan Railway Union also warns that the faster service could draw passengers away from Taiwan Railway Corp, weakening its finances and putting railway workers' job security at risk.

The disagreement reaches beyond train speed. It involves the protection of the Feitsui Reservoir watershed, land acquisition in Yilan, connections to local transport and responsibility for a project expected to require about 11 years of construction after final approval. For passengers, the practical issue is how quickly they can reach their destination. For the government, it is how to meet future demand without creating an expensive financial burden.

What the Extension Would Build

The proposed corridor stretches 60.6 kilometers from Nangang Station toward Yilan County. It would pass through New Taipei City's Xizhi, Pingxi, Shuangxi and Gongliao districts before arriving in Yilan's Toucheng Township. Of the full route, 59.6 kilometers would involve entirely new construction.

The plan includes a new station southeast of the Yilan County government complex and a maintenance depot farther south. The depot would support the upkeep of trains serving the extension. Much of the railway would run underground, a feature the government presents as part of its response to environmental and route planning concerns.

The Railway Bureau's NT$352.18 billion estimate already includes inflation and projected increases in construction expenses. That means the estimate attempts to account for prices rising during the development period, rather than calculating the entire project at today's prices.

The expected construction period is approximately 11 years, conditional on the project receiving final approval. That places the proposed travel improvements well beyond the immediate review process. The present decision concerns whether to proceed with a large, lengthy investment, rather than whether a new service can begin soon.

Why the Government Turned to High-Speed Rail

Yilan's transport difficulties have been a concern for years. Highways connecting the capital with the eastern coast experience severe congestion, particularly during weekends and holidays, when residents and visitors compete for road space.

In 2019, the transport ministry raised the possibility of extending high-speed rail northward as an alternative to the stalled Taipei-Yilan Line. That proposed direct railway had been held up for years by environmental concerns involving the Feitsui Reservoir watershed, the area where water drains toward the reservoir.

The ministry argued that a high-speed extension could avoid the sensitive reservoir area. Although potentially more expensive, it could make up for a longer route by allowing trains to travel faster. This became the basis for considering a different railway solution to the same transport problem.

Taiwan High-Speed Rail Corp initially pointed out that its Build-Operate-Transfer contract covered only the route between Taipei and Kaohsiung. Under that arrangement, responsibility for building and operating infrastructure is governed by a contract before its eventual transfer. Extending the network therefore also involves the scope of the existing operator's mandate.

The main milestones described in the proposal and its development are:

• 2019: The transport ministry raised the high-speed extension as an alternative to the stalled Taipei-Yilan direct railway.
• 2025: The extension passed an environmental impact assessment with conditions concerning land acquisition and other project arrangements.
• January 14, 2026: The ministry continued defending the proposal as it moved toward Executive Yuan review.
• 2027: New N700ST trains were expected to begin arriving in Taiwan and enter service.
• After final approval: Construction of the Yilan extension was expected to take approximately 11 years.

Why Officials Rejected the Direct Rail Alternatives

The Railway Bureau says it evaluated both the high-speed extension and a direct conventional railway before submitting the high-speed plan for Cabinet review. Its defense rests on the balance between speed, carrying capacity and environmental protection.

The original direct railway alignment would have crossed the Feitsui Reservoir catchment area, drawing strong opposition from environmental groups. The government also considered routing the direct line along the northeastern coast, but judged that option unviable because it would save little travel time and require the demolition of numerous residential buildings.

The high-speed proposal offers a different combination of route and operating speed. According to the bureau, its largely underground alignment would avoid the reservoir problem while delivering a substantial reduction in travel time.

Yang Cheng-chun, deputy director-general of the Railway Bureau, said Taiwan High-Speed Rail and Taiwan Railway Corp should serve complementary roles. He presented the extension as a way to make commuting between Taipei and Yilan County possible within the same day, connecting the county more closely to the capital.

The projected reduction from 90 minutes to 28 minutes amounts to 62 minutes saved on the stated rail journey. The bureau's capacity forecast is a separate benefit: more than tripling current capacity would allow the railway system to accommodate more passengers, alongside moving them faster.

Former Officials Challenge the Price

Chang Ching-sen has called for the project to be halted, questioning the logic of spending roughly NT$400 billion on high-speed infrastructure over a relatively short distance. The Railway Bureau's estimate is NT$352.18 billion; Chang used the larger approximate figure in his criticism.

Chang argued that Yilan is only 40 to 50 kilometers from Taipei by conventional rail measures. His objection focuses on whether such a costly system is justified for that distance, while the proposed high-speed corridor itself would extend 60.6 kilometers.

Ho Chen Tan has long supported the direct Taiwan Railway option. He argues that the high-speed extension would be poor value for money and could damage the financial sustainability of the conventional railway network.

Ho also warned that the project might never break even, leaving future generations with debt. Breaking even means earning enough to cover costs. His concern places the funding burden alongside the government's promises of faster journeys and greater capacity.

The two former officials favor improving conventional rail connections rather than committing to high-speed technology for this route. Their opposition challenges the government's choice of system, as well as the scale of spending.

Railway Workers Fear Lost Revenue

The Taiwan Railway Union and civil society groups have raised objections of their own. Union representatives describe the extension as a threat to Taiwan Railway Corp because passengers attracted by the faster high-speed service could leave the conventional network.

Chu Chih-yu, secretary-general of the Taiwan Railway Union, warned of an annual revenue loss of up to NT$800 million and a much larger financial impact over three decades. He stated:

If the HSR line is approved, the TRC could lose up to NT$800 million, adding that losses over 30 years could top NT$58 billion.

The union's figures put both immediate revenue and lasting financial pressure into the debate. NT$800 million a year multiplied by 30 years equals NT$24 billion, while the stated projection for losses over 30 years exceeds NT$58 billion. The basis for the larger total was not explained, and no final approval date or opening date for the extension was given.

Union representatives warn that lost income could weaken the corporation's financial health and threaten job security. The government, by contrast, describes the two railway systems as complementary. Whether they attract different passengers or compete for some of the same journeys is central to that disagreement.

Transfers Could Change the Passenger Experience

Wu Shih-chao, executive director of the Taiwan Railway Union, argues that the high-speed extension would not actually be faster for most passengers because they would still need to change to local trains or buses after reaching Yilan.

Wu said high-speed rail would be only 20 minutes faster than a new direct conventional railway, while costing substantially more. His comparison concerns the proposed alternative railway, whereas the bureau's 90 minute to 28 minute comparison concerns the improvement promised by the high-speed extension.

A passenger traveling beyond the new station would need to include transfer and onward travel time when calculating the full journey. That is why the location of the station and the availability of connecting services matter alongside the speed of the main train.

The government's argument is broader than a single passenger's time saving: it also seeks additional capacity and closer economic connections between Taipei and Yilan. The union's argument brings the discussion back to the journey people actually make, including the final local connection.

Environmental Approval Comes With Conditions

The Ministry of Environment's evaluation committee approved the project's environmental impact assessment in 2025, but attached conditions. An environmental impact assessment examines how a proposed development may affect its surroundings and what measures are needed to address those effects.

The committee required the Railway Bureau to refine its land acquisition approach. It directed the bureau to secure land use rights for stations and surrounding commercial and residential zones through expropriation and formal zoning. Expropriation is the process through which authorities acquire land for a public project, while zoning sets out permitted uses for particular areas.

The requirement aims to prevent uncoordinated land acquisition from disrupting Yilan County's urban development plans. Building the railway therefore involves more than obtaining space for tracks: the station and nearby development must also fit into the county's planning arrangements.

The committee also required a more detailed land acquisition plan and mechanisms to evaluate contractor performance. Some members suggested clarifying how the performance of both operators and contractors would be assessed, and conducting a financial study of Taiwan Railway Corp.

Another condition concerned carbon accounting. Trees planted as part of the project's greening efforts would not count toward carbon credits. The restriction is intended to prevent the same environmental benefit from being counted twice.

New Trains and Other Railway Investments

Taiwan High-Speed Rail Corp is expected to manage the Yilan extension rather than a separate entity. At the same time, the company is preparing to introduce N700ST trains based on Japan's N700S Shinkansen.

As of January 2026, the new trains were scheduled to begin arriving in Taiwan the following year and enter service in 2027. They would have a bright white exterior with orange and black accents and were designed to provide greater capacity and comfort.

The fleet plans sit alongside the government's vision of high-speed rail handling long distance travel and large passenger volumes, with Taiwan Railway Corp providing regional accessibility. The bureau continues to work with the conventional railway operator on electrification and a second track for the Hualien-Taitung line, as well as improvements to the South Link Line in southern Taiwan.

The transport ministry describes the Yilan extension as a major national initiative needed for future development and says public opinions will be taken into consideration. The Executive Yuan's review places the decision between the government's case for speed and capacity and the objections over cost, conventional railway revenue, land and passenger connections.

Key Points

• The proposed Nangang-Yilan corridor would run 60.6 kilometers, including 59.6 kilometers of new construction.
• The Railway Bureau estimates a cost of NT$352.18 billion and approximately 11 years of construction after final approval.
• Officials project a reduction in Taipei-Yilan travel time from 90 minutes to 28 minutes and total rail capacity exceeding three times current levels.
• Chang Ching-sen and Ho Chen Tan oppose the plan and favor a direct conventional railway.
• The Taiwan Railway Union warns of up to NT$800 million in annual revenue losses and cites losses exceeding NT$58 billion over 30 years.
• The environmental assessment passed in 2025 with conditions on land acquisition, contractor assessment and carbon accounting.
• Taiwan High-Speed Rail Corp is expected to operate the extension, while N700ST trains are scheduled to arrive and enter service in 2027.
• The proposal is moving toward Executive Yuan review, with financial and passenger concerns still central to the debate.